1) Overview: Two Problems That Often Happen Together
Unauthorized credit card charges and fraudulent travel agency “contracts” frequently come as a package:
- Unauthorized card transactions: charges you did not make, authorize, or benefit from (including card-not-present online transactions, “test charges,” and repeated small debits).
- Fraudulent travel agency arrangements: bogus bookings, fake tickets/vouchers, “promo” packages tied to dubious financing, misrepresentations about hotel/airline confirmations, or pressure tactics to sign electronic or paper documents.
In the Philippines, your response typically involves three parallel tracks:
- Stop the bleeding (card/bank actions),
- Build proof and preserve rights (documentation, notices),
- Choose the right legal remedies (civil, administrative, and criminal), including handling any “contract” you were tricked into.
2) Key Philippine Legal Concepts You’ll Use
A. Unauthorized Charges: Your Core Position
Your core position is simple: you did not authorize the transaction. The fight is usually about proof, timing, and procedures.
Even without a specific “credit card law” detailing all chargeback rules, Philippine consumers rely on:
- Contract principles (no valid consent; vitiated consent; void/voidable contracts),
- Consumer protection and fair dealing standards, and
- Banking/payment network dispute mechanisms (chargeback processes embedded in issuer rules and your card agreement).
B. Fraudulent Travel Contracts: Consent and Misrepresentation
A “contract” requires consent. Consent can be defective if obtained through:
- Fraud, misrepresentation, undue influence, intimidation, or mistake. When consent is vitiated, the agreement may be voidable (and can be annulled), and in some cases the arrangement may be treated as void if essential requirements are missing.
3) First 24 Hours: The Critical Response Checklist
Step 1: Freeze Further Transactions
Call your card issuer immediately and report the transactions as unauthorized.
Request:
- Immediate card block/cancellation,
- Replacement card,
- Temporary credit if available (depends on issuer),
- Dispute reference number and the exact list of transactions being disputed.
Step 2: Secure Accounts and Devices
Unauthorized charges often come from compromised credentials.
Change passwords for:
- email accounts (especially the one linked to banking),
- banking apps,
- e-commerce accounts,
- travel booking platforms.
Enable two-factor authentication.
Check if your phone received suspicious OTP prompts or SIM-related issues (possible SIM-swap).
Step 3: Preserve Evidence
Save and back up:
- SMS/email alerts of charges,
- screenshots of transaction notifications,
- merchant descriptors and amounts,
- any travel agency communications (chat logs, calls, emails),
- “contracts,” waivers, e-sign pages, receipts, invoices, vouchers, itineraries.
Create a timeline: date/time, who contacted you, what was promised, what you clicked/signed, and when charges posted.
Step 4: Make a Written Dispute Immediately
Follow your issuer’s dispute channel (email form/portal). Verbal calls are not enough.
- State: “I did not authorize these transactions” and request reversal/chargeback.
- List each disputed transaction (date, amount, merchant, reference).
4) Understanding Card Transaction Status: “Pending” vs “Posted”
- Pending/authorized transactions may sometimes be stopped or reversed faster.
- Posted transactions usually proceed through the formal dispute/chargeback process.
Ask your bank:
- Whether each charge is pending or posted,
- When the dispute clock starts under their procedures,
- What documents they require.
5) Chargeback vs Refund: Which One You Want
A. Refund
A refund is voluntary action by the merchant. Fraudsters rarely cooperate, and some shady agencies “promise” refunds to stall you beyond dispute deadlines.
B. Chargeback/Dispute (Issuer Route)
A chargeback is initiated through your issuer based on non-authorization, fraud, non-delivery, misrepresentation, or cancellation rights under your card agreement and card network rules.
Practical point: If you suspect fraud, prioritize chargeback and do not rely on merchant “refund promises” unless the money is already returned and confirmed posted as a credit.
6) Common Travel Scam Patterns (So You Can Classify Your Case)
- “Promo fare / seat sale” bait with urgent “today only” pressure.
- Fake confirmation screenshots, bogus ticket numbers, or “for validation” excuses.
- Split transactions across multiple charges to avoid alerts.
- Card verification or OTP “assistance”: they ask you to read OTPs or approve prompts.
- E-sign traps: you’re rushed into signing terms that claim “non-refundable,” “authorization,” or “service delivered.”
- Charge disguised under another merchant name (payment processor).
- “Travel agency membership / installment plan”: looks like booking but is actually a long-term finance obligation.
Classifying the pattern helps you pick the right dispute grounds: unauthorized transaction, fraud, misrepresentation, non-receipt of services, or cancellation due to deceptive sales.
7) If You Gave Your Card Details or OTP: Does That Kill Your Claim?
Not automatically.
A. If You Shared Card Details
Sharing card details may show you initiated contact, but unauthorized specific charges can still be disputed if:
- amounts/merchants differ from what was agreed,
- additional charges occurred without permission,
- the “agreement” was procured by fraud.
B. If You Shared OTP
This is harder because OTP is designed as authorization. But you can still argue:
- fraudulent inducement (you were deceived as to what you were authorizing),
- you did not knowingly consent to those specific transactions,
- you were manipulated under pressure, misrepresentation, or technical deception.
Expect the bank to scrutinize OTP cases more. Your evidence (messages, call logs, scripts, false promises) becomes decisive.
8) Dealing With the “Contract”: When It’s Fraudulent or Deceptive
A. Identify What You Actually “Signed”
Gather:
- the full PDF or page of terms,
- signature pages,
- tick-box consents,
- recorded calls (if you have them),
- proof of what was promised vs what was in the fine print.
B. Legal Grounds to Attack a Fraudulent Travel Contract
Depending on facts, common grounds include:
- Fraud / misrepresentation: you were induced by false statements.
- Intimidation / undue influence: you were pressured into signing.
- Mistake: you thought it was a booking but it was financing/membership.
- Simulation: the written “contract” does not reflect the real agreement presented to you.
- Illegality / public policy: if the scheme is inherently deceptive.
C. “Non-Refundable” Clauses Aren’t Always the End
A “non-refundable” clause typically presupposes a valid, informed, voluntary contract. If consent is vitiated by fraud, the clause may not save the merchant.
9) Immediate Notices You Should Send (Template-Style Content, Not Forms)
A. Notice to Card Issuer (Dispute)
Include:
- Your account details (do not include full card number; last 4 digits only),
- List of unauthorized transactions,
- Statement you did not authorize and did not receive the services,
- Request for chargeback/reversal and blocking the card,
- Attach evidence: screenshots, communications, your affidavit if requested.
B. Notice to Travel Agency (Demand / Cancellation)
Send via email + any official channels they use:
- Declare you were induced by misrepresentation/fraud,
- Cancel/void the transaction and demand refund,
- Demand itemized breakdown and proof of delivery (tickets, booking locators verifiable with airline/hotel),
- Put them on notice you have disputed the charges with the bank and will file complaints.
Do not threaten violence or publish defamatory claims; keep it factual and document-based.
10) Where to File Complaints in the Philippines
A. DTI (Department of Trade and Industry)
If the travel agency is engaged in consumer transactions and you have a business entity/merchant to proceed against, DTI can be used for consumer complaints, mediation, and administrative action.
B. Civil Remedies (Courts)
Civil actions may include:
- Annulment of contract (voidable contracts),
- Rescission (for breach),
- Damages (actual, moral, exemplary in proper cases),
- Recovery of sum of money.
The correct venue and procedure depend on the amount and location.
C. Criminal Complaints (If Facts Support)
Possible offenses vary by fact pattern:
- Estafa (deceit causing damage),
- Offenses under laws addressing fraudulent electronic transactions and misuse of payment instruments,
- Related crimes if identity theft or falsification is involved.
If you proceed criminally, your evidence package matters: communications, transaction records, IDs used, bank certification, and witnesses.
D. Cybercrime / Law Enforcement
If the fraud occurred online, used fake identities, or involves coordinated schemes, reporting may be appropriate through cybercrime units. Preserve digital evidence carefully.
11) Evidence That Wins Disputes and Cases
Strong evidence typically includes:
- Bank transaction list with merchant descriptors and reference numbers,
- Proof you were not the traveler/beneficiary (if bookings exist),
- Airline/hotel confirmation checks showing no valid booking,
- Written promises vs actual delivered documents,
- Screenshots of chats, emails, call logs,
- Screenshots of ads/pages used to lure you,
- Any proof of pattern (other victims’ posts can help for leads, but your own case needs your own proof).
Maintain an evidence folder with filenames that include dates.
12) Affidavits and Bank Requirements
Banks often require an affidavit of unauthorized transactions or similar declaration. When you execute one:
- Be accurate and consistent with your timeline.
- Do not exaggerate.
- If you disclosed OTP/card details, explain the deception context (what you believed you were authorizing and why).
Inconsistencies are commonly used to deny disputes.
13) Handling Installments, “Bill Me Later,” or Loan-Like Arrangements
Fraudulent travel transactions sometimes convert into:
- installment plans,
- “merchant installment”,
- linked credit-to-cash,
- third-party financing.
Actions:
- Tell the issuer you are disputing not only the purchase but also any installment conversion.
- Ask whether the installment was processed as a separate agreement.
- Demand copies of installment authorization and proof of consent.
If the installment is tied to a “contract,” you may need to pursue both the dispute and contract annulment angles.
14) What Not to Do (Because It Commonly Hurts Claims)
- Do not wait for the merchant’s “processing time” if chargeback windows are running.
- Do not keep using the compromised card.
- Do not sign new documents offered as “refund requirements” without reading; they may contain admissions or waivers.
- Do not accept partial refunds labeled “full and final settlement” unless you intend to settle.
- Do not post defamatory accusations online; stick to formal complaints and factual documentation.
15) Special Situations
A. You Traveled or Someone Traveled Using the Booking
If any benefit was received, your best argument shifts:
- If you never consented to the price/terms and the agency misrepresented costs, focus on misrepresentation, overcharging, or unauthorized add-ons rather than pure non-authorization.
- If someone else traveled using your card, identify whether it was unauthorized use of your card by that person (which may become a separate issue).
B. The Merchant Descriptor Is a Payment Processor
Many agencies use payment gateways, so the statement shows a different name. Ask the bank for:
- acquirer/processor details,
- merchant location,
- any supporting transaction data the issuer can provide.
C. Cross-Border Merchants
More complex evidence needs:
- proof of non-delivery/misrepresentation,
- clear dispute ground selection.
16) Practical Dispute Narrative (How to Frame It)
A clear narrative typically includes:
- How you encountered the agency (ad/referral),
- What was promised (specific, measurable promises),
- What you did (inquiry, provided details, what you understood),
- What you did not do (did not authorize specific charges; did not receive valid tickets/bookings),
- What happened (charges posted; no deliverables; excuses),
- Your immediate actions (reported, blocked card, demanded proof, disputed).
This helps the issuer and regulators evaluate credibility.
17) Potential Outcomes and What They Mean
A. Bank reverses charges (successful chargeback)
You receive credit/reversal. Keep all documentation because merchants can contest.
B. Bank denies dispute
You may:
- escalate within the bank’s dispute resolution process,
- file consumer/regulatory complaints as appropriate,
- pursue civil/criminal routes if warranted.
Denials often hinge on:
- OTP authorization,
- insufficient evidence,
- missed deadlines,
- narrative inconsistencies.
C. Partial refund / settlement
If you settle, document terms and ensure the settlement is properly reflected on your statement.
18) Preventive Measures for Future
- Keep card limits appropriate, enable alerts, and lock card features if available.
- Use virtual cards or one-time card numbers when possible.
- Never share OTP; treat it as a digital signature.
- Verify travel agency legitimacy: business registration, physical address, verifiable landline, official receipts, and the ability to validate bookings directly with airlines/hotels.
19) Quick Action Map (Philippine Context)
Immediately
- Call issuer → block card → dispute → get reference number.
- Change passwords/enable 2FA.
- Save evidence and create timeline.
Within days
- Submit required affidavits and supporting documents to bank.
- Send formal demand/cancellation notice to agency.
- Prepare complaint package (DTI / law enforcement / civil counsel route depending on facts and losses).
If stonewalled
- Escalate issuer dispute.
- File administrative complaint and consider criminal/civil remedies based on evidence strength.
20) A Note on Choosing the Right Remedy
- If the priority is getting money back quickly, the issuer dispute/chargeback path is usually first-line.
- If the priority is stopping a scheme and holding actors accountable, administrative and criminal complaints may be appropriate.
- If the problem is a signed long-term obligation (membership/financing), civil action to annul or rescind may be necessary alongside chargebacks.
The best outcomes typically come from combining fast banking action with well-preserved evidence and properly directed complaints.