Early fraud warnings are issued before which event?

• A. Before a refund is processed.
• B. Before a payment is authorized.
• C. Before a chargeback.
• D. Before a dispute is filed.

Answer: (C)

Early fraud warnings are designed to surface risk signals before a chargeback is triggered. They give you a heads-up on transactions that look fraudulent so you can take action—like cancelling the payment, requesting additional verification, or blocking the card—before the cardholder files a dispute and the funds are reversed in a chargeback. The other events don’t capture the preventive role of these warnings in the same way; EF warnings specifically aim to prevent the escalation to a chargeback by flagging risky payments early.