How to Dispute an Unauthorized or Fraudulent Charge

Seeing an unfamiliar charge on your statement is alarming. Here's how to handle potential fraud or unauthorized transactions.

When This Applies

Use this dispute type when:

• You don't recognize a charge on your statement
• Someone used your card without permission
• Your card was stolen and used
• A charge appears from a merchant you've never used
• A transaction amount was altered without your consent

Immediate Steps

1. Don't Panic, But Act Fast

Time matters for fraud disputes:

• Credit cards: Limited to $50 liability if reported promptly
• Debit cards: Report within 2 business days for best protection

2. Review the Charge Carefully

Before assuming fraud:

• Merchant names sometimes appear differently on statements
• Check if a family member made the purchase
• Look up the merchant name online
• Check your email for receipts

3. Secure Your Account

If confirmed unauthorized:

• Call your bank immediately
• Request a card freeze or cancellation
• Get a new card number issued
• Change online banking passwords

Types of Unauthorized Charges

True Fraud

• Card stolen physically
• Card number compromised online
• Skimming or data breach
• Identity theft

Unauthorized by You

• Family member used card without permission
• Subscription you didn't sign up for
• Merchant charged more than agreed

Evidence for Your Dispute

Proving You Didn't Authorize It

1. Statement showing the charge - Date, amount, merchant
2. Your location at the time - If relevant (for physical transactions)
3. Police report - For significant fraud (optional but strengthens case)
4. Fraud affidavit - Your bank will provide this

The Dispute Process

For Credit Cards

1. Call your card issuer immediately
2. File a fraud report
3. Complete any affidavits they send
4. Receive provisional credit quickly
5. Investigation completed within 90 days

For Debit Cards

1. Report to bank within 2 business days (critical!)
2. File a fraud claim
3. Complete affidavit
4. Provisional credit within 10 business days
5. Investigation may take up to 45 days

Your Liability

Credit Cards (FCBA)

• Maximum $50 liability if reported promptly
• Many banks offer $0 fraud liability

Debit Cards (Regulation E)

• Within 2 business days: Maximum $50
• 2-60 days: Maximum $500
• After 60 days: Potentially unlimited liability

Important: Report Quickly!

The timing of your report significantly affects your protection, especially for debit cards. Don't wait.

What to Tell Your Bank

1. You did not make or authorize this transaction
2. When you discovered the charge
3. Whether your card was lost or stolen
4. Any suspicions about how fraud occurred

After Filing

• Monitor your accounts closely
• Watch for additional fraudulent charges
• Review your credit report
• Consider a fraud alert or credit freeze

Prevention Tips

• Monitor statements weekly
• Set up transaction alerts
• Use virtual card numbers when possible
• Don't save card details on unfamiliar sites
• Use strong, unique passwords

If the Bank Denies Your Claim

If you disagree with the decision:

• Request the investigation documentation
• Submit additional evidence
• File a complaint with the CFPB
• Consult with a consumer protection attorney for large amounts