Imagine this: You’re sipping your morning coffee when a phone alert pops up – a $412 charge at a store you’ve never visited. Your heart skips a beat. Unauthorized charges can happen to anyone, and the shock of seeing a mystery charge on your credit card statement is downright stressful. The good news? You’re not helpless. U.S. law and card issuer policies are on your side, and with a few clear steps, you can dispute unauthorized credit card charges and protect yourself. This guide will walk you through exactly how to do that – in plain English – so you can resolve the issue and get back your peace of mind.

Know Your Rights: Fair Credit Billing Act and $0 Fraud Liability

Before jumping into action, it’s important to understand the protections you have as a credit card customer. The federal Fair Credit Billing Act (FCBA) gives you the right to dispute fraudulent or incorrect charges and limits how much you have to pay for unauthorized use:

• $50 Liability Limit: Under federal law, your maximum liability for unauthorized credit card charges is $50. That means even if a thief racks up hundreds on your card, you’d only be on the hook for at most $50 – and often you won’t pay a dime.
  
  

• $0 Liability Policies: In practice, most major card issuers go further and offer zero fraud liability, so you likely won’t owe anything if you report the fraud promptly. (In fact, if your card number is stolen but not the physical card, federal law says you have no liability at all for those charges.)
  
  

• Timely Reporting is Key: To take full advantage of these protections, you need to report unauthorized charges quickly. The FCBA requires you to dispute billing errors (including fraud) within 60 days of the statement date on which the error appeared. Don’t panic – 60 days is a good window – but the sooner you act, the better.
  
  

Bottom line: If someone fraudulently uses your credit card, you are highly protected. As long as you catch the issue and inform your bank in a timely manner, you won’t be responsible for bogus charges, thanks to federal law and zero-liability policies. Next, let’s see exactly how to notify your bank and get those charges off your account.

Step-by-Step: How to Dispute an Unauthorized Credit Card Charge

Disputing an unauthorized charge is a straightforward process. Here’s a step-by-step guide to ensure you cover all bases and resolve the issue as smoothly as possible:

1. Verify the Charge Is Truly Unauthorized. Before you call in the cavalry, double-check that the charge isn’t a mistake or something you forgot. Review the merchant name (some appear under odd billing names), the amount, and the date. Is it a subscription you or a family member signed up for? A store you visited under a parent company name? If you’re sure you didn’t make or approve the charge, proceed to the next step. (It’s wise to check your whole statement for any other surprise charges, too.)
   
   

2. Notify Your Card Issuer Immediately. As soon as you spot a fraudulent charge, contact your credit card company. Speed is crucial – call the number on the back of your card or use your bank’s mobile app to report an unauthorized transaction. Explain which charge(s) are unauthorized. According to the CFPB (Consumer Financial Protection Bureau), you should let your card issuer know about the problem right away. Why it matters: Fast reporting stops further fraud and documents that you alerted the bank promptly. In many cases, the card issuer will freeze or credit back the disputed amount immediately while they investigate, so you aren’t out the money during the process. They will also usually deactivate your card and issue a new card number to prevent more fraudulent use (don’t worry, you won’t lose your account – just a new card is mailed to you).
   
   

3. Follow Up in Writing (Within 60 Days). After the initial phone or online report, it’s highly recommended to send a written dispute letter to your card issuer’s billing inquiries address (found on your statement or the issuer’s website). This step is actually required under the FCBA if you want to invoke your legal rights. In your letter, include your account info, the date and amount of the unauthorized charge(s), and a statement that you did not make or authorize them. Make sure this written notice is sent within 60 calendar days after the bill with the error was mailed/posted to you. You can send it via certified mail or any method that provides delivery confirmation, so you have proof you reported the issue in writing. Why it matters: A written dispute formally triggers your rights under federal law, requiring the bank to investigate and respond within set timelines (and protects you from having to pay the charge while it’s investigated).
   
   

4. Provide Any Supporting Evidence. In many cases of obvious fraud, you won’t have much “evidence” to provide beyond saying you didn’t authorize the transaction. But if you have helpful info, include it. For example, if your card was stolen, mention that you reported it stolen on X date; if you still have the card in your possession, say so (proving the fraud was from a stolen number, not you). If the charge was at a location far from where you live or travel, you might note that. While you generally don’t have to prove you didn’t make a purchase, any details can help the investigation. Also keep copies of receipts around the date in question, in case they later ask for proof of where you actually were or what charges you did make. Typically, though, once you report fraud, the issuer’s fraud department handles the detective work – your job is mainly to alert them and confirm which charges weren’t yours.
   
   

5. Track Your Communication and the Timeline. Keep a log of all calls (note the date, time, and who you spoke with) and save any emails or letters from the card company. After you send a written dispute, the clock starts on the formal timeline. By law, the issuer must acknowledge your written dispute within 30 days in writing (often, they’ll simply send a letter or secure message saying “We received your dispute”). They then must investigate and resolve the dispute within two billing cycles (no more than 90 days). In practice, most disputes, especially clear-cut fraud, are resolved much faster – often within a week or two. During the investigation, you are not required to pay the disputed charge and no interest or fees can accrue on it. Still, continue to pay your other charges as normal. Mark your calendar for the 30-day and 90-day time frames so you can follow up if needed.
   
   

6. Let the Investigation Play Out (and Know What to Expect). Once you’ve filed your dispute, the card issuer will investigate. Usually, they’ll remove the charge from your account or issue a provisional credit so your balance doesn’t include the disputed amount while they look into it. They may contact the merchant for transaction details or ask you for a bit more information. Typically, you won’t be asked to pay the charge while it’s under review, and it won’t accrue interest. This process can take a few weeks, though many simple fraud claims are resolved on the next statement. Be patient, but if you haven’t heard back in ~30 days, check that they received your written dispute. The issuer will send you the results in writing. If the dispute is resolved in your favor, the charge will be permanently removed (and any temporary credit becomes permanent). You might also get a letter confirming you owe nothing for that charge. In the rare event that the fraudulent charge somehow wasn’t obvious (for example, if the merchant provided info suggesting the charge was actually valid), the issuer might reach out to you for more details or a signed affidavit confirming you didn’t authorize the transaction.
   
   

7. Review the Resolution. In most cases, you’ll get great news: “Your dispute has been resolved in your favor.” The unauthorized charge is gone, and you aren’t liable for it. However, read any correspondence carefully. If the issuer denies your dispute and decides the charge was valid (or outside the protections), they must send you a letter explaining why. This leads to our next section...
   
   

If Your Dispute Is Denied: What Next?

It’s uncommon, but what if your card issuer investigates and says they believe the charge was not fraud (in other words, they refuse to refund it)? Perhaps the merchant provided evidence or you missed the 60-day window – whatever the reason, don’t panic. You still have options:

• Review the Explanation and Request Proof: The card company’s denial letter will tell you why they think the charge is valid and how much you owe. You have a right to request copies of documentation they used in their determination. For example, ask for any signed receipts, IP address info for online purchases, etc. Sometimes seeing the details (like a signature that clearly isn’t yours) can help you contest it further.
  
  

• Appeal the Decision in Writing: If you strongly disagree with the outcome, you can send a follow-up letter stating you still dispute the charge and won’t be paying it. The FTC notes that if you appeal and refuse to pay, the issuer at that point is allowed to begin collection proceedings for the amount (meaning they could treat it as an unpaid debt). This sounds scary, but they also must report to credit bureaus that the charge is disputed if they report it at all, and you still have the protections of any evidence you have. An appeal might involve the bank’s internal dispute arbitration or investigation by a higher department.
  
  

• File a Complaint if Needed: You can escalate the issue by filing a complaint with the Consumer Financial Protection Bureau (CFPB) if you believe your rights were violated or the investigation was unfair. The CFPB will forward the complaint to the company for a response. Sometimes, just the act of a formal complaint can prompt a second look at your case.
  
  

• Pay to Avoid Credit Damage (Optional): If the amount is small or you’re worried about it affecting your credit, you could choose to pay the charge after a denial, to keep your account in good standing – but continue to fight for a refund through the above channels. If you pay it, note that it’s under protest. This is a judgment call; legally, you don’t have to pay a charge you didn’t authorize, but protecting your credit score during a lengthy dispute is also important. Tip: If you do end up paying to avoid collections, keep pursuing the dispute through the card’s fraud department or even small claims court if justified.
  
  

Thankfully, outright dispute denials for clear unauthorized charges are rare – especially if you reported promptly. As long as you’ve been truthful and diligent, the odds are in your favor that you’ll never have to pay for someone else’s fraudulent shopping spree.

Common Misconceptions About Unauthorized Charges

There’s a lot of confusion and bad advice out there when it comes to credit card fraud and disputes. Let’s clear up a few myths so you know fact from fiction:

• Myth #1: “You must file a police report to dispute a fraudulent charge.” In reality, you usually don’t need a police report for a standard credit card fraud claim. Banks do not require a police report in most cases – their internal fraud teams investigate the issue. A police report is typically only useful if you know the culprit (e.g. your roommate stole your card) or if the issuer specifically asks for one in a complex case. For everyday fraud, save your time; an official identity theft report (via the FTC’s IdentityTheft.gov) is optional but can be used if needed as evidence. Focus first on alerting your bank, not the police.
  
  

• Myth #2: “I’ll have to pay for unauthorized charges out of pocket.” False! As we covered above, federal law and zero-liability policies protect you – meaning you shouldn’t have to pay for fraudulent charges in the end. At most, the law says $50, but even that is waived by most card issuers. As long as you report the issue, you are not going to be stuck paying the bill for a thief’s shopping spree. So don’t hesitate to dispute a charge for fear you’ll be forced to cover it – you won’t.
  
  

• Myth #3: “Disputing a charge will hurt my credit score.” Not if you follow the proper process. When you file a dispute, the charge is in limbo and not treated as a delinquent debt. Your issuer can’t report you as late or charge you interest on that amount while it’s under investigation. Only if, after all is done, you refuse to pay a legitimately owed charge could it affect your credit. Simply reporting fraud or a billing error does not show up as a negative mark on your credit report. In fact, not reviewing your statements and missing fraud would be worse! So disputing is safe and expected behavior – it’s part of your consumer rights.
  
  

• Myth #4: “If the amount is small, I shouldn’t bother disputing it.” Even a small unauthorized charge is important to address. Fraudsters often test cards with a minor $1 or $5 charge to see if it goes unnoticed – then they make a larger purchase. Reporting even tiny suspicious charges can prevent bigger problems. Plus, it’s your money (or credit line), so don’t let someone take it. Your bank won’t view you as a pest for disputing a $5 fraud charge; they’d prefer to block the card and stop further fraud right away. Always err on the side of alerting your issuer if something looks off, no matter how small.
  
  

By understanding these misconceptions, you can respond to unauthorized charges more confidently and quickly, without wasting time on unnecessary steps or harboring unwarranted fears.

Pro Tips to Speed Up Resolution and Prevent Future Fraud

Unauthorized charges are always an unwelcome surprise, but there are some savvy moves to help resolve disputes faster and avoid fraud in the first place. Here are some pro tips every credit card user should know:

• Set Up Alerts and Notifications: Almost all banks let you enable instant alerts for credit card transactions. You can usually get a text, email, or app notification for every purchase or for those above a certain dollar amount. Turn these on! That way, if a crook uses your card, you’ll know within minutes and can report it before they do more damage. Early detection is key – it can even stop a second fraudulent charge in its tracks. (Many credit card mobile apps also allow real-time push alerts – a very handy feature.)
  
  

• Regularly Review Your Account Activity: Don’t wait for the monthly paper statement to check your charges. Make it a habit to peek at your transactions online once a week or so. Frequent review means you’ll catch strange charges sooner. It’s great for budgeting too. A quick scan can be done in a minute, and it will help you spot any errors or fraud early, which makes disputing easier. Consider setting a reminder on your phone to check your accounts on a set day.
  
  

• Use Card Locks or Freezes: Most major issuers now offer an on/off switch for your card. If you misplace your card or notice something suspicious, you can log into your app and lock your card (or request a freeze) immediately. This prevents any new charges from going through. If you find the card later, you can unlock it just as easily. This is great for peace of mind – no new transactions can occur while you figure out what’s going on. (If you confirm the card is stolen or fraud occurred, the bank will still issue a new card, but locking it buys you time and prevents additional charges in the meantime.)
  
  

• Leverage Account Security Tools: Card issuers provide a suite of security options – take advantage of them. For example, some cards allow you to set spending limits, get alerted for card-not-present (online) transactions, or even use virtual card numbers for online shopping. These account security tools can greatly reduce the risk of fraud. If your bank offers two-factor authentication for account logins, use it – securing your online account access will help keep hackers from sneaking in and creating fraudulent transactions or new card requests.
  
  

• Keep Your Contact Info Updated: Make sure your credit card company has your current phone number and email. If their fraud detection system flags a suspicious transaction, they might need to contact you immediately to verify it. If they can’t reach you, they might approve a charge by mistake or even freeze your account while you’re unaware. By being reachable, you can confirm legitimate purchases or stop fraud faster.
  
  

• Be Cautious with Your Card Details: This sounds obvious, but it’s worth a reminder. Protect your card number like the sensitive info it is. Avoid giving out card details over the phone unless you initiated the call to a trusted merchant. Be wary of phishing emails or texts. And shred old statements. The less your card info is out in the world, the lower the chance of it being used without your OK. Also, only shop on secure websites – look for “https” and reputable retailers, especially when entering credit card info online.
  
  

• Consider Cards with Strong Fraud Protection: All credit cards have fraud protection by law, but some issuers are known for exceptional fraud detection and customer service if an issue arises. It might be worth having a card from an issuer with a stellar reputation for handling fraud quickly and generously. (For instance, some issuers immediately credit back disputed charges with no hassle.) If you’re researching new cards, check out our roundup of fraud protection cards to see which providers go above and beyond in protecting you.
  
  

• Practice Good Credit Management: A well-managed credit account is easier to monitor and protect. Keep your balances in check, use alerts, and know your billing cycle. For broader tips on managing your credit accounts wisely (which in turn helps you spot and prevent fraud), browse our credit management guides. Building good habits with your credit cards will naturally include keeping an eye out for unauthorized charges and dealing with them promptly.
  
  

• Act Fast, Every Time: This is worth repeating – the quicker you act, the easier the dispute process. The moment you suspect something’s wrong, notify your issuer. Quick action not only shuts down fraud but also strengthens your case that you shouldn’t be responsible for the charge. Card issuers can see when you report an issue, and a fast report signals that you are on top of your account (which often means they’ll side with you without question).
  
  

By following these tips, you’ll not only handle any unauthorized charge efficiently, but you’ll also make yourself a harder target for fraud. Being proactive is the name of the game when it comes to credit card security.

Final Thoughts

Discovering an unfamiliar charge on your credit card can be scary, but remember that you have powerful protections and a clear path to fix the problem. In our opening scenario, Amanda swiftly contacted her bank about that $412 mystery charge. Her issuer immediately removed the charge and sent her a new card, and within a week the investigation confirmed it was fraud. Amanda didn’t pay a cent for that crook’s shopping spree. Stories like this are common because the system is designed to protect you from fraud.

By understanding your rights under the FCBA, acting quickly, and following the dispute process, you can confidently resolve unauthorized charges. Keep this guide handy in case you ever need to dispute a charge, and share it with friends and family – unfortunately, card fraud is common, but now you know exactly how to handle it. With vigilance and prompt action, you can ensure that only your purchases end up on your credit card bill, and any fraudulent detours are swiftly wiped away.

EMPLOYER NOTE: This article is intended to provide general information for U.S. credit card users about handling unauthorized charges. Always refer to your cardmember agreement for specific instructions and contact your issuer’s customer service if you have questions. Stay safe, and happy credit carding – with you in charge of your account!