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Unauthorized Credit Card Charge: What to Do

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Unauthorized Credit Card Charge: What to Do

An unfamiliar credit card charge may mean that someone stole your card number, used a lost card, accessed your online account or added the card to a digital wallet. It may also be a legitimate purchase displayed under an unfamiliar merchant name.

Check the transaction quickly, but do not spend hours investigating before contacting the card issuer. When the charge remains unfamiliar, lock the card, report the transaction through an official channel and ask the issuer to replace the compromised card number and open the correct fraud investigation.

On This Page

Quick Answer

Lock the card and contact the issuer immediately when you do not recognize a credit card charge.

Use the number printed on the back of the card, the official mobile application or the issuer’s verified website. Tell the issuer that you did not authorize the transaction and ask it to secure the account, replace the card number and open a fraud investigation.

Then:

  • Review recent pending and completed transactions
  • Check whether an authorized user made the purchase
  • Look up the merchant descriptor
  • Change the online account password
  • Remove unfamiliar digital-wallet devices
  • Save the fraud case number
  • Follow up using the issuer’s written billing-error procedure
  • Monitor the replacement account for additional activity

Do not wait for an unfamiliar charge to post before alerting the issuer. The issuer may require a completed transaction before opening a formal billing dispute, but it can still secure the card and account immediately.

What Is an Unauthorized Credit Card Charge?

An unauthorized charge generally means someone used the credit card without having actual, implied or apparent authority to do so and the cardholder received no benefit from the transaction.

Examples include:

  • A thief used a lost or stolen physical card
  • Someone obtained the card number and made an online purchase
  • A scammer accessed the card account
  • The card was added to an unfamiliar digital wallet
  • A counterfeit card was created from stolen information
  • An unauthorized person placed a telephone or mail order
  • A merchant charged the card without permission

An unfamiliar charge is not automatically unauthorized. The statement may display a parent company, payment processor, franchise owner or shortened legal business name.

What Should You Check Before Reporting Fraud?

Perform a quick review without delaying the issuer notification.

Check the merchant name

The statement description may differ from the name displayed at the store or website.

Look for:

  • A parent company
  • A franchise operator
  • A payment processor
  • A shortened merchant name
  • A city or state abbreviation
  • An online marketplace seller

Check authorized users

Ask whether a spouse, partner, child, employee or other authorized user made the purchase.

Check recent purchases

The posting date may be later than the purchase date. Think about recent:

  • Travel
  • Restaurants
  • Gas stations
  • Online purchases
  • Subscription renewals
  • Mobile-app purchases
  • Digital-wallet transactions

Check the amount

A tip, deposit, authorization adjustment, currency conversion or final restaurant total may make the amount look unfamiliar.

Check recurring services

A free trial or annual renewal may appear under a company name you do not immediately recognize.

Limit this review to a few minutes when fraud appears possible. Contact the issuer rather than waiting to identify the merchant yourself.

What if the Unauthorized Charge Is Still Pending?

A pending charge has been authorized but has not yet become a completed transaction.

The amount may:

  • Post as shown
  • Change before posting
  • Disappear
  • Be reversed
  • Be replaced by a final amount

Many issuers do not open an ordinary billing dispute until a transaction posts because a pending authorization can still change or disappear.

However, an unfamiliar pending transaction should still be reported immediately.

The issuer may:

  • Lock the card
  • Close the card number
  • Issue a replacement
  • Block additional attempts
  • Note the suspected fraud
  • Tell you to contact it again if the transaction posts

Pending may affect the dispute timing, but it should not delay securing the account.

What to Do Immediately

Lock the card

Use the issuer’s official application when a temporary lock is available.

Call the card issuer

Use the number printed on the card or shown in the official account.

Report the exact transaction

Provide the merchant name, amount, date and transaction status.

Request a replacement card

Ask the issuer to close the compromised card number and issue a new one.

Review recent activity

Look for other unfamiliar charges, including small test transactions.

Secure online access

Change the account password and remove unfamiliar devices.

Record the case number

Save the representative’s name, call time and fraud reference number.

Follow the written dispute instructions

Use the billing-error address and deadline shown on the statement or card agreement.

Should You Lock the Card or Cancel It?

Card lock Card cancellation or replacement
Temporarily blocks many new transactions Closes the compromised card number
Useful while checking a questionable transaction Usually appropriate after confirmed fraud
May be removed through the mobile application Requires a replacement card
May not stop every recurring or previously authorized transaction Provides a new card number and security code
Does not replace reporting fraud Does not automatically resolve existing disputed charges

A card lock is a temporary safety tool, not a complete fraud report. Contact the issuer when the transaction is unauthorized.

Lost Physical Card vs Stolen Card Number

Physical card lost or stolen

Tell the issuer:

  • When you last had the card
  • When you noticed it missing
  • When the unauthorized activity began
  • Whether the PIN was exposed

The issuer will normally close the card number and send a replacement.

Card still in your possession

The card number may have been obtained through:

  • A compromised merchant
  • A phishing website
  • Account takeover
  • Malicious software
  • A skimming device
  • A data breach
  • An insecure online account

Even though you still have the physical card, the number should generally be replaced when it was used without permission.

When the physical card was not lost but the account number was stolen and used, federal law generally provides no cardholder liability for the unauthorized transactions.

How to Report an Unauthorized Charge

Contact the card issuer through:

  • The official mobile application
  • The number printed on the back of the card
  • The number on the monthly statement
  • The issuer’s verified website

Do not use:

  • A number in an unexpected text
  • A link in a suspicious email
  • A telephone number supplied by the suspected merchant
  • A search advertisement without verifying the domain

Provide:

  • Your name
  • The account ending
  • The merchant description
  • The transaction date
  • The amount
  • Whether the transaction is pending or posted
  • Whether the physical card is missing
  • Whether anyone else had permission to use it

Ask the issuer to:

  • Block the compromised card
  • Replace the card number
  • Open an unauthorized-use investigation
  • Review related transactions
  • Remove unfamiliar wallet tokens
  • Explain the written dispute procedure
  • Provide a case number

Sample Call Script

Hello. I need to report an unauthorized credit card transaction.

The charge is from [merchant description] for [$ amount] dated [date]. It is currently listed as [pending or posted].

I did not make, approve or benefit from this purchase, and I did not give anyone permission to use the card for it.

Please secure the account, block the compromised card number, issue a replacement and open the appropriate unauthorized-use investigation.

Please also review the account for related transactions and tell me how to submit the written billing-error notice. I need the case number and the correct billing dispute address.

Follow Up With Written Notice

Calling immediately helps secure the account, but written notice provides an important record and protects formal billing-error rights.

Your notice should include:

  • Your name
  • Your mailing address
  • The account number or last four digits
  • The unauthorized amount
  • The transaction date
  • The merchant description
  • A statement that you did not authorize the charge
  • The date you first reported it
  • The fraud case number
  • Copies of supporting documents

Send the notice to the billing dispute or billing inquiries address—not the address used for credit card payments.

Keep:

  • A copy of the letter
  • Copies of attachments
  • Postal tracking
  • Delivery confirmation
  • Online dispute confirmation

Unauthorized Credit Card Charge Letter Template

[Your full name]
[Mailing address]
[City, state and ZIP code]
[Email address]
[Telephone number]

[Date]

[Credit card issuer]
Billing Inquiries Department
[Billing dispute address]

Subject: Unauthorized credit card charge
Account ending in: [last four digits]
Fraud case number: [case number]

Dear Billing Inquiries Department:

I am disputing an unauthorized charge of [$ amount] from [merchant description] dated [transaction date]. The charge appeared on the statement sent on [statement date].

I did not make, approve or benefit from this transaction, and I did not give the person who made it permission to use my credit card account.

I reported the charge by telephone or online on [date]. Please investigate the transaction, remove the unauthorized charge and any related interest or fees, and confirm the correction in writing.

I have enclosed copies of [statement page, fraud confirmation or other evidence]. I have retained the original documents.

Sincerely,

[Signature]

[Printed name]

For a more detailed reusable template, see:

Credit Card Dispute Letter: Free Template

What Is the 60-Day Credit Card Dispute Rule?

To protect your formal billing-error rights, send the issuer written notice within 60 calendar days after it sent the first statement containing the unauthorized charge.

Do not count 60 days from the purchase date. The formal period is tied to the first statement on which the charge appeared.

Act earlier whenever possible because:

  • Additional fraudulent charges may occur
  • The issuer may need to replace the card
  • Evidence can disappear
  • The merchant may release records only for a limited period
  • The account may be used for other fraud

If more than 60 days have passed, report the unauthorized charge anyway. Ask the issuer what rights, card-agreement protections and fraud procedures remain available.

Use the Correct Billing Dispute Address

The correct address may appear:

  • On the monthly statement
  • Under “Billing Rights”
  • Under “Billing Inquiries”
  • In the card agreement
  • On the issuer’s official website

It is often different from:

  • The payment address
  • The issuer’s corporate office
  • A general customer-service address
  • The merchant’s address

Ask the issuer to confirm the exact address during the fraud call and compare it with the statement instructions.

How Much Can You Be Responsible For?

Federal law generally limits liability for unauthorized credit-card use.

Situation General federal liability limit
You report the physical card missing before unauthorized use $0
The physical card is used before you report it missing Generally no more than $50
The card number is stolen but you still have the card Generally $0
The issuer provides a stronger zero-liability policy The agreement may reduce liability below the federal maximum

The $50 amount is a maximum permitted under qualifying circumstances, not an automatic charge. Many card agreements provide zero-liability protection.

Review the current card agreement for:

  • Zero-liability terms
  • Reporting instructions
  • Excluded transactions
  • Business-card provisions
  • Required cooperation

What Happens During the Investigation?

The issuer may review:

  • The transaction location
  • The transaction type
  • The device used
  • The internet address
  • Digital-wallet information
  • Merchant records
  • Delivery addresses
  • Signatures
  • Account login history
  • Previous purchases
  • Authorized-user activity

The issuer may ask you to:

  • Confirm that the card was in your possession
  • Identify people who had access to it
  • Complete a fraud affidavit
  • Provide supporting records
  • Explain whether you know the purchaser
  • Confirm whether merchandise was delivered to you

Under the formal billing-error process, the issuer generally must:

  • Acknowledge the written notice within 30 days unless it already resolved the matter
  • Complete the investigation within two complete billing cycles
  • Finish no later than 90 days after receiving the notice
  • Explain the result in writing

Cooperate with reasonable requests, but preserve copies of everything supplied.

What Should You Pay While the Charge Is Disputed?

Under the formal billing-error process, you generally do not have to pay:

  • The disputed charge
  • Interest connected with the disputed amount
  • Other charges directly related to the disputed amount

You should continue paying:

  • Undisputed purchases
  • Valid fees
  • The required amount connected with the undisputed balance

Do not stop paying the entire credit card bill. Continue paying the undisputed portion on time.

The issuer generally cannot treat the disputed amount as late or report you as delinquent solely because you withheld that amount while following the billing-error process.

Temporary Credits and Charge Removal

An issuer may:

  • Temporarily remove the charge
  • Apply a provisional credit
  • Mark the amount as disputed
  • Leave it visible while suspending payment requirements

A temporary credit is not necessarily a final decision. The issuer may reverse it if the investigation concludes that the charge was authorized or valid.

Continue reviewing:

  • The current balance
  • The available credit
  • The minimum payment
  • Dispute notices
  • Investigation correspondence

What if an Authorized User Made the Charge?

A purchase by an authorized user is generally not an unauthorized transaction merely because:

  • You disagree with the purchase
  • The person spent more than expected
  • The purchase violated a family agreement
  • The user failed to tell you first

When you no longer want the person to use the account:

  • Contact the issuer
  • Remove the authorized user
  • Request replacement cards when needed
  • State clearly that future use is no longer permitted

Questions about actual, implied or apparent authority may depend on the facts and applicable state law.

What if a Family Member Used the Card?

Tell the issuer the complete facts.

Explain:

  • Whether the person was an authorized user
  • Whether you previously allowed the person to use the card
  • Whether the card was taken without permission
  • Whether you received any benefit from the purchase
  • When you withdrew permission

Do not claim that a purchase was made by a stranger when you know who used the card. The issuer needs accurate facts to determine whether the transaction qualifies as unauthorized.

Unauthorized Charge or Merchant Dispute?

Unauthorized charge Merchant dispute
You did not approve the purchase You intentionally made the purchase
The card or number was used without authority The seller charged the wrong amount or failed to deliver
You received no benefit You received, expected or ordered goods or services
Reported as fraud or unauthorized use Reported using the correct billing-dispute reason

A merchant dispute may involve:

  • Goods not delivered
  • A wrong amount
  • A duplicate charge
  • A missing refund
  • A cancelled service
  • Defective goods
  • A subscription renewal

Use the dispute reason that accurately describes what happened.

Unauthorized Charge or Duplicate Charge?

A duplicate occurs when a merchant processes the same legitimate purchase more than once.

Check whether:

  • Both transactions are posted
  • One entry is still pending
  • The amounts are identical
  • The merchant and dates match
  • You made two separate purchases

One pending authorization plus one posted transaction is not necessarily a duplicate.

See:

Duplicate Credit Card Charge: Wait or Dispute It?

What if the Charge Is From a Subscription?

Check:

  • Free-trial terms
  • Annual renewals
  • Family or shared accounts
  • App-store subscriptions
  • Cancellation confirmations
  • Whether the merchant changed its billing name

When you knowingly enrolled but disagree with the renewal, the issue may be a cancellation or disclosure dispute rather than stolen-card fraud.

When you never enrolled or supplied the card, report the transaction as potentially unauthorized.

Replacing the card may not automatically cancel a legitimate subscription agreement. Cancel directly with the provider when the service is yours.

Should You Report a Small Unauthorized Charge?

Yes. A thief may use a small transaction to determine whether stolen card information works.

Examples may include:

  • A small online purchase
  • A nominal authorization
  • A low-cost digital product
  • A small donation
  • A convenience-store transaction

Do not ignore an unfamiliar charge because it is only a few dollars. Larger transactions may follow.

What if the Card Was Used Through a Digital Wallet?

Ask the issuer whether the transaction involved:

  • Apple Pay
  • Google Pay
  • Samsung Wallet
  • A merchant wallet
  • A virtual card number
  • A tokenized payment credential

Then:

  • Remove unfamiliar devices
  • Change the wallet account password
  • Secure the linked email account
  • Review account recovery methods
  • Check for unfamiliar card additions
  • Enable multi-factor authentication

Replacing the physical card may not be enough when the fraud resulted from an account takeover. Secure the wallet, email and issuer account as well.

What if Someone Accessed Your Credit Card Account?

Warning signs include:

  • An unfamiliar login
  • A password-reset email you did not request
  • Changed contact information
  • A new authorized user
  • A new digital wallet
  • A changed mailing address
  • Electronic statements turned off
  • A cash advance or balance transfer

Take these steps:

Change the issuer password

Use a secure device and a unique password.

Secure the email account

Email access may allow the thief to reset financial passwords.

Remove unfamiliar devices

Sign out of all sessions when the option is available.

Review profile changes

Confirm the telephone number, mailing address and email address.

Contact the issuer

Explain that the account itself may have been compromised.

What if Unauthorized Charges Continue After the Card Is Replaced?

Possible reasons include:

  • The online issuer account remains compromised
  • A digital-wallet token remains active
  • The thief obtained the replacement details
  • A recurring merchant received updated card information
  • The new transaction was already authorized before replacement
  • Another authorized user still has access

Ask the issuer to review:

  • Wallet tokens
  • Recurring merchant updates
  • Account login records
  • Authorized users
  • Virtual card numbers
  • Previously authorized transactions

Repeated fraud may indicate an account, email or device compromise—not merely one stolen card number.

What if the Card Issuer Denies the Fraud Claim?

Request the decision and explanation in writing.

Ask:

  • Why was the transaction considered authorized?
  • What device or authentication method was used?
  • Where were goods delivered?
  • Was a digital wallet involved?
  • Did the issuer identify an authorized user?
  • What evidence did the merchant provide?
  • Can you appeal or request reconsideration?

Then:

Compare the decision with the facts

Identify the exact conclusion that you believe is wrong.

Submit additional evidence

Provide travel records, delivery information, account alerts or other relevant documents.

Request reconsideration

Explain why the issuer’s reasoning does not establish authority or benefit.

Use the issuer’s complaint office

Escalate through executive customer service or the formal complaint department.

File a regulatory complaint when appropriate

Use the CFPB complaint process for eligible unresolved credit-card complaints.

If an issuer seeks to hold you responsible for unauthorized use, Regulation Z requires a reasonable investigation. The issuer may request your cooperation and supporting information.

Do You Need a Police Report?

A card issuer may ask whether you filed a police report, particularly when:

  • The physical card was stolen
  • A family member or known person may be involved
  • The amount is substantial
  • Identity theft affected several accounts
  • Other property was stolen

A police report can help document the incident, but it is not automatically required for every unauthorized credit card claim.

An issuer cannot automatically deny an unauthorized-use claim solely because you did not file a police report. However, failing to provide reasonably requested information can limit what the issuer is able to confirm.

Contact police immediately when:

  • You are in danger
  • The card was taken during robbery or burglary
  • The suspected thief is local
  • Identification was stolen
  • The issuer requests additional documentation

When an Unauthorized Charge May Be Part of Identity Theft

Broader identity theft may be involved when you find:

  • A credit card account you never opened
  • An unfamiliar loan
  • Unknown credit inquiries
  • Addresses you do not recognize
  • Collections that are not yours
  • Changes to your personal information
  • Fraud across several financial accounts

Use:

IdentityTheft.gov

The service can help create:

  • An FTC Identity Theft Report
  • A personalized recovery plan
  • Letters to affected companies
  • Credit-report blocking requests

Use identity-theft procedures only for genuinely fraudulent accounts or information.

Should You Check Your Credit Reports?

One stolen card number does not necessarily mean that new accounts were opened, but checking your reports may be appropriate when:

  • Personal identification was stolen
  • Your Social Security number was exposed
  • The issuer account was taken over
  • Several accounts show fraud
  • You find unfamiliar credit inquiries
  • You suspect broader identity theft

Use:

Evidence to Preserve

Keep:

  • The statement showing the charge
  • Screenshots of pending and posted transactions
  • The merchant description
  • The transaction date and amount
  • The date you noticed the charge
  • The fraud report confirmation
  • The issuer’s case number
  • Copies of written notices
  • Mailing and delivery records
  • Issuer correspondence
  • Account login alerts
  • Digital-wallet notices
  • Travel or location records when relevant
  • Evidence that goods were delivered elsewhere

Create a timeline showing when the card was last used legitimately, when the fraud appeared and when each report was made.

How to Protect the Account After Fraud

  • Replace the compromised card number.
  • Change the issuer account password.
  • Use a unique password not used elsewhere.
  • Enable multi-factor authentication.
  • Secure the connected email account.
  • Remove unfamiliar devices.
  • Review authorized users.
  • Review digital wallets.
  • Turn on purchase and login alerts.
  • Review recurring payments moved to the new card.
  • Monitor every statement.
  • Check other cards for related activity.

Never provide a verification code to an incoming caller claiming to investigate fraud. Hang up and contact the issuer through an official channel.

Where Else Should You Report Credit Card Fraud?

Card issuer

The issuer is the first and most important contact for stopping use and disputing the transaction.

IdentityTheft.gov

Use it when someone opened accounts or used broader personal information in your name.

Federal Trade Commission

Report scams and deceptive practices at:

ReportFraud.ftc.gov

Consumer Financial Protection Bureau

Consider a complaint when the card issuer does not properly address an eligible fraud or billing-error claim:

CFPB Complaint System

Police

Contact local law enforcement when physical theft, burglary, threats or local identity theft are involved.

Unauthorized Credit Card Charge Mistakes to Avoid

Waiting for the transaction to post

Contact the issuer immediately, even if the formal dispute must wait.

Ignoring a small charge

A small charge may test stolen card information.

Calling a number in a suspicious message

Use the card, statement or official application.

Reporting a merchant disagreement as stolen-card fraud

Use the dispute reason that accurately describes the problem.

Failing to replace the card number

A compromised number can be used again.

Ignoring the online account

Secure passwords, devices, contact information and digital wallets.

Missing the written dispute deadline

Send the billing-error notice promptly and within the applicable 60-day period.

Sending the letter to the payment address

Use the billing inquiries or dispute address.

Stopping all payments

Continue paying valid, undisputed amounts.

Discarding case records

Save every notice, confirmation and delivery record.

Frequently Asked Questions

What should I do first after finding an unauthorized credit card charge?

Lock the card and contact the issuer immediately through its official application, website or the number printed on the card.

Should I report a pending unauthorized charge?

Yes. The issuer may wait until it posts before opening a formal billing dispute, but it can secure the card and account immediately.

Can I dispute an unauthorized credit card charge online?

Many issuers allow online fraud reports. Follow the issuer’s written billing-error instructions as well to protect formal dispute rights.

How long do I have to dispute the charge?

For formal Fair Credit Billing Act protections, send written notice within 60 calendar days after the issuer sent the first statement containing the charge.

Should I send the dispute to the payment address?

No. Use the billing inquiries, billing errors or dispute address shown on the statement or card agreement.

How much can I be liable for?

Federal law generally caps liability at $50 for qualifying unauthorized use of a lost or stolen physical credit card before notice. Many issuers provide zero-liability policies.

What if I still have the physical card?

When only the account number was stolen and used, you generally have no liability for the unauthorized credit card transactions.

What if an authorized user made the purchase?

A purchase by an authorized user is generally not unauthorized merely because you did not approve that specific purchase. Contact the issuer to remove the user and withdraw future authority.

What if my child or spouse used the card?

Tell the issuer whether that person previously had permission to use the card. Authority can affect whether the charge qualifies as unauthorized.

What if the merchant name looks unfamiliar?

Ask the issuer for the merchant’s full name, location, telephone number and transaction details. It may be a parent company or payment processor.

Should I contact the merchant?

You may ask for identifying information, but do not delay reporting suspected unauthorized use to the card issuer.

Is a duplicate charge considered fraud?

Not usually when you made the underlying purchase. A duplicate is generally a merchant billing error rather than unauthorized use.

What if the charge is from a forgotten subscription?

Review the enrollment and cancellation records. It may be a merchant or subscription dispute rather than stolen-card fraud.

Will replacing the card stop subscriptions?

Not necessarily. Some recurring merchants may receive updated card credentials. Cancel legitimate subscriptions directly.

Why did fraud continue after my card was replaced?

The issuer account, email, digital wallet, virtual card or recurring-payment credentials may still be compromised.

Can I stop paying the whole credit card bill?

No. Continue paying the undisputed portion on time while the charge is investigated.

Will the issuer charge interest on the disputed amount?

Under the formal billing-error process, you generally do not have to pay the disputed amount or related interest while the issuer investigates.

How long can the investigation take?

The issuer generally must acknowledge a qualifying written billing-error notice within 30 days and resolve it within two billing cycles, no later than 90 days.

Is a temporary credit permanent?

No. The issuer may reverse a temporary credit if it later decides that the charge was valid or authorized.

Can the issuer require a police report?

It may request one, but it cannot automatically deny an unauthorized-use claim solely because you did not file a police report.

What if the issuer denies my claim?

Request the reason and supporting explanation in writing, provide additional evidence and use the issuer’s reconsideration and complaint process.

Should I check my credit reports?

Consider doing so when personal information was exposed, new accounts may have been opened or fraud appears across several accounts.

Should I report the incident to the FTC?

Report scams through ReportFraud.ftc.gov and use IdentityTheft.gov when someone used your identity to open accounts or commit broader fraud.

Official Unauthorized Charge Resources

Bottom Line

An unauthorized credit card charge should be reported immediately. Lock the card, contact the issuer through an official channel and ask it to replace the compromised number and investigate the transaction.

Verify the merchant quickly, but do not delay when the charge remains unfamiliar. Follow the issuer’s written billing-error instructions, use the correct dispute address and preserve proof that your notice was submitted on time.

The practical rule: Secure the card first, report the exact transaction and describe honestly whether anyone had permission to use the account.

This article provides general U.S. consumer information and does not provide individualized legal, credit or financial advice. Card agreements, issuer procedures and protections may vary.

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