Table of Contents
If you’re unhappy with a recent purchase or you believe an unauthorized charge was applied to your credit card, you can dispute credit card charges by filing a claim with your card issuer.
Whether you willingly made the purchase or someone stole your credit card information, you may still be protected under the law so that you don’t necessarily have to pay.
Read on to find out when you can dispute a credit card charge, and instructions for how to do so.
Key Points
• In a credit card dispute, a consumer can request that a card issuer remove fraudulent or incorrect purchases from their account.
• The Fair Credit Billing Act protects consumers by granting the legal right to dispute charges and request investigations into billing issues or fraudulent activity.
• Valid dispute reasons include unauthorized charges from theft, billing errors, undelivered goods or services, and unsatisfactory purchases exceeding $50 within specific geographic limits.
• Cardholders must attempt good faith resolution with merchants before disputing goods and service issues, then submit a dispute with supporting documentation.
• Consumers generally have 60 days to file billing disputes, while issuers must acknowledge disputes within 30 days and resolve issues within 90 days. Disputes related to fraud have no time limit.
Disputing Credit Card Charges
When you dispute a credit card charge, you request that the credit card issuer remove a specific purchase made with your credit card that is fraudulent or incorrect. You can typically call the issuer to make a dispute or do so on the issuer’s website or app.
A cardholder can’t make a dispute if they simply don’t like the item they purchased or service they received. However, they can dispute a credit card charge if the merchant is acting dishonestly, such as if they don’t deliver an item the consumer ordered or don’t properly reimburse a return. A cardholder also can dispute credit card charges when certain billing issues are made or if they believe there was a fraudulent charge.
The Fair Credit Billing Act (FCBA) gives consumers the right to dispute a charge and to request an investigation into the issue. Thanks to the FCBA, consumers are also entitled to a quick response from their credit card issuer and to have their credit score protected during the course of the dispute investigation, which is critical given how credit cards work.
Recommended: Charge Cards Advantages and Disadvantages
When To Dispute a Credit Card Charge
There are a few different times when a person can dispute a credit card charge, including the examples below.
Fraudulent Charges
You can dispute a credit card charge that was the result of theft, such as if you became a victim of a credit card skimmer or due to unauthorized use.
Before you report a fraudulent charge, make sure it was not a charge made by another authorized user on the card, such as your child, or that you didn’t let someone else borrow and use your card. Also keep in mind that merchants may use another name or address for billing.
If the charge does appear to be fraudulent after review, report it immediately. (There is no time limit to reporting a charge related to fraud, but you’ll likely want to report it right away.) By law, you can’t be held liable for more than $50 in fraudulent charges, and many credit card issuers have a $0 liability policy. This would mean you wouldn’t have to worry about the charge at all, let alone any interest that may have accrued based on the APR on a credit card.
Billing Errors
Billing errors can also sometimes occur and are a good reason to dispute a charge on your credit card.
For example, if the credit card issuer sends a bill to the wrong address, which interferes with the cardholder paying their bill on time, the cardholder can dispute any credit card interest or late fees that have accrued.
A credit card bill can also have numerical errors if the charges were incorrectly totaled. Any bill with the wrong date or amount included on it can also count as a billing error, such as if you pay taxes with a credit card but the total reflected in your statement is different than what you actually paid.
Bad or Unrendered Services
Even if someone agreed to pay for a purchase, it is possible to dispute a credit card charge for goods or services that were not delivered or that were unsatisfactory. This can include if someone doesn’t receive an item they purchased through a merchant that accepts credit card payments or if they didn’t receive a refund after making a return.
Per the FCBA, to take advantage of this protection, you must first make a good faith effort to resolve the issue with the merchant. Additionally, the purchase must be for more than $50, and it must be made either within your home state or within 100 miles of your billing address.
When You Should Not Dispute a Credit Card Charge
There are instances when making a dispute isn’t the right action to take. Here’s when disputing a credit card charge may not be the right step.
If a Friend or Relative Made a Purchase
For a credit charge to be considered “unauthorized use,” the purchase must be made by someone who doesn’t have a right to use the credit card.
Unauthorized use can happen if someone steals a credit card (whether it’s the physical card or the credit card information, like the CVV number on a credit card), or if they find one that doesn’t belong to them and then use it.
On the other hand, if someone gives a friend or family member official permission to use their credit card, but they use it for a purchase the cardholder didn’t approve, this is still considered authorized use.
If this happens, the cardholder could decide to contact their credit card company and remove the other person as an authorized user on the account. In the meantime, however, the cardholder would remain responsible for any charges the individual made when they were an authorized user on the card.
You Did Not Inform the Merchant Concerning the Issue First
If you have a complaint regarding the quality of goods and services you received, you must first contact the merchant about the issue before making a dispute. Credit card companies may want to see proof that you’ve tried to work with the merchant before you turned to them, though this will vary by issuer. Make notes about your conversation with the merchant in case you need them.
Recommended: When Are Credit Card Payments Due?
How to Dispute a Credit Card Charge
The process for how to dispute a credit card charge depends on the credit card issuer as well as the reason for the dispute. Just as issuers have their own process for how to apply for a credit card, they also have their own process for filing a dispute. That being said, here is the general process for each type of credit card dispute:
• Billing error disputes: The billing error dispute process is regulated by the FCBA. To dispute a credit card charge related to a billing error, contact the credit card issuer’s billing inquiries department (and make sure to keep track of this; say, by saving a copy of the email). You should use the sample letter for disputing charges provided by the Federal Trade Commission (FTC) to do this. In your letter, detail the reason for the dispute and include any supporting documentation.
• Fraudulent charge disputes: If a dispute is related to fraudulent charges, the cardholder can contact the credit card company immediately. The company may request proof of a police report or other documentation that proves their credit card was either lost or stolen.
• Bad service or unrendered services disputes: When it comes to service issues, it’s best to start with the merchant. If the merchant won’t refund the purchase, the cardholder can request a credit card chargeback online or in the credit card issuer’s app, over the phone, or by mail. They should include any supporting documentation that backs up their claim and shows their attempts to work with the merchant directly first.
You are not required to pay for the disputed charge while the issue is still being resolved, though you’ll still want to make the credit card minimum payment to avoid late fees or other penalties.
Generally, consumers have 60 days to file a request to dispute a credit card charge. (However, as noted earlier, there is no time limit for reporting a charge related to fraud.) After filing a dispute with the credit card issuer, the issuer has 30 days to send a letter acknowledging the dispute, and they must settle the issue within 90 days of receiving the letter.
The Takeaway
If a consumer believes that a billing error occurred, their card was used fraudulently, or they received bad service or services were never delivered, they have a right to dispute the charge with their credit card issuer. Following the proper process for the type of charge being disputed may help protect them from fraud or inaccurate information on their credit report.
Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.
FAQ
How long do you have to dispute credit card charges?
In the case of a billing error or unsatisfactory charges, you must make a dispute within 60 days of receiving your statement. There are no limits on how soon you must dispute a charge related to fraud.
What happens if you dispute a charge on your credit card?
It depends on the charge being disputed. The credit card issuer must investigate the transaction and resolve the investigation surrounding the dispute within 90 days of receiving it.
Does a dispute affect credit score?
Filing a dispute doesn’t necessarily impact a credit score. However, if the dispute is regarding an inaccurate late payment or other negative event, having the issue resolved after a dispute might help build the account holder’s credit.
What happens if a credit card dispute is denied?
After an investigation, the credit card issuer can choose to approve or deny a dispute. If the filer disagrees with the result of their investigation, they can appeal the decision by writing to the creditor within 10 days of receiving the explanation for why the dispute was denied.
Can you dispute a charge after 90 days?
Generally, consumers only have 60 days to dispute a credit card charge after receiving their bill. In most cases, the only exception to this timeline is fraud, which has an unlimited window for reporting. However, if someone realizes a charge is inaccurate after 60 days, it’s worth contacting their credit card issuer to find out about their options.
Photo credit: iStock/Just_Super
SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
This article is not intended to be legal advice. Please consult an attorney for advice.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SOCC-Q126-029