Can a company just charge your credit card?

Asked by: Winston Ratke  |  Last update: August 28, 2025
Score: 4.2/5 (15 votes)

There is no prohibition for credit card surcharges and no statute on discounts for different payment methods. Merchants can impose a surcharge as long as it doesn't exceed the cost of the merchant's processing fee.

Is it legal for a company to charge your card without permission?

Under the law, businesses must take steps to ensure that charges to customers' credit cards, debit cards, phone bills, and other accounts are authorized.

Is it legal for a company to charge a credit card fee?

While the California Civil Code Section 1748.1 prohibits retailers, including service providers, from imposing surcharges on customers who choose to pay with a credit card, it also allows retailers to offer discounts to encourage payment by cash, check, or other means.

Can I sue a company for charging my credit card?

Yes. You can file a suit against the Credit card company for tort/negligence.

Can I block a company from charging my credit card?

You can block a merchant from charging future payments to your card at any point. However, you should always contact the business first to cancel a recurring payment or subscription before contacting your card issuer.

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How can I get a company to stop charging my card?

According to the Consumer Financial Protection Bureau, you should start this process by sending a letter to your bank and subscription company that revokes your payments. Alternatively, you can give your bank a stop payment order. This can be done in writing, over the phone, or in person.

Can a vendor charge my credit card without my permission?

As a consumer, you have legal rights and protections against unauthorized charges. One of the essential laws is the Fair Credit Billing Act (FCBA), which safeguards you in case of billing errors or unauthorized charges made on your credit card.

What to do if a company charges you without authorization?

Contact your bank right away. To limit your liability, it is important to notify the bank promptly upon discovering any unauthorized charge(s). You may notify the bank in person, by telephone, or in writing.

What happens if a credit card company sues you and you can t pay?

You Lose: If the credit card or debt collection company wins, it will ask the judge for authority to collect its money. Your wages could be garnished. Liens could be placed on your property or forced into a sale.

How do I fight a credit card charge?

To dispute a charge, send a letter to your credit card company's address for billing inquiries or errors. Your credit card company will investigate the dispute. If it resolves it in your favor, it will remove or fix the charge.

In what states is it illegal to charge credit card fees?

Q: Where are credit card surcharging and convenience fees illegal? As of January 2023, only two states and one jurisdiction still outlaw the use of credit card surcharges. They are a result of non-qualified transactions of different communications methods.: Connecticut, Massachusetts, and Puerto Rico.

Can a company charge my card?

Businesses cannot impose any surcharge for using the following methods of payment: consumer credit cards, debit cards or charge cards. similar payment methods that are not card-based (for example, mobile phone-based payment methods) electronic payment services (for example, PayPal)

What are the new credit card laws for 2024?

Consumer Financial Protection Bureau Releases Final Rule on Credit Card Late Fees, with Overdraft Fees on Deck. On March 5, 2024, the Consumer Financial Protection Bureau (Bureau) announced the final rule governing late fees for consumer credit card payments, likely cutting the average fee from $32 to just $8.

Can I refuse a charge on my credit card?

If you see an unauthorized charge or billing mistake on your credit card statement, or if you didn't receive satisfactory goods or services from a merchant, you generally have the right to dispute the charge under the Fair Credit Billing Act (FCBA).

Can I keep a customer's credit card on file?

Only storing such information as long as there is a legitimate business purpose behind it. Credit card data should be deleted once that purpose is no longer valid. Only storing the primary account number, cardholder name, service code, and expiration date.

Can a company take money out of my bank account without permission?

No. Debt collectors can ONLY withdraw funds from your bank account with YOUR permission. That permission often comes in the form of authorization for the creditor to complete automatic withdrawals from your bank account.

What's the worst a debt collector can do?

Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.

Can you be jailed for not paying credit card debt?

Unpaid credit cards fall into the “civil debt” category and are not punishable by jail time. However, criminal offenses related to financial affairs, like tax evasion, could land you in jail. It's important to know that ignoring judgments against you could result in serious legal consequences, including jail time.

What happens if someone sues you and you have no money?

The plaintiff might attempt wage garnishment or bank account levies. Some defendants might be considered “judgment proof” if they have no assets. Possible Outcomes and Future Collection: Judgments remain active for several years and could be renewed.

Can a company legally charge your credit card without authorization?

First of all, a business can't charge your card without your permission. It would need to get your authorization first. This holds true whether you're paying with your smartphone or for any other online card-not-present transaction.

How do I block a company from charging me?

Can I block a company from charging my card? Yes, you can block a company from charging your credit card. You do this by contacting your bank and either revoking authorization for the payment or requesting a stop payment order.

Can a company charge you more without telling you?

Yes. The price advertised to the consumer must be the full price that the consumer is required to pay. But the law does not limit a merchant's ability to include fees or charges in that total price, or to tell consumers that its prices include those fees or charges.

Can I sue a company for charging my card without permission?

Some laws require this consent to have first been obtained expressly in writing. If it is not obtained prior to the withdrawals/charges, you might be entitled not only to the return of the illegally withdrawn or charged amounts but also to statutory damages and for your attorney's fees and costs to be paid.

What if credit card dispute is not in my favor?

If the credit card issuer denies the dispute, the customer can request supporting documents and can also appeal the decision or file a complaint with consumer protection agencies. If the dispute is still not resolved, customers can seek legal advice and file a case.

Can a company charge my card without permission?

If you claim the use of the card was not authorised by you, it is for your bank to prove otherwise. The bank may be able to cancel the payment or put the money back into your account. If your card provider will not give you your money back, report them to Trading Standards. Report a problem to Trading Standards.