Unauthorized charges on your credit card can be alarming, but knowing how to handle them can help you protect your finances and resolve disputes efficiently. Whether it’s a billing error, fraudulent transaction, or double charge, taking the right steps can save you from financial loss and stress. This guide outlines how to dispute unauthorized charges and prevent future fraud.
Understanding Unauthorized Charges
Unauthorized charges occur when transactions appear on your credit card statement that you did not approve. These may result from fraud, merchant errors, or accidental subscriptions. Common examples include:
Incorrect Merchant Processing – When a merchant processes a transaction incorrectly, such as charging you multiple times for a single purchase.
Subscription Renewals – Auto-renewals for services you forgot to cancel.
Billing Errors – Mistaken charges from merchants, such as duplicate transactions or incorrect amounts.
Fraudulent Transactions – Charges made by an unauthorized individual using stolen card details.
Steps to Dispute Unauthorized Charges
1. Review Your Statement Carefully
Regularly checking your credit card statement ensures you catch unauthorized charges early. Compare transactions to your receipts and track subscriptions.
2. Contact the Merchant First
If you notice an unfamiliar charge from a known merchant, contact them directly. Sometimes, errors occur, and merchants can issue refunds without involving your credit card issuer.
3. Report Fraudulent Charges to Your Card Issuer
For unauthorized transactions or potential fraud, contact your credit card company immediately. Most issuers have a 24/7 fraud department to assist you.
4. File a Dispute with Your Credit Card Issuer
If the charge remains unresolved, formally dispute it with your credit card company. Provide necessary details such as transaction date, amount, and reason for dispute. Most issuers allow disputes to be filed online, by phone, or via mail.
5. Follow Up on Your Dispute
Your card issuer will investigate the dispute, often issuing a temporary credit while they review the claim. Stay in touch with them and check your statements for updates.
6. Monitor Your Credit Report
Unauthorized transactions and disputes can sometimes impact your credit report. Review your credit reports periodically to ensure everything remains accurate.
7. Replace Your Card if Necessary
If your card was compromised, request a new card number from your issuer to prevent further fraud. Update your payment details for legitimate subscriptions.
Preventing Unauthorized Charges in the Future
Use Secure Payment Methods – Choose trusted payment gateways and secure networks for transactions.
Avoid Saving Card Details Online – Reduce fraud risk by not storing card information on websites.
Review Subscription Services – Regularly check and cancel unnecessary auto-renewing services.
Enable Transaction Alerts – Set up SMS or email notifications for every transaction.
Use Virtual Card Numbers – Many issuers offer virtual card numbers for safer online purchases.
Conclusion
Unauthorized credit card charges can be stressful, but knowing how to dispute them ensures you stay protected. By reviewing statements regularly, acting quickly, and following the correct procedures, you can resolve disputes efficiently and safeguard your finances. Additionally, implementing fraud prevention strategies minimizes the risk of future unauthorized transactions, keeping your credit card account secure.
Frequently Asked Questions (FAQs)
1. How long do I have to dispute an unauthorized charge?
Most credit card issuers allow disputes within 60 days of the statement date on which the charge appears. However, acting sooner increases your chances of a successful resolution.
2. Will I get my money back after disputing a charge?
If your dispute is valid, your card issuer will typically issue a refund or a temporary credit while they investigate.
3. Can a merchant challenge my dispute?
Yes, merchants can contest disputes by providing evidence that the charge was legitimate. If they succeed, the charge may be reinstated.
4. Does disputing a charge affect my credit score?
No, filing a dispute does not directly affect your credit score. However, failing to pay legitimate charges while disputing them could negatively impact your score.
5. What should I do if my dispute is denied?
If your dispute is denied and you still believe the charge was unauthorized, you can appeal the decision or file a complaint with the Consumer Financial Protection Bureau (CFPB).