Unauthorized Credit Card Charges After Cancellation: How to Dispute and Get Reversals (Philippines)

This practical guide explains your rights and options under Philippine law if you see charges after you’ve cancelled your credit card. It covers how to spot what’s truly “unauthorized,” how to build a strong dispute, what outcomes to expect, and how to escalate.

This is general information as of mid-2024, not legal advice. For complex cases or large sums, consult a Philippine lawyer.

Key takeaways

Post-cancellation charges are not automatically valid. Many are reversible through chargeback when they’re fraudulent, made after you told the bank to close the account, or when a recurring/subscription was already canceled.
Core legal anchors:
- Republic Act (RA) 10870 – Philippine Credit Card Industry Regulation Law (governs issuers/operations).
- RA 11765 – Financial Consumer Protection Act of 2022 (FCPA) (rights to fair handling, redress, and data protection).
- RA 7394 – Consumer Act (merchant unfair/deceptive practices).
- RA 10173 – Data Privacy Act (if a breach or identity theft is involved).
- RA 9510 – Credit Information System Act (CISA) (correction of wrong credit data).
Act fast. Dispute immediately after you spot the charge (ideally within the window set in your card’s terms—often 30 days from statement date).
Don’t ignore the bill. Pay the undisputed amount to protect your credit standing; clearly mark the rest as “in dispute.”
Escalate smartly. If the bank’s decision is adverse, use the issuer’s formal complaints ladder, then the Bangko Sentral ng Pilipinas (BSP) channels under the FCPA. You can also pursue merchant remedies (DTI) and privacy remedies (NPC) when relevant.

What counts as “unauthorized” after cancellation?

Fraud after closure request
- Charges made after you asked the bank to cancel/close the card/account (and especially after the bank confirmed it) are generally unauthorized. RA 10870 places responsibility on issuers to keep systems and controls that prevent misuse once notified.
Card-not-present misuse (online/phone) using stored credentials
- Merchants sometimes keep “card-on-file” tokens and may bill despite your cancellation. If you already canceled with the merchant or never consented to the post-cancellation charge, this is disputable as unauthorized or as a cancelled recurring transaction.
Clerical or merchant error
- Duplicate billing, wrong amount/currency, or charges dated after your cancellation effective date are classic chargeback grounds.
What is usually not unauthorized
- Previously authorized but delayed postings (e.g., you pre-authorized a hotel/car rental earlier; the merchant completes it later).
- Installment plans you agreed to before cancellation (your card account can be closed to new spend, but old installments remain payable).
- Annual fees if the anniversary fell before the effective cancellation date (but you can ask for a goodwill waiver).

Legal framework and your rights

RA 10870 (Credit Card Industry Regulation Law). Sets standards for issuer practices, disclosures, billing, and fair collection. After you report loss/theft or request cancellation, issuers are expected to prevent further misuse; charges incurred after notice are not for the cardholder’s account. Terms to the contrary can be challenged.
RA 11765 (Financial Consumer Protection Act of 2022). Gives you rights to:
- Transparent information, fair treatment, and timely complaint resolution.
- An internal dispute process with your bank and access to external dispute resolution via the BSP if unresolved.
- Protection against unfair or abusive collection and reporting practices while a dispute is pending.
RA 7394 (Consumer Act). Lets you pursue the merchant (especially for subscriptions or goods/services issues) for unfair/deceptive acts and get DTI assistance.
RA 10173 (Data Privacy Act). If the charge stems from a data compromise (phishing, merchant breach), you can complain to the National Privacy Commission (NPC) and demand remediation.
RA 9510 (Credit Information System Act). Ensures your right to correct erroneous negative credit data submitted by financial institutions to the Credit Information Corporation (CIC) and credit bureaus.

Immediate steps (first 24–72 hours)

Confirm the cancellation details
- Find the date/time you asked to cancel and any reference/acknowledgment number or email/SMS confirmation. Request a closure letter showing the effective date.
Collect evidence
- Statement showing the charge(s); screenshots of your cancellation request (bank and merchant); emails proving a subscription was ended; police blotter or NBI report if fraud is suspected; copies of your ID.
Notify the issuer—immediately and in writing
- Call, then file the dispute via the bank’s app/portal/branch/email.
- Ask the bank to:
  - Flag the account as fraud/unauthorized post-cancellation.
  - Reverse related interest/fees that arise from the disputed amount.
  - Exclude the disputed amount from the minimum due while the case is under investigation (or confirm how they handle it).
  - Provide a written acknowledgment and a timeline.
If it’s a recurring/subscription charge
- Send a written cancellation to the merchant and demand a stop-billing confirmation.
- Ask your bank to raise a chargeback as “cancelled recurring billing” and to block future charges from that merchant.
If fraud/identity theft is likely
- File a police blotter (nearest station) or an NBI Cybercrime complaint. Banks often require an affidavit of unauthorized charges; some ask for notarization.

How to file a strong dispute (Philippine practice)

What to include

Your full name, last 4 digits of the card, and contact info.
The disputed transaction(s) (date, merchant, amount, currency).
A concise reason:
- “Unauthorized charge made on [date], after my cancellation request on [date/time/ref]. I did not receive goods/services and did not authorize this transaction.”
- “Cancelled recurring billing effective [date]; merchant continued charging.”
Attachments: proof of cancellation (bank and/or merchant), statement page, screenshots/emails, proof of non-receipt or refund request, police/NBI document (if fraud).
Requests: reversal of the charge and derived interest/fees, merchant block, and confirmation the disputed sum won’t be reported negatively while pending.

Practical tips

Submit within your bank’s deadline (often 30 days from statement date—check your terms). Earlier is better.
Track everything: reference numbers, names of bank officers, dates, and screenshots.
Keep paying the undisputed portion. If the minimum due still reflects the disputed sum, pay what you can and write “paid under protest; dispute pending.”

What happens next (timelines & outcomes)

Acknowledgment & investigation. Banks should acknowledge promptly and give a case reference and expected timeline. Complex, cross-border disputes may take longer because card-network chargeback windows and evidentiary steps apply.
Provisional credit. Some issuers grant temporary credits while investigating; others wait for merchant response. Treat provisional credits as temporary until final.
Evidence exchange. The bank may request more documents (e.g., affidavit, proof you canceled the subscription). Merchants may submit “proof of authorization.” If the merchant can’t prove proper authorization (e.g., no chip-and-PIN, flawed 3-D Secure, no valid mandate), the dispute typically favors you.
Resolution. If the bank decides for you, they reverse the charge and associated fees/interest. If not, ask for a written explanation and copies or a summary of the evidence relied upon.

Escalation roadmap (if the bank refuses or delays)

Issuer’s formal complaint channels
- Ask for escalation to the Customer Care Supervisor/Manager, then to the Dispute/Compliance/Financial Consumer Protection unit. Request a final response (“closure”) letter.
Bangko Sentral ng Pilipinas (BSP) – external redress
- Under the FCPA, you can lodge a complaint with the BSP after trying the bank’s internal process or if there’s unreasonable delay. Prepare: your dispute letter, evidence, and the bank’s replies. (BSP provides multiple intake channels—website/e-mail/chat. Provide clear, chronological facts.)
Merchant remedies (DTI)
- If the problem is a merchant who billed after you canceled or failed to deliver, file a DTI complaint for unfair/deceptive practices (useful to pressure refunds even as the bank process runs).
Data privacy (NPC)
- If your data was compromised or a merchant/issuer mishandled your personal data, complain to the National Privacy Commission.
Court action
- For substantial losses or severe harm (e.g., wrongful reporting that damaged your credit), consult counsel about civil claims (breach/negligence under the Civil Code) and, for fraudsters, potential criminal complaints (e.g., estafa, cyber offenses).

Special scenarios (and how to frame the dispute)

Annual fee posted after a confirmed cancellation.
- Dispute as post-closure billing error; attach the closure letter.
Hotel/car rental captured after closure, but you never used the service.
- If you canceled the booking within policy, dispute as “credit not processed” or “no services provided.” Attach the cancellation confirmation.
Subscription kept charging after you canceled with the merchant.
- Submit the merchant’s cancellation acknowledgment and request chargeback as “cancelled recurring transaction.” Ask the bank to block the merchant.
Card tokenized on apps (ride-hailing, food delivery) and charged after closure.
- Dispute as unauthorized and post-cancellation, plus provide evidence that you removed the card from the app or that the account was closed.
Installments from old purchases still posting.
- Not unauthorized. Ask for a payoff computation or restructuring if you want to settle early.

Protecting your credit record

Ask the bank to suspend negative reporting of the disputed amount while under investigation.
If you suffer a wrong default report, write the bank demanding correction and an updated submission to the Credit Information Corporation (CIC) and private credit bureaus; request a letter of correction for your files.
Keep proof of payments and the final resolution for future disputes.

Templates you can adapt

1) Dispute Letter to Issuer

Subject: Dispute of Unauthorized Post-Cancellation Charges – [Your Name], Card ending [1234]

Dear [Bank/Issuer] Disputes Team,

I am disputing the following transaction(s) on my [Card Brand] credit card ending [1234]:

• Date / Merchant / Amount / Currency: [e.g., 10 Aug 2025 – ABC Digital – PHP 1,299]

Reason: These charges were posted after I requested cancellation/closure on [date/time], reference no. [ref]. I did not authorize these transactions, nor did I receive any goods/services in relation to them. For [subscription name], I canceled with the merchant on [date] (see attached confirmation), yet I was billed again.

I request:
1) Immediate reversal (chargeback) of the disputed amounts; 
2) Reversal of any related interest/fees and exclusion of these sums from the minimum due while the dispute is pending;
3) Blocking of further charges from [merchant], and written confirmation of actions taken; and
4) Assurance that no adverse credit reporting will occur in relation to the disputed amount while under review.

Attached: [bank cancellation acknowledgment], [merchant cancellation confirmation], [statement page], [affidavit/police blotter if any], [ID].

Please acknowledge receipt, provide a case reference number, and advise your expected timeline. I am available at [mobile/email].

Sincerely,
[Full Name]
[Address]
[Mobile]
[Email]

2) Merchant “Stop-Billing” / Refund Demand (Subscriptions)

Subject: Cancellation and Stop-Billing Confirmation Request – [Your Account/Order #]

Dear [Merchant],

I canceled my subscription/service effective [date], yet I was billed on [date] for [amount]. Please confirm in writing that:
(1) my subscription is canceled effective [date];
(2) no further charges will be made to my card ending [1234]; and
(3) a full refund of [amount] will be processed within [7] days.

If already processed, kindly send the refund reference. I have notified my bank and reserved the right to dispute.

Regards,
[Name]

3) Affidavit of Unauthorized Charges (outline)

Your identity details (name, address, ID).
Card details (bank, last 4 digits).
Statement of facts (when you requested cancellation; when you discovered the charge; that you did not authorize it; any loss/theft facts).
List of disputed transactions.
Attachments list.
Oath/jurat. (Some banks require notarization.)

Common issuer pushbacks—and how to respond

“It’s a recurring charge; talk to the merchant.”
- Reply: “I canceled on [date], attached proof. Please process chargeback as a cancelled recurring and block future billings.”
“You missed our dispute deadline.”
- If only slightly late, cite good cause (late discovery, delayed statement, hospitalization, etc.) and request consideration—especially where fraud or post-cancellation misuse is evident.
“Transaction was 3-D Secure/OTP verified.”
- If you never received/entered an OTP, or your number was controlled by a fraudster (SIM swap), state the facts and provide your telco complaint/incident documentation.
“Pay first while we investigate.”
- Reiterate your request to exclude the disputed amount from the minimum due or to reverse any interest/fees later; continue paying the undisputed portion.

Preventing a repeat

Obtain and keep a written closure letter with effective date/time.
Remove your card from all apps and subscriptions; keep email confirmations.
Turn on SMS/app alerts and review statements monthly.
Use virtual cards or spending limits for online merchants.
Be wary of phishing; secure your SIM and email; enable 2FA everywhere.
Periodically check your CIC/credit bureau data and dispute errors promptly.

Quick checklist

Closure request date/time & bank reference saved
Statement marked up with disputed items
Dispute filed in writing (kept copy, got case number)
Merchant stop-billing/refund demand sent (for subscriptions)
Police/NBI filing (if fraud/identity theft)
Interest/fees reversal requested
Undisputed amount paid; “under protest” noted
Escalation plan ready (issuer → BSP; merchant → DTI; breach → NPC)
Credit record monitoring and correction (if needed)

If you want, I can tailor the templates to your specific bank and facts (dates, merchants, amounts) and tighten the argumentation for your exact scenario.