What is a fraudulent transaction?

In the payments industry, fraud is an illegal usage of credit card details without the legitimate cardholder’s knowledge. A stolen credit card/card number is usually the cause of a fraudulent charge. Once a cardholder sees a payment transaction they did not make on their credit card statement, they have the right to dispute the charge by contacting their bank. The bank or credit card company conducts an investigation and returns the money to the cardholder.