How to Dispute an Unauthorized Credit Card Transaction

Finding a transaction on your statement you don't recognize is unsettling, but the dispute process in India is fairly structured and, if you act quickly, resolves in your favor more often than people expect.

Step one: report it immediately

The moment you spot an unauthorized transaction, report it through your issuer's app, customer care line, or net banking portal — most issuers have a dedicated dispute or "report transaction" flow separate from general customer service. Speed matters here: RBI's liability framework for unauthorized transactions gives you the strongest protection if you report within three working days of the transaction or notification, whichever is later.

What happens after you report it

Once reported, the issuer typically blocks the card immediately to prevent further unauthorized use and opens a formal dispute case, often referencing a specific transaction reference number you'll need for follow-up. The issuer investigates, which may include checking whether the transaction pattern matches your usual behavior, verifying whether OTP or CVV was correctly used, and in some cases involving the card network's own dispute resolution process for that merchant.

How liability is determined

RBI's rules on customer liability for unauthorized transactions place the burden on the bank if the fraud resulted from a breach on the bank's end, and cap your liability at a low amount if you report promptly even where the cause is unclear. Liability shifts toward you only if there's clear negligence — for instance, sharing your OTP or CVV with someone, or a significant delay in reporting the transaction after you noticed it.

Provisional credit and final resolution

For many disputed transactions, especially larger amounts, issuers provide a provisional credit to your account while the investigation is ongoing, which becomes permanent if the dispute resolves in your favor or is reversed if it doesn't. Resolution timelines vary but RBI guidelines generally expect banks to conclude these within a defined window, typically under 90 days depending on the transaction type.

Preventing the next one

While you can't fully eliminate fraud risk, keeping transaction alerts active, never sharing your CVV or OTP, and understanding your card's PIN vs OTP security layers meaningfully reduces exposure. Our credit card fraud protection tips guide has a broader checklist worth reviewing even if you haven't had an issue yet.

The key point to remember

Report unauthorized transactions the moment you see them — the speed of your report is the single biggest factor in how quickly and favorably your dispute resolves.