When I went to use my credit card the store told me the charge was not "authorized". What does that mean? What can I do? | Consumer Financial Protection Bureau (2024)

FAQs

When I went to use my credit card the store told me the charge was not "authorized". What does that mean? What can I do? | Consumer Financial Protection Bureau? ›

If a charge is not authorized, it usually means that there is a problem with the account or that you are at, near, or over your credit limit. Usually, when you use your credit card at a store the merchant obtains authorization from the card issuer.

This error usually happens because your bank is rejecting the transaction request for one of the following reasons: The card has expired. The card details you provided are incorrect. Online transactions are restricted for that particular card.

If you still don't recognize the charge after investigation or if you identified a fraudulent charge, contact your card provider to request a chargeback and begin the dispute process. You can initiate a transaction dispute online or by calling the phone number on the back of your card.

Contact your bank immediately

Usually, the bank will have a team of investigators who look into it for you. If you claim the use of the card was not authorised by you, it is for your bank to prove otherwise. The bank may be able to cancel the payment or put the money back into your account.

Under the law, businesses must take steps to ensure that charges to customers' credit cards, debit cards, phone bills, and other accounts are authorized. Those principles apply to mobile payments, too.

If something is officially not approved, it's unauthorized. An unauthorized biography is written without the consent or cooperation of its subject.

If you do not have a valid account you will receive the user is not authorized error (See Access Request). Frequently this error message is the result of a spelling mistake or navigating to the wrong site web link.

Unauthorized charges refer to any purchases, withdrawals, or transfers made on your account without your permission. These charges can occur due to various reasons, such as identity theft, fraudulent transactions, or even mistakes made by merchants or financial institutions.

Given the riskiness of accepting an online transaction, the liability of accepting a fraudulent transaction rests with the merchant themselves, and not the issuing bank. If a merchant accepts an order online that is later deemed fraudulent, it is the merchant's responsibility to refund the customer.

If the bank determines that a charge was fraudulent, it must refund your money and remove the charge from your account [*].

What bills cannot be paid with a credit card? ›

Mortgages, rent and car loans typically can't be paid with a credit card. If you pay some bills, like utility bills, with a credit card, you may need to pay a convenience fee. Using a credit card for your monthly bills can offer opportunities to earn rewards.

You can contact the seller directly to try to fix the issue, or you can “dispute the charge” with the company that issued your credit card. For example, you can dispute a charge that you did not authorize, that is for the wrong amount, or that is for something that the seller didn't provide as agreed upon.

If your card was used without your permission call up the charge company asap. They will tell you the most recent purchases made by you or fraudulent activity. You can also look at your account online to see purchases made that month They can help you with this. File fraud and identity theft charges.

If the issuer looks at the cardholder's account and finds there are insufficient funds or available credit, they will decline authorization and reject the transaction.

An authorized transaction is a debit or credit card purchase for which the merchant has received approval from the bank that issued the customer's payment card. A processor decline indicates that the customer's bank has refused the transaction request.

It is common for banks not to authorize certain transactions based on their internal policies. When a payment fails, it is likely due to filters the bank applies to certain transactions made online, or amount limitations applied to the card.

"Unauthorized use" is when someone other than the cardholder or a person that has the actual, implied or apparent authority uses a credit card and the cardholder receives no benefit from the use.