How to Dispute Unauthorized Bank Charges Effectively

Quick overview

Unauthorized bank charges — whether from fraud, billing errors, or unwanted subscription renewals — can drain accounts, damage credit, and create headache. Acting quickly and methodically gives you the best chance to recover funds and limit liability. Below is a practical, step-by-step playbook I use in my practice and that I recommend to readers.

Step-by-step process to dispute an unauthorized charge

1) Verify the charge and gather evidence

Before you call the bank, make sure a charge is genuinely unauthorized. Common false alarms include: merchant names that don’t match the brand you recognize, recurring subscription descriptors, or charges posted by third-party processors. Collect:

• A copy (screenshot or PDF) of the bank statement showing the charge
• Any merchant emails, receipts, cancellation confirmations, or screenshots of your account history
• Date, time, location (if applicable), and the exact amount of the transaction

In my practice I often ask clients to assemble a single PDF with every supporting item — it speeds the dispute and reduces back-and-forth. Save copies in a secure folder for at least a year.

2) Act quickly — there are time-sensitive protections

Federal rules give consumers stronger protections when they report unauthorized electronic transfers and credit-card billing errors promptly. For debit-card/electronic transfers, the Electronic Fund Transfer Act (Regulation E) sets liability tiers: if you notify your bank within 2 business days after discovering a lost or stolen card, your loss is limited (commonly to $50); reporting after 2 days but within 60 days after your statement is mailed can increase your potential liability (up to $500); waiting beyond 60 days can remove federal limits. For credit cards under the Fair Credit Billing Act (FCBA) your liability for unauthorized charges is limited (typically $50), and many issuers waive that entirely. (Consumer Financial Protection Bureau; Federal Trade Commission)

Even when exact dollar limits vary by issuer, the practical takeaway is: report unauthorized charges immediately. Prompt action also helps secure evidence from merchants and payment networks.

3) Call your bank or card issuer — get a case number

Use the customer-service number on the back of your card or the number in your online banking site. When you call:

• Clearly state you are disputing an unauthorized charge
• Provide transaction details and the evidence you collected
• Ask for a case/tracking number and the expected timeline for investigation
• Ask whether the institution will issue a provisional credit while they investigate and how long that credit may remain if the bank later determines the charge was legitimate

Take notes: the representative’s name, time and date of call, and the case number.

4) Submit a written dispute if required or advised

Some institutions require or recommend written disputes to trigger full legal protections. A concise written dispute should include:

• Your name, account number, and contact information
• A clear statement: “I dispute the charge of $___ on ___ (date) posted to my account and request an investigation”
• Attach copies of supporting documentation (not originals)
• A request for provisional credit if you were not given one on the call

You can send this by secure message via your bank’s website, email if directed, or US mail (certified for receipts). Keep delivery receipts and a copy for your records.

Sample short dispute paragraph you can paste into a secure message or letter:

I am writing to dispute an unauthorized transaction posted to my account. The transaction occurred on [date], for [amount], merchant listed as [merchant name/descriptor]. I did not authorize this charge. I have attached supporting documents and request an investigation and provisional credit while you review.

5) Follow up and track the timeline

Banks usually acknowledge disputes and give an investigation timeline. Under federal rules, most banks will acknowledge receipt quickly and investigate; many provide provisional credit within a business window. If the bank gives a timeline, follow up before that date if you haven’t heard anything. Keep a dispute log with dates, names, and outcomes.

6) Escalate when necessary

If the issuer denies your claim, or if you get no response, next steps include:

• Ask to speak with a supervisor and request a second review
• File a complaint with the Consumer Financial Protection Bureau (CFPB) (consumerfinance.gov) and include copies of your dispute documentation
• If identity theft is suspected, file a police report and a complaint at IdentityTheft.gov (FTC). That FTC report provides a recovery plan and documents you can share with banks and credit bureaus
• Dispute the charge with the card network (Visa, Mastercard, Discover, American Express) if the bank advises

Banks are more responsive with formal regulators involved. I’ve seen provisional credits converted to final credits after an escalated review or a CFPB inquiry.

Special cases and additional protections

Card-not-present fraud and recurring subscriptions

Unauthorized recurring charges (trial conversions, subscription renewals) are common. For subscriptions, gather proof of cancellation, the date you canceled, and any confirmation messages. If a merchant claims you agreed to recurring billing, your cancellation proof typically wins. If the merchant is nonresponsive, the issuing bank can reverse the charge through a merchant dispute or chargeback process.

Identity theft and multiple fraudulent transactions

If multiple accounts or transactions are affected, treat the situation as identity theft:

• Place a fraud alert or credit freeze with the three major bureaus (Equifax, Experian, TransUnion)
• Consider an Identity Theft Report at IdentityTheft.gov and file a police report if needed
• Notify any other affected financial institutions

See our deeper guides on planning and recovery: Identity Theft Response Plan for Financial Accounts and Protecting Against Identity Theft and Financial Fraud for step-by-step checklists and templates.

What to expect during an investigation

Investigations vary by case complexity. Common outcomes:

• Provisional credit while the institution investigates
• Full reversal of the charge if the claim is substantiated
• Confirmation charge remains if the merchant provides compelling proof

Timeframes: many banks resolve simple disputes within 10 business days, while more complicated cases can take longer. If the bank extends the review, they should notify you and explain why. (CFPB)

How to protect yourself going forward

• Review statements monthly and enroll in transaction alerts
• Use virtual card numbers or single-use card numbers when available for online merchants
• Keep a record of cancellations and receipts for any trial subscriptions
• Use strong unique passwords and multi-factor authentication on financial accounts
• Consider credit monitoring if you’ve been a victim of fraud

When to involve law enforcement or outside counsel

File a police report when fraud is part of a broader identity-theft pattern, when large sums are at stake, or when a bank refuses to cooperate and you have evidence the charge is fraudulent. Depending on the amount and complexity, a consumer-protection attorney can advise about suing a bank or merchant, but that is usually a last resort.

Common mistakes I see and how to avoid them

• Waiting too long to report a charge — always report immediately
• Failing to keep copies of emails and cancellation confirmations
• Mixing up debit-card and credit-card dispute processes — debit disputes can expose funds from your checking account, so act faster and ask for provisional credit

FAQ (short answers)

Q: How long do I have to dispute an unauthorized charge?
A: Report unauthorized debit-card transfers immediately. For legal protections, the key windows are within 2 business days and within 60 days of the statement date for certain protections; for credit-card billing errors under the FCBA, provide written notice as soon as you can and generally within 60 days of the statement containing the error. (CFPB)

Q: Will I lose the money while the bank investigates?
A: Many banks provide provisional credit pending investigation. If you used a debit card, you may be out the money temporarily unless the bank issues a provisional credit.

Q: What documents should I provide?
A: Bank statements, receipts, cancellation confirmations, screenshots of merchant accounts, police reports if identity theft is suspected.

Professional disclaimer

This article is educational and not legal advice. Laws and bank policies change; consult your card issuer’s dispute procedures, a qualified attorney, or a consumer-protection counselor for advice tailored to your situation.

Authoritative resources and further reading

• Consumer Financial Protection Bureau — Disputes & unauthorized transactions (consumerfinance.gov)
• Federal Trade Commission — Identity theft and recovering from fraud (ftc.gov)
• U.S. Code & Regulation: Electronic Fund Transfer Act (Regulation E) and Fair Credit Billing Act (FCBA)

For detailed recovery plans, visit our related guides: Identity Theft Response Plan for Financial Accounts and Identity Theft and Your Credit Report: Steps to Recover and Protect Yourself.

If you want, I can also provide a printable dispute letter template formatted for mail and a short checklist you can print and keep with your records.