Hello everyone! My name is Brenda Butnick and I’m a Financial Coach at Jewish Family Service in Dallas. I work one-on-one with clients to help them achieve financial self-sufficiency.
We discussed the last 3 types of Credit Card Billing Errors in my last Blog, and today we will discuss Mystery Credit Card Charges.
“Mystery” credit card charges usually refer to charges on your statement that you don’t immediately recognize. They can come from a variety of legitimate sources—but they can also signal fraud.
Here are the first 4 types of Mystery Credit Card Charges:
Merchant Name Mismatch
Some companies process payments under a parent company or a billing name you don’t know. Example: You buy from an online boutique, but the charge appears as “ABC Holdings LLC.”
Free Trials That Auto-Renew
Many subscription services start with a free or low-cost trial that converts into a paid plan if not canceled.
Small “Test Charges”
Some merchants (like hotels, gas stations, or rideshare apps) place temporary pre-authorizations that later disappear or convert to final charges. Never use a debit card to hold reservations for hotels or car rentals as they place a hold on your checking account balance. Don’t use your debit card at gas stations as there are card reader strips placed on the gas tanks by scammers to get your account information.
Currency Conversion or International Fees
If the transaction is processed through a foreign bank—even online—your card may add:
- Foreign transaction fees
- Dynamic currency conversion fees
We will discuss more Mystery Credit Card Charges in my next post on Friday, February 27h.
That’s all for your Financial Fitness today! Until next time – take care and stay financially fit!
