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 different names 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 who charged your credit card, 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 you don’t recognize a transaction on your credit card statement, start by looking up the merchant’s name online. An unfamiliar business might be a parent company or a third-party partner that helps handle billings. 

If you still can’t confirm the purchase and you believe it was made in error, you can contact your card issuer. The Consumer Financial Protection Bureau recommends doing so within 60 days.

If you need to dispute a transaction, contacting the merchant is often the quickest way to resolve a billing error. If you can’t reach the merchant, you can still contact your issuer. Documenting that you tried to get in touch could help your case.

If you report credit card fraud and it’s investigated and verified as fraud, 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 shop 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 shop 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 to your score. 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 cards to explore features, benefits and rewards.