An unauthorized charge is a card transaction the consumer did not approve or make.
Unauthorized charge means a card transaction the consumer did not approve or make. It usually refers to disputed activity on an existing card account rather than to an entirely new account being opened.
Unauthorized charge matters because a borrower can have transaction-level fraud even when the broader credit file still looks normal. If readers do not understand the term, they may confuse a disputed purchase with an Unauthorized Account or ignore a problem that needs quick action.
It also matters because timing matters. A suspicious transaction should usually be reviewed promptly so the borrower can protect the account, contact the issuer, and decide whether additional identity-protection steps are necessary.
In Canada, unauthorized-charge issues usually start with account review on a Credit Card statement or app. The borrower spots a transaction they do not recognize, confirms that no authorized user or family member made it, and contacts the issuer to begin the dispute process.
Depending on the facts, the issue may stay at the transaction level or raise broader identity concerns. If the suspicious activity looks like part of a bigger compromise, the borrower may need to review the credit file, monitor for unfamiliar inquiries, and consider a Fraud Alert.
A borrower reviews their latest card activity and sees a purchase from an online merchant they never used. After confirming that no Supplementary Cardholder made the purchase, they report it as an unauthorized charge and follow the issuer’s dispute steps.
Unauthorized charge is not the same as an Unauthorized Account. The charge is one disputed transaction on an existing account. An unauthorized account is a reported borrowing relationship the consumer never opened.
It is also not the same as simple buyer’s remorse. An unauthorized charge means the transaction was not approved by the consumer, not merely that the consumer regrets making it.