A Family Member Used My Credit Card. Can I Dispute the Charge?

One of the benefits of credit cards is the fraud protection they offer. If you have a fraudulent charge on your account, you just dispute it, and the card issuer removes it from your bill. It investigates, and as long as it determines the charge is fraud and not one you made, you won't need to pay it.

This works well when a scammer uses your credit card, or the card number, to make a fraudulent purchase. It gets more complicated when it's a family member who used your card. Commonly referred to as familiar fraud, this comes in many forms. A 2016 study even found that 30% of identity theft perpetrators are family members.

Sometimes family members intentionally commit credit card fraud. Cases also exist where minors do it unintentionally. For example, kids sometimes make purchases through online games with digital currencies, not realizing that those digital currencies cost real-world money. Those are only a few examples of how familiar fraud can happen.

Even when it's a family member who's behind the charge, you probably don't want to be on the hook for that money. And you aren't, but the situation isn't quite as cut and dry as standard credit card fraud.

Can you dispute a fraudulent credit card charge made by a family member?

You can dispute any unauthorized charge on your credit card. That includes charges made by family members. If you didn't authorize it, then it falls into the category of fraud.

However, your card issuer could require that you file a police report before it approves your dispute. You would then probably need to tell the police that you know who's responsible for the fraudulent charge.

This is more likely to happen with large amounts of fraud or multiple instances of fraud. If you dispute a $20 charge made by a family member, your card issuer may just refund it. If your family member charges $2,000, or if they use your credit card every month, then your card issuer will most likely want you to file a police report.

You're not responsible for the charge, but your family member is. You may not be able to get your money back and ensure that they don't face any legal repercussions.

Try working it out with the merchant or your family member if you don't want to dispute it

If you'd rather avoid filing a credit card dispute, try contacting the merchant. Explain the situation, and see if there's a way to have the transaction refunded. You have a better chance of success if the purchase can be returned, or if the order hasn't shipped yet and can still be canceled.

It could be an uphill battle if the purchase can't be returned or canceled. If the merchant is going to lose money, it may argue that it's not responsible for what your family member did -- a reasonable position to take.

Another option is to talk to your family member about it and have them pay you back. That may or may not be realistic. If they knowingly used your credit card without your permission, then they might not be open to paying you back. But if you explain that it's either they do that or you file a dispute, which possibly leads to a police report and legal issues, that could be enough motivation for them to do the right thing.

Going forward, be careful about who has access to your credit card. Even though you can dispute familiar fraud, it's still inconvenient. Make sure to keep your cards in a secure location where they won't fall into the wrong hands.