Quick overview
Finding an unauthorized credit card charge is stressful, but a clear sequence of steps—document, report, secure, and follow up—usually resolves the problem. In my practice helping clients for 15+ years, the cases resolved fastest when cardholders acted within days, kept careful records, and used both issuer dispute channels and consumer protection resources like the CFPB and FTC.
Step-by-step actions to take right away
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Confirm the charge. Check the full transaction details on your statement or card app (date, merchant name, amount, and any merchant descriptor). Small or oddly worded merchant names often mask third-party processors or subscription services.
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Contact the merchant if it’s plausible. If you recognize the merchant name but not the charge (for example, a subscription or recurring fee), call the merchant first. Many disputes are simple billing or merchant-processor errors and can be fixed faster at the source.
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Report to your card issuer immediately. Call the phone number on the back of your card and tell them the charge is unauthorized. Ask the issuer to: block or freeze the card, issue a replacement card number, and start a dispute (some issuers call this a fraud claim or chargeback). Request a case or reference number and the name of the representative.
- Sample script: “Hi — I see a transaction on my account I did not authorize on [date] for [amount] at [merchant]. I would like to report it as fraudulent, close this card number, and start a dispute. Please provide a case number.”
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Put your dispute in writing when required. Under the Fair Credit Billing Act (FCBA), you generally have 60 days from the date your billing statement containing the error was mailed to send a written dispute. Written notice can be sent by mail or, in many cases, through your issuer’s secure online message center. The issuer must acknowledge within 30 days and resolve within two billing cycles (but not more than 90 days). Cite the FCBA if you use a written letter. (See CFPB guidance for details: https://www.consumerfinance.gov/.)
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Preserve documentation. Save screenshots of the charge, billing statements, emails, merchant receipts, and notes from phone calls (date, time, representative name, and case number). These records are critical if you need to escalate or file a complaint later.
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Monitor other accounts and change passwords. If a card number was compromised online, change passwords and enable two‑factor authentication on accounts tied to the card (shopping sites, digital wallets, and email). Check linked checking or savings accounts for related ACH or debit activity.
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Consider credit freezes or fraud alerts if identity theft is suspected. If the unauthorized activity appears to be part of identity theft (new accounts opened, other suspicious credit pulls), place a free fraud alert or credit freeze with the three major bureaus: Experian, TransUnion, and Equifax. For identity theft recovery steps, file a report at IdentityTheft.gov and follow the FTC checklist (https://www.identitytheft.gov/).
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File additional reports if needed. If the merchant won’t cooperate or the issuer denies your claim, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at https://www.consumerfinance.gov/complaint/ and with the Federal Trade Commission at https://www.ftc.gov/complaint. If a crime is involved (e.g., stolen identity or large losses), consider filing a police report — some issuers request local law enforcement documentation to investigate.
Typical timelines and legal protections
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Report promptly: Many protections hinge on timely reporting. For credit card billing errors, the FCBA gives you a 60‑day window from the statement date that shows the error to send written notice. The issuer generally must acknowledge receipt within 30 days and resolve within two billing cycles (but not more than 90 days). See CFPB and the FCBA (15 U.S.C. § 1666).
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Liability limits: If your physical credit card is lost or stolen and you report before unauthorized use, federal law limits your liability. In practice (and with modern card networks), many issuers offer zero‑liability policies for fraudulent credit card transactions. Debit card rules differ and have tighter short‑term deadlines under the Electronic Fund Transfer Act (EFTA). Always ask your issuer about provisional credit while they investigate.
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Provisional credit: Many card issuers issue a temporary credit while investigating. Ask when you can expect provisional credit and whether any disputed amounts will reappear if the investigation is unresolved.
What to expect from your card issuer’s investigation
- Acknowledgment: The issuer should confirm receipt of your dispute and give a case number.
- Investigation: The issuer contacts the merchant and the card network and reviews evidence. This can take from a few days to several weeks depending on complexity.
- Outcome: If the issuer finds the charge unauthorized, you’ll receive a correction to your account (a permanent credit). If not, they must explain their decision and provide documentation on how you can escalate or appeal.
When to escalate and where to get help
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If the issuer denies the claim and you have documentation, ask for a written explanation and consider: 1) filing a complaint with the CFPB, 2) contacting your state attorney general or consumer protection office, or 3) disputing the charge through your card network (Visa/Mastercard/Discover/Amex) using their chargeback/merchant dispute procedures.
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Useful internal resources on FinHelp.io:
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How to Dispute Unauthorized Charges: Step-by-Step — https://finhelp.io/glossary/how-to-dispute-unauthorized-charges-step-by-step/
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Identity Theft Response Plan for Financial Accounts — https://finhelp.io/glossary/identity-theft-response-plan-for-financial-accounts/
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How to Escalate a Billing Dispute with Your Bank — https://finhelp.io/glossary/how-to-escalate-a-billing-dispute-with-your-bank/
These pages cover filing formal disputes, documenting merchant interactions, and escalating to regulators.
Common mistakes and how to avoid them
- Waiting too long. Missing the 60‑day window for FCBA disputes or the shorter windows for debit card (EFTA) claims can reduce protections.
- Deleting evidence. Keep every related email, text, receipt, and screenshot until the issue is fully resolved.
- Ignoring small transactions. Fraudsters often test cards with small charges; catching these early prevents larger misuse.
Sample dispute letter (short template)
Date: [Date]
To: [Card Issuer Name and Address or Secure Message]
Account number: [Last 4 digits]
Statement date: [Date of statement showing error]
I am writing to dispute an unauthorized charge on my account. The charge of $[amount] posted on [date] for [merchant name] is unauthorized. I did not make this purchase and have not authorized anyone to use my card/account for this transaction. Please investigate, remove the charge, and confirm the actions you will take. I request that you close this card number and issue a replacement.
Sincerely,
[Your name] — [contact information]
(Keep a copy and send by certified mail if you want a delivery receipt.)
Practical prevention tips (proactive)
- Enable real‑time transaction alerts for all purchases.
- Use virtual card numbers or single‑use payment tokens for online merchants when available.
- Review statements monthly and reconcile recurring charges.
- Limit stored card details on merchant websites; use password managers and two‑factor authentication.
Final notes and disclaimer
Acting quickly and documenting every step significantly improves the odds of a favorable outcome. This article is educational and based on industry practice and federal consumer protections (CFPB, FTC, Fair Credit Billing Act). It is not legal advice. For complex cases, large losses, or suspected identity theft, consult your card issuer, a consumer attorney, or report to IdentityTheft.gov and the CFPB.
Authoritative resources
- Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov/
- Federal Trade Commission (FTC) and IdentityTheft.gov: https://www.identitytheft.gov/ and https://www.ftc.gov/
- Fair Credit Billing Act (15 U.S.C. § 1666)
If you need a printable checklist or a sample dispute packet (letters, script, and documentation checklist), these templates are available in the related FinHelp guides linked above.
