What is this charge on my credit card?

An unfamiliar credit card transaction on your billing statement is worth investigating. It might be a forgotten purchase or something more serious. Regularly reviewing your credit card transactions is crucial for safeguarding your account.

Read on to learn why some transactions may not look familiar and how to review your statements.

What you’ll learn:

• Reviewing your credit card statements may help you identify unfamiliar charges to your account.

• If you spot an error on your statement, it’s important to dispute it with your credit card issuer within 60 days of the transaction.

• If you think a transaction was the result of credit card fraud, it can be helpful to report it immediately and lock your card to avoid more fraudulent charges.

• Capital One offers tools like fraud alerts and instant purchase notifications to help you stay on top of your account.

Fraud or credit card theft may not always be the reason for unrecognized charges on your account. Here are some reasons unrecognized charges might show up on your credit card statement:

• Pending transactions: Some businesses, like gas stations and hotels, place credit card holds on your account to ensure you have enough money to pay for their services. These holds, sometimes called authorizations or pre-authorizations, typically go away after the transaction goes through.

• Businesses using a different name: Many businesses use a different name for their store and their actual business registration. This can lead to confusion on credit card statements, because the name on your statement may not be the same as the one you did business with.

• Authorized users making purchases: If you have an authorized user on your card, they may make purchases you’re not familiar with. Capital One cardholders should see the authorized user’s name next to the transaction on the statement.

• Fraudulent charges: Unfortunately, identity theft and credit card fraud can happen. If your card is lost, stolen or compromised, you may see purchases on your statement that you know you didn’t make. These charges should be disputed as soon as possible.

To find out where a charge came from, you can read your credit card statement. 

You’ll find details about each transaction on your account, including purchases during the last billing period. Details typically include how much your account was charged, who received payment, when the transaction occurred and when it was posted to your account.

If something looks unfamiliar on your statement, mentally retrace your steps. What’s the date of the transaction? Can you remember what you were doing that day? You might have forgotten that you stopped somewhere unexpectedly for lunch, for example.

You can also check with family members or friends who are authorized users on the account to see whether they made the transaction. 

Or, think about whether you have recurring payments or subscriptions that have posted.

To identify the source of a credit card charge, you can look up the business name online to find out what company it’s related to or call the business to see what types of products it sells.

If you’ve researched the transaction and still don’t recognize the charge, you should promptly dispute it with your credit card issuer. Contacting the merchant is often the quickest way to resolve the issue if you’re disputing a transaction you’re unfamiliar with. 

If you suspect you have a fraudulent charge, start by calling the toll-free number on the back of your card. You’ll answer some questions and start the process of filing a claim.

When fraud or billing errors happen, you generally have 60 days to dispute the charge. The sooner you can catch fraud, the quicker you may be able to stop more unauthorized spending in your name.

If you report credit card fraud and it’s investigated and verified, the Fair Credit Billing Act (FCBA) says you’ll be liable for no more than $50, no matter how much was fraudulently charged to your card. If your Capital One card is lost or stolen, you won’t be responsible for charges you didn’t authorize.

Here are some things you can do to reduce your risk of unauthorized transactions and credit card fraud:

• Keep an eye on your cards: If you’re using a physical card, try to keep track of it as best you can. If you lose your card or someone steals it, report the loss to your credit card issuer immediately.

• Use virtual cards: Virtual cards let you make purchases online without giving your actual credit card number to the merchant or vendor. This helps you keep your credit card number private and can make it harder for thieves to steal your information.

• Set up transaction alerts: Capital One cardholders can monitor transactions and set up alerts for potential fraud. This may help you spot suspicious activity faster. 

• Watch for scams: Phishing and scams help fraudsters steal your credit card information by posing as legitimate businesses, friends or family members. Only make purchases with vendors you trust. If something seems suspicious, avoid entering any personal information.

• Monitor your credit: With CreditWise from Capital One, you can check your credit score anytime with no impact. CreditWise is free and available to everyone—not just Capital One cardholders. You can also get free copies of your credit reports from each of the three major credit bureaus at AnnualCreditReport.com.

• Set up fraud alerts or freezes: If you’re worried about someone setting up new accounts in your name, you could consider fraud alerts or security freezes with the three major credit bureaus.

Finding a charge you don’t recognize on your credit card statement can be stressful. And it’s important to address it quickly when it happens.

If you’re a Capital One cardholder, fraud alerts and instant purchase notifications are two of the tools Capital One offers to help you stay on top of your credit card account. Not a Capital One cardholder? Compare Capital One’s cards and apply online today.