How does Credit Card Protection Refund Chase service work ?? Who is paying $ when fraud happens and Consumer?

[ruelle]

Please read ALL before answering this question
So I have a Credit Card, and somebody charged odd charges onto it, Chase notify me about this and I contact them As soon as I found out about it .. I told them To cancel those charges and they will refund those odd changes back to my card, GREAT! I love their service!
SO my main question is, WHO IS loosing $$ in this case if consumber gets the refund fraud protection? THe chase Company, the 2nd party OR the 2nd party company who provided the service?
Basicly who is loosing the $ because of fraud?
how do you know?