Lost card nightmare

I went to Capitec Flamwood (Klerksdorp) to report a lost card and get a new one. The consultant went through the process with me, processed the card and gave me a new one for which I was charged a fee. A few days later, I tried to use my NEW card at an ATM and the ATM retained the card stating that the card was reported ******/lost. This was my NEW CARD!! (I kept the slip)

I went back to Capitec to firstly explain what had happened, and to then request a new card. The consultant indicated that I would have to pay the card fee AGAIN regardless of the fact that it was the card that they had given me a few days prior that was captured by the atm. How is this justified? Why should I have to pay twice for their blunder?