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If you’re unhappy with a recent purchase or you believe an unauthorized charge was applied to your credit card, you can dispute credit card charges by filing a claim with your card issuer.

Whether you willingly made the purchase or someone stole your credit card information, you may still be protected under the law so that you don’t necessarily have to pay.

Read on to find out when you can dispute a credit card charge, and instructions for how to do so.

Disputing Credit Card Charges

When you dispute a credit card charge, you request that the credit card issuer remove a specific purchase made with your credit card that is fraudulent or incorrect. You can typically call the issuer to make a dispute or do so on the issuer’s website or app.

A cardholder can’t make a dispute if they simply don’t like the item they purchased or service they received. However, they can dispute a credit card charge if the merchant is acting dishonestly, such as if they don’t deliver an item the consumer ordered or don’t properly reimburse a return. A cardholder also can dispute credit card charges when certain billing issues are made or if they believe there was a fraudulent charge.

The Fair Credit Billing Act (FCBA) gives consumers the right to dispute a charge and to request an investigation into the issue. Thanks to the FCBA, consumers are also entitled to a quick response from their credit card issuer and to have their credit score protected during the course of the dispute investigation, which is critical given how credit cards work.

Recommended: Charge Cards Advantages and Disadvantages

When To Dispute a Credit Card Charge

There are a few different times when a person can dispute a credit card charge, including the examples below.

Fraudulent Charges

You can dispute a credit card charge that was the result of theft, such as if you became a victim of a credit card skimmer or due to unauthorized use.

Before you report a fraudulent charge, make sure it was not a charge made by another authorized user on the card, such as your child, or that you didn’t let someone else borrow and use your card. Also keep in mind that merchants may use another name or address for billing.

If the charge does appear to be fraudulent after review, report it immediately. (There is no time limit to reporting a charge related to fraud, but you’ll likely want to report it right away.) By law, you can’t be held liable for more than $50 in fraudulent charges, and many credit card issuers have a $0 liability policy. This would mean you wouldn’t have to worry about the charge at all, let alone any interest that may have accrued based on the APR on a credit card.

Billing Errors

Billing errors can also sometimes occur and are a good reason to dispute a charge on your credit card.

For example, if the credit card issuer sends a bill to the wrong address, which interferes with the cardholder paying their bill on time, the cardholder can dispute any credit card interest or late fees that have accrued.

A credit card bill can also have numerical errors if the charges were incorrectly totaled. Any bill with the wrong date or amount included on it can also count as a billing error, such as if you pay taxes with a credit card but the total reflected in your statement is different than what you actually paid.

Bad or Unrendered Services

Even if someone agreed to pay for a purchase, it is possible to dispute a credit card charge for goods or services that were not delivered or that were unsatisfactory. This can include if someone doesn’t receive an item they purchased through a merchant that accepts credit card payments or if they didn’t receive a refund after making a return.

Per the FCBA, to take advantage of this protection, you must first make a good faith effort to resolve the issue with the merchant. Additionally, the purchase must be for more than $50, and it must be made either within your home state or within 100 miles of your billing address.

When You Should Not Dispute a Credit Card Charge

There are instances when making a dispute isn’t the right action to take. Here’s when disputing a credit card charge may not be the right step.

If a Friend or Relative Made a Purchase

For a credit charge to be considered “unauthorized use,” the purchase must be made by someone who doesn’t have a right to use the credit card.

Unauthorized use can happen if someone steals a credit card (whether it’s the physical card or the credit card information, like the CVV number on a credit card), or if they find one that doesn’t belong to them and then use it.

On the other hand, if someone gives a friend or family member official permission to use their credit card, but they use it for a purchase the cardholder didn’t approve, this is still considered authorized use.

If this happens, the cardholder could decide to contact their credit card company and remove the other person as an authorized user on the account. In the meantime, however, the cardholder would remain responsible for any charges the individual made when they were an authorized user on the card.

You Did Not Inform the Merchant Concerning the Issue First

If you have a complaint regarding the quality of goods and services you received, you must first contact the merchant about the issue before making a dispute. Credit card companies may want to see proof that you’ve tried to work with the merchant before you turned to them, though this will vary by issuer. Make notes about your conversation with the merchant in case you need them.

Recommended: When Are Credit Card Payments Due?

How to Dispute a Credit Card Charge

The process for how to dispute a credit card charge depends on the credit card issuer as well as the reason for the dispute. Just as issuers have their own process for how to apply for a credit card, they also have their own process for filing a dispute. That being said, here is the general process for each type of credit card dispute:

•   Billing error disputes: The billing error dispute process is regulated by the FCBA. To dispute a credit card charge related to a billing error, contact the credit card issuer’s billing inquiries department (and make sure to keep track of this; say, by saving a copy of the email). You should use the sample letter for disputing charges provided by the Federal Trade Commission (FTC) to do this. In your letter, detail the reason for the dispute and include any supporting documentation.

•   Fraudulent charge disputes: If a dispute is related to fraudulent charges, the cardholder can contact the credit card company immediately. The company may request proof of a police report or other documentation that proves their credit card was either lost or stolen.

•   Bad service or unrendered services disputes: When it comes to service issues, it’s best to start with the merchant. If the merchant won’t refund the purchase, the cardholder can request a credit card chargeback online or in the credit card issuer’s app, over the phone, or by mail. They should include any supporting documentation that backs up their claim and shows their attempts to work with the merchant directly first.

You are not required to pay for the disputed charge while the issue is still being resolved, though you’ll still want to make the credit card minimum payment to avoid late fees or other penalties.

Generally, consumers have 60 days to file a request to dispute a credit card charge. (However, as noted earlier, there is no time limit for reporting a charge related to fraud.) After filing a dispute with the credit card issuer, the issuer has 30 days to send a letter acknowledging the dispute, and they must settle the issue within 90 days of receiving the letter.

The Takeaway

If a consumer believes that a billing error occurred, their card was used fraudulently, or they received bad service or services were never delivered, they have a right to dispute the charge with their credit card issuer. Following the proper process for the type of charge being disputed may help protect them from fraud or inaccurate information on their credit report.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

How long do you have to dispute credit card charges?

In the case of a billing error or unsatisfactory charges, you must make a dispute within 60 days of receiving your statement. There are no limits on how soon you must dispute a charge related to fraud.

What happens if you dispute a charge on your credit card?

It depends on the charge being disputed. The credit card issuer must investigate the transaction and resolve the investigation surrounding the dispute within 90 days of receiving it.

Does a dispute affect credit score?

Filing a dispute doesn’t necessarily impact a credit score. However, if the dispute is regarding an inaccurate late payment or other negative event, having the issue resolved after a dispute might help build the account holder’s credit.

What happens if a credit card dispute is denied?

After an investigation, the credit card issuer can choose to approve or deny a dispute. If the filer disagrees with the result of their investigation, they can appeal the decision by writing to the creditor within 10 days of receiving the explanation for why the dispute was denied.

Can you dispute a charge after 90 days?

Generally, consumers only have 60 days to dispute a credit card charge after receiving their bill. In most cases, the only exception to this timeline is fraud, which has an unlimited window for reporting. However, if someone realizes a charge is inaccurate after 60 days, it’s worth contacting their credit card issuer to find out about their options.

Photo credit: iStock/Just_Super

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

This article is not intended to be legal advice. Please consult an attorney for advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOCC-Q126-029

Protecting yourself against credit card hackers — criminals that engage in credit card fraud and identity theft — is a vital part of using your credit card responsibly. Understanding how credit card hacking works and the many ways thieves can gain access to your personal financial information can help you protect both your physical credit card and your digital credit card account information.

Read on to learn how to protect your credit card from hackers, as well as what to do if your credit card is hacked.

What It Means for a Credit Card To Be Hacked

A credit card hack occurs anytime your credit card or credit card account number falls into the wrong hands. That information is then used fraudulently to make purchases and/or to engage in identity theft.

Credit card theft can entail everything from stealing your wallet to hacking into large databases holding hundreds of thousands of credit card numbers.

Ways Credit Cards Can Be Hacked

Thieves use a variety of ways to get their hands on your credit card information. The biggest money scams in the U.S. are now done digitally through email, text messages, or fake websites. But there are still plenty of old-fashioned scammers who use snail mail, phone calls, and in-person ruses.

Here are some of the most common forms of both types of fraud:

•   Lost or stolen wallet containing credit cards. An old but still common trick for credit card thieves is to steal the physical card, then use it and the information it contains to make fraudulent purchases. In addition, if other personal information is included in your stolen wallet, such as your address and even your Social Security number, thieves can use your identifying information to set up other fraudulent credit accounts in your name .

•   Phishing. Another common credit card hacking method is for a thief to attempt to get ahold of your credit card information through a phone call, text message, or email in which they impersonate a legitimate institution. For instance, a phishing email that appears as if it’s from your banking institution may entice you to click a link that takes you to a page where you’re then asked to enter your account information.

•   Dumpster diving. Criminals search through trash to find discarded statements, receipts, and other documents that contain your credit card number and identifying information such as your name and address. They then use that information to make fraudulent purchases or engage in identity theft.

•   Data breaches. Professional hackers can break into large retail, bank, financial, healthcare, social media, and other websites and steal reams of personal information that often include credit card and other personal financial information from thousands of users. The usual aim is to resell that data on the dark web. From there, criminal buyers use the data to commit credit card fraud and identity theft. If your data is on file at a breached site, you’re at risk.

•   Credit card skimmers. Thieves also can use gadgets that can extract your credit card information when you swipe it to pay for a purchase or to withdraw money from an ATM. These most commonly are found at gas stations or on outside ATMs, though they’re becoming less common with the introduction of chip technology.

•   Inside jobs. Unscrupulous wait staff, store clerks, health-care billing workers, and others with access to credit card data may take a photo or otherwise copy your card information and use it to make fraudulent purchases. On a larger scale, sometimes these workers are part of a criminal ring that helps access financial data from thousands of individuals that’s then sold on the dark web.

•   Public Wi-Fi networks. Your credit card also may be vulnerable to a credit card hack if you use a public internet connection. If someone is monitoring the network and you enter any sensitive information, such as your account information, a thief may be able to swipe it.

Protecting Your Physical Card

Although digital credit card theft is more common than ever, plenty of old-fashioned thieves are still out there and would like to get their hands on your physical card. So, it makes sense to stay diligent. Taking these steps can help:

•   Don’t reveal your physical card. Avoid giving your physical card to anyone, and never post photos on social media with your credit card showing.

•   Black out the security code on the back of your card. Instead, you can file it in your password manager or another safe place. If your card is stolen, it’s harder for thieves to use the account information for online purchases if they don’t have your security code.

•   Don’t sign your card. You can limit fraudulent in-person purchases if your stolen card is unsigned. You can write “See ID” in the blank area, then show your ID to store clerks in lieu of a signature. When a thief is asked for ID, they won’t be able to provide it, potentially preventing the transaction from going through.

•   Use a protective sleeve or wallet. These radio frequency identification (RFID)-blocking layers can prevent your card from being scanned and stolen by a technical device like a card reader.

•   Report lost or stolen cards immediately. If your card is compromised, make sure to alert your credit card issuer immediately. They will then close your card and issue a new one immediately. You may also want to do this if you’ve been notified that you’ve been part of a data breach.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

Protecting Your Credit Card Account Information

In addition to your physical card, you need to protect your credit card data as well. Big credit card data hacks can mean your personal financial details and credit card account information are vulnerable. But there are steps you can take to protect yourself:

•   Only use reputable shopping sites. Often, fraudulent sites are set up as a ruse to collect credit card information. When you shop online, always buy from trusted merchants.

•   Avoid using your credit card when you’re on public WiFi. It can be easy for criminals to pick up your data when you’re using public internet networks. As such, you’ll want to avoid entering any personal or sensitive information while you’re using these networks, even if you’re on your own personal device.

•   Check your account frequently. Don’t just wait for your statement to arrive in your email every month. Get in the habit of regularly monitoring your credit card activity online, especially if your credit card keeps getting hacked. If you find a suspicious charge, report it immediately.

•   Be wary of phishing scams. You may get an authentic-looking email, text, or phone call asking for your credit card information. This may be a completely cold call or a data thief looking to fill in information they may not have for you, such as your expiration date or CVV (card verification value) security code. Never give your information to anyone asking for it. Banks, credit card companies, retailers, and other reputable places only take your information if you contact them.

•   Use smart passwords. Use strong passwords that include lowercase and capital letters, numbers, and symbols. Change your passwords frequently and remember that if it’s easy for you to remember, it’s probably easy for a thief to figure out. Password manager software can help you generate and keep track of strong passwords.

•   Sign up for two-factor authentication. With two-factor authentication, a one-time code is texted or voiced to your phone when you log into certain types of accounts, including financial accounts. This helps to ensure the account holder is actually the one logging on. Other types of secure authentication, such as face ID, are used by some organizations.

Recommended: Tips for Using a Credit Card Responsibly

Steps to Take When Your Credit Card is Compromised

If you think you were a victim of credit card fraud and/or identity theft, it’s important to act fast. The Fair Credit Billing Act (FCBA) limits your financial responsibility for credit card fraud to $50, so you won’t be on the hook for more than that in the case of bogus credit card charges that have led you to request a credit card refund. Even better, many major credit card issuers offer zero-dollar liability protection.

Under most state laws, you typically have limited liability if the thieves go on to use your personal information to commit other types of financial fraud. But again, it’s vital to report the identity theft immediately. Acting fast will also help minimize the onerous work involved in untangling identity theft.

Here’s what to do if what to do if your credit card is hacked, or you see suspicious charges on your statement or other signs of fraudulent activity:

Contact Your Credit Card Company

As soon as you spot anything, call your credit card company. Tell them you think your card and card information is vulnerable and request a new card with a new account number. Most credit card issuers will comply right away. However, you may be without a credit card for a bit while you wait for the new one to arrive.

Sign Up for Fraud Alerts

If you’ve received a letter or other notification that your personal data may have been compromised, you can place a fraud alert at one of the three credit bureaus — Equifax®, Experian®, and TransUnion® — that may be monitoring your account and that credit bureau is required to notify the others. This stops unauthorized individuals from accessing your account information for a year, at which point you can request for it to be renewed.

Freeze Your Credit

A stronger step than setting up a fraud alert is to freeze your credit. When you ask for a freeze, the three top credit reporting agencies will make sure no one can ask for your credit report without your approval. (You’ll need to contact all three of the credit bureaus to place a freeze.) The downside: A freeze can make it more cumbersome for you to legitimately apply for new credit.

File a Police Report

If you’re a victim of credit card fraud, you may need to file a police report. You might need that documentation as you move through different steps to report identity theft and other fraud as you try to recoup your losses. Your credit card issuer can help you determine if a police report is necessary.

Before filing a police report, file a report with the Federal Trade Commission on its website. Then, when you file the police report, include a copy of your FTC report for evidence of the identity theft.

Recommended: When Are Credit Card Payments Due?

Credit Card Security and Fraud Protection

There are a number of steps that credit card companies can take to increase credit card security and curb credit card hacks. For instance, some credit cards have two-factor authentication to protect access to your account.

Credit card companies can also offer the option to freeze your card immediately. You often can do so through their website or via their app if you notice suspicious charges or other activity.

And, as mentioned previously, some credit card issuers offer a zero-liability policy. As long as you report unauthorized or erroneous card transactions no later than, say, 60 days after the first statement on which the problem occurred, the card issuer won’t hold you liable for any fraudulent charges.

The Takeaway

Credit card hacks can be costly, onerous, and time-consuming. But there are steps you can take to avoid hacks by protecting both your physical card and your online credit card information.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

How can I protect my credit card from being hacked?

You can fight credit card hacking by being mindful of phishing scams, shopping online with caution, keeping your physical card and your digital card information safe, and checking your account regularly for any suspicious charges. Make sure to report any suspicious activity as soon as possible and to use credit freezes and fraud alerts when necessary.

Can a hacker steal my credit card information?

Yes. Credit card hacks include directly stealing your physical card or credit card information and making fraudulent purchases directly with your account. Thieves may also use your stolen personal information to set up a new fraudulent account in your name. Additionally, credit card hacks can happen when thieves steal financial information from databases at large retailers, financial institutions, and other businesses.

Can hackers use a credit card without a CVV?

Yes, although it can be more difficult for hackers to use a credit card without a CVV. The CVV(card verification value) number is often requested in transactions that don’t occur in-person as an additional layer of security to ensure that the person actually has the physical card. However, the CVV is not always required for all transactions or by all merchants.

Photo credit: iStock/Talaj

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

This article is not intended to be legal advice. Please consult an attorney for advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOCC-Q126-038

Debit cards are a staple of everyday spending, offering quick access to funds for purchases, bill payments, and ATM withdrawals. However, because debit cards draw money directly from your checking account, debit card fraud can have an immediate and disruptive effect on your finances.

As payment technologies like digital wallets and peer-to-peer (P2P) transfers advance, criminal tactics evolve just as quickly. Staying informed about how debit card fraud occurs, your legal protections, and how to respond to a compromise is essential. Below, we explore the most common types of debit card fraud, explain your rights, and provide practice steps to help safeguard your money.

What Counts as Debit Card Fraud?

Debit card fraud occurs when an unauthorized individual uses your debit card or its information to make purchases, withdraw cash, or transfer funds. This can happen whether the physical card is stolen or the card details are compromised digitally. Fraud may involve unauthorized ATM withdrawals, online purchases, recurring charges you didn’t approve, or transfers through payment apps linked to your card.

If left undetected, debit card fraud could potentially drain your checking account. However, taking quick action — such as immediately calling your bank and locking the card — activates federal protections, limiting your liability (potentially to $0 if reported quickly enough).

Types of Debit Card Fraud to Watch For

Debit card scams can take many forms. Here are some of the most common types to be aware of.

Skimming and Shimming Devices

Skimming devices are small pieces of hidden hardware illegally attached to card readers at ATMs, gas pumps, or retail terminals. They capture your card’s magnetic stripe data when you swipe, often along with your PIN if a hidden camera or fake keypad is used. Criminals can then clone your card and make unauthorized ATM withdrawals or purchases.

While chip-enabled debit cards have reduced traditional skimming, older machines that still rely on swipes remain targets, especially those in low-traffic or poorly monitored locations. More advanced “shimmers” have also emerged. These thin devices are inserted into the chip card reader slot of terminals and can intercept data as the card is inserted.

Skimming and shimming can be difficult to detect until fraudulent charges appear on your account.

Phishing Scams

Phishing scams rely on deception rather than physical theft. Fraudsters pose as legitimate entities — often your bank — and contact you via email, text message, or phone. They may claim there’s suspicious activity on your account and urge you to “verify” your information by clicking a link or sharing sensitive details such as your card number, PIN, or one-time passcode.

Phishing scams are getting increasingly sophisticated, often using AI and deepfakes to create highly personalized, realistic messages that mimic trusted sources. Once scammers obtain your debit card details, they can drain your account rapidly.

Card Theft

Physical card theft remains a straightforward but effective form of debit card fraud. A lost or stolen wallet can give criminals direct access to your debit card. If your PIN is easy to guess — or written down — they can make in-person purchases and ATM withdrawals. Even without a PIN, thieves can still use your card for online purchases.

Digital Wallet and P2P Scams

Digital wallets and P2P payment apps offer convenience but introduce new risks. Common scams include:

•   A fraudster tricks you into making a P2P payment by posing as a legitimate business, seller, or service provider.

•   A criminal “accidentally” sends you money on a P2P service and asks you to send it back. The original transfer is made using stolen funds that are later reversed, leaving you responsible for the returned amount.

•   A scammer asks to borrow your phone for an “emergency” and uses your digital wallet or payment apps to transfer funds.

Are Debit Cards Protected From Fraud?

Understanding liability is key when it comes to debit card fraud. While debit cards do offer legal protections, they are generally more limited than those for credit cards.

The Electronic Fund Transfer Act (EFTA) Explained

The Electronic Fund Transfer Act (EFTA) protects consumers from debit card fraud by limiting liability for unauthorized transactions. However, how much you are responsible for depends on how quickly you report the fraud to your bank.

Liability Limits: The 2-Day and 60-Day Rules

Under the EFTA, liability limits are as follows:

•   If you report that your debit card was lost or stolen before any fraudulent transactions actually occur, you’re responsible for $0 in unauthorized charges.

•   If you report debit card fraud within two business days of discovering it, your liability for unauthorized debit card purchases is limited to $50.

•   If you report fraud after two business days but within 60 calendar days after receiving your bank statement, you could be liable for up to $500.

•   If you don’t report the fraud within 60 calendar days of receiving your statement, you could be liable for any amount stolen from your account.

These rules highlight why monitoring your account and acting quickly is important. Delays can significantly increase your financial exposure.

How to Avoid Debit Card Fraud

Prevention is the strongest defense against debit card fraud. While no method is foolproof, smart habits can dramatically reduce your risk.

Secure Your Card

Protecting your debit card involves several best practices:

•   Treat your debit card like cash and avoid leaving it unattended.

•   Protect your PIN by never sharing it or storing it near your card. When entering your PIN, shield the keypad with your hand.

•   Report a lost or misplaced card immediately, even if you think it might turn up later.

•   Use chip or contactless payments instead of swiping whenever possible, as magnetic transactions are more vulnerable.

Monitor Accounts Regularly

Frequent account monitoring is one of the most effective fraud prevention tools. Review transactions at least weekly, and consider daily reviews if you use your debit card often. Many banks offer real-time alerts for purchases, withdrawals, and balance changes, allowing you to spot suspicious activity quickly.

The sooner you detect fraud, the easier it is to limit damage and recover funds.

Leverage Digital Wallets for Tokenization

Digital wallets add an extra layer of protection through tokenization. Instead of transmitting your actual debit card number, they use a unique encrypted token for each transaction. Even if intercepted, the token is useless outside that specific transaction.

Using digital wallets can reduce your exposure when shopping online or in stores compared to swiping a physical debit card.

How to Report Debit Card Fraud

If you suspect debit card fraud, time is of the essence. Acting quickly can significantly affect the outcome.

Step 1: Lock Your Card Immediately

Banks typically allow you to freeze or lock your debit card instantly through a mobile app or online banking. This prevents further transactions while you assess the situation. If you can’t lock it digitally, call your bank right away.

Step 2: Contact Your Bank

Notify your bank’s fraud department as soon as you identify unauthorized activity. Be prepared to provide details, including dates, amounts, and where the charges occurred. Your bank will typically cancel the compromised card and issue a replacement.

Step 3: Change Your PIN and Passwords

After reporting fraud, change your debit card PIN and update online banking passwords. If you reused passwords across multiple accounts, update those as well to prevent further unauthorized access.

Step 4: Follow Up in Writing

While many banks handle fraud claims electronically, it’s wise to follow up in writing. Document the unauthorized transactions, the date you reported them, and any case numbers provided. Written records can be helpful if disputes arise during the investigation.

What Happens After You Report Fraud?

Once fraud is reported, banks generally have up to 10 business days to investigate, though provisional credit may be issued sooner. During the investigation, the bank reviews transaction data and may contact you for additional information. If the fraud is confirmed, the provisional credit becomes permanent. If not, the bank must explain its decision in writing.

Best Practices for Debit Card Security

Beyond basic prevention, long-term security habits can further reduce your risk.

Avoid Unsecured Wi-Fi

Public Wi-Fi networks are often unencrypted and vulnerable to interception. Avoid accessing banking apps or even entering debit card information on unsecured networks. If necessary, use a trusted virtual private network (VPN).

Update PINs and Passwords

Regularly updating your PINs and passwords reduces the risk of long-term exposure if your information is compromised. Choose strong, unique combinations that are difficult to guess, and avoid using personal details like birthdays or addresses.

When to Use Credit vs. Debit

For higher-risk transactions — such as online shopping, travel bookings, or purchase from unfamiliar merchants — credit cards typically offer stronger protections, including zero-liability policies. Credit cards also don’t pull funds directly to your bank account, helping protect your cash flow. Reserving debit cards for low-risk, everyday purchases can provide an added layer of security.

The Takeaway

Debit card fraud remains a persistent risk, but understanding the common tactics — such as skimming, phishing, and digital wallet scams — can help you stay ahead of criminals. The key to minimizing losses is swift action: monitor your accounts regularly, use strong security practices, and report suspicious activity immediately to take full advantage of protections under the Electronic Fund Transfer Act.

By combining vigilance with smart payment choices — such as using credit cards in higher-risk scenarios and tokenized digital wallets whenever possible — you can significantly reduce your exposure and better protect your money.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How long does a bank have to investigate debit card fraud?

Banks generally have up to 10 business days to investigate debit card fraud after it is reported. If the fraud is confirmed, any provisional credit issued to your account becomes permanent. If the bank denies the claim, they must provide a written explanation. This timeline is mandated under the Electronic Fund Transfer Act (EFTA), but some banks may complete the process, or issue provisional credit, sooner.

Can I get my money back if I authorized a transaction to a scammer?

Sometimes — but it’s not guaranteed. If you authorized a credit or debit card payment, banks generally aren’t required to refund it. However, you should file a dispute with your credit or debit card company and follow up with a letter. Refunds will depend on your bank’s policies, but acting fast typically improves your chances.

Does debit card fraud affect my credit score?

Debit card fraud generally does not affect your credit score because debit card transactions pull money directly from your bank account, not a line of credit. Credit bureaus only track debt and repayment history related to credit accounts (like credit cards, mortgages, or loans). The immediate impact of debit card fraud is on your checking account balance. However, if the unauthorized activity leads to an overdrawn account that results in unpaid fees being sent to collections, this could indirectly harm your credit score.

What is the difference between fraud and a transaction dispute?

Fraud and a transaction dispute differ mainly in intent and authorization. Fraud occurs when a transaction is made without your permission, often due to stolen card or account information, and you did not participate in the purchase. A transaction dispute, however, involves a charge you authorized but believe is incorrect — for example, being overcharged, billed twice, or not receiving the goods or services as promised. Each requires a different resolution process with your bank or card issuer.

Are debit cards safer than cash?

Debit cards are generally safer than cash because they offer protections that cash does not. If a debit card is lost or stolen, it can be frozen, and unauthorized transactions may be reversed if reported quickly. Cash, once lost or stolen, is usually gone for good. However, debit cards carry risks like fraud or data breaches, so using strong PINs, monitoring accounts, and avoiding insecure payment terminals is important.

Photo credit: iStock/Bussarin Rinchumrus

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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If you drive a car in Texas, you’ll need to make room in your budget for car insurance. The state requires it. The amount you’ll pay for protection depends on a number of factors, such as your driving record, age, car type, and insurer. Understanding the cost of coverage in your area can help as you’re comparing quotes. Keep reading to learn more about the average cost of car insurance in Texas.

How Much Does Car Insurance Cost in Texas?

The average cost of car insurance in Texas is $2,346 per year, according to a 2025 U.S. News & World Report analysis of cheap car insurance companies. By comparison, the national average is $2,012 per year.

Average Car Insurance Cost in Texas per Month

The average cost of car insurance in Texas is $195.50 per month, which is $27.83 more than the national monthly average of $167.67. But as the chart below shows, prices can vary greatly among different insurers in the state.

Source: U.S. News & World Report

Average Car Insurance Cost in Texas by City

Where you live in Texas can also impact how much you spend on car insurance. The rate of theft, vandalism, and accidents in your area can help online car insurance providers estimate how likely you may be to file a claim, which can raise insurance costs. As the chart below demonstrates, rates vary, even among 10 major cities in Texas.

Source: Bankrate.com

Recommended: A Comprehensive Guide to Car Insurance

Average Car Insurance Cost in Texas by Driver Age and Gender

Usually, teen drivers (aka new drivers) can expect to spend more on car insurance than older drivers. Gender is another consideration for insurers. Because women statistically get in fewer car accidents and have fewer DUI incidents, they tend to pay less for car insurance. Here’s a look at average annual premiums by different age groups.

Source: U.S. News & World Report

Average Car Insurance Rates After an At-Fault Accident

Your driving record plays a significant role in the auto insurance rates you’re likely to be offered. In general, the better a driver’s record is, the less they’ll spend on insurance. This table compares how much someone can generally expect to pay for car insurance in Texas when they have a clean record with what they may be charged after just one at-fault accident.

Source: Insuranceopedia

Average Car Insurance Costs for Good and Bad Credit

Some insurance companies examine applicants’ credit scores when determining rates, since certain credit behaviors can indicate how likely someone is to file a claim. Rates may be higher for drivers with lower credit scores.

See how the average cost of car insurance in Texas differs between drivers with good credit scores and those with lower ones.

Source: U.S. News & World Report

What Else Affects Car Insurance Costs?

Other factors that can affect car insurance costs include:

How Much You Drive

The more someone drives, the more likely they are to get in an accident simply because they’re on the road more often. As a result, driving more miles can lead to higher insurance prices.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

Make and Model of Your Car

When setting a rate, insurance companies often consider how expensive it would be to repair or replace the driver’s car. The higher these costs are, the more the driver will likely pay for coverage.

Recommended: Cheapest Cars to Insure

Amount of Coverage

How much car insurance do you need? The amount may be based on your personal preference or your state’s minimum car insurance requirements. But in general, the more coverage you have, the more expensive your policy will probably be.

Related: Car Insurance Terms, Explained

How to Get Affordable Car Insurance

Looking to lower your car insurance costs? Consider these tips and tricks for finding a more affordable car insurance policy.

Compare Quotes From Different Insurers

There’s no need to accept the first quote you’re offered. Instead, shop around with a few different auto insurance issuers to see which can offer you the most coverage for the best price.

Recommended: How to Get Car Insurance

Choose a New Car Carefully

If you’re shopping for a new car, you may want to factor in the cost of insurance. The Insurance Institute for Highway Safety website offers information about insurance loss results for different makes and models of cars.

Consider Whether a Higher Deductible Is Right for You

Choosing a higher deductible often means spending less on monthly premiums. However, it’s important to select a deductible you’ll be able to pay if you ever do need to file a claim.

Ask for Discounts

From taking a defensive driving course to earning good grades as a college student, there are many different ways you may qualify for a discount on your car insurance. If you’re looking to lower your monthly bill — and who isn’t? — then it can’t hurt to ask your insurer if you qualify for any discounts.

Recommended: Cheapest Car Insurance Companies

The Takeaway

The average cost of car insurance in Texas is $2,346 per year, or $195.50 per month. The amount you’ll spend on car insurance depends on several factors, including your driving record, age, gender, location, credit score, and insurer.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

How much is car insurance in Texas per month?

The average cost of car insurance in Texas is $2,346 annually. This breaks down to $195.50 per month.

Is car insurance expensive in Texas?

According to U.S. News & World Report, the average price of car insurance in Texas is higher than the costs in all but 12 other states.

Is $300 a lot for car insurance?

In many cases, the average monthly cost for coverage in Texas is well below $300. But remember, the amount you pay depends on a number of different factors. A 17-year-old woman, for example, could very well pay more than $300 per month, largely because of her age and lack of driving experience.

Photo credit: iStock/lightkey

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Most drivers know that the cost of car insurance in California varies, sometimes by hundreds of dollars. What you pay may be substantially different from what your friend pays, even if you have similar driving records and similar cars. That’s because there are dozens of data points that car insurance companies consider — from your age and ZIP code to your insurance deductible and amount of coverage.

Keep reading to find out the average cost of car insurance in California and how you can lower your premiums without sacrificing the coverage you need.

How Much Does Car Insurance Cost in California?

Drivers in California pay, on average, $2,479 a year for auto insurance, according to U.S. News & World Report. In a state where housing prices and the cost of living are typically high, it’s not surprising that car insurance is expensive as well. But what exactly goes into insurance companies’ calculations?

The California Department of Insurance weighs the following information in its estimates:

•   Coverage type

•   Location

•   Number of drivers covered

•   Years licensed

•   Annual mileage

•   Driving record

•   Vehicle type

Average Car Insurance Cost in California per Month

Interested in getting car insurance in California? As you shop around, keep in mind that each insurance company has its own formula for calculating insurance rates. The table below shows how premiums vary among some of the major insurance companies serving California.

Source: U.S. News & World Report

Average Car Insurance Cost in California by City

Your location can have a big influence on the cost of car insurance in California. Insurance companies track factors like traffic volume, accidents, and crime in different neighborhoods across the state to estimate risks. Drivers in more populated areas typically pay more than those who live in small towns or out in the countryside.

Here are the average costs for full coverage car insurance in 10 of California’s biggest cities.

Source: Bankrate.com

Average Car Insurance Cost in California by Age of Driver

A driver’s age (which suggests their driving experience level) also plays a role in the cost of their car insurance. A teenager who has just gotten a driver’s license is often considered a greater risk by insurance companies. Higher risk generally translates to higher premiums. This is why many teens share a policy with their parents. Once a driver hits age 20 (and still has a clean driving record), premiums often decrease.

To find the best deals for younger drivers, you may want to compare quotes from an online insurance marketplace.

Source: U.S. News & World Report

Average Car Insurance Cost in California After an At-Fault Accident

Your driving record can have a major effect on your insurance premiums. Whether you’re involved in a fender bender or a more serious crash, chances are your car insurance rate will go up after an accident. According to U.S. News & World Report, California drivers who have had one accident pay an average of $4,148 per year for coverage. By comparison, drivers with a clean record pay around $2,479 per year.

Recommended: How Much Does Insurance Go Up After an Accident?

Average Car Insurance Costs for Good and Bad Credit

In California, insurance companies can’t factor in credit scores when underwriting car insurance policies. That means that your credit history won’t have an effect on your ability to get or renew a car insurance policy — or how much you’ll pay.

Californians have reason to be thankful for this. In New York state, drivers with excellent credit pay on average $2,607, while those with poor credit pay $5,817.

Recommended: How to Get Car Insurance

What Else Affects Your Car Insurance Cost?

As noted above, there are dozens of data points that insurance companies can use to estimate their risk and set premiums. One is marital status. Another is your car’s make and model, as well as its safety features and overall value.

In addition to factors relating to the driver and the car, the type of policy also impacts premiums. The more coverage you have, the more expensive your policy will be. Insurance that covers only your state’s minimum car insurance requirements typically has the most rock-bottom premiums.

The type of deductible you choose also influences your cost. With a higher deductible, your premiums will be lower. The trade-off is that, if you have an accident, you’ll be responsible for a larger share of the repair bill. In short, you can pay now or pay later.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

How to Get Affordable Car Insurance

To find the most affordable car insurance for your profile and needs, it’s best to shop around and compare quotes. These days, online insurance marketplaces can make that easy.

Once you’ve chosen one or two reputable insurers, it’s important to ask yourself how much car insurance you need. This again evokes the “pay now or pay later” dilemma mentioned above. A no-frills, liability-only policy with a higher deductible will generally have low monthly premiums. But if you’re in an accident, you may wish you’d chosen more coverage.

Also consider bundling opportunities. Just as you can pay less for internet and TV when you combine services, you can often save on car insurance if you purchase it from a company you have another policy with, such as homeowners coverage.

And finally, ask about possible discounts through organizations and schools you’re affiliated with. Most insurers have a long list of companies they partner with to offer lower rates to their customers.

Recommended: Cheapest Car Insurance Companies

The Takeaway

The average cost of car insurance in California is $2,479. Your premiums may be higher or lower depending on factors related to your background (age, location, driving record), your vehicle (make and model, safety features), and your level of coverage (liability vs. comprehensive, low vs. high deductible). Just remember that the lowest premium may not offer all the coverage you need in case of an accident.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

How much is the average car insurance per month in California?

Numerous factors can go into the calculation of a car insurance premium, including where you live in California, the length and status of your driving record, and the type of vehicle you have and its mileage. The average statewide is about $207 per month, but the best way to find the most affordable coverage for your situation is to shop around for quotes from multiple insurers.

How much does the average person pay for car insurance in California?

Several factors go into the calculation of car insurance for a California resident, so figures can vary quite a bit. That said, the average car insurance payment is about $207 per month.

Is $300 per month a lot for car insurance?

In many cases, the average monthly cost for coverage in California is well below $300, but remember that the amount you pay depends on a number of different factors. A 17-year-old, for example, could very well pay more than $300 per month — largely because of their lack of driving experience.

Photo credit: iStock/gguy44

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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