If I Block My Credit Card, Can It Still Be Charged?

Even after taking steps to “block” a credit card, consumers may wonder if it can still be charged. Understanding card control options and their specific impact on different transaction types is important for financial security. This article clarifies how various card actions affect potential charges, from new purchases to ongoing subscriptions, and outlines steps to protect yourself.

Understanding Card Control Options

Cardholders typically use two primary actions to prevent unauthorized charges: a temporary card freeze or a permanent card cancellation. A card freeze, also called a temporary block, instantly prevents most new purchases or cash advances on your existing card. This action is often used when a card is misplaced, keeping the account open and active while pausing its transactional capability. Freezing your card does not close the account, allowing you to unfreeze it if the card is found.

Card cancellation permanently closes the specific credit card number and account. When you cancel a card, the issuer closes the old card number and may issue a new one with a different number, expiration date, and security code. This action is more definitive than a freeze and is usually pursued if a card is lost or stolen, or if the account holder wishes to terminate their relationship with that card.

Impact on Various Transaction Types

Despite freezing or canceling a credit card, certain types of transactions may still process. Both a card freeze and cancellation are effective at preventing new, unauthorized charges. If a fraudulent attempt is made to use the card number for a new purchase after these actions, the transaction will be declined.

However, transactions already authorized but not yet fully processed, known as pending transactions, often clear even after a card is frozen or canceled. These charges represent funds reserved by the merchant and are being settled by the card issuer. It is difficult to stop these once authorization has occurred, as the merchant expects payment for a service or good already provided. Cardholders will still be responsible for these charges, which will appear on their final statement.

Recurring charges and subscriptions can sometimes continue even after a credit card number is canceled. This is often due to “account updater services” employed by card networks like Visa, Mastercard, American Express, and Discover. These services automatically provide merchants with updated card information, such as new expiration dates or card numbers, when a card is reissued due to expiration, loss, or theft. This can lead to unwanted charges persisting.

The Fair Credit Billing Act (FCBA) protects consumers regarding unauthorized charges. This federal law limits a cardholder’s total liability for unauthorized charges to $50, provided the cardholder reports the activity promptly.

Actions for Card Security and Disputing Charges

If you discover unauthorized activity or lose your credit card, immediate action is important. The first step involves reporting the lost or stolen card, or any unauthorized charges, directly to your credit card issuer. This can typically be done through their customer service phone line, mobile application, or online portal. Prompt reporting limits your liability for any fraudulent transactions.

If an unauthorized charge appears on your statement, you have the right to dispute it with your credit card company. The Fair Credit Billing Act (FCBA) provides a framework for this process, requiring consumers to notify their creditor in writing of the error within 60 days of receiving the statement containing the disputed charge. The card issuer must then acknowledge your dispute within 30 days and investigate the claim, typically resolving it within two billing cycles, or a maximum of 90 days. It is advisable to gather any supporting documentation, such as receipts or communication with the merchant, to strengthen your dispute.

To stop recurring payments effectively, contacting the merchant or service provider directly is the most reliable method. Inform them of your intent to cancel the subscription or service and ensure they process the cancellation on their end. If direct cancellation fails, or if charges continue after you have canceled with the merchant, you can then contact your credit card issuer to request a stop payment for that specific merchant. Monitor your credit card statements regularly to identify and address any lingering or new unauthorized activity.