What are those random $1 charges on my credit card?

If you see a $1 charge on your card account, you might be confused. You don’t remember buying something for exactly a buck — what gives?

As it turns out, there’s probably a legitimate reason for the charge. And if so, rest easy knowing the charge will be removed very soon.

Why you might have gotten a $1 charge on a credit card

That $1 charge is likely a preauthorization hold. This basically means a merchant is checking if your card can accept new charges. For example, you might use your card at a hotel, gas station or car rental agency, which are common places that’ll use these $1 charges.

Why $1? The reason is some merchants might not know how much your final charge will be. At the gas station, for instance, you must dip your card before pumping, but you haven’t yet seen the cost of your fill-up.

By validating your card with a $1 transaction, the merchant knows your card is legit. The merchant can then charge your card with the total when it’s available.

Some services and platforms will put a $1 hold on your card simply to check if your card is valid — not to charge you later. For example, you might see this when you add your card to PayPal for the first time.

Will that $1 charge go away?

Yes. After the merchant charges the final amount to your card, the $1 charge will disappear from your transaction history.

While the $1 charge exists, your transaction with the merchant is pending — that is, it hasn’t been fully processed. Once the transaction has posted — meaning it’s been fully processed — there’s no more need for the preauthorization hold.

When you should worry about those $1 charges

The vast majority of the time, a $1 charge is nothing to worry about. However, you should look into it when it shows up as a posted charge in your card’s transaction history.

This could be a simple error on the merchant’s end. It could also mean malicious activity by a fraudster.

Regardless of the reason, call your bank and ask about the transaction. Keep in mind zero-liability protection is standard across card issuers, so you’ll rarely be on the hook for fraud as long as you report it.

Compare credit cards with fraud alerts

Many card issuers provide fraud alerts when they detect your account has been compromised. The cards below will qualify you for fraud protection, but this is by no means an exhaustive list.

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Name	Product	Filter values	Rewards	Purchase APR	Annual fee
Chase Sapphire Preferred® Card			5x points on Lyft, 2x points on travel and dining and 1x points on all other purchases	15.99% to 22.99% variable	$95	Apply now View details	Up to $1,250 signup bonus Earn a massive signup bonus of 100,000 points with this popular travel card. That's worth up to $1,250!	Compare	loading Fetching your data...
Chase Freedom Unlimited®			5% cash back on travel purchased through Chase, 5% on Lyft, 3% on dining and drugstores and 1.5% on all other purchases	0% intro for the first 15 months (then 14.99% to 23.74% variable)	$0	Apply now View details	This solid 1.5% cashback card gets even better with the addition of up to 5% back in categories like travel, drug stores and dining.	Compare	loading Fetching your data...
Citi® Double Cash Card			Up to 2% cash back on purchases (1% when you buy plus 1% as you pay)	13.99% to 23.99% variable	$0	Apply now View details	Earn up to 2% on every purchase with no annual fee. This is the highest flat-rate cashback card on the market.	Compare	loading Fetching your data...

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Bottom line

A $1 charge on your credit card is typically nothing to worry about. It’s most likely a preauthorization hold when you spend at a merchant such as a hotel, gas station or car rental agency.

However, it’s always a good idea to check your posted transactions to make sure the charge is removed. If the charge is still there, contact your bank.

Many credit cards come with fraud protection, and you’ll typically find a suite of security features from each card issuer.

Frequently asked questions

• How will I receive fraud alerts?

  Issuers commonly send fraud alerts through a variety of methods, including text and email. Your provider may let you opt-in or out of certain methods.

• How do I contact my bank if I need to inquire about a lingering preauthorization charge?

  Call the number on the back of your card. If the transaction is determined to be fraud, a representative can direct you to the bank’s fraud department.

• How do I get my billing statement?

  Your provider may send your statements via mail. However, it may also simply remind you via email to check your statements in your online account.