Unauthorized Transaction Canada: Step‑by‑Step Resolution Guide for Canadians
Published on June 16, 2025 | By WealthFusions Finance Team
An unexpected debit or charge on your account can be alarming—especially if it wasn’t you. In Canada, banks and credit unions have clear obligations to investigate and resolve unauthorized transactions quickly. This comprehensive guide walks you through the 5 essential steps to report, dispute, and recover your funds from an unauthorized transaction in Canada, backed by regulatory timelines, sample forms, and fee tables. Let’s get your money back safely and protect your account from future fraud.
1. Identify & Document the Unauthorized Charge
First, gather all relevant details:
- Date & time of the transaction.
- Amount and merchant name as it appears on your statement.
- Account type (chequing, savings, credit card).
- Any related receipts or SMS/email alerts.
Example: On June 10, you notice a $125.67 charge at “ACME Online” you never made. Screenshot or print the e‑statement highlighting this entry.
2. Contact Your Financial Institution Immediately
Canadian banks must provide 24/7 fraud hotlines. Call within 2 business days to limit your liability to $50 under FCAC guidelines. If you report after 2 days but within 30 days, liability is capped at $500. Beyond 30 days, you may be fully responsible.
| Reporting Timeframe | Maximum Cardholder Liability |
|---|---|
| Within 2 business days | $50 |
| 3–30 days | $500 |
| More than 30 days | Full amount |
Source: FCAC unauthorized transactions framework
3. File a Formal Dispute
Your bank will provide a dispute form—either online or in‑branch. Complete it with:
- Your contact details and account number.
- Transaction details (date, amount, merchant).
- A statement that you did not authorize the transaction.
- Any supporting documents (receipts, alerts).
Keep a copy of the completed form. Most institutions acknowledge receipt within 2 business days and begin investigation within 5 business days.
4. Monitor the Investigation & Follow Up
Canadian banks have up to 30 days to resolve disputes; in complex cases, up to 45 days. During this period:
- Check your email or online portal for status updates.
- Respond promptly to any requests for more information.
- Note all reference numbers and agent names.
If the bank fails to resolve within the timeline, you can escalate to:
- The bank’s Ombudsman.
- The Financial Consumer Agency of Canada (FCAC).
- Your provincial Credit Union Ombudsman (if credit union).
5. Prevent Future Unauthorized Transactions
Once resolved, strengthen your account security:
- Enable two‑factor authentication on online banking.
- Set transaction alerts for all debits over $50.
- Regularly review statements—at least weekly.
- Use virtual/temporary card numbers for online purchases.
Tip: Services like Equifax and TransUnion offer free credit monitoring to catch suspicious account openings early.
Conclusion & Call to Action
Unauthorized transactions can be a distressing experience, but Canadian regulations protect you—if you act quickly. Follow these steps to report, dispute, and recover your funds with minimal liability. Stay vigilant and use the security best practices outlined above to keep your accounts safe.
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Frequently Asked Questions
- 1. What counts as an unauthorized transaction?
- Any debit or charge you did not authorize, including lost/stolen cards or merchant errors.
- 2. How quickly must I report fraud?
- Within 2 business days to limit liability to $50; up to 30 days for a $500 cap.
- 3. Can I dispute a transaction made with my PIN?
- Yes—PIN-based fraud is also covered under FCAC rules.
- 4. Will I get provisional credit?
- Most banks issue provisional credit within 5–10 business days while they investigate.
- 5. What if my bank declines my dispute?
- You can escalate to the bank’s Ombudsman or FCAC within 180 days of the final decision.
- 6. Are there fees to dispute a transaction?
- No—dispute filing is free under Canadian regulations.
- 7. How long does a typical investigation take?
- Most are resolved within 30 days; complex cases may take up to 45 days.
- 8. Can I freeze my account during the investigation?
- Yes—request a temporary block or replacement card to prevent further unauthorized activity.