A fraudulent credit card charge is when someone uses your card or card number without your permission to make a purchase or withdraw cash.
The moment you notice an unauthorized charge, contact your card issuer by phone — the number is on the back of your card or your statement. Tell them which charge is fraudulent and ask them to freeze the account. Most card issuers will reverse the charge within a few days and send you a replacement card with a new number.
You are protected by federal law: your liability for fraudulent charges is capped at $50, and most major card issuers waive even that if you report the fraud before the charge posts to your account. The card company absorbs the loss, not you. Your job is to report it quickly and then monitor your account for additional unauthorized activity.
Key Takeaways
- Call your card issuer when ready when you spot a fraudulent charge — most will reverse it within days and send a new card.
- Your liability is capped at $50 by federal law, and many issuers waive that entirely if you report before the charge posts.
- Request a fraud dispute form in writing so you have documentation, even though the phone call starts the process.
- Check your credit report at annualcreditreport.com within a few weeks to make sure no new accounts were opened in your name.
- If your card number was stolen but not your full identity, you only need to replace the card; if personal information was compromised, place a fraud alert with the credit bureaus.
How to report the fraud to your card issuer
Call the customer service number on the back of your card or on your most recent statement. Have your card number, the disputed charge amount, the merchant name, and the date of the charge ready. Tell the representative that the charge is fraudulent and you did not authorize it.
The representative will ask you to confirm recent legitimate charges to establish that you recognize your own spending pattern. They will then initiate a dispute, freeze your account, and order a replacement card. Ask them to send you a written confirmation of the dispute — this creates a paper trail if you need it later.
Most issuers credit the amount back to your account within 3 to 10 business days while they investigate. The investigation itself can take up to 60 days, but you will have your money back long before that.
What happens during the fraud investigation
Once you report the charge, your card issuer contacts the merchant to determine whether the transaction was legitimate. They ask the merchant for proof that you authorized the purchase — usually a signature, PIN entry, or online password confirmation. If the merchant cannot provide that proof, the charge is reversed.
If the merchant disputes the reversal and claims you did authorize it, the issuer may ask you for additional information. You can provide receipts, emails, or other evidence that you were not the one who made the purchase. In nearly all cases, the issuer sides with the cardholder when the merchant cannot produce a valid authorization.
You do not have to pay the disputed charge while the investigation is ongoing. The amount stays credited to your account.
When fraud means your identity was compromised
A single fraudulent charge on your card is usually just that — someone obtained your card number, not your full identity. Replacing the card solves the problem. But if multiple accounts were opened in your name, or if the fraud involved a physical card theft, your identity may have been compromised more broadly.
Contact the three major credit bureaus — Equifax, Experian, and TransUnion — and place a fraud alert on your credit report. A fraud alert tells lenders to verify your identity before opening new accounts in your name. You can place one for free by calling any of the three bureaus; they are required to notify the other two. The alert lasts one year and can be renewed.
Request a free copy of your credit report from annualcreditreport.com (the official site run by the three bureaus). Review it for accounts you did not open. If you find unauthorized accounts, contact the creditor directly and report the fraud to them as well.
Protecting your card number after fraud
Once your card issuer sends a replacement card, set up it and destroy the old one. The new card has a different number, so old fraudulent charges cannot recur on that number.
Update any recurring charges — subscriptions, automatic bill payments, insurance premiums — to use the new card number. Your issuer will send you a list of recent charges to help you identify which merchants need the update.
Going forward, monitor your statement monthly. Most card issuers also offer text or email alerts for charges over a certain amount, which can catch fraud faster than waiting for your statement. Set up alerts if your issuer offers them.
If the fraudulent charge involved a physical card theft
If your physical card was stolen, not just the number, the thief may have used it in person at a store or ATM. Report the theft to your local police department and get a report number — some card issuers ask for this when investigating in-person fraud.
Ask your card issuer whether they can see where the card was used. Many can tell you the merchant location and time of the fraudulent transaction, which helps police if you decide to file a report. In-person card theft is less common than online fraud, but the process is the same: report it, dispute the charges, and get a replacement card.
What your card issuer cannot do
Your card issuer can reverse fraudulent charges and replace your card, but they cannot recover stolen cash from an ATM withdrawal. If someone used your card at an ATM, the money is gone unless the ATM was part of a larger fraud ring that police can trace. Report it anyway — it creates a record — but do not expect reimbursement for ATM cash theft.
Your issuer also cannot prevent fraud from happening in the first place. They can only respond after you report it. This is why monitoring your account regularly matters: the faster you report, the faster the charge is reversed.
Frequently Asked Questions
Will fraudulent charges hurt my credit score?
No. Fraudulent charges that you dispute do not appear on your credit report, so they cannot damage your score. Only charges you actually made and failed to pay affect your credit. Once the fraud is reversed, it is as if the charge never happened.
What if my card issuer refuses to reverse the charge?
This is rare, but if it happens, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB investigates complaints against card issuers and can force them to reverse charges if they violated federal law. You can also contact your state's attorney general office.
Do I need to file a police report for credit card fraud?
Not required, but it can help. A police report creates an official record and may be useful if the fraud is part of a larger identity theft scheme. For a single fraudulent charge, reporting to your card issuer is sufficient. For identity theft, a police report strengthens your case with credit bureaus and creditors.
Can someone use my card number again after I get a new card?
No. Your new card has a completely different number. The old number is deactivated and cannot be used. However, if the thief obtained other personal information — your address, Social Security number, or date of birth — they could try to open new accounts in your name, which is why monitoring your credit report matters.
How long does it take to get my money back?
Most card issuers credit the disputed amount within 3 to 10 business days. The formal investigation can take up to 60 days, but you have access to your money long before the investigation closes. You do not have to wait for the investigation to finish to use your account.