What occurs when a card is captured by an ATM device?

When a card is captured by an ATM device, it typically happens when the card has been flagged in the banking system as lost, stolen, or has some other issue that warrants it being retained for security reasons. This is a protective measure designed to prevent unauthorized access to the cardholder's account.

In this case, the correct answer highlights the protocol whereby the ATM will retain a card if there are indications that the card is no longer safe for use. This can include instances where there have been reports of theft or if the card is expired. Capturing the card helps to ensure that it cannot be used fraudulently and prompts the cardholder to take necessary actions to secure their account.

The other options mention scenarios that do not align with typical ATM behavior regarding captured cards. For instance, an immediate return of the card contradicts the very notion of a capture action taken for security reasons. A transaction being declined with the card returned doesn’t adequately address the situation where the card's security is compromised. Lastly, imposing a fine on the cardholder does not correlate with standard ATM procedures, as capturing a card is a protective measure rather than a penal action.