Which statement is true about EFWs and disputes?

Which statement is true about EFWs and disputes?

• A. EFWs guarantee a chargeback will occur
• B. EFWs can be disputed with a guaranteed outcome
• C. EFWs appear before a chargeback and are associated with fraud flags
• D. EFWs are a customer-facing discount

Answer: (C)

Early Fraud Warnings are alerts from card networks that flag suspicious activity before a dispute or chargeback is filed. They come with a fraud flag, signaling elevated risk so merchants can review the transaction, request additional verification, or take steps to stop the payment before it escalates to a chargeback. They’re not a guarantee that a chargeback will occur, nor a customer-facing discount; they’re proactive risk signals that help manage potentially fraudulent activity.

Early Fraud Warnings are alerts from card networks that flag suspicious activity before a dispute or chargeback is filed. They come with a fraud flag, signaling elevated risk so merchants can review the transaction, request additional verification, or take steps to stop the payment before it escalates to a chargeback. They’re not a guarantee that a chargeback will occur, nor a customer-facing discount; they’re proactive risk signals that help manage potentially fraudulent activity.