In the digital age, credit card fraud and unauthorized transactions have become a significant concern for Filipino consumers. Whether it's a result of a lost card, a phishing scam, or a data breach, knowing your rights and the proper legal procedures is crucial to protecting your finances.

Under Philippine law, primarily guided by the Philippine Credit Card Industry Regulation Law (Republic Act No. 10870) and the Consumer Act of the Philippines (Republic Act No. 7394), cardholders are afforded specific protections against unauthorized charges.

1. Understanding "Unauthorized Transactions"

An unauthorized transaction is any charge made on your credit card without your consent or knowledge. This includes:

Fraudulent Transactions: Charges resulting from card cloning, phishing, or identity theft.
Billing Errors: Incorrect amounts charged by a merchant or duplicate transactions.
Unfulfilled Services: Charges for goods or services that were never delivered or rendered.
Canceled Subscriptions: Continued billing after a subscription was successfully canceled.

2. Immediate Steps to Take

Time is of the essence when dealing with unauthorized transactions. Most banks have a strict window (usually 30 to 60 days from the statement date) for filing disputes.

Report and Block Your Card Immediately: As soon as you notice an unauthorized charge, call your bank’s 24/7 hotline to report the incident and have your card blocked or "hotlisted." This prevents further fraudulent activity.
Document Everything: Keep a record of the date and time of your call, the name of the customer service representative, and the reference number provided.
Review Your Statement: Check for other suspicious transactions that you might have missed.

3. The Formal Dispute Process

Simply calling the bank is often not enough to finalize a dispute. You must follow the formal process prescribed by the Bangko Sentral ng Pilipinas (BSP) and the issuing bank.

File a Formal Dispute Form: Most banks require you to fill out a "Cardholder Dispute Form" or a "Statement of Complaint." This is usually available on the bank’s website or at a branch.
Provide Supporting Documents: Depending on the nature of the dispute, you may need to provide:
A copy of the billing statement with the disputed item highlighted.
Proof of cancellation (e.g., emails or screenshots) for subscription disputes.
Sales receipts or delivery slips.
A Police Report (highly recommended for lost/stolen cards or significant fraudulent amounts).
An Affidavit of Denial, which is a notarized document stating under oath that you did not authorize or benefit from the transaction.

4. Legal Protections and the Role of the BSP

The Republic Act No. 10870 provides a framework for credit card operations in the Philippines. Key provisions include:

Liability Limits: If you report a lost or stolen card before any unauthorized use, you are generally not liable for any subsequent charges. If charges occur before you report it, your liability may be limited depending on the bank's terms and conditions, provided you were not negligent.
Right to Information: Banks are required to provide clear information regarding the dispute process and the status of your investigation.
BSP Consumer Protection: If the bank denies your dispute and you believe the decision is unfair, you can escalate the matter to the Bangko Sentral ng Pilipinas (BSP) Consumer Protection Department. You can file a complaint through their webchat, email, or official social media channels.

5. Tips for Preventing Future Fraud

Enable Transaction Alerts: Set up SMS or email alerts for every transaction made on your card.
Use Virtual Cards for Online Shopping: Many Philippine banks offer "virtual" credit cards with lower limits specifically for online use.
Be Wary of Phishing: Never click on suspicious links or provide your CVV/OTP to anyone, even if they claim to be from the bank.
Regularly Monitor Your Account: Use your bank’s mobile app to check your transaction history at least once a week.

Important Note: While banks are required to investigate, the burden of proof often rests on the cardholder to show that they took reasonable care of their card and credentials.

Would you like me to draft a template for an Affidavit of Denial or a Formal Dispute Letter addressed to a Philippine bank?