TL;DR
If you spot an unauthorized charge, take these four actions in order: (1) verify it is actually unauthorized using a [transaction lookup tool](/), (2) call your bank's fraud line within 24 hours to freeze the card and open a dispute, (3) file the dispute in writing within 60 days to preserve your federal rights, and (4) request a new card number and review the past 90 days of charges for related fraud. Most consumers recover 100% of unauthorized charges within 30 days when they act quickly.
The First 60 Seconds: Decide If It Is Actually Unauthorized
About 80% of "unauthorized" charges are not fraud. Before doing anything else, run through this 60-second checklist:
- Search your email inbox for the exact charge amount. Most legitimate purchases generate confirmation emails. Searching "$47.99" usually surfaces the receipt within seconds.
- Check your subscription lists. iOS Settings → Apple ID → Subscriptions, Google Play → Subscriptions, and direct merchant accounts (Netflix, Spotify, Amazon Prime, etc.) reveal forgotten recurring charges.
- Use a billing descriptor lookup tool. Free tools like [TransactionLookup.com](/) identify what merchant is behind confusing descriptors like "SQ *DUNKINDONUTS" or "PAYPAL *NETFLIX".
- Ask authorized users. Spouse, partner, family member, or business co-signer purchases account for many "mystery" charges.
If you confirm the charge truly is not yours, proceed to Step 1.
Step 1: Call Your Bank Within 24 Hours
Time matters. Federal liability protection depends heavily on how fast you report:
- Debit card fraud reported within 2 business days: $0 liability under Regulation E
- Debit card fraud reported within 60 days: up to $500 liability
- Credit card fraud (any time within 60 days): $50 maximum liability under the FCBA, almost always waived
Call the fraud line on the back of your card. The agent will:
1. Freeze the disputed transaction so it cannot post or recur
2. Cancel your card number and ship a replacement (typically arrives in 3-7 business days)
3. Open a formal dispute case and provide a case number
4. Review recent charges for related fraud patterns
Have ready: card number ending in (last 4 digits), exact charge amount, charge date, billing descriptor as shown on the statement.
Step 2: File the Dispute in Writing
Verbal disputes alone do not fully preserve your legal rights. Within 60 days of the statement date, send written notice via:
- Certified mail with return receipt to the bank's "Billing Inquiries" address (different from payment address — listed on your statement)
- Online banking secure message — most major banks accept this and it provides an electronic timestamp
Your written dispute should include: account number, disputed amount, charge date, billing descriptor, the reason ("I did not authorize this charge"), and a request for written confirmation. See our [complete dispute guide](/blog/how-to-dispute-unauthorized-charge) for letter templates and timing details.
Step 3: Request Provisional Credit
For credit cards, you do not have to pay the disputed amount during the investigation. The bank cannot report it as delinquent or charge interest on the disputed portion.
For debit cards, ask the bank to issue provisional credit while they investigate. Federal law requires provisional credit within 10 business days of receiving the dispute (or 20 business days for new accounts). The credit becomes permanent if the bank rules in your favor; it is reversed if they rule the charge was valid.
Step 4: Review the Past 90 Days
Fraudsters typically test a stolen card with a small charge before attempting larger ones. Review your statements going back 90 days for:
- Small "test" charges under $5 from unfamiliar merchants
- Charges from cities or countries you have not visited
- Multiple charges from the same merchant in rapid succession
- Charges that increase in dollar amount over time
Add any additional fraudulent charges to your dispute. The 60-day FCBA window applies separately to each charge based on when it appeared on your statement.
Step 5: Place a Fraud Alert or Credit Freeze
If you suspect identity theft (not just card theft), place a free fraud alert with one of the three credit bureaus. The bureau you contact must notify the other two:
- Equifax: 1-888-836-6351
- Experian: 1-888-397-3742
- TransUnion: 1-833-395-6938
For stronger protection, place a credit freeze. Freezes prevent new credit accounts from being opened in your name and are free under federal law. You can lift the freeze temporarily when you need to apply for credit yourself.
When to File a Police Report
File a police report with your local department if:
- The fraud involves identity theft (someone opened accounts in your name)
- The disputed amount is over $1,000
- The bank denied your dispute and you need additional evidence
- You suspect you know who committed the fraud (e.g., a household member)
A police report is required for some bank dispute escalations and helps when filing complaints with the FTC and CFPB.
What If the Bank Denies the Dispute?
If the bank denies your dispute, your options in order of escalation:
1. Request all evidence the bank used to make the decision (legal right under FCBA)
2. Submit rebuttal evidence: alibi documentation, authorized user statements, proof you were elsewhere
3. File a complaint with the Consumer Financial Protection Bureau at [consumerfinance.gov/complaint](https://www.consumerfinance.gov/complaint/) — banks must respond within 15 days
4. File a complaint with your state attorney general's consumer protection division
5. File in small claims court for amounts under your state's small claims limit (typically $5,000-$10,000)
CFPB complaints are particularly effective — consumers report a significantly higher dispute reversal rate after CFPB involvement.
Common Mistakes to Avoid
- Waiting to call. Every day of delay weakens your liability protection on debit cards
- Disputing without verifying. Disputing legitimate charges can result in account closure for misuse
- Skipping the written dispute. Verbal-only disputes do not fully preserve federal rights
- Forgetting to cancel autopay. If the unauthorized charge is recurring, dispute the past charges AND cancel the recurring authorization with both the merchant and the bank
- Using Zelle for purchases. Federal law generally does not require banks to refund Zelle fraud — treat instant transfers like cash
Frequently Asked Questions
### How long do I have to report an unauthorized charge?
For credit cards, federal law gives you 60 days from the statement date under the Fair Credit Billing Act. For debit cards, you have 60 days under Regulation E, but reporting within 2 business days limits your liability to $0 instead of up to $500.
### Will disputing an unauthorized charge hurt my credit?
No. Federal law prohibits the bank from reporting the disputed amount as delinquent during the investigation. The dispute itself does not appear on your credit report.
### Can I dispute a charge from years ago?
Generally no. The 60-day window expires permanently after 60 days. Some banks accept disputes up to 120 days as a courtesy, but you have no federal right to a refund after 60 days.
### What if the unauthorized charge is from a recurring subscription I never signed up for?
Dispute the most recent charge as unauthorized AND contact the merchant directly to cancel the recurring authorization. Provide the merchant's customer service number to your bank so they can stop future charges from posting.
### Should I freeze my whole account or just dispute the one charge?
Disputing one charge is enough — the bank will issue you a new card number while keeping the account open, so direct deposits and autopayments are not interrupted. Freezing the account itself is rarely necessary unless multiple cards or fraudulent transfers are involved.