Identifying a wrong charge on a credit card can be frustrating. You may wonder if your credit card number was stolen or if a retailer didn’t stand behind its word. Federal law gives Americans certain protections in the event of an erroneous charge. Unfortunately, your time to file a claim is limited. Most banks make it simple to protect yourself from fraudulent charges, but you must follow specific steps.
When should you dispute credit card charges?
As you review your monthly statement, a charge may stand out. Perhaps you don’t recognize the purchase, or you’re being charged for a service you’ve already canceled. Thanks to the Fair Credit Billing Act (FCBA) of 1975, Americans have safeguards against unauthorized credit card charges or defective merchandise.
The FCBA allows people to file a credit card dispute in certain situations, including:
- Unauthorized transactions
- Incorrect billing amounts or dates of purchase
- Math errors
- Failure to post payments or returns
- Charges for services not performed or products you didn’t receive
- Failure to mail bills to a current address
- Double billing
This isn’t to say that an unrecognized charge is always fraudulent. Perhaps you made a lot of charges recently and you don’t recognize one of them. However, if the product arrived damaged or you simply didn’t make the purchase, you have the right to file a billing dispute with your credit card.
How to dispute a credit card charge
Contacting the retailer is a wise first move before disputing credit card charges. Reputable retailers will often try to find a solution if they made an error or delivered a faulty product. Speaking with the merchant is commonly faster than beginning a credit card charge dispute.
If the retailer is unable or unwilling to remedy the situation, it’s time to report a fraudulent charge to your credit card company. Issuing banks process disputes differently, but most provide the following to initiate a challenge. Those options include:
- Calling the customer service number on the back of your card
- Filing a dispute via the bank’s mobile app or website
- Writing a letter to the bank – the correct address should be on your statement
Be prepared to answer questions on why you want to dispute a credit card transaction. The bank will ask for details on the purchase and whether or not you recognize it. If you do, the bank may ask for receipts, a police report if applicable, and specifics on how you tried to resolve the situation with the merchant.
It’s advisable to send a dispute letter after contacting your bank. This must be done within 60 days of the questionable charge. The Federal Trade Commission provides a helpful sample letter if you don’t know what to include.
If it’s a fraudulent credit card charge, it’s likely the bank is already on top of the situation and will work fast to curb the charges and get you a new credit card. The bank may even contact you before you know about the fraudulent charges if they notice an odd pattern.
What happens after you file a credit card dispute?
During the credit card dispute process, you will not need to pay the disputed charge. Furthermore, be prepared to wait after disputing a credit card billing error. The bank has one month to acknowledge the challenge and an additional 60 days to review the purchase. The credit card company will issue a chargeback, and you aren’t required to pay interest as they process the dispute.
The FCBA dictates the bank must inform you in writing of its decision. If it finds in your favor, the credit card company will make the necessary adjustments to your account.
However, if the bank denies your claim it will communicate the amount you owe. You’re allowed to explain that you refuse to pay the charge, which puts you at risk of ultimately negatively impacting your credit score.
Frequently asked questions about disputing credit card charges
It isn’t typically difficult to challenge a credit card charge, but it does take time. Worse yet, it can be frustrating if you’ve done nothing wrong. Knowledge is key to putting forward the best argument. These are common questions people have when trying to fix credit card billing errors.
What evidence do I need to dispute a credit card charge?
Banks usually require adequate background to resolve credit card disputes. The company may request receipts, photographic evidence of the item, proof of communication with the retailer, and any applicable police reports to process the claim.
At issue is determining if you made an effort to resolve the issue with the merchant or if the retailer is shirking its responsibility.
Can I dispute a credit card charge after paying it?
If you’ve already paid the credit card, it’s not possible to receive a refund for a questionable charge. Reviewing your monthly statement to identify any credit card errors promptly is essential to avoid this possibility.
If the item is defective, you may want to contact the retailer to see how they can help.
Is it worth disputing a small credit card charge?
Small is a relative term, but legally, Americans are limited to no more than $50 of liability via a credit card. Many credit card companies reduce this to no liability.
Speak with the merchant to see how they can help. If they are unwilling, there’s no problem contacting your credit card to initiate a dispute, regardless of the amount.
How long do you have to dispute a credit card charge?
The FCBA allows people 60 days to dispute credit card charges. It’s best not to wait long if you notice a mistake on a credit card bill. Some banks may offer extended terms or require additional steps to process the dispute.
Once you notice a wrong charge, it’s wise to contact the retailer, then the bank, if the merchant is unwilling to resolve the problem.
The bottom line
An unrecognized charge on your credit card isn’t always a cause for concern. It can result from simple human error but can also be a fraudulent charge. Before contacting the bank, speak with the retailer as they may be able to quickly resolve the problem. If the merchant won’t help, the FCBA provides clear steps to dispute the credit card charge, and most banks make it simple to file a challenge.
