Just found an unauthorized transaction on credit card in India? This guide is your emergency plan. Learn how to handle an unauthorized transaction on credit card in India and get your money back fast.
Introduction: The “Heart-Stopping” Alert on Your Phone
The Moment of Panic
You get an SMS alert from your bank for a transaction you didn’t make. Your heart stops. Has your card been stolen? Hacked? This is a moment of pure panic, and discovering an unauthorized transaction on credit card in India can be incredibly stressful. The actions you take in the next 60 minutes are critical.
I’ve spoken with countless individuals who have faced this situation. That feeling of violation and the immediate fear of financial loss are very real. The good news is, you are protected, but you must act quickly.
What This Emergency Guide Will Do For You
My name is Anwar Hashmi, and at cibilized.in, my mission is to replace that panic with a calm, clear-headed action plan. This guide is your shield. It will show you the three immediate steps to take right now to protect your account, report the fraud, and get your money back.
This is your definitive guide for what to do after finding an unauthorized transaction on credit card in India. We will turn this moment of crisis into a step-by-step process that puts you back in control. Knowing how to handle an unauthorized transaction on credit card in India is a vital skill. This guide will show you how.
The First 60 Minutes: Your Immediate Action Plan
What to do after discovering an unauthorized transaction on your credit card: Your 3-step emergency action plan for
- Step 1: Block Your Card Instantly. Your first and most critical action is to immediately block your credit card to prevent any further fraudulent transactions. The fastest way to do this is through your bank’s mobile app, or by calling their 24/7 emergency hotline.
- Step 2: Formally Report the Fraud and Request a “Chargeback.” After blocking the card, call your bank’s customer care to formally report the specific fraudulent transaction. It is crucial that you use the term “chargeback,” as this initiates the official process for the bank to reverse the charge.
- Step 3: Document Everything. Create a clear record of your actions for proof. Take a screenshot of the fraudulent transaction alert, and be sure to write down the date, time, and the complaint reference number given to you by the customer care agent.
All The Steps are Thoroughly Described Below:
The moment you discover an unauthorized transaction, the clock starts ticking. The steps you take in the first hour are the most critical for protecting your account, limiting your liability, and ensuring you get your money back. In my experience, a calm, swift, and systematic response is your most powerful weapon.
This is not a time for panic. This is a time for a clear, decisive action plan. I’ve used this exact framework to guide countless individuals through the stress of an unauthorized transaction on credit card in India. Follow these three steps immediately.
Step 1: Block Your Card Immediately
This is your first and most non-negotiable action. Your primary goal is to stop the bleeding. If a fraudster has your card details, they will not make just one transaction; they will make a series of them until the card is blocked. You must act instantly to prevent further financial damage.
The Fastest Method: Using Your Banking App
The quickest and most efficient way to block your card is through your bank’s official mobile application or net banking portal.
- Log in to your mobile banking app.
- Navigate to the “Cards” or “Credit Cards” section.
- Select the specific credit card that has been compromised.
- Look for an option like “Manage Card,” “Card Controls,” or “Block Card.”
- You will typically have the option to either ‘Temporarily Block’ or ‘Permanently Block’ the card. In the case of a confirmed unauthorized transaction, it is safest to choose ‘Permanently Block.’ This deactivates the card, and the bank will issue a new one. While an incident like this might make you consider closing the account for good, it is crucial to first understand how to close a credit card without affecting your CIBIL score to prevent any accidental harm to your credit profile.
The Backup Method: Calling Your Bank’s Emergency Hotline
If you do not have access to your mobile app, you must immediately call your bank’s 24/7 credit card emergency hotline. You can find this number on the back of your credit card or by doing a quick search online for “[Your Bank’s Name] credit card customer care.”
When you call, you will need to verify your identity. Be prepared to provide your full name, date of birth, and other personal details. Clearly state that you have found an unauthorized transaction on credit card in India and you need to have the card permanently blocked immediately.
This first step is the most critical part of handling an unauthorized transaction on credit card in India.
Step 2: The Official Report
Once your card is blocked and you have prevented any further damage, your next immediate step is to formally report the specific fraudulent transaction to the bank. This is a crucial step for initiating the process of getting your money back.
Calling Customer Care to Formally Report the Transaction
After blocking the card, call your bank’s customer care. Being prepared for this call is key. Knowing exactly how to read your credit card statement will allow you to provide the agent with precise details—the merchant name, amount, and transaction date—with confidence. The bank will then register your complaint and provide you with a reference number or a dispute ID.
The “Chargeback” Request: Using the Magic Word
During this call, it is essential that you use the term “chargeback.” A chargeback is a consumer protection mechanism provided by card networks like Visa, Mastercard, and RuPay.
This framework is managed by the National Payments Corporation of India (NPCI). It is a formal process where you dispute a transaction and your bank essentially reverses the payment, pulling the money back from the merchant’s bank.
By explicitly requesting a “chargeback” for the unauthorized transaction on credit card in India, you are initiating a formal, legally recognized dispute process. It is a much more powerful action than simply saying “this wasn’t me.”
Step 3: Document Everything
In any financial dispute, documentation is your best friend. After you have blocked your card and reported the transaction, you must create a clear record of your actions. This will be invaluable if there are any issues with the refund process later on.
Your Emergency Documentation Checklist:
- Take a Screenshot: Take a clear screenshot of the fraudulent transaction alert from your SMS or email.
- Note Down Details: In a notepad or a new email to yourself, write down the exact date and time you noticed the transaction.
- Record Your Call Reference: Write down the dispute ID or complaint reference number that the customer care agent provides you.
- Send a Follow-Up Email: It is always a good practice to send a follow-up email to your bank’s official support address, summarizing your conversation. This creates a written, time-stamped record of your report.
This meticulous documentation is a key part of successfully handling an unauthorized transaction on credit card in India. It proves you acted quickly and responsibly, which strengthens your case.
This entire 3-step plan is the professional’s guide for what to do after an unauthorized transaction seen on your credit card in India. Following these steps is the best way to handle an unauthorized transaction on credit card in India to ensure a positive outcome.
Your Rights as a Consumer: The RBI’s “Limited Liability” Circular
Now that you have taken the immediate emergency actions, it’s time to arm yourself with your most powerful weapon: knowledge of your rights. Many people who experience an unauthorized transaction on credit card in India feel like they are at the mercy of their bank. This is not true.
The Reserve Bank of India (RBI), the country’s highest banking authority, has put in place a powerful consumer protection framework called the “Limited Liability” circular.
This is your shield. Understanding these rules is the key to ensuring you are not held liable for a fraud you did not commit. This section will explain this high-authority framework, a topic most websites fail to cover in detail.
The Power of Timely Reporting
The RBI’s circular is built on one simple principle: the faster you report an unauthorized transaction on credit card in India, the more protected you are. The amount of money you are liable for (if any) is directly tied to how quickly you inform your bank.
This is why Step 1 of our emergency plan—acting immediately—is so critical. Let’s break down the three liability tiers as defined by the RBI.
The “Zero Liability” Rule: Your Golden Window
This is the best-case scenario and your ultimate goal. According to the official RBI rule, you have zero liability if you report the unauthorized transaction on credit card in India within three working days of receiving the communication from the bank about it.
If you act within this golden 3-day window, the bank is legally required to refund the entire fraudulent amount to your account. This rule applies in cases where the fraud is due to a third-party breach or a contributory fraud/negligence on the part of the bank, and not due to your own negligence (like sharing your PIN or CVV).
This “Zero Liability” protection is the strongest right you have when dealing with an unauthorized transaction on credit card in India.
The “Limited Liability” Rule: The Cost of a Small Delay
What happens if you miss the 3-day window? The RBI has a second tier of protection that still limits your potential loss.
If you report the unauthorized transaction on credit card in India between four and seven working days, your maximum liability is limited to a specific amount, which depends on the type of card you have. The rest of the fraudulent amount must be refunded by the bank.
This is a critical piece of expert-level information that most people don’t know. The liability is not unlimited. Here is a table outlining the typical maximum liability as per the RBI’s guidelines.
| Type of Card / Account | Your Maximum Liability (if reported in 4-7 days) |
| Basic Savings Bank Deposit Accounts | ₹5,000 |
| All other Savings Accounts, Prepaid Instruments, and most Credit Cards | ₹10,000 |
| Credit Cards with a limit above ₹5 lakh | ₹25,000 |
This table clearly shows that while there is a penalty for a slight delay, your loss is capped. This is a crucial detail to know when you are handling an unauthorized transaction on credit card in India. Even if you are a few days late, it is still absolutely critical to report the unauthorized transaction on credit card in India.
Beyond 7 Days: When Your Liability is Determined by the Bank
If you fail to report the transaction within seven working days, your liability will be determined by your bank’s board-approved policy. In this scenario, you lose the protection of the RBI’s limited liability framework, and recovering your funds becomes much more difficult.
This is why immediate action is the most important part of handling an unauthorized transaction on credit card in India.
What Happens Next? The Chargeback Process and Timeline
You’ve done your part. You’ve blocked your card, filed the report, and documented everything. Now, the ball is in the bank’s court. This next phase—the investigation—can be a source of anxiety because it feels like you are waiting in the dark.
In my experience, understanding this process is the key to remaining calm and confident. This section will demystify the chargeback investigation and provide a clear, official timeline so you know exactly what to expect. This is the final stage of successfully handling an unauthorized transaction on credit card in India.
The Investigation: How Your Bank Fights for You
When you request a “chargeback,” you are not just asking for a refund; you are initiating a formal dispute process governed by the card networks (like Visa or Mastercard) and the RBI.
The Temporary Credit
The first thing you should see, usually within a few working days of reporting the fraud, is a “provisional” or “temporary” credit for the disputed amount back into your credit card account. This is a crucial, positive sign.
This temporary credit is the bank’s acknowledgment of your dispute. It means you will not have to pay for the fraudulent transaction, and you will not be charged any interest on it while the investigation is ongoing.
This is a standard and required practice for any legitimate unauthorized transaction on credit card in India.
The Behind-the-Scenes Process
While your account is temporarily credited, the bank’s fraud and dispute resolution teams begin their investigation. They will work with the merchant’s bank to verify the details of the transaction.
They will investigate factors like the location of the transaction, the IP address used (for online purchases), and whether any security protocols (like 3D Secure OTP) were followed correctly.
This is a thorough process designed to determine liability. Your clear and timely reporting of the unauthorized transaction on credit card in India is the most important piece of evidence in this investigation.
How Long Does a Credit Card Dispute Take?
This is the most common question I get at this stage. In the past, these investigations could drag on for months, leaving customers in a state of uncertainty.
Thankfully, this is no longer the case. The Reserve Bank of India has established a clear and binding timeline for the resolution of customer disputes.
According to the RBI’s Master Direction on Credit and Debit Cards, banks are required to resolve customer complaints, including disputes related to an unauthorized transaction on credit card in India, and provide a final resolution within a maximum period of 90 days from the date the complaint was lodged.
This 90-day timeline is your right as a consumer. It ensures that your case is handled in a timely manner and that you are not left in limbo indefinitely. Knowing this official timeline is a key part of navigating the aftermath of an unauthorized transaction on credit card in India.
This is the most important timeframe to remember after reporting an unauthorized transaction on credit card in India. If you do not receive a satisfactory resolution within this period, you have the right to escalate the issue.
Frequently Asked Questions About Unauthorized Transactions
1. What is the most important first step after an unauthorized transaction on your credit card in India?
The most critical first step after finding an unauthorized transaction on credit card in India is to block your card immediately to prevent further fraud. After blocking, you must formally report the unauthorized transaction on credit card in India to your bank.
2. How do I report a fraudulent transaction on my credit card?
To report a fraudulent transaction on a credit card, you must first block the card via your banking app, then immediately call customer care to formally raise a dispute and request a chargeback. When you report a fraudulent transaction on a credit card, always ask for a complaint reference number for your records.
3. What are the main RBI rules for unauthorized transactions?
The main RBI rules for unauthorized transactions revolve around a tiered liability system based on how quickly you report the fraud. Knowing the RBI rules for unauthorized transactions, especially the 3-day “Zero Liability” window, is your best and most powerful protection as a consumer.
4. How can I ensure I get zero liability protection for a fraudulent transaction?
To ensure you get zero liability protection, you must report the unauthorized transaction to your bank within 3 working days of receiving the alert. This timely action is the absolute key to qualifying for zero liability under the RBI’s consumer protection rules.
5. How does the RBI’s ‘Zero Liability’ rule apply to an unauthorized transaction on a credit card in India?
The RBI’s ‘Zero Liability’ rule is your strongest protection. It states that if you report an unauthorized transaction on credit card in India within 3 working days, you have zero financial liability for the fraudulent amount. This makes timely reporting of an unauthorized transaction on credit card in India absolutely critical.
6. What is a chargeback process in India and how does it work?
A chargeback process in India is a consumer protection mechanism where you dispute a transaction and the bank reverses the payment from the merchant’s account. Initiating the formal chargeback process in India is the official way to report fraud and get your money back.
7. Does my CIBIL score get affected by an unauthorized transaction on a credit card in India?
Your TransUnion CIBIL score should not be affected. When you dispute an unauthorized transaction on credit card in India, the bank places a temporary credit on your account so it doesn’t show as an overdue payment. If handled correctly, an unauthorized transaction on credit card in India will have no impact on your credit history.
8. What happens if I miss the 3-day window and am only covered by limited liability?
If you report the fraud between 4 and 7 working days, your limited liability is capped at an amount set by the RBI (e.g., ₹10,000 for most credit cards). This means even with limited liability, your potential loss is not unlimited, and the bank is still responsible for the rest.
9. Is there a long wait to get a refund for an unauthorized transaction on a credit card in India?
The process is now time-bound by the RBI. For an unauthorized transaction on credit card in India, the bank must provide a final resolution to your dispute within 90 days. While the investigation for an unauthorized transaction on credit card in India takes time, you will receive a temporary credit to your account almost immediately.
10. What is the most common type of credit card fraud in India?
The most common type of credit card fraud in India is ‘phishing’, where scammers use fake emails or SMS messages to trick you into revealing your card details or OTP. To prevent this common credit card fraud, never click on suspicious links or share your personal information.
11. What evidence should I keep for an unauthorized transaction on a credit card in India?
It is vital to document everything. For an unauthorized transaction on credit card in India, you must keep a screenshot of the fraudulent SMS/email alert and the complaint reference number from the bank. This documentation is your proof that you reported the unauthorized transaction on credit card in India promptly.
12. How long does the credit card dispute resolution process take?
As per RBI guidelines, the entire credit card dispute resolution process must be completed by the bank within a maximum period of 90 days from the day you file your complaint. The bank’s credit card dispute resolution team will investigate with the merchant during this period.
13. Can I dispute a transaction if the product I ordered online was not delivered?
Yes, you can absolutely dispute a transaction for “goods or services not received.” This is another valid reason to initiate a chargeback with your bank. You should dispute a transaction if the merchant fails to deliver what you paid for.
14. Will I get my money back during the chargeback process?
Yes, during the chargeback process, the bank will issue a temporary or “provisional” credit for the disputed amount to your account almost immediately. The bank then finalizes this reversal after completing their investigation as part of the chargeback process.
15. Is there any liability on me if I report a fraudulent transaction more than a week late?
Yes, if you report the fraud after seven working days, your liability is determined by your bank’s board-approved policy, and you lose the protection of the RBI’s limited liability framework. In this case, your liability could be up to the full amount of the fraudulent transaction.
16. What is the very first thing I should do when I suspect credit card fraud?
The absolute first thing to do when you suspect credit card fraud is to block your card immediately through your banking app or by calling the bank’s 24/7 emergency hotline. This single action prevents any further credit card fraud from occurring on your account.
From Victim to Empowered Consumer: The Final Verdict
That heart-stopping moment when you see an unauthorized transaction on credit card in India can make you feel like a victim. It’s a feeling of violation and a loss of control. However, as this guide has shown, you are far from powerless.
The most important takeaway is this: in the case of credit card fraud, time is your most important asset. By following the immediate 3-step action plan, you are taking decisive control of the situation.
This same sense of empowerment can be applied to your long-term finances, and is the core principle behind our proven guide on how to increase your CIBIL score from 600 to 750.
Protecting yourself from fraud is a critical part of smart credit management. The same vigilance you’ve learned to apply in a crisis can be used every month. To learn how to proactively audit your bills for other issues, from incorrect interest calculations to hidden fees, read our expert guide on the 5 Credit Card Hidden Charges in India.
Author’s Note
A Note from the Author: The moment you discover an unauthorized transaction on credit card in India is a moment of pure panic. I wrote this guide to replace that fear with a calm, clear, and immediate action plan that puts you back in control.
- Anwar Hashmi, founder of
cibilized.in. For expertise on American finance, he is also the lead author atClaimCredits.online, specializing in USA Tax Credits.
