Fix Unauthorized Charges ... Before They Ruin Your Finances!

Did you just spot a $550 charge on your statement for an unknown "Rainbow Boot Company" but are unsure how it got there? Unfortunately, unauthorized credit card charges are not as uncommon as you might think – and if they happen to you, they could certainly prove to be a nightmare!

Unauthorized credit card charges may be the result of a stolen credit card or a compromised credit card number. They may even take place due to a clerical error or a computer glitch. However, the good news is that as long as you report these charges on time, you will not be held liable for them. Below are some tips on how to handle unauthorized charges in an effective manner.

Be Alert

The best way to deal with unauthorized charges is to be conscientious about reviewing your card statements. At regular intervals, log into your online account and check your statement for any transactions you don't recognize. As per the Fair Credit Billing Act, you have up to 60 days to report any unauthorized charges to your issuer from the day the statement containing the error is mailed. The issuer may not be legally obligated to handle your dispute favorably if informed after that time – even it is obvious to them that you are 100% in the right. Report all unfamiliar charges, no matter how minuscule they might seem. Thieves usually conduct small transactions first to check if the account is working – and then follow it up with bigger charges.

Report

Call your credit card issuer on the number mentioned at the back of your card or your billing statement. Always initiate the contact and never provide any sensitive information, such as the three-digit security code or your zip code to someone who calls or emails claiming to be your issuer, as this could be a scam. Once you report the charge, the card company will most likely cancel the compromised credit card account and issue a new credit card with a new account number. Ideally, you should also send a dispute letter to the company that explains the charges. Ensure that it references your phone call as well as the name of the agent with whom you spoke.

Know Your Rights

At most, you may be liable for up to $50 of unauthorized charges that were made before you reported a missing credit card. Additionally, many credit cards come with zero fraud liability policies that completely remove the consumer's responsibility for any fraudulent charges. As per the Fair Credit Billing Act, you're not liable for any fraudulent charges as long as you retain physical possession of your card. The issuer is obligated to remove the charge from your account once you report it, and you don't have to pay any disputed portion of the balance – or any fees or charges that may be associated with it.

Protect Yourself

Prevention is always better than cure. Hence, to reduce the probability of unauthorized charges, avoid sharing your credit information with anyone and don't save your credit card information online. Make sure your connection is secure while shopping online. You may also register for alerts that inform you in case of any unusual activity on your account. Finally, if your card is lost or stolen, take immediate steps to inform the issuer, so that any unscrupulous individual is restricted from using your card.

$50,000 to $250,000 with Fund&Grow

If you or someone you know is looking for $50,000 to $250,000 of unsecured credit for their business, we have a number of great options for you. Our team has helped businesses in all 50 states create 0% business credit financing, and we'd love to do the same for you. Contact Fund&Grow today to learn more at (800) 996-0270 or visit FundAndGrow.com.