What is Payment Security Charge on Credit Card?

Seeing a Payment Security charge on credit card statements can be confusing, especially if you don’t remember signing up for an extra service. Fortunately, this fee often comes from an optional credit card protection program rather than an unauthorized purchase.

Payment Security is particularly associated with Synchrony Bank credit cards. Here’s what the charge means, how much it costs, how to cancel it, and whether you can get your money back.

What Is Payment Security Charge on Credit Card?

The Payment Security charge on credit card statements typically refers to a fee for an optional debt cancellation program. One well-documented example is the Payment Security program offered by Synchrony Bank.

This program may cancel certain monthly credit card payments or part of your outstanding balance when you experience a qualifying financial hardship.

Covered situations may include involuntary unemployment, disability, hospitalization, terminal illness, or death. However, benefits depend on the program’s terms and eligibility requirements.

Payment Security isn’t a standard credit card transaction fee. It’s an optional service that generally requires enrollment.

Here are the important details:

Synchrony’s published program has described potential debt cancellation benefits of up to $10,000, subject to its terms.

The name alone cannot confirm which issuer billed your account. You should check your statement and account agreement before identifying the charge as Synchrony’s program.

Why Am I Being Charged for Payment Security?

You may see this fee because a payment protection program was added to your credit card account. Several situations could explain why the charge appears.

1. You Enrolled in Payment Protection

You may have accepted optional coverage when opening your credit card or speaking with a customer service representative.

2. Your Credit Card Has an Outstanding Balance

Payment Security fees are often calculated using your monthly statement balance. If your balance increases, your protection fee may increase too.

3. Your Coverage Remains Active

If you previously enrolled and haven’t canceled, the program may continue billing you. Simply stopping purchases doesn’t cancel coverage.

4. You Don’t Remember Authorizing the Service

You may not remember the enrollment process or may believe you never agreed to the program. In that case, ask your issuer to provide the enrollment date and evidence of your authorization.

What Does Payment Security Cover?

Payment Security programs are designed to help you manage credit card debt during certain financial hardships.

Synchrony’s program identifies seven covered events, including involuntary unemployment, disability, hospitalization, nursing home care, leave of absence, terminal illness, and loss of life.

Depending on your circumstances, the program may cancel minimum payments for a limited period or cancel an eligible account balance.

However, not every situation qualifies. You must meet the program’s requirements, including any waiting periods and exclusions.

Payment Security also isn’t the same as protection against fraudulent credit card purchases. It primarily covers specified financial hardships, not unauthorized transactions.

How Much Is the Payment Security Charge?

The fee generally depends on the program and your card balance.

Synchrony’s published Payment Security rate has been $1.66 per $100 of your ending monthly balance, equivalent to 1.66% of that balance.

Here’s how that rate affects different statement balances:

For example, if your ending statement balance is $1,000, your monthly fee would be $16.60. Over 12 months, that would total $199.20 if your balance stayed the same.

Synchrony’s published terms indicate that you may still owe the fee if you pay your statement balance in full after it closes. However, no fee generally applies for a month with a zero statement balance under those terms.

Is Payment Security Mandatory on a Credit Card?

No. Payment Security is generally an optional service, not a required fee for maintaining a credit card.

You can typically have a credit card without purchasing this additional protection.

It’s also different from regular interest charges, annual fees, and late payment fees.

If you didn’t knowingly enroll, ask your card issuer how and when the service was added. You can request enrollment records and review whether the charge was authorized.

How to Verify a Payment Security Charge

Start by reviewing your credit card statement to identify the issuer that assessed the fee.

Look under transaction details, account fees, or optional protection services.

If you have a Synchrony-issued credit card, contact Synchrony to confirm whether Payment Security is active.

Ask the representative to provide your enrollment date, monthly fee calculation, and coverage agreement.

Also check older statements to determine how long you’ve been paying for the service. This may help you identify recurring charges and calculate your total costs.

If your credit card isn’t issued by Synchrony, contact the issuer listed on your statement. Another bank may use a similar description for a different protection product.

How to Cancel Payment Security on Your Credit Card

You can generally cancel optional payment protection coverage without closing your credit card account.

For Synchrony’s Payment Security program, follow these steps:

1. Call 800-815-4051, the published Synchrony Payment Security number.
2. Tell the representative you want to cancel your Payment Security coverage.
3. Ask for the date your coverage originally started.
4. Request confirmation of your cancellation.
5. Ask whether you’re eligible for a refund.
6. Save any confirmation number or written cancellation notice.
7. Review your next statement for additional fees.

Synchrony has also listed written cancellation requests at Payment Security, P.O. Box 740237, Atlanta, GA 30374-0237. Verify the current contact details on your account documents before using them.

Under Synchrony’s published program terms, you can generally cancel coverage at any time.

If another company manages your protection program, its cancellation process may differ. Use the contact information provided on your credit card statement.

Can You Get a Refund for Payment Security Charges?

Yes, a refund may be available depending on your enrollment date and account circumstances.

Synchrony’s published policy has provided a refund of program fees when coverage is canceled within 90 days of the enrollment effective date.

If you’ve had coverage for longer, a refund isn’t automatically guaranteed.

However, if you believe you never authorized enrollment, ask your issuer to investigate. Request a review of previous fees and any enrollment records.

Keep copies of your statements and communications. These records can help support your refund request.

What If You Never Authorized Payment Security?

An unfamiliar fee doesn’t automatically mean your credit card information was stolen. It may indicate a billing or enrollment issue.

Contact your credit card issuer and explain that you don’t recognize the Payment Security charge.

Ask when the coverage started, how you enrolled, and what authorization records are available.

If you believe the fees were charged without permission, request cancellation and reimbursement of the disputed amounts.

You can also file a billing dispute with your credit card issuer. Under federal billing error rules, you generally must send written notice within 60 calendar days after the statement containing the disputed charge was sent.

Follow your statement’s billing dispute instructions and continue paying any undisputed amounts.

How to Avoid Unwanted Payment Security Fees

Review your credit card statements regularly, especially sections showing account fees and optional services.

Before accepting a protection program, check its monthly cost, covered events, exclusions, and cancellation terms.

If you decide you no longer need coverage, cancel it directly with the issuer. Keep confirmation and verify that future statements no longer include the fee.

FAQs On Payment Security Charge on Credit Card

Q: Is Payment Security a legitimate credit card charge?

A: Yes, Payment Security is a legitimate optional protection product offered by Synchrony Bank. Other issuers may offer similar services under different names.

However, a legitimate program doesn’t mean every charge is authorized. You should verify your enrollment.

Q: Why am I charged Payment Security every month?

A: You’re generally charged because your protection coverage remains active and your credit card has an eligible statement balance.

The monthly fee may change as your balance changes. Check your account agreement for the exact calculation.

Q: Can I remove Payment Security without closing my credit card?

A: Yes. You can generally cancel optional Payment Security coverage while keeping your credit card account open.

For Synchrony’s program, contact its Payment Security customer service team and request cancellation.

Q: Does Payment Security affect my credit score?

A: Payment Security enrollment itself generally doesn’t directly change your credit score.

However, the fee can increase your outstanding balance. That may indirectly affect your credit utilization, which can influence your score.

Conclusion

The Payment Security charge on credit card statements generally refers to an optional debt protection program. It’s particularly associated with Synchrony Bank and may cover certain financial hardships.

If you don’t need the service, you can generally cancel it without closing your credit card. If you don’t recognize the enrollment, contact your issuer to request an investigation and determine whether a refund is available.

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Payment Security benefits, cancellation terms, and refund policies may vary by issuer. Verify account-specific questions directly with your credit card company or bank.