How to Dispute, Stop Them, and Protect Your Rights (Legal Article)

I. Why this matters

E-wallets are now used for everyday payments, subscriptions, in-app purchases, and merchant checkouts. That convenience comes with two common problems:

Unauthorized deductions – money leaves your wallet without your consent (e.g., account takeover, SIM swap, phishing, device theft, malware, or internal wallet compromise).
Recurring charges you did not intend to keep – subscriptions and “auto-debit” arrangements that continue after a free trial, a one-time purchase, or a mistaken consent.

In the Philippines, these issues sit at the intersection of consumer protection, electronic commerce, data privacy, cybersecurity, banking/financial regulation, and contractual consent. The good news: there are clear steps to stop charges quickly, preserve evidence, and escalate to regulators if the provider or merchant refuses to act.

II. Key concepts and definitions (plain-language, legal framing)

A. “Unauthorized transaction”

A transaction is generally “unauthorized” when you did not consent to it—meaning you did not approve it, and it was not done by someone you allowed to use your account.

Common scenarios:

Account takeover (password/OTP compromise; device compromise; social engineering).
SIM swap / number hijacking resulting in intercepted OTPs.
Phishing links or fake customer support.
Malware or compromised phone.
Linked account abuse (your wallet is linked to a payment method or merchant with “remember me” or auto-debit).
Inside job or system error (rare but possible).

Legal idea: unauthorized deductions often involve lack of consent, possible negligence (provider security and user safeguards), and potentially fraud.

B. “Recurring charge” / “auto-debit” / “subscription”

A recurring charge is typically lawful if:

You were clearly informed it was recurring,
You affirmatively agreed (consented), and
You were provided a practical way to cancel.

Recurring charges become disputable when:

Consent was not informed or was obtained through deceptive design (“dark patterns”).
Cancellation was unreasonably difficult.
The merchant/provider misrepresented the trial or price.
The subscription continued after cancellation.
Charges continue despite account closure or un-linking.
Duplicate charges occur due to processing errors.

Legal idea: disputes often focus on consumer consent, unfair trade practices, and contract terms.

III. Philippine legal framework you can rely on (high-level)

Even without citing specific issuances line-by-line, the Philippine context generally recognizes:

Consumer protection principles Consumers must be protected from unfair, deceptive, or unconscionable sales acts and misleading subscription practices. Businesses should provide clear disclosures and fair remedies.
E-commerce and electronic transactions Electronic agreements are recognized, but consent and proof matter. Electronic records (screenshots, emails, logs) are usable evidence.
Data privacy E-wallet providers and merchants must handle personal data securely and lawfully. If unauthorized deductions stem from data breach or weak controls, data privacy obligations may be implicated.
Cybercrime / fraud If unauthorized deductions result from phishing, hacking, identity theft, or account compromise, criminal remedies may apply.
Financial consumer protection and regulated payment systems E-wallets and payment providers typically have obligations to:
- maintain security controls,
- handle complaints promptly,
- investigate disputed transactions,
- and provide clear processes for dispute resolution.

Practical takeaway: You can pursue remedies through the provider’s internal dispute process, then escalate to government regulators, and, where appropriate, to civil or criminal channels.

IV. Who is responsible? (Allocating liability in practice)

Responsibility depends on the facts. In real disputes, outcomes often turn on:

A. The e-wallet provider’s obligations

E-wallet operators generally control:

authentication methods (PIN/biometrics/OTP),
risk detection and fraud monitoring,
transaction logs,
account locking and recovery controls,
and customer complaint resolution.

They are expected to maintain “reasonable security” and provide a clear, responsive dispute mechanism.

B. The merchant’s obligations (subscription operator)

The merchant controls:

subscription terms and disclosures,
cancellation workflows,
refund policies,
and what they label the charge as.

If recurring charges come from a merchant subscription, refunds often require merchant cooperation, but the wallet provider can still block future payments and facilitate disputes depending on integration.

C. The consumer’s duties (your side)

Providers often require users to:

keep credentials and OTPs confidential,
secure devices and SIM,
promptly report unauthorized activity.

Important: Even if you were phished, you can still dispute—especially if the merchant/provider failed to apply reasonable safeguards or if transactions are inconsistent with your prior behavior. But expect them to ask about how access occurred.

V. Immediate actions to STOP the deductions (do this first)

Speed matters. Do the following in order:

1) Secure your account and device

Change your e-wallet password/PIN immediately.
Enable biometrics (if available) and set a strong device lock.
Log out of other devices / revoke sessions.
Remove unknown linked devices, email addresses, and phone numbers.
If your phone was lost or you suspect malware: freeze the account and secure the SIM first, then consider factory reset after evidence is preserved.

2) Stop recurring charges at the source

Depending on how the charges are occurring:

Inside the e-wallet: disable auto-debit, turn off “subscriptions,” remove merchant authorizations, unlink cards/bank accounts.
Inside the merchant app/site (e.g., streaming, gaming, dating apps): cancel subscription in account settings.
If subscribed via app store: cancel via your app store subscriptions list.
If charges are via QR/merchant token: look for “pre-approved payments,” “billing agreements,” “saved merchants,” “tokenized payments,” or “automatic payments.”

3) Freeze funds movement

Reduce wallet balance temporarily (move funds to a safer place only if you can do so safely and it won’t destroy evidence—keep records).
Consider disabling cash-in, transfers, or online payments if the wallet allows.

4) Contact your telco if SIM swap is suspected

If you suddenly lost signal, your SIM stops working, or you received “SIM change” notifications:

Call your telco immediately to block the SIM and secure your number.
Request documentation of SIM swap activity if applicable.

5) Preserve evidence (before logs disappear)

Save:

screenshots of transactions (with transaction IDs),
SMS/email OTP messages (even if you did not request them),
chat/email communications with support,
device notifications,
merchant receipts and confirmation emails,
any “subscription activated” messages,
your wallet profile showing linked devices/emails,
screen recording of the subscription settings (if useful).

Keep a simple timeline: date/time, what happened, what you did, and what support said.

VI. How to DISPUTE: a step-by-step legal/complaint playbook

Step 1: File an internal dispute with the e-wallet provider (immediately)

Use in-app dispute tools and also email (if available) so you have a written trail.

Include:

Your full name and registered mobile number/email
Wallet ID (if applicable)
A table of disputed transactions:
- date/time
- amount
- merchant name/descriptor
- transaction/reference ID
Statement: “These transactions are unauthorized / not consented to” or “Recurring charges continued despite cancellation / unclear consent”
Your requested remedy:
- stop/block future charges
- reverse/refund disputed charges
- investigation report and transaction details (IP/device identifiers, authorization method)
A clear timeline of events
Supporting evidence attachments

Ask them to:

freeze the wallet or lock certain payment channels
block the merchant and revoke billing authorization
open a formal fraud/dispute case number

Step 2: Separately contact the merchant (especially for subscriptions)

Merchants often process refunds faster than wallet operators if you show:

proof you canceled,
proof you never consented,
or that you were charged after cancellation.

Demand:

cancellation confirmation,
refund,
written statement that your account is unsubscribed and authorization revoked.

Step 3: Escalate internally if unresolved

If frontline support is slow:

request escalation to a supervisor
request a written resolution and a copy of findings

Maintain one thread with case number.

Step 4: Regulatory escalation options (Philippine context)

When the provider or merchant fails to act fairly, escalate to the appropriate authority depending on the issue:

For e-wallet/payment provider complaint handling and financial consumer protection Escalate to the financial system regulator/consumer assistance channel typically responsible for payment service providers.
For deceptive subscription practices, unfair trade, and refusal to honor cancellation/refund Escalate through consumer protection mechanisms (commonly involving the government agency that handles trade/consumer complaints).
For personal data compromise, identity misuse, or breach indicators Escalate to the privacy regulator if you suspect personal data misuse or provider negligence in safeguarding data.
For hacking, phishing, SIM swap fraud, or identity theft Consider filing a police/cybercrime report, especially if losses are significant or the fraud is ongoing.

Strategy tip: Regulators respond better when you provide a clean case file:

1–2 page narrative,
transaction list,
screenshots,
your written requests,
and the provider’s responses (or lack thereof).

VII. What outcomes can you realistically expect?

A. Refund / reversal

Possible when:

the wallet determines true unauthorized use,
the merchant agrees to refund,
or a system error is verified.

Harder when:

transaction was OTP-authorized and provider claims it was “authorized,”
the merchant is offshore or unresponsive,
or the subscription terms were “technically disclosed” (even if confusing).

B. Charge blocking / merchant blacklisting

Even if refund is contested, you can usually obtain:

merchant block,
revocation of billing authorization,
new account credentials and security reset.

C. Account restoration and security hardening

Providers can reset:

PIN/password,
device binding,
recovery email,
and enable stronger controls.

D. Investigation report / transaction details

You can ask for:

method of authorization (PIN/OTP/biometrics),
timestamps,
device identifiers,
and risk flags.

Providers may not disclose everything (security reasons), but they often can provide enough to support your next steps.

VIII. Common dispute scenarios and how to argue them

Scenario 1: “I was charged but never subscribed”

Best arguments:

No affirmative consent (no clickwrap, no confirmation email, no subscription page proof).
Transaction pattern inconsistent with your usage.
You did not have the app/service.
Request provider to show proof of authorization and subscription creation.

Evidence:

screenshots showing no subscription in account settings,
app store subscription list showing none,
emails showing no sign-up.

Scenario 2: Free trial turned into paid plan without your awareness

Best arguments:

inadequate disclosure of renewal date/price,
absence of clear reminder,
cancellation path not prominent.

Evidence:

signup screen screenshots (if you have),
email trail (or absence of it),
merchant T&Cs (if available), especially if confusing.

Scenario 3: Charged after cancellation

Best arguments:

cancellation confirmation exists,
charges continued past effective cancellation date,
breach of contract / unfair practice.

Evidence:

cancellation email/screenshot,
account page showing canceled status,
transaction list after cancellation date.

Scenario 4: Account takeover / phishing

Best arguments:

immediate report upon discovery,
unusual device/login behavior,
multiple attempts/OTP messages you didn’t request,
SIM swap indicators.

Evidence:

telco incident proof,
OTP SMS logs,
device login alerts,
timeline.

Scenario 5: Minor repeatedly recurring deductions (“micro-charges”)

These are often:

forgotten subscriptions,
dormant merchant billing agreements,
“verification” charges that convert to recurring (rare but happens),
or fraud testing behavior.

Best steps:

identify merchant descriptor and revoke authorization,
demand merchant identity and billing agreement record.

IX. Writing your dispute letter (template content you can reuse)

A strong dispute message should contain:

Heading: “Formal Dispute: Unauthorized E-Wallet Deductions / Recurring Charge Complaint”
Identification: registered number/email, wallet ID
Statement of facts: concise timeline
Transaction schedule: list each disputed item
Legal framing (simple): lack of consent; request for investigation; request to block recurring authorization; request refund
Specific requests:
- immediate block/stop of merchant authorization
- reversal/refund
- written results and reference/case number
Attachments: screenshots, logs, cancellation confirmation
Reservation of rights: escalation to regulators and legal remedies if unresolved

Keep it calm, factual, and explicit.

X. Evidence and burden of proof (what matters most)

In electronic payment disputes, the question often becomes: Can the provider/merchant show that you consented?

Things that weigh heavily:

“Authorized by OTP/PIN/biometrics” logs (provider side)
evidence of SIM swap or device compromise (your side)
whether you reported promptly (your side)
whether the subscription was clearly disclosed (merchant side)
whether cancellation was honored (merchant side)

Your advantage: You can demand a clear explanation of the authorization path and challenge gaps (e.g., “I never received or entered an OTP; my SIM was inactive at that time.”)

XI. Civil, criminal, and administrative remedies (when to use which)

A. Administrative/consumer complaint (most common)

Use when:

you want practical relief (refund, stop charges),
the provider is slow or denies without investigation,
you suspect unfair subscription practices.

Pros: often faster, less expensive than litigation. Cons: may still depend on provider cooperation.

B. Civil action (small claims or regular)

Use when:

losses are significant,
there is clear refusal to refund despite strong evidence,
you can identify the responsible party and establish negligence/breach.

Pros: enforceable judgment. Cons: time and effort, requires preparation.

C. Criminal complaint / cybercrime route

Use when:

hacking, phishing, SIM swap, identity theft, or organized fraud is involved,
there’s a clear perpetrator or traceable accounts,
losses are serious.

Pros: deterrence, investigation powers. Cons: can be slower; proof requirements are higher.

Often, a combined approach works: consumer/regulatory complaint for relief + cybercrime report for fraud where warranted.

XII. Preventing this from happening again (best practices in PH reality)

1) Harden authentication

Use a unique, strong password.
Enable biometrics and device binding when available.
Avoid SMS-only recovery if alternatives exist.

2) Treat OTP as a “signature”

Never share OTP, even with “support.” Real providers do not ask for it to “reverse” charges.

3) Lock down your SIM

Set a SIM PIN if feasible.
Watch for sudden loss of signal or SIM “no service.”
Secure your telco account with extra verification if offered.

4) Minimize stored authorizations

Regularly review “linked accounts,” “billing agreements,” and “subscriptions.”
Delete old merchants you no longer use.

5) Keep your phone clean

Install apps only from trusted stores.
Avoid unofficial APKs.
Update OS and wallet apps.
Don’t use rooted/jailbroken devices for payments.

6) Maintain a “dispute folder”

Keep screenshots of:

subscription confirmations,
cancellation confirmations,
and receipts.

This makes disputes dramatically easier.

XIII. Practical checklist (copy/paste)

Within 30 minutes

Change wallet password/PIN
Enable biometrics/device lock
Revoke other sessions/devices
Block merchant / revoke billing agreement
Cancel subscription in merchant/app store
Contact telco if SIM swap suspected
Screenshot transaction list + reference IDs

Within 24 hours

File formal dispute case with wallet provider
Email merchant for refund + cancellation proof
Compile timeline + evidence file

If not resolved promptly

Escalate to provider supervisor
File complaint with the appropriate regulator (financial consumer protection / consumer agency / privacy regulator as applicable)
Consider cybercrime report for hacking/phishing/SIM swap

XIV. Frequently asked questions

1) “The provider says it was OTP-authorized. Does that end my case?”

No. OTP proof is relevant, but not conclusive if:

your SIM was swapped,
your device was compromised,
you never had access to the OTP at that time,
or the provider’s controls failed to detect anomalous behavior.

Ask for authorization details and present contrary evidence.

2) “Can I just chargeback like a credit card?”

E-wallet ecosystems vary. Some offer dispute processes similar to chargebacks; others rely on internal reversals or merchant refunds. Even without classic chargeback rights, you can still dispute, demand investigation, and escalate.

3) “What if I don’t know what merchant is charging me?”

Request:

full merchant name,
merchant account identifier,
billing agreement details,
and a copy of the authorization record.

Also check app store subscriptions and email receipts.

4) “What if the merchant is abroad?”

Still dispute with the wallet provider and block future payments. For refunds, you may need the merchant’s support or a regulator-assisted approach depending on where the merchant operates.

5) “Should I close my wallet account?”

Only after:

you’ve preserved evidence,
stopped authorizations,
and escalated disputes. Closing too early can complicate investigation and record access.

XV. A model “statement of dispute” (short form)

You can adapt this into chat/email:

I am formally disputing the following e-wallet transactions as unauthorized / not consented to and requesting immediate action to stop further deductions. Please (1) block the merchant and revoke any billing authorization, (2) investigate and provide the method of authorization and relevant transaction details, and (3) reverse/refund the disputed transactions. I reported this promptly upon discovery and attach screenshots and a timeline. If unresolved, I will escalate the matter to the appropriate regulators and pursue legal remedies.

XVI. Bottom line

In the Philippines, unauthorized e-wallet deductions and unwanted recurring charges are handled best with a fast, evidence-driven approach:

Stop the bleeding (block/revoke/cancel, secure SIM/device)
Preserve evidence (IDs, screenshots, timeline)
File a formal dispute with clear requests
Escalate to regulators if the provider/merchant stalls
Consider civil/criminal routes when fraud or significant losses are involved

If you want, paste the transaction list (amounts, dates, merchant descriptors, reference IDs) and a short timeline (even anonymized), and a tailored dispute letter can be drafted that matches your situation (unauthorized vs recurring-after-cancellation vs trial-to-paid, etc.).