An Internet Fraudulent Transaction Happens to Your Credit Card, What Should You Do?

Date Monday, 12 October 2009  Posted in Category Computer Resources  Tags ,   Comment 1 Comment »


When you received credit card statement and there’s an unathorised Internet transaction billed to your credit card…

Don’t panic when this happens to you. This is not your responsibility to bare the transaction billed amount*, follow the procedure below and you will get it adjusted:

  1. Identify the transaction billed- merchant name, transaction date, amount and statement.
  2. Confirmed the transaction billed was not made by anyone like family members, boy/girl friend or colleague that you authorised to use your credit card details.
  3. Call your credit card issuing bank and speak to the customer representative to report Internet fraudulent transaction on your credit card. Request them to fax / email / post you the “Disputed Transaction Form“.
  4. Consult the customer representative on whether there is a re-issue of a new credit card is required. (charges may apply to some bank)
  5. Fill out the form then fax / post it back to them. Call your credit card issuing bank again to ensure they have received your form.
  6. The administration and investigation process will usually take about a month to complete, the transaction billed amount shall be credited into your account and stated in your next month statement.*
  7. No finance charge and/or investigation charge shall be levied.*

* In the event that the investigation reveals that you- the credit card holder is not liable for any of the disputed transactions.

Do you know?

When merchants (online store) accept credit cards over the Internet, the transaction is considered a “Card-Not-Present” transaction by the issuing bank (your credit card bank), because the merchant doesn’t see the physical card or signature.

In “Card-Present” transactions, the issuing bank usually covers the cost of the transaction, sometimes after charging the credit card holder a minimum fee (such as RM20). With “Card-Not-Present” transactions, the merchant is wholly responsible for the fraudulent transaction, even if the merchant has proof of signature during the delivery.

So, credit card fraud is a significant challenge for Internet merchants. Fraud can end up being very costly especially to merchants that are selling tangible products and can even result in loss of a merchant account.


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One Response to “An Internet Fraudulent Transaction Happens to Your Credit Card, What Should You Do?”

  1. Sue Ling says:

    Give up on credit cards altogether!! Haha, I kid 😛

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