What Is a POS Charge on Your Bank Statement?

Encountering unfamiliar entries on bank and credit card statements can lead to confusion. Understanding different types of charges helps maintain financial clarity and security.

What a Point-of-Sale (POS) Charge Is

A Point-of-Sale (POS) charge is a transaction for goods or services between a merchant and a customer. This exchange typically takes place at a physical location, such as a retail store, or through digital channels like an online store or mobile payment application. When a debit or credit card is used, the system records this event as a POS charge.

Customers present their card by swiping, inserting, tapping, or entering details online. The payment system processes these details, verifying funds and authorizing the transaction. For debit cards, funds are withdrawn directly from the checking account at purchase. Credit card transactions are billed to the credit line for later payment.

POS charges originate from various environments, including traditional retail terminals, mobile payment devices, or cloud-based software for online shopping. On a bank statement, these charges commonly appear with descriptors such as “POS Purchase,” “POS Debit,” or the merchant’s name followed by a city or state. These entries signify an everyday purchase of consumer goods or services.

How to Identify and Verify POS Charges

Regularly reviewing bank or credit card statements is a straightforward method to monitor all transactions, including POS charges. When examining a statement, focus on the transaction description, which usually includes the merchant’s name, date, and amount. This information is the initial point of reference for identifying unfamiliar entries.

To verify a charge, compare the statement entry with personal records like receipts or online order confirmations. Merchant names on statements can appear abbreviated, display a parent company’s name, or use a payment processor’s name, which might make a legitimate charge seem unfamiliar. An online search for the exact name listed on the statement can often provide clarity.

Consider purchases made by authorized users on the account, as their transactions will also appear on your statement. Reflect on any recent subscriptions or recurring payments that might be processed as POS charges, as these can sometimes be overlooked. These steps help determine if a charge is legitimate and simply unrecognized before escalating concerns.

What to Do About Suspicious POS Charges

If, after thorough review, a POS charge remains suspicious or appears unauthorized, immediate action is warranted. The first step involves contacting your bank or credit card issuer directly; contact information is typically found on the back of your card or on their official website. You will need to report the specific charge as unauthorized or potentially fraudulent, providing them with all available transaction details.

Upon reporting, the financial institution will initiate a dispute process. For debit card transactions, a provisional credit may be applied to your account, often within two to ten business days, while the investigation proceeds. The full investigation into a disputed charge can take up to 90 days, though resolution times vary depending on the complexity and card network rules.

Securing your account is also a necessary measure; this typically involves canceling the compromised card to prevent further unauthorized transactions and requesting a new one. It is advisable to continue monitoring your account for any additional suspicious activity. Maintaining a record of all communications with your financial institution, including dates, times, and names of representatives, along with any supporting evidence, is important throughout the dispute resolution process.