How Long Do I Have to Dispute Credit Card Charges?

Rules Around Disputing Credit Card Charges

Under the Fair Credit Billing Act (FCBA), you have the right to dispute certain types of billing errors and fraudulent charges that appear on your credit card statement. The FCBA is a federal law that limits your liability for unauthorized charges and offers some financial protection if you have an issue with your purchase.

The FCBA only allows you to dispute charges on open-ended credit accounts, like credit cards, so purchases made with a debit card won't be covered—those are covered by Regulation E.

Here's a closer look at the rules around disputing credit card charges under the FCBA.

Billing Errors

The FCBA gives you the right to dispute credit card billing errors within 60 days of your statement billing date. Additional rules may also apply from your credit card issuer, depending on the type of charge.

Common examples include:

• Unauthorized charges: If someone uses your credit card without your knowledge, you generally are only liable for up to $50 of fraudulent purchases. And if you have a credit card with zero liability fraud protection, it's likely you won't have to pay anything at all if you report the unauthorized charge right away.
• Duplicate charges: Charges that show up more than once on your statement due to a billing error usually can be disputed.
• Charges with incorrect dates or amounts: You typically can dispute charges with the wrong purchase date or amount listed on your statement.
• Return charges: After making a return, if the merchant doesn't credit the amount back to your card within a reasonable time frame, you can usually dispute the charge.
• Incorrectly applied payments: You may be able to dispute overages that weren't credited to your account correctly after paying more than the minimum due on your credit card.
• Bills sent to the wrong address: Statements sent to an old address can sometimes be disputed if the creditor received written notification of your new address at least 20 days before the end of your billing period.

An Issue With Your Purchase

Under the FCBA, you may be eligible for a chargeback if you're not happy with the quality of goods or services you bought with your credit card. For instance, if you order a product online and it doesn't arrive or differs from the sales description, you may be able to dispute the charge and have the funds reversed back to your account.

To initiate a dispute, the charge must be for more than $5 from a seller within 100 miles of your billing address. However, online purchases may not be subject to mileage limits. And you must first try to resolve the issue with the seller before initiating a dispute.

Additionally, some credit card issuers also offer their own purchase protection. This can help protect you financially if something you bought is lost, stolen or damaged soon after you buy it. But timelines may vary to reverse the charges, so it's best to inform your credit card issuer right away.

Learn more: Does Returning Items Affect Credit?

How to Dispute a Credit Card Charge

The process to dispute a credit card charge looks a bit different depending on the type of charge.

To dispute a billing error, you must:

1. Submit a letter to the credit card issuer. Send a letter to your credit card issuer's billing inquiries department by mail or online describing the problem. The Federal Trade Commission (FTC) has a sample letter you can use as a template. Keep copies of all documentation you send and send a follow-up letter by mail if using the online option.
2. Wait to hear back. Creditors are required to acknowledge receipt of your dispute by writing within 30 days. Investigations must be completed within two billing cycles—no more than 90 days after the dispute initiation.
3. Pay the rest of your bill. You're not required to pay the disputed amount or associated fees and interest until the dispute is resolved. But you're still responsible for paying the rest of your credit card bill. Paying on time helps you avoid late fees, interest charges and a ding to your credit.

To dispute a fraudulent charge, follow these steps:

1. Contact your credit card company. Report the suspected fraud right away by calling the customer service number on the back of your card or submitting a fraud report online.
2. Submit additional documentation. If your card was lost or stolen, your credit card issuer may request a police report or other information documenting fraudulent activity.
3. Get a new card. Request a new card and card number from your credit card company.
4. Report the fraud. You may also need to report the fraud to the FTC. You also have the right to add a fraud alert or credit freeze to your credit reports for extra protection.

To file a chargeback, follow these steps:

1. Try to resolve the issue with the merchant. Contact the store or business to attempt to resolve the issue.
2. File a dispute. If the merchant refuses to give you a refund, you can file a dispute with your credit card issuer online, through your mobile app or by phone. But for full FCBA protection, you need to send a written notice like you would for a billing error. Remember to keep copies of all documentation, including receipts and communication with the merchant.
3. Receive a provisional credit. Credit card companies generally issue a provisional credit while reviewing your dispute that's equal to the full amount you're disputing.
4. Wait for resolution. Credit card companies have 30 days to acknowledge receipt of your dispute in writing. They may also ask you to provide additional details for the investigation. The process must be resolved within two billing cycles, or up to 90 days, after the dispute is received.

Learn more: What Is a Statement Credit?

Possible Dispute Outcomes

The outcomes of credit card charge dispute investigations can vary widely depending on the nature of the dispute, how long you took to dispute the charge and your credit card issuer. Once the investigation is complete, you will receive written communication from your creditor.

Generally speaking, there are three possible dispute outcomes, including:

• You don't have to pay anything. Your credit card issuer may refund the full purchase amount back to your card.
• You have to pay some of the charge. You may only receive a partial refund and need to cover the rest. For example, under the FCBA consumers may be liable for up to $50 of unauthorized charges.
• You have to pay the full amount. If a dispute is denied, you must pay all of the disputed charges. You can also choose to dispute the denial decision within the time period you need to submit payment or 10 days after you receive the decision, whichever is later.

The Bottom Line

Reviewing your credit card transactions and statements regularly can help you catch billing errors and fraudulent activity promptly. Many creditors let you set up real-time alerts that allow you to easily monitor your account and take action right away if you need to dispute a charge. It's also important to stay on top of your credit reports for signs of fraud or identity theft.

You can protect yourself even further with free credit monitoring from Experian. You'll receive alerts to changes in your credit file, like new accounts and credit inquiries, so you can take action right away.