What is this charge on my credit card?

6 min read

Updated: Aug 19, 2026

Written by

Emily Tye

Reviewed by

Amy Lancashire

Most of the time, a charge you don't recognise has a simple explanation. It's often a shop trading under a different name, a temporary hold from a hotel or petrol station, a subscription you forgot was renewing, or something an additional cardholder bought. Now and then it's a genuine mistake or fraud.

The good news is you can usually work out what a charge is in a few minutes, and if it turns out to be wrong, you're well protected. Here's how to check, and what to do next.

Why don't I recognise this charge?

A charge can look unfamiliar for several reasons, most of them harmless:

The shop trades under a different name. Lots of businesses bill under their parent company or legal name rather than the name above the door.
It shows the payment processor, not the shop. A prefix such as SQ* (Square), or a PayPal or Stripe reference, points to the company that processed the payment, with the shop's name tucked in alongside.
It's a pre-authorisation hold. Hotels, petrol stations and car hire firms often reserve an amount on your card to make sure funds are there. The hold usually drops off or adjusts to the real amount within a few days.
A subscription or free trial has renewed. Annual renewals and trials that become paid subscriptions can be other culprits.
An additional cardholder made it. If someone else has a card on your account, the payment may be theirs. In the UK you can't hold a credit card jointly, but some providers can add an additional cardholder to yours. Our guide covers joint credit cards in more detail.
It includes a non-sterling transaction fee. If you're charged in a currency other than pounds, your provider may add this fee. Our guide to using your credit card abroad explains how these work.
It's one of your card's own charges. Interest, a late fee or an annual fee can look unfamiliar if you weren't expecting it. See the fees a credit card can charge.
It's a duplicate or an error. Occasionally a payment is taken twice or for the wrong amount.
It's fraud. Less common, but it does happen, which is why it's worth checking anything you can't place.

How do I find out what a charge is?

Work through these steps in order.

Check the date and exact amount. Compare them against your receipts, order confirmations and emails. Bear in mind the date a charge appears can be a few days after you actually paid.
Read the full description on your statement. It's usually the merchant's name, which is often a trading name rather than the brand you know. Some statements also show a location, a reference number or a processor prefix marked with an asterisk, which can help you place the charge. Learn more about how to read your credit card statement.
Search the exact text online. Type the merchant name and amount into a search engine. Others often post about the same billing name.
Check your subscriptions and free trials. Look through your email for sign-up or renewal confirmations.
Ask anyone with a card on your account. A purchase by an additional cardholder, like a partner or family member, appears on your statement, not theirs.
Check your digital wallets. Look at your payment history in Apple Pay, Google Pay or PayPal, where the shop's real name may be clearer.

What should I do if I still don't recognise it?

What to do next depends on what you're looking at:

You recognise the shop, but the amount is wrong or you were charged twice. Contact the retailer first. They can often sort out a genuine mistake faster than anyone else.
It looks like a subscription or trial you forgot. Cancel it with the merchant, then check whether you're owed a refund for anything charged after you meant to stop.
You don't recognise it at all, or you think it's fraud. Contact your card provider.

What if I didn't authorise the charge?

If you're sure nobody on your account made the payment, treat it as fraud. Fraud on bank and credit accounts is common: there were 2.8 million incidents of bank and credit account fraud recorded in the year to March 2026, according to the Office for National Statistics.

Act quickly. You can usually freeze your card in your banking app straight away to stop anything else going through, then report it. Credit cards give you strong protection here: if a payment was made without your authorisation, your provider generally has to refund it. The main exceptions are where you authorised the payment yourself, let someone else use your card, or acted fraudulently. The FCA sets out your rights on unauthorised payments.

Our guide on what to do about credit card fraud walks through the steps in more detail.

How am I protected when I dispute a card charge?

If a charge is wrong and the retailer won't put it right, two things can help you get your money back. This is a simplified summary, and each has its own conditions:

Section 75. For purchases that cost more than £100 and up to £30,000, Section 75 of the Consumer Credit Act 1974 makes your card provider equally responsible with the retailer if something goes wrong, such as goods not arriving or a company going bust. It's a legal right. See how Section 75 protection works.
Chargeback. When Section 75 doesn't apply, for example on purchases under £100, chargeback may help. It's a scheme rule run by the card networks rather than a legal right, and there are time limits (typically 120 days). Read how chargeback works.

If your provider turns down your claim and you think that's unfair, you can escalate it to the Financial Ombudsman Service, which reviews disputes for free and can make a binding decision.

How can I avoid unrecognised charges in future?

A few habits make surprise charges far rarer:

Turn on transaction notifications so every payment pings your phone
Keep a list of your subscriptions and when trials end
Give your statement a quick look each month

FAQs

Why is there a pending charge I don't recognise?

A pending charge is a payment that's been authorised but hasn't finished processing. It usually posts to your statement within a few days. If the amount doesn't look right, it may be a pre-authorisation hold, where a business such as a hotel, petrol station or car hire firm reserves an estimated amount before adjusting it to the final figure or releasing it. If you recognise the business but it's stuck, contact them. If you don't recognise it at all, or think it's fraud, tell your card provider.

Can a shop charge my card without me knowing?

It can if you've set up a recurring payment or continuous payment authority, for example for a subscription. You can ask the company to stop, and you can also tell your card provider to cancel the payment, even if you haven't contacted the business first. Any payments taken after you cancel count as unauthorised and must be refunded.

How long do I have to dispute a credit card charge in the UK?

It depends on the route:

Unauthorised or fraudulent payments: report them as soon as you spot them. The FCA sets a backstop of 13 months from the payment, but the sooner the better.
Chargeback: usually within 120 days of the transaction.
Section 75: much longer, as it's a legal claim. The general limit is six years under the Limitation Act 1980 in England, Wales and Northern Ireland, and five years in Scotland under the Prescription and Limitation (Scotland) Act 1973, though it's easier to claim sooner.

What is a pre-authorisation charge on a credit card?

It's a temporary hold that checks funds are available, common with hotels, car hire and petrol stations.

Will I get my money back if a charge is fraudulent?

In most cases, yes. If a payment was made without your authorisation, your provider generally has to refund it. The main exceptions are where you authorised it yourself, let someone else use your card, or acted fraudulently. Report it as soon as you can.

What does a code like SQ* mean on my statement?

Prefixes like this usually identify the payment processor a shop uses rather than the shop itself. SQ* typically means the payment went through Square. If the name after it still doesn't ring a bell, search the full text online.

There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.

Cookies Policy

Credit cards