What is a provisional credit?

A provisional credit is a temporary credit that a bank or financial institution may provide to a customer while an investigation is being conducted into a disputed transaction, such as a fraudulent charge on a credit card. The provisional credit is intended to provide the customer with immediate relief and ensure that they are not financially impacted by the disputed transaction during the investigation process.

During the investigation, the bank will review the details of the disputed transaction, including any evidence provided by the customer, and will determine whether the charge is valid or fraudulent. If the bank determines that the charge is indeed fraudulent, the provisional credit will be made permanent and the customer will not be held responsible for the unauthorized transaction. If, however, the bank determines that the charge is valid, the provisional credit may be reversed and the customer will be required to repay the amount.

It is important for customers to cooperate fully with the investigation and provide any necessary documentation or evidence to support their claim of fraud. Customers should also carefully review their account statements regularly and report any suspicious or unauthorized transactions to their bank as soon as possible.