What is Gray Charge in Retail? Explained

A gray charge emerges when customers unwittingly incur unauthorized or unclear transactions on their credit or debit card statements. Unlike fraudulent charges, gray charges often arise from unintentional sign-ups for services or subscriptions, with terms not fully understood by the consumer. These may encompass automatic renewals, subscription fees, or concealed costs linked to a purchase. To prevent gray charges, retailers must prioritize transparent billing practices, while customers should regularly scrutinize their statements to identify and dispute any ambiguous or unauthorized transactions.