How to Dispute a Credit Card Charge

What Is a Credit Card Dispute?

When you dispute a credit card charge, you'll request that the issuer remove an incorrect or fraudulent charge from your bill. That might happen if you bought an item online but never got it in the mail, or if a purchase appeared on your account that you never made.

Credit card disputes aren't meant to resolve general customer service complaints, but they can protect you from dishonest behavior by a merchant. If you weren't reimbursed after returning an item, for example, a dispute could be a way for you to get your money back.

Disputes are also important for resolving billing issues with your credit card company. A company could, for example, incorrectly post a payment you made or send a bill to a previous address after you provided a new one. Or you may see a charge you didn't make, alerting you to the possibility that you were the victim of credit card fraud.

When Should You Dispute a Credit Card Charge?

There are several circumstances when you should dispute a credit card charge with your issuer. You may also challenge other items on your credit card bill if they were made in error. Consider a dispute if:

• You see a charge for a payment you didn't make.
• You didn't receive a refund when you returned an item you purchased.
• You never received an item you purchased.
• A charge on your credit card bill lists the wrong date or purchase amount.
• Your credit card bill was sent to the wrong address, which prevented you from paying it on time.
• Your credit card company did not accurately credit a payment you made.
• Your credit card bill includes math errors, such as incorrect totaling of your charges for the month.
• You have asked for proof of purchase or explanation of a charge, and you do not want to make payment until you receive it.

What to Do if You Don't Recognize a Charge

If you see a charge you don't recognize, first rule out the following possibilities:

• It was a charge made by an authorized user on your credit card.
• You were expecting the charge to come under another name. This can happen when a merchant bills you under a different business name, like its parent company's.
• You forgot about it, which may be more likely if you were on vacation, you're furnishing a new home or you've otherwise made a lot of purchases in a short time frame.

If none of these are true for you, contact the merchant. Your card issuer may, in fact, require you to speak with the merchant before filing a dispute and may ask for proof that you reached out to the business where you made the purchase. Keep notes to remember how the merchant responded—the credit card company may ask about it later.

Let's say the merchant hasn't resolved the issue, it's clear the problem lies with the credit card company or you're concerned someone else made the purchase without your consent. In these cases, initiate a dispute with your credit card issuer. Read on for a step-by-step guide to disputing specific issues.

How to Dispute a Credit Card Charge

The method for disputing a credit card charge depends on the type of issue you're having. But in all cases, to have your dispute protected by federal law, you must file the request within 60 days of the date when you received the bill that includes the error.

Billing Errors

If your concern is considered a billing error, then the dispute process is regulated by the FCBA. Follow these steps:

1. Use the Federal Trade Commission's (FTC) sample letter to write to the credit card issuer's billing inquiries department describing the problem. Your credit card company may also have a streamlined online process for starting a dispute, such as a button you can click next to the purchase listed in your transaction history. But if you use the digital option, you should also send a follow-up letter by traditional mail to their billing department to make sure you get full protection under the FCBA.
2. Send along copies of supporting documentation, and keep a copy of your own letter for your records.
3. Make sure the letter reaches the credit card company within 60 days of the error's appearance on your bill.

Fraudulent Charges

The FCBA limits your liability to $50 for unauthorized transactions, but some credit card companies cut that down to $0. Plus, the law prevents you from being liable for charges if you report a stolen or lost credit card before it's used. If you see a charge you didn't make on your credit card bill, here's how to dispute it:

1. Contact your credit card company right away. You can call the customer service number on the back of your card or get in touch via your online account.
2. If requested by the card issuer, submit a police report or other documentation if your card was lost or stolen.
3. The company may provide you with a new credit card and credit card number to prevent fraud in the future, or you can request one.

Issues With Purchase Quality or Service

If you've tried to resolve a service or quality issue with a seller and they don't respond, or they're unwilling to work with you, you can initiate a chargeback directly with the credit card company. You'll be protected under the FCBA if the charge was for more than $5 at a seller within 100 miles of your billing address and you tried to sort out the issue with the merchant first.

Here's how to request a chargeback:

1. File a dispute via phone, mail or online through your credit card's customer service portal.
2. Include supporting evidence of the issue, such as emails, invoices or receipts, if you have them.
3. The credit card issuer might refund you at this point, or pass the request on to the credit card network (such as Visa or Mastercard). The network will then determine whether the chargeback will be completed, which may require discussions with your credit card company and the seller. If the network decides in your favor, the card issuer will reverse the charge.

How Long Do You Have to Dispute a Charge?

In most cases, you have 60 days from when a charge appears on your credit card statement to dispute it. If fraud is involved, there's no time limit on when you must dispute unauthorized charges.

Under the FCBA, however, it's advantageous to report loss or theft of a credit card right away: You won't be liable for any unauthorized charges if you contact the credit card company before a thief uses the lost or stolen card. Many credit card companies limit your liability to $0, however, so you're likely covered even if you don't immediately report the fraud. Your liability will also always be $0 if your credit card number, rather than the physical card, is stolen.

How Long Do Credit Card Disputes Take?

After you file a dispute, the credit card company must send you a letter acknowledging the dispute within 30 days. Under federal law, the dispute must be settled no later than 90 days after the company received your letter.

Does Disputing a Charge Impact Credit?

A credit card dispute won't impact your credit directly, but the fact that you've disputed a charge may appear on your credit report. According to the FCBA, however, it is illegal for lenders to deny you credit or report a delinquent payment merely because you have disputed a charge or bill.

You are not required to pay for charges that are in dispute while they're under investigation, but you do have to pay the rest of your credit card bill. If you don't do so, your payment could be marked as late or missed, negatively affecting your credit. Plus, if the result of your dispute shows that you are, in fact, responsible for the charge, you'll have to pay—and refusing to do so can also have a negative credit impact.

If your credit card balance is high due to charges that are in dispute, that will affect your "amounts owed," which includes your credit utilization rate and accounts for 30% of your FICO^® Score^Θ. The credit card issuer must promptly refund any money you're owed as a result of the dispute resolution, but you may find your credit is affected in the meantime.

The Bottom Line

Disputing a credit card charge is an important way to protect yourself from fraud and from unfair or inaccurate information on your credit report. To help ensure you notice errors, regularly monitor your credit. And if you do find suspicious activity, follow up to resolve it as soon as possible.