Seeing an unfamiliar charge on your credit card statement can be confusing and concerning. You might wonder if it’s a mistake, fraud, or a legitimate transaction that you’ve forgotten about.
Common Reasons for Unknown Charges
There are many reasons why a charge may appear on your credit card statement. Here are some of the most common:
1. Subscriptions or Memberships
- Sometimes, people forget about ongoing subscriptions. Services like streaming platforms or gyms can bill you monthly or annually.
- Look for charges with names like “Subscription” or “Recurring Payment” in the description.
2. Merchant Name Confusion
- Businesses often use different names for transactions. For example, a charge for a local restaurant may appear under the name of the parent company.
- Search for the merchant’s name online to confirm the source.
3. Family or Shared Accounts
- If you share your credit card with family members or have a joint account, they might have made the purchase.
- Confirm with others who have access to your card.
4. Free Trial Conversions
- Some free trials convert into paid subscriptions if not canceled in time.
- Check if you recently signed up for any trials.
5. Fraudulent Charges
- Scammers might have used your card without your permission. Look for small, frequent charges, as scammers often test cards with low amounts first.
Steps to Identify the Charge
Here’s a step-by-step guide to help you identify an unfamiliar charge on your credit card:
Step 1: Review Your Transactions
- Look at your recent transactions and match them with the charge.
- Use your online banking app for real-time details.
Step 2: Search the Merchant Name
- Enter the name from the charge into a search engine.
- Websites like ExplainCharges.com can help you identify unfamiliar transactions.
Step 3: Check Your Email
- Look for receipts or confirmations in your email inbox.
- Search for keywords related to the charge, such as the merchant name.
Step 4: Ask Family Members
- If others have access to your card, ask them about the charge.
- Children, in particular, might unknowingly make purchases online.
Step 5: Contact the Merchant
- Call or email the merchant listed on your statement.
- Provide them with details of the charge to verify the transaction.
Step 6: Report Fraud
- If the charge is unauthorized, contact your credit card issuer immediately.
- Most companies have 24/7 fraud hotlines.
What to Do if the Charge Is Unauthorized
If you discover that the charge is fraudulent, take these steps:
| Action | Description |
|---|---|
| Contact Your Bank | Report the unauthorized charge and request a refund. |
| Freeze Your Card | Temporarily lock your card to prevent more charges. |
| File a Dispute | Submit a formal complaint through your credit card issuer. |
| Monitor Your Statements | Keep an eye on future statements for additional fraud. |
How to Prevent Unfamiliar Charges
Prevention is better than cure. Here are some tips to avoid such issues in the future:
- Track Subscriptions: Use a subscription management app to monitor ongoing payments.
- Enable Alerts: Set up transaction alerts with your bank to get notified of every charge.
- Avoid Public Wi-Fi for Transactions: Use secure networks to prevent hackers from stealing your information.
- Use Virtual Credit Cards: Some banks offer virtual card numbers for online purchases, adding a layer of protection.
- Check Statements Regularly: Review your monthly statements thoroughly to spot any unusual charges.
FAQs: What Is This Charge on My Credit Card?
What should I do if I don’t recognize a charge?
Start by reviewing your recent transactions, checking your email, and searching the merchant’s name online. Contact your bank if the charge remains unclear.
Can I dispute a charge I forgot about?
Yes, but first confirm if the charge is legitimate. Contact the merchant to clarify before initiating a dispute with your credit card issuer.
How long does it take to get a refund for a disputed charge?
Refunds for disputed charges can take 7–14 business days, depending on your bank’s policy.
Final Thoughts
Finding an unknown charge on credit card can be stressful. However, most issues can be resolved by following the steps outlined above. Stay vigilant, review your statements regularly, and take immediate action if you notice anything unusual.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Always consult your bank or credit card provider for specific guidance regarding your account.