Understanding Fraudulent Transaction Disputes: A Simple Guide
Understanding Fraudulent Transaction Disputes: A Simple Guide
Seeing a charge you don’t recognize can be stressful. When you report a fraudulent transaction, we review it step by step to determine what happened. As your credit union, we work on your behalf to help protect your money. Each dispute is carefully reviewed to confirm whether the charge was authorized.
Before filing a dispute, we always recommend contacting the merchant first. Many issues can be resolved quickly through a refund or clarification. If that doesn’t work, we can move forward with the dispute process.
Here’s how it works:
Step 1: You Report the Charge
You tell us you see a transaction you did not make or authorize. The sooner you report it, the sooner we can help.
Step 2: We Block the Card
We immediately block the card to stop any further unauthorized use and issue a new one.
Step 3: We File the Dispute (Chargeback)
We send the claim to the merchant’s bank asking for the money back while the transaction is reviewed.
Step 4: You Receive a Provisional (Temporary) Credit
You receive a temporary credit while the investigation is happening, so your funds are available during the review.
Step 5: The Merchant Responds
The merchant sends proof of the transaction, such as receipts or authorization records.
We review this information against our records (like name, contact details, device info, and past transaction history). If everything matches, it supports that the transaction was authorized. In those cases, we must follow the documentation provided, the claim is denied, the temporary credit is reversed, and a $25 dispute denied fee is charged.
Step 6: Final Outcome if Information Does Not Match
If the merchant’s information does not match your records or shows discrepancies, we continue the dispute. In those cases, the temporary credit becomes permanent, and the funds stay in your account.
The Bottom Line
A fraud dispute is simply a process to review transactions and protect your account. We investigate each case, review the merchant’s evidence, and make a decision based on the facts.
We always recommend trying to resolve the issue with the merchant first when possible. If not, we’re here to help you through the dispute process.
Contact Us Right Away
If you believe a charge is unauthorized, contact us as soon as possible so we can start the dispute and protect your account. We are here to help and will guide you through every step of the process.
Post Author:
Brittany Swanson
Fraud and Card Services Manager
BSwanson@gcefcu.org
The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.