What Is This Charge on My Card and What to Do About It

A mysterious charge on your card can be frustrating and unsettling. This charge on your card is often a recurring one, and it's usually a subscription-based service that you may not even remember signing up for.

Some common culprits include streaming services, gym memberships, and software subscriptions. You may have signed up for a free trial, but forgot to cancel before the trial period ended.

The charge may be from a company you've never heard of, but it's still a legitimate payment. Take a closer look at the charge description to see if you can identify the company or service.

If you're still unsure, check your email inbox for any confirmation emails or receipts from the company.

Reviewing your credit card statement regularly can help you catch any mistakes right away, giving you a 60-day window to report fraudulent activity.

Reading your credit card bill each month will ensure you're aware of any unfamiliar charges. You can even set up notifications with some credit card companies, like Capital One, to stay on top of your account.

Those pesky $1 charges you see on your statement? They're usually temporary preauthorizations from your credit card company, giving merchants permission to charge the full amount when you finalize a purchase.

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Reviewing your credit card statement is a crucial step in protecting yourself from fraudulent activity. You have 60 days from the date of the bill to report any mistakes.

Reading your credit card bill each month will help you catch any unauthorized charges right away. This can save you from financial and emotional stress.

If you do discover an unauthorized charge, don't worry – you're likely protected under the Fair Credit Billing Act (FCBA). This law limits your liability to no more than $50, no matter how much was fraudulently charged to your card.

Some credit card issuers, like Capital One, have even more protection in place, with $0 liability for unauthorized charges. This means you won't be responsible for charges you didn't authorize, even if your card is lost or stolen.

To stay on top of your credit card account, consider setting up fraud alerts with one of the three major credit reporting bureaus – Equifax, Experian, or TransUnion. You can also file a report with the Federal Trade Commission (FTC).

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Here are some key points to keep in mind when reviewing your statement:

You might notice some charges on your statement that are pending, which means they haven't been fully processed yet. This can be a bit confusing, but it's usually due to a temporary preauthorization from your credit card company.

If you see a pending charge, it's likely because the merchant is waiting for the final amount to be processed before releasing the funds. This is often the case with hotel or gas station charges.

You might also notice two separate line items for one transaction, both showing as pending. One could be for the amount you paid, and the other is for a smaller amount that will disappear when the full amount processes successfully.

It's a good idea to review your statement regularly to catch any pending charges and address them quickly if needed.

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If you see something unfamiliar on your credit card 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. Check with family members or friends who are authorized users on the account to see whether they made the transactions in question.

You can also think about whether you scheduled any purchases a while back that you might just now be seeing the charges for. If you're still unsure, 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 the company is unfamiliar, you can dispute the charge with your credit card company. In some cases, a $1 charge might show up on your statement, but it's usually nothing to worry about and should automatically drop off when your final purchase shows up.

However, if you notice that the $1 doesn't automatically disappear, or you see $1 charges showing up on your final credit card statement, it's time to get in touch with your bank and find out what's going on.

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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. This can help you determine if the charge is legitimate.

If you still don’t recognize the company after researching the services it offers, you can dispute the charge with your credit card company. Most issuers require you to file the dispute within 60 days of the transaction appearing on your statement.

You can initiate a transaction dispute online or by calling the phone number on the back of your card. This action will usually be enough, although you may need to provide additional information and supporting documentation.

The issuer must acknowledge your complaint in writing within 30 days of receiving it, unless the problem has been resolved. They must also resolve the dispute within 90 days of receiving your complaint.

Here's a step-by-step guide to disputing a charge:

You can reduce your risk of becoming a victim of credit card fraud by keeping an eye on your cards and reporting any loss or theft to your credit card issuer immediately.

To monitor your transactions and set up alerts for potential fraud, you can use tools like Capital One's transaction alerts or CreditWise, which allows you to check your VantageScore 3.0 score and TransUnion credit report anytime without impacting your score.

If you find an unfamiliar charge, contact the merchant directly to explain the issue and have them correct the mistake. If the problem persists, contact your card provider to request a chargeback and begin the dispute process.

Here are some steps to follow if you suspect a fraudulent charge:

Try to report the fraudulent charge as soon as possible to stop more unauthorized spending in your name and prevent long-term negative consequences on your credit scores.

Looking at your calendar can be a game-changer in identifying a purchase. Often the most challenging element of identifying a purchase is the amount of time that’s lapsed since you made the charge.

By putting a purchase in the context of your schedule, you may be able to identify it more easily. This is especially true when looking at other transactions from the same date.

Your calendar can help you remember what else you did that day, which can be a big help in figuring out what you bought. You may have made other purchases or had other expenses that day, making it easier to pinpoint the unknown charge.

You can initiate a transaction dispute online or by calling the phone number on the back of your card.

Most card providers will take action after you contact them, but you may need to provide additional information and supporting documentation.

The Federal Trade Commission recommends providing a written letter disputing the charge to cover your bases.

All major card companies offer zero liability protection for unauthorized charges, so you can rest easy.

To prevent and resolve issues with your credit card, it's essential to keep an eye on your cards. If you lose your card or someone steals it, report the loss to your credit card issuer immediately.

Using virtual cards can also help reduce the risk of fraud. Virtual cards let you make purchases online without giving your actual credit card number to the merchant or vendor.

Setting up transaction alerts can help you monitor your account and catch potential fraud faster. Capital One cardholders can use the Capital One Mobile app or online to set up these alerts.

Phishing and scams are common ways that fraudsters steal credit card information. Be cautious when making purchases online and only use vendors you trust.

Monitoring your credit can also help you identify potential issues. You can check your VantageScore 3.0 score and TransUnion credit report for free with CreditWise from Capital One.

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Here are some tips to help you prevent and resolve issues with your credit card:

If you report credit card fraud and it's investigated and verified, the Fair Credit Billing Act says you'll be liable for no more than $50, no matter how much was fraudulently charged to your card.

You can start by calling the toll-free number on the back of your card to begin the process of filing a claim. This is usually the quickest way to report a fraudulent charge.

Try to report the fraudulent charge as soon as possible to prevent more unauthorized spending in your name. The sooner you do it, the better.

If you're a Capital One cardholder, you can lock your card from the Capital One Mobile app to prevent further unauthorized use. This is a great feature to have in case your card is lost or stolen.

You can also set up a fraud alert with one of the three major credit reporting bureaus – Equifax, Experian, and TransUnion – to alert the other two. This can help prevent further identity theft.

Filing an identity theft report with the FTC at IdentityTheft.gov can make it easier to prove your innocence to banks and businesses when disputing charges or debt.

Let's break down the possible reasons behind that mysterious charge on your card. Here are some common scenarios:

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

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.

These holds and authorized user purchases can be legitimate, but they might not be what you expect.

Some unrecognized charges on your credit card statement might be legitimate, not due to fraud or theft.

Pending transactions can show up on your account, especially at gas stations and hotels, as a hold to ensure you have enough money to pay for their services. These holds usually disappear after the authorized transaction goes through.

Businesses often use different names for their stores and their actual business registration, which can cause confusion on credit card statements.

If you have an authorized user on your card, they may make purchases you're not familiar with. Capital One cardholders can see the authorized user's name next to the transaction on the statement.

Fraudulent charges can happen if your card is lost, stolen, or compromised, resulting in purchases on your statement that you know you didn't make. These charges should be disputed as soon as possible.

Here are some common reasons for unrecognized charges in a nutshell:

Toast puts a TST charge on credit cards because companies that process payments are included in the transaction record. This is a common practice in the payment processing industry.

The description on your credit card statement, not just the amount, is where the payment processor will be listed. In the case of Toast, "TST" is a brief but important part of this record.

You may see "TST" while the transaction is pending, but it will not appear after the transaction posts to your account.