Similar to Paul, none of the FI's I've ever worked for assess a fee for a replacement card for fraud or normal replacement (due to expiration), but if a client continued to claim fraud/dispute transactions due to their own poor card management/lack of securing their card, we would refuse to reissue, as the card is a perk/benefit not something that's owed to them.
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"Remember no man is a failure who has friends." - Clarence (the Angel) Oddbody - It's a Wonderful Life