Credit Card and Bank Fraud: Your Liability and How to Dispute Unauthorized Charges

Unauthorized charges happen, and the rules protecting you depend on the type of payment. Credit cards, debit cards and transfers each have different protections and deadlines.

Credit cards

Under federal law, your liability for unauthorized credit card charges is capped at $50, and most issuers offer zero liability policies. Report the fraud promptly and dispute in writing within the time stated on your statement.

Debit cards and bank accounts

• Reporting within two business days of learning of the loss usually limits liability to $50 for lost or stolen cards.
• Waiting longer can raise your exposure, and some losses can become much larger after about sixty days.
• Banks must investigate and may provide temporary credit while they do.
• Money is taken directly from your account, so fast reporting matters.

Scams versus unauthorized transactions

Protections are strongest when you did not authorize a transaction. If you were tricked into sending money yourself, such as through a wire or peer-to-peer payment scam, banks may treat it as authorized and recovery is harder. Report immediately anyway, since quick action can sometimes recall funds.

How to dispute

Call the number on the card, then follow up in writing. Identify the charge, date and amount, and explain why it is unauthorized. Keep copies and note the date you sent them. Ask for a new card and account numbers.

Provisional credit and investigations

For debit and electronic transfers, banks generally must investigate within set time limits and may credit your account temporarily. Respond promptly to requests for information, since failing to do so can delay or end the dispute.

Merchant disputes versus fraud

A charge for goods you never received or that were not as described is a billing dispute, not fraud, and has different procedures. Contact the merchant first and then use your card issuer's dispute process. See our guide to chargebacks.

Preventing repeat fraud

Turn on transaction alerts, freeze credit if your data was exposed, use unique passwords and avoid public Wi-Fi for banking. Review statements monthly and report anything unfamiliar immediately.

Real-life scenarios

1. A cardholder spots a charge from another state and reports it the same day.
2. A debit card user reports a skimmed card within two days and receives provisional credit.
3. A person sends money to a fake support number and learns recovery is uncertain.

Common mistakes to avoid

• Waiting to review statements.
• Disputing only by phone.
• Ignoring bank requests for documents.
• Sharing one-time codes.
• Assuming debit and credit cards have the same protection.
• Not changing passwords after a breach.

Questions to ask a professional

• What is my liability for this charge?
• What deadlines apply to my account?
• Will I get provisional credit?
• Was this unauthorized or an authorized scam?
• Should I freeze my credit?

A practical action plan

1. Report to your bank or card issuer immediately.
2. Dispute in writing and keep copies.
3. Replace cards and change passwords.
4. Respond to investigation requests.
5. Monitor accounts and credit reports.

Terms you may hear

• Unauthorized transaction: a charge you did not approve.
• Provisional credit: temporary refund during an investigation.
• Chargeback: reversal of a card charge.
• Skimming: stealing card data with a device.
• Zero liability: issuer policy of not charging you for fraud.

Writing a strong dispute letter

Identify the account, list each disputed charge with date, merchant and amount, say plainly that you did not authorize them and ask for a written investigation result. Send it to the address for billing errors, not the payments address, within the time stated on your statement, and keep proof of mailing.

What banks usually ask for

Expect questions about when you last had the card, whether anyone else had access and where you were. Provide accurate, consistent answers. If a bank denies the claim, ask for the reasons in writing and the evidence relied on, then request reconsideration or file a complaint with the CFPB.

Reducing future risk

Use alerts for every transaction, avoid saving cards on unfamiliar sites, use virtual card numbers where available and review accounts weekly. Keep emergency contact numbers for your banks somewhere other than your phone.

Frequently asked questions