Dispute Unauthorized Charges Information Guide

Understanding Unauthorized Charges and Your Rights

An unauthorized charge occurs when someone uses your credit card, debit card, or bank account without your permission. This might happen through stolen card information, compromised online accounts, or fraudulent transactions. Federal law protects consumers from unauthorized charges, though the specific protections vary depending on the type of account and payment method involved.

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Under the Fair Credit Billing Act (FCBA), which applies to credit cards and certain credit accounts, you have the right to dispute charges you didn't authorize or recognize. Similarly, the Electronic Funds Transfer Act (EFTA) protects your debit card and bank account transactions. These laws set out specific procedures you must follow and timelines you must meet to protect your rights.

The key distinction between different types of unauthorized charges matters for how you proceed. A transaction might be unauthorized because someone stole your physical card, used your card number online without permission, or set up recurring charges without consent. Each situation follows similar dispute procedures but may have different investigation timelines.

Your financial institution has a responsibility to investigate claims of unauthorized charges. They cannot simply dismiss your report or require you to pay disputed amounts while they investigate, in most cases. Understanding your rights helps you take the correct steps when fraudulent activity occurs.

Practical takeaway: Document the exact date you discovered each unauthorized charge and note what type of transaction it was. Keep this information organized before contacting your bank or card issuer, as you'll need these details when filing your dispute.

How to Report Unauthorized Charges to Your Bank or Card Issuer

The first step in disputing an unauthorized charge is contacting your financial institution as soon as you notice something wrong. Speed matters because banks and card companies have specific timeframes for investigation, and you must report the issue within certain windows to receive full protection.

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For credit card disputes under the FCBA, you generally have 60 days from when the statement containing the unauthorized charge was sent to you to file a dispute. For debit cards under the EFTA, the timeline is shorter—you typically have 60 days to report unauthorized transfers, but if you report within two business days of discovering the fraud, your liability is limited to $50. If you wait longer than 60 days, your liability could increase significantly or you might lose protection entirely.

Contact your card issuer or bank through the phone number on the back of your card or on your statement. Don't use contact information from an email or text message, as these could be fraudulent. When you call, explain that you're reporting an unauthorized charge and describe the transaction in detail. Be prepared to provide the transaction date, amount, merchant name, and any other relevant information.

Many banks allow you to report fraud through online banking portals or mobile apps. You can initiate a dispute through these channels, but you may still need to follow up with a phone call or written statement. Some financial institutions require you to submit a written dispute statement within a certain timeframe—usually 10 business days of your initial report.

Practical takeaway: Report unauthorized charges by phone first to ensure your report is immediately recorded with a timestamp, then follow up with written documentation through your online account or mail within the required timeframe. Keep records of who you spoke with, when you called, and what was discussed.

Required Information for Dispute Documentation

When disputing an unauthorized charge, your financial institution needs specific information to investigate the claim properly. Providing complete details speeds up the investigation process and strengthens your case. The more thorough your documentation, the clearer your dispute becomes.

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You should provide the transaction date and the exact amount charged. Include the merchant's name as it appears on your statement—sometimes this differs from the company's common name. For example, a retailer might appear as "ABC CORP" on your statement rather than its official business name. If the charge appears multiple times, list each instance with dates and amounts.

Describe what you were or were not doing on the date of the unauthorized transaction. Were you traveling? Was your card in your physical possession? Did you receive any suspicious emails or text messages around that time? This context helps investigators determine whether the fraud was likely online, in-person, or account-based.

Include any supporting documents you have. If you filed a police report for identity theft or fraud, provide the report number. If you have evidence that your account information was compromised—such as notification from a data breach—include that information. Screenshots of your account activity, emails from the merchant, or correspondence with customer service can all be valuable.

If this is part of a pattern of unauthorized charges, document all of them together. Note whether you've already reported other fraudulent charges and provide those dispute case numbers if available. Investigators often uncover connections between multiple fraudulent transactions that point to a single compromised account.

Practical takeaway: Create a simple document listing each disputed transaction with the date, amount, merchant, and one sentence explaining why you believe it's unauthorized. Include this with any written dispute submission or reference it during phone conversations with your bank's fraud department.

What Happens During the Investigation Process

Once you report an unauthorized charge, your financial institution begins an investigation. Understanding what happens behind the scenes helps you know what to expect and how long the process typically takes. Different types of disputes follow slightly different timelines and procedures.

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For credit card disputes, your card issuer must acknowledge receipt of your dispute within 30 days and complete their investigation within 90 days. During this time, the disputed amount is typically removed from your bill, and you won't be required to pay it while the investigation occurs. This provisional credit means you can continue using your account normally without the disputed charge affecting your balance.

For debit card disputes, the timeline is shorter. If you report within two business days of discovering the unauthorized transaction, the bank must typically return your money within 10 business days while they investigate. If you report between 3 and 60 days after the transaction, the investigation takes longer—up to 45 days—and you may not receive provisional credit immediately.

During the investigation, your bank contacts the merchant or the merchant's acquiring bank (the financial institution that processes their payments). They request documentation of the transaction, including the authorization records, any signatures or PIN verifications, and IP address or device information for online transactions. The merchant then has a set time—usually 7 to 10 days—to provide this evidence.

If the merchant cannot provide evidence that you authorized the transaction, or if their documentation doesn't match your account activity, your bank typically rules in your favor. You receive a permanent credit for the full amount. If the merchant provides evidence that matches your account or if the transaction appears authorized based on their records, the bank may rule against your dispute, and you become responsible for the charge again.

Your bank may contact you during the investigation to ask additional questions. They might ask about your account security, whether you use that merchant regularly, or whether you have any explanation for the charge. Answer these questions thoroughly and honestly, as they help investigators determine the transaction's legitimacy.

Practical takeaway: Note the date you filed your dispute and the case number provided by your bank. Check your account periodically during the investigation to see if provisional credit has been applied. If you don't hear back within the stated timeframe, contact your bank to request a status update on your case.

Protecting Your Account After an Unauthorized Charge

Discovering an unauthorized charge signals that your account security has been compromised. Taking steps to protect your account and prevent future fraud is essential, whether your current dispute is still under investigation or already resolved. These actions help prevent the same situation from happening again.

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If your physical card was stolen or you believe your card number was compromised, request a new card immediately. Your bank can issue a replacement with a new number, which invalidates the old card. This stops fraudsters from making additional charges using that number. Most banks issue replacement cards within 5 to 10 business days, though expedited delivery is sometimes available.

Change your online banking password if there's any possibility your login credentials were compromised. Use a strong password with uppercase and lowercase letters, numbers, and symbols. Avoid using the same password across multiple accounts. If you use a password manager, ensure it's secure. If you reuse passwords, check whether your email address was included in any known data breaches by visiting Have I Been Pwned (haveibeenpwned.com).

Review all your accounts for suspicious activity. Check your credit card statements, debit card statements, and bank account activity over the past several months. Sometimes fraudsters test stolen card