What Should I Do When a Customer Claims a Charge Is Unauthorized?

Updated July 2026

What should I do when a customer claims a charge is unauthorized?

Treat every unauthorized charge claim as real until proven otherwise. Check the transaction details, respond quickly, and decide whether this is true fraud or a case of friendly fraud. The goal is to protect revenue without missing deadlines or escalating unnecessarily. Unauthorized ("I didn't make this purchase") claims are among the most common chargeback types, and most are not stolen cards, they are friendly fraud or forgotten purchases. For definitions, see the fraudulent transactions guide.

How do I handle an unauthorized charge claim step by step?

1. Pull the full transaction record. Look at the IP address, device, billing and shipping match, login history, and previous orders. Unauthorized claims almost always hinge on these basics.
2. Contact the customer immediately. Ask when they noticed the charge and whether anyone else could have used the card. Keep it factual and do not accuse. Many customers reverse course once they recognize the purchase.
3. Decide refund or dispute fast. If the charge looks truly unauthorized, refunding early can stop a chargeback fee. If evidence points to the customer placing the order, prepare to dispute. Low-value orders with weak signals are rarely worth fighting.
4. Gather fraud signals before responding. Collect AVS results, CVV match, 3DS status if used, delivery confirmation, and account history. Chargeflow Automation packages this evidence correctly and submits it on time.
5. Watch for repeat behavior. If the same customer or card has a pattern of unauthorized claims, block future attempts. Chargeflow Prevent stops repeat abusers before checkout.
6. Set alerts for similar cases. Unauthorized disputes tend to cluster. Chargeflow Alerts can notify you early so you refund or respond before it escalates.

Is it true fraud or friendly fraud?

SignalPoints to true fraudPoints to friendly fraudAVS / CVVMismatch or failed checksFull matchIP / deviceNew device, distant locationMatches prior ordersAccount historyBrand-new accountEstablished account, past purchasesProduct usageNo login or accessDelivered, accessed, or used

If the claim is on PayPal specifically, see how to reduce unauthorized claims on PayPal.

How does this vary by platform?

Shopify and Stripe often label these as fraud or card-not-present disputes. Subscription businesses see this when customers forget recurring charges. Digital goods require stronger login and usage proof since shipping does not apply. These disputes typically map to fraud-related reason codes across networks. A full breakdown lives in Chargeflow’s chargeback reason codes library.

What evidence do I need?

EvidenceWhat it showsAVS and CVV match resultsCorrect billing details were entered (address and security code)IP address and locationAligns with the customer's usual activity or prior ordersDevice or account historyLogin records and past purchases show intentDelivery or access confirmationCarrier delivery for physical goods; usage logs for digital3DS authentication (if used)Shifts fraud liability to the issuer when the customer authenticated

Keep evidence specific to the disputed charge. Extra screenshots or internal notes lower credibility and reduce win rates.

Why do unauthorized claims happen?

Most unauthorized claims are not stolen cards. They are customers who forgot, did not recognize the descriptor, or wanted a faster refund. Banks side with cardholders by default, so clarity and speed matter. If unauthorized claims are rising, Chargeflow Insights surfaces patterns across cards, devices, and customers so you fix the root cause instead of chasing disputes.

Use Chargeflow Alerts and Prevent to stop repeat unauthorized claims before they turn into chargebacks.

Frequently Asked Questions

Should I refund an unauthorized charge?

If the transaction data shows true fraud (failed AVS/CVV, unfamiliar device, no usage), refunding early avoids a chargeback fee. If the data shows the customer made and used the purchase, gather evidence and dispute instead.

How do I tell true fraud from friendly fraud?

True fraud usually shows mismatched AVS/CVV, a new device or distant IP, and no product usage. Friendly fraud shows matching details, an established account, and evidence the customer received or used the product.

Does 3DS shift liability on unauthorized claims?

Yes. When a customer completes 3D Secure authentication, fraud liability typically shifts to the issuer, so a fraud-coded chargeback is generally not the merchant's loss.

What share of chargebacks are unauthorized claims?

Fraud/unauthorized reason codes make up a large portion of all chargebacks, and most are first-party (friendly) fraud rather than criminal card theft — which is why verifying the data first matters.

How do I stop repeat unauthorized claims?

Identify repeating cards, devices, and customers, then block them before checkout with tools like Chargeflow Prevent, and use Alerts to catch clustering disputes early.