What to Do When a Company Refuses to Refund an Unauthorized Charge

Steps to take when a business won't reverse a charge you didn't approve, even after you've tried to resolve it directly.

By Garret Merkley · Explainer · Jun 21, 2026

Branched from How to Dispute Unauthorized Gym Charges on Your Credit Card

Quick take

Gather all evidence of the unauthorized charge and document every communication attempt.
Dispute the charge directly with your bank or credit card issuer as soon as possible.
Understand your consumer protection rights, such as those under the Fair Credit Billing Act.
Consider filing a complaint with consumer protection agencies if other avenues fail.

An unauthorized charge is a transaction on your bank statement or credit card that you did not approve or initiate. This can happen due to fraud, an expired free trial converting to a paid subscription without clear consent, or a legitimate billing error. When you've identified such a charge and the company responsible refuses to issue a refund despite your direct attempts to resolve it, you need to take more formal steps to protect your finances.

Document Everything Thoroughly

Before taking further action, collect all relevant evidence. This includes the transaction details from your bank or credit card statement, any receipts or confirmations you received (or didn't receive), and any communication logs with the company. Note down dates, times, names of people you spoke with, and summaries of conversations. Screenshots of cancellation attempts, terms of service, or email exchanges are also valuable. The more evidence you have, the stronger your case will be.

Dispute the Charge with Your Financial Institution

This is often the most effective next step. Contact your bank or credit card issuer immediately. Explain that the charge is unauthorized and that the merchant has refused to refund it. They have specific procedures for handling disputes and are often bound by consumer protection laws. For credit cards, the Fair Credit Billing Act (FCBA) provides strong protections against unauthorized charges, generally requiring you to dispute within 60 days of the statement showing the charge. For debit cards, the Electronic Fund Transfer Act (EFTA) offers similar (though sometimes less extensive) protections, with varying timeframes depending on when you report the issue.

Escalate to Consumer Protection Agencies

If your financial institution's dispute process doesn't resolve the issue to your satisfaction, or if you wish to apply additional pressure, consider filing a complaint with relevant government agencies. In the United States, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), especially for issues with banks or credit card companies. The Federal Trade Commission (FTC) also accepts complaints about fraud and unfair business practices. Your state Attorney General's office is another resource for consumer complaints. These agencies may not resolve your individual case directly, but they can investigate patterns of misconduct and apply pressure on businesses.

Taking these steps is crucial not just for recovering your money, but also for protecting your financial security and holding companies accountable. An unauthorized charge, if left unchallenged, can sometimes be a sign of deeper issues like identity theft or ongoing billing problems. Acting promptly and systematically ensures you leverage all available protections when a company is unwilling to cooperate.

What's the difference between an unauthorized charge and a billing error?

An unauthorized charge is a transaction you absolutely did not approve or initiate. A billing error, while also incorrect, might relate to an approved transaction that was charged incorrectly (e.g., wrong amount, duplicate charge, incorrect item listed). Both typically fall under similar dispute processes, but the intent behind them differs.

How long do I have to dispute a charge?

For credit cards, the Fair Credit Billing Act generally gives you 60 days from the date the statement showing the error was mailed or electronically transmitted. For debit cards, the Electronic Fund Transfer Act requires you to report unauthorized transactions within 60 days of your statement being sent to limit your liability, though reporting sooner is always better.

Will disputing a charge hurt my credit score?

No, disputing a legitimate unauthorized charge or billing error with your bank or credit card issuer will not typically hurt your credit score. In fact, it's a responsible financial action. Your credit score is only affected if you fail to pay legitimate bills or outstanding balances.

Should I cancel my card immediately after finding an unauthorized charge?

If you suspect the charge is due to fraud or stolen card information, yes, you should cancel your card immediately to prevent further unauthorized transactions. If it's a one-off billing error from a known merchant, you might wait to see if the dispute resolves it before canceling, but always err on the side of caution if fraud is suspected.

Sources

Fair Credit Billing Act (FCBA)
Electronic Fund Transfer Act (EFTA)
Consumer Financial Protection Bureau (CFPB)