Quick overview

Unauthorized charges are transactions you did not authorize — from a single fraudulent purchase to recurring subscription fees you never agreed to. Prompt action preserves your legal protections and often increases the chance you will get your money back. This article gives a practical, step‑by‑step workflow, evidence checklist, sample scripts and letters, expected timelines, and escalation options.

Step-by-step process

  1. Immediately secure the account
  • If the charge is on a credit card, call the card issuer using the number on the back of the card or your statement and tell them the charge is unauthorized. For debit cards, do the same but also consider freezing the card or removing it from mobile wallets.
  • If you suspect account takeover, change online banking passwords and enable multi‑factor authentication.
  1. Gather evidence
  • Save or screenshot statements showing the unauthorized charge(s).
  • Record merchant name as shown on the statement, transaction date, amount, and any confirmation emails or texts.
  • If you have receipts proving you were elsewhere (travel, receipts), include them.
  • For recurring or subscription charges, capture the merchant’s cancellation policy, account page, or any marketing that led to enrollment.
  1. Call the issuer and dispute the charge
  • Use the issuer’s fraud or dispute telephone number. Ask for the claim or case number and the name of the representative.
  • For credit cards, the Fair Credit Billing Act (FCBA) limits your liability for unauthorized charges and defines dispute procedures. For debit/ATM or electronic fund transfers, the Electronic Fund Transfer Act (EFTA) applies and has a different timeline and liability rules. See official guidance from the Consumer Financial Protection Bureau and the Federal Trade Commission for details (CFPB, FTC).
  1. Put the dispute in writing when required or recommended
  • Many issuers accept disputes by phone, but you should also follow up with a written dispute via secure messaging or certified mail for a paper trail. If you dispute under the FCBA, send the letter within 60 days of the first statement showing the error.
  • Include: your name, account number, the transaction amount and date, why you believe the item is unauthorized, copies of supporting documents, and a request for resolution.
  1. Monitor the issuer’s response and maintain records
  • Write down all call dates, times, representative names, and case numbers.
  • Save emails and mail receipts. Keep a single folder (digital or physical) with all evidence.
  1. If necessary, escalate
  • If the issuer denies the claim or stalls, request a written explanation and the next steps. You can file a complaint with the Consumer Financial Protection Bureau (CFPB) and the FTC, and — if funds were stolen — consider filing a police report and identity theft report at IdentityTheft.gov.

Evidence checklist (what to collect)

  • Bank or card statement showing the unauthorized item(s).
  • Screenshots of merchant pages, emails, or receipts.
  • Copies of communications with the merchant (refund attempts, chat logs).
  • Travel records or other proof you weren’t at the purchase location.
  • Police report or identity theft affidavit (if applicable).

Timelines and how they differ (credit vs. debit)

  • Credit card (FCBA): Generally, you should send written disputes within 60 days of the statement date that contains the error. Credit card issuers usually must acknowledge your dispute within 30 days and resolve it within two billing cycles (but no more than 90 days) for most errors. See CFPB guidance: https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-a-credit-card-charge-en-1566/.

  • Debit card/electronic transfers (EFTA): Timeframes and potential liability differ from credit cards. Reporting unauthorized debit transactions quickly limits your liability (reporting within 2 business days often limits liability to $50; longer delays can increase your exposure). Banks commonly must investigate and may provisionally recredit accounts while they investigate. For details, see the CFPB and FTC: https://www.consumerfinance.gov/ and https://www.ftc.gov/.

Note: The exact legal rules are technical; treat the above as practical guidance and consult issuer disclosures or legal counsel for edge cases.

Sample phone script and written dispute letter

Phone script:

“Hello — my name is [Your Name]. I’m calling about an unauthorized transaction on account ending in [1234]. The charge is for $[amount] on [date] at [merchant name] and I did not authorize it. Please open a fraud dispute and provide me with the case number and next steps.”

Written dispute letter (send by certified mail or secure message when possible):

[Your Name]
[Your Address]
[City, State ZIP]
[Account number]

[Date]

Re: Unauthorized transaction on account ending in [1234]

To Whom It May Concern,

I am writing to dispute the following unauthorized charge on my account: [date], [amount], [merchant]. I did not authorize this transaction. Enclosed are copies of my statement and any supporting documents. Please investigate, remove the charge, and provide written confirmation of the outcome.

Sincerely,
[Your Name]

Chargeback vs. bank dispute — which path?

A merchant dispute (chargeback) is a payment‑network process usually initiated by your card issuer to recover funds from the merchant’s acquirer. In some situations — like defective goods or a merchant refusing to refund — a chargeback is the right tool. For guidance on when to pursue a chargeback and the rules cardholders should expect, see our article “Understanding Chargeback Rules for Cardholders” and “When to Seek a Chargeback vs a Bank Dispute”. (Internal links: Understanding Chargeback Rules for Cardholders: https://finhelp.io/glossary/understanding-chargeback-rules-for-cardholders/; When to Seek a Chargeback vs a Bank Dispute: https://finhelp.io/glossary/when-to-seek-a-chargeback-vs-a-bank-dispute/.)

Also see our related guide on disputing billing errors: https://finhelp.io/glossary/how-to-dispute-a-billing-error-a-step-by-step-guide/.

When to file a police report or identity theft complaint

  • If your personal information was used to open new accounts, or multiple unauthorized transactions indicate identity theft, file a police report and submit an identity theft report at IdentityTheft.gov. That site provides a recovery plan and sample letters you can use.
  • A police report can be critical when disputing large fraudulent transactions or when merchants or issuers request proof of criminal activity.

Official resources:

Common mistakes and how to avoid them

  • Waiting too long. Time limits matter for legal protections and issuer policies.
  • Not documenting communications. Always get case numbers and names.
  • Assuming recurring charges are trivial. Small recurring charges can add up; investigate the merchant.

In my practice advising clients, I’ve repeatedly seen cases where a quick call plus a follow‑up certified letter produced a provisional credit within days and a full reversal within weeks. Prompt documentation is the differentiator.

What to expect from the issuer

  • A case number and confirmation of receipt of your dispute.
  • A short investigation period; many issuers provide provisional credit while they investigate.
  • A written outcome and, if the dispute is upheld, a reversal of the charge and correction of your account.

If the issuer denies the claim, request a written explanation and data they considered. You may then escalate to the CFPB or pursue other legal remedies.

Escalation options

  • File a complaint with the CFPB (https://www.consumerfinance.gov/complaint/).
  • Submit an identity theft report to the FTC and follow any recovery plan at IdentityTheft.gov.
  • If fraud involved a merchant that refuses to refund and the charge is recent, discuss a chargeback with your issuer and review our detailed guide on chargebacks.

Final tips and next steps

  • Set up account alerts and regularly review statements.
  • Consider a credit freeze or fraud alert if you suspect identity theft.
  • Keep a single, dated file containing all dispute materials and communications for at least two years.

Professional disclaimer: This content is educational and does not constitute legal, tax, or financial advice. For personal guidance, consult a qualified attorney or financial professional.

Authoritative sources and further reading

Internal related articles