How to Block a Credit Card Transaction

Managing credit card transactions effectively is crucial for financial safety. Knowing how to address unauthorized or incorrect charges helps protect your funds and account integrity.

Immediate Actions for Unauthorized Transactions

Upon discovering an unauthorized or incorrect transaction, act promptly. Contacting the credit card issuer immediately is the first step to mitigate potential losses. The phone number to report such issues is typically found on the back of the card or on the monthly statement.

When contacting the issuer, be prepared to provide specific details about the transaction, including the date, amount, and merchant involved. The issuer will likely initiate an investigation and may temporarily freeze or lock the credit card to prevent further unauthorized use. A new card with a new account number may be issued to enhance security.

Understanding Transaction Types and Timing

Credit card transactions exist in different states, affecting the available course of action. A “pending transaction” appears on an account but has not yet been fully processed and settled. These transactions are temporary authorizations, and the final amount may change or the charge could drop off entirely.

Because pending transactions are not yet finalized, directly stopping them at this stage is often not possible through a formal dispute. A “posted transaction,” in contrast, has been fully processed and appears on the statement as a completed charge. Posted transactions typically require a formal dispute process to address inaccuracies or unauthorized activity. The timing of discovery and the transaction’s status significantly influence how a cardholder can proceed.

Disputing an Unauthorized or Incorrect Transaction

Initiating a formal dispute for a posted transaction involves specific procedural steps. Many credit card issuers offer online portals or mobile apps for this purpose, allowing cardholders to select the transaction and report the problem. Alternatively, disputes can be filed by calling the number on the back of the card or through written communication.

To support the claim, cardholders should gather relevant information and documentation. This includes receipts, invoices, photographic evidence, and records of any prior communication with the merchant to resolve the issue. Keeping detailed logs of dates, amounts, and reasons for the dispute is also helpful.

Consumer protection regulations, such as the Fair Credit Billing Act (FCBA), provide guidelines for these disputes. Under the FCBA, consumers generally have 60 days from the date they receive the statement containing the error to notify their credit card company in writing. The written notification should include the cardholder’s name, address, account number, the date and amount of the error, and a description of the billing error. Sending this letter to the billing inquiries address, not the payment address, is important.

The Resolution Process and Your Rights

After a formal dispute is filed, the credit card issuer investigates the claim by reviewing transaction records, communicating with the merchant, and assessing all presented evidence. The issuer must acknowledge receipt of the dispute within 30 days, unless the problem has already been resolved.

During the investigation, which can take up to two billing cycles or 90 days, the issuer may provide a provisional credit. This temporary credit allows access to disputed funds while the investigation is ongoing. If the investigation determines an error occurred, the disputed amount, along with any related fees or interest, will be permanently removed.

If the issuer concludes the charge was valid, they must explain their findings in writing, detailing why the bill is correct and providing supporting documentation. Cardholders have the right to provide additional information and, if unsatisfied, can challenge the outcome of the investigation, typically within 10 days of receiving the issuer’s decision. The FCBA protects consumers by not allowing the issuer to report the disputed amount as delinquent to credit bureaus during the investigation period.