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Wallet Canvas > Wealth Solutions > Why can you still be on the hook for credit card fees you didn’t make and how to avoid it
Wealth Solutions

Why can you still be on the hook for credit card fees you didn’t make and how to avoid it

March 21, 2025 12 Min Read
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Why can you still be on the hook for credit card fees you didn't make and how to avoid it

Imagine connecting a credit card to a child’s phone game for convenience. A few weeks later, we found out that within days we had hundreds of fees processed on our card.

Whether your child is not aware that they are allowing these bills while playing the game, or whether they have admitted that their account is a target for fraud, you now have a huge credit card bill to contest. Should you pay the bill or should you object to it?

Believe it or not, this situation is very common. In fact, a 2024 Consumer Financial Protection Bureau (CFPB) Report The growing role of financial activities in the gaming sector has put the spotlight on the increased risk for younger consumers. One in four parents said their children made purchases that were not permitted by their cards, and said $620 was the highest average spent without permission.

In some cases, it can be difficult to know whether the claim is fraudulent or “fraud,” or whether it is your problem. Bankrate spoke to several credit experts to find out how consumers can communicate their differences and how they can protect themselves.

What are fraudulent fees?

Generally speaking, unauthorized credit card fees are not explained. In many cases, a fraudulent claim is discovered when someone examines a credit card statement and accusations of not notifying them are not made. For example, you may see purchases from stores you have never visited before, or you may notice recurring fees that are not recognized.

“In this case, someone had your account number and used it without permission,” says Beverly Harzog, a credit card expert and consumer finance analyst. This is why Harzog and other experts agree that it is a good idea for consumers to check their credit card statements frequently.

Most credit cards come with liability protection for such circumstances. This built-in protection against fraud is one of the greatest benefits of using credit in the first place.

When can you be liable for any claims you did not make?

There are still some gray areas when it comes to fraudulent credit card usage. Sometimes we trust our credit card to people who trust us or those who are not responsible for using it. So what?

Your spouse, friend, or relative will use your credit card

According to Rod Griffin, senior director of consumer education at Experian, consumers who give someone permission to use their credit cards have an agreement between themselves and that person.

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If the person uses an account for purchases you didn’t specifically approve, he says it’s between you and them that resolve it. “They were allowed to use their cards under the contract.”

Generally, Griffin says you should never let someone else do it Please borrow a credit card This is because if you do that, you are putting this scenario at risk. You are responsible for anything they buy, whether you like their choice or not.

Previously, Equifax and FICO credit expert John Ulzheimer says you are ultimately responsible for using your card unless you contact the card issuer The claim was fraudulent. Still, he says, the card issuer may not conclude that they are fraudulent accusations in order to get someone else to use their account.

Your child will use your credit card

What if your child is using your card without your knowledge or your own knowledge? A child using your card without you realising it is not the same as lending a card to a friend or family member who takes away his freedom. After all, you didn’t give them permission to use it. According to Griffin, this won’t count as a fee that is not yet permitted. After all, you are legally responsible for ensuring that the card is not used by someone who does not have it.

“You’re responsible for your child, not your bank,” says Griffin. “If they have a card and use it to buy it as if it was you… whether you gave them permission… The fees are still valid under the contract with them.”

Still, your lender may be willing to work with you to forgive the accusation. “You can always ask,” says Griffin.

I don’t remember a particular purchase

Naturally, just because you don’t remember the actual purchase you made doesn’t mean the publisher will free you from the hook. Forgetting it won’t make it an unauthorized purchase.

However, you may be eligible for a Chargeback If I ordered anything, I had problems purchasing. This could be if they did not arrive or explained, but were not reported or the card was charged twice. A chargeback can be a valid option for a legitimate case where you deserve money from an uncooperative merchant.

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Please remember that chargebacks are a last resort and are subject to the discretion of the issuer. Therefore, don’t use it just because you forgot to buy it or changed your mind. This option allows you to retrieve money from the issuer, but the merchant will keep the bags in hand, so if you are planning on pursuing a chargeback, be prepared to not shop with that merchant.

How to challenge fraudulent fees with credit cards

Let’s say you can add your credit info to any of your kids’ games and hackers can Access your account information From there. Once you have card details, you’ll quickly earn a fee of thousands of dollars.

In this case, you are absolutely not allowed to purchase as you do not give permission and don’t even know where it came from. As a result, you can I object to the fee With the card issuer who will begin the investigation. The publisher will check out your claim, but it is usually I will praise the fee temporarily Return to your account.

The billing process is relatively simple. You can use the number on the back of your card to call the card issuer. Some card issuers also offer an online dispute process. In any case, be prepared to share information about the amounts and dates of unauthorized fees, as well as other details.

If the card issuer suspects that the burglar has your account number in hand, it may shut down your original card and send you a new credit card containing the new account number. If the investigation shows that the charges are in fact fraudulent, you are not liable for repayment.

Tips to avoid fraudulent credit card usage

The more you use your credit card or account number, the more you are exposed to the possibility of credit card fraud. Luckily, credit cards are extremely safe to use, with the majority offering zero liability for fraudulent purchases. At best, your liability for credit card fraudulent use will be top of your $50. Fair Credit Request Act (FCBA).

However, it is potentially important to keep your card safe from friends and family who may not unintentionally purchase your card, as it may be difficult to collect your money. First of all, remember that when you use them, you never disclose who is nearby, your account number, PIN, or security code. Don’t lend your credit card to someone else who can’t trust your credit card wholeheartedly, or avoid storing your credit card information in a digital account that your child or someone else might use incorrectly.

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Similarly, instead of handing over the card, you make a potential transaction with your child. Dual-factor authentication, passwords and other security measures can alert you whenever someone is about to use your credit card.

Also, make sure you don’t leave any credit cards or bills lying around where others can see them. Griffin points out that while scams often start with strangers, friends and family can also steal your account information and use it without your knowledge.

He also advises you to be aware of those who decide to create authorized users on your account. an Certified Users When you actually request an approved user card from another person to use your account, you actually come in. These fees are not fraudulent by not approving fees made by authorized users.

“Before you create someone including your children, think carefully before you create an approved user for your account,” says Griffin.

Conclusion

Credit card issuers provide zero liability protection to prevent unfamiliar use inappropriately, but this does not generally extend to family and friends. Naturally, the best rule of thumb to avoid being on a credit fee hook that you didn’t do is to avoid having others borrow your credit card.

If your child uses your card without your permission, the issuer may be more tolerant, but we recommend using a parent’s lock to prevent unsupervised access to your card information, as you may be liable for the fee. Similarly, just buying it will “forget” and will not protect you from the results.

If you need to allow someone to access your credit card, make sure it’s someone you trust. Still, you should still get your credit card back as soon as possible, pay attention to your account and check all the fees.

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