Disputing Fraudulent Debit Card Charges

We’ve all been there. You open your bank statement to see an erroneous charge from a vendor you’re unfamiliar with or have never patronized. You log on to the bank’s website to see row after row of fraudulent charges. Your account is over-drafted. You begin to panic and grab the phone to call that bank and give them a piece of your mind!

First, relax. Should the charges all be on your debit card and you still have a positive balance, pay all of the bills you need to pay within the next week, and withdraw some cash to cover your daily spending for the next week, too. You have three months to file a dispute on fraudulent charges, wait until you can truly focus to call. Get a pen and some paper, sit down in a quiet area and have your banking information and debit card with you. If there are more than one or two fraudulent charges, make a list of them. Have your spouse watch the kids or make sure they are playing quietly before you dial. If you are prepared, this call can take less than four minutes.

When the customer service representative answers, be pleasant and state that you would like to file a dispute on fraudulent charges. Do not ask for the Fraud Department, as that department at some banks deals with large-scale corporate and business fraud. They will be bewildered at having you transferred to them, and will transfer you back to customer service, lengthening your call and waiting times. The representative will ask you which transactions you wish to dispute. Read your list. The representative then will read some disclosures. Listen carefully and do not interrupt. They go much faster this way.

Then, the representative will advise you that they are shutting down your debit card. This is why you paid your current bills and took out cash. Your new card will arrive usually within a week. If you’re overdrawn, not to worry. Most banks will issue what is called a provisional credit. This means they will deposit the amount of the fraudulent charges, plus any fees, back into your account while your dispute is processing. The provisional credit usually comes into your account anywhere from immediately to about four or five business days. You will be given a confirmation number. Write it down.

Also in the disclosures, it states your dispute may take up to 45 days to process. The main reason for this is that much of that time is spent waiting for the merchant to respond, and they are permitted 30 days to do so. You’ll have access to the provisional credit the entire time. In the mail, you will receive a document stating that, under penalty of perjury, these transactions were not authorized by you. Sign it and return it. Also watch for a plain, white envelope. It contains your new debit card.

After the 45 days are up, you will receive another document in the mail advising you of the determination of your dispute. Most of the time, the response is in your favor. The provisional credit is now made final. Your money has now been made whole, your new debit card has new, secure numbers, and the entire experience has been handled.

If the determination of your dispute is in the negative and your credit is revoked, call the bank during regular business hours and inquire. Most of the time, disputes fail because the merchant was able to provide us with your PIN (personal identification number). Because the PIN is not stored in the stripe of the card, the only way someone would learn it is if you input it, or you wrote it on the back of the card. Either way, it is your responsibility to protect your PIN. If this is the case, you were negligent and your funds are gone. If you feel your dispute was determined incorrectly, you can appeal. The representative can send you an appeals form.

The best way to avoid this situation in the first place is to safeguard your card and card numbers. Just remember, you have a process to recoup your funds, if you just follow these steps!