What is this charge on my credit card?

Ever struggled to recognize a credit card transaction on your billing statement? If something looks funky, like an unknown name or amount, it might just be because you don’t remember using your card. But it’s a good idea to dig a little deeper.

Checking credit card transactions can help protect the security of your account. Here’s why some transactions may not look familiar and how to review your statements so you can make sure all the charges are ones you authorized.

Key takeaways

• Regularly reviewing your credit card statement may help you identify unfamiliar charges to your account.

• If you think a credit card transaction listed on your statement is in error, 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.

Believe it or not, fraud or credit card theft may not be the reason for those unrecognized charges on your account. Some may be legitimate. Here are some of the most common reasons for unrecognized charges showing up on your credit card statement:

• Pending transactions: Some businesses, like gas stations and hotels, place credit card holds on your account to ensure that you have enough money to pay for their services. Holds typically go away after the authorized transaction goes through.

• Businesses using a different name: Many businesses use different names for their stores and their actual business registration. This can lead to confusion on credit card statements, as the name showing up 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, credit card fraud can happen, and, 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.

The first thing you need to do is track down your statement. Find the latest copy that was mailed to you or sign in to your account online to see it there.

As you read your credit card statement, you’ll see a transactions section. Here, you’ll find details about all the transactions on your account, including purchases charged to the card during the last billing period. The 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, take a few minutes to 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 transactions in question. And think about whether you scheduled any purchases a while back that you might just now be seeing the charges for.

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 still don’t recognize the company after researching the services it offers, you can dispute the charge with your credit card company.

If you’ve researched the transaction and still don’t recognize the charge, it could be the result of an error or fraud. In either case, you should promptly contact your credit card issuer to dispute it. 

Unless the dispute concerns fraud, most issuers require you to file it within 60 days of the transaction appearing on your statement. 

When it comes to disputes, contacting the business directly is often the fastest way to resolve things.

If you find an unfamiliar charge that’s more than a simple mistake, you might be a victim of credit card fraud.

If you suspect you have a fraudulent charge, you can 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. If you’re a Capital One cardholder, you can lock your card from the Capital One Mobile app so no one else can use it.¹

Try to report the fraudulent charge as soon as possible. The sooner you can do it, the quicker you may be able to stop more unauthorized spending in your name. And the more likely you’ll be to prevent long-term negative consequences on your credit scores as a result of the charges.

Thankfully, 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. Some issuers, like Capital One, have $0 liability for unauthorized charges. So if your card is lost or stolen, you won’t be responsible for charges you did not authorize.²

You can also set up a fraud alert with one of the three major credit reporting bureaus—Equifax®, Experian® and TransUnion®—and it will alert the other two. And you can file a report with the Federal Trade Commission (FTC).

Though it’s impossible to prevent all instances of credit card fraud and unauthorized transactions, there are some things you can do to reduce your risk of becoming a victim. Here are a few tips to help:

• 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.³

• Set up transaction alerts: Capital One cardholders can monitor transactions and set up alerts for potential fraud. This may help you report 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, and if something seems suspicious, avoid entering any personal information.

• Monitor your credit: With CreditWise from Capital One, you can check your VantageScore® 3.0 score and TransUnion credit report anytime without impacting your score. CreditWise is free and available to everyone—not just Capital One cardholders.⁴ You can also get free copies of your credit reports from each of the three major credit bureaus at AnnualCreditReport.com.

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. Spending a little time reviewing your statements every billing cycle could save you from some of the financial and emotional impact of credit card fraud. 

And if you’re a Capital One cardholder, you can even keep track of charges as they come in. Fraud alerts and instant purchase notifications are just two of the tools Capital One offers to help you stay on top of your credit card account. You can set up those notifications using the Capital One Mobile app or online. Not a Capital One cardholder? Compare Capital One’s cards and apply online today.