How to Dispute Merchant Charges on Your Credit Card: A Complete Guide

Understanding Your Dispute Rights

The Fair Credit Billing Act (FCBA) gives consumers the right to dispute billing errors on their credit card statements. Billing errors include unauthorized charges, charges for goods or services not received, charges for the wrong amount, and charges for items that were defective or not as described.

To dispute a charge, you must send a written notice to your credit card issuer within 60 days of the statement date on which the error appeared. The notice must include your name, account number, a description of the error, and the amount in question.

Once you file a dispute, the credit card issuer must acknowledge your complaint within 30 days and resolve it within two billing cycles (but no more than 90 days). During the investigation, you are not required to pay the disputed amount or any related finance charges.

Step-by-Step Dispute Process

Start by contacting the merchant directly. Many billing disputes can be resolved quickly through a simple conversation with the merchant customer service department. Explain the issue, provide your order number, and request a refund or correction.

If the merchant does not resolve the issue, contact your credit card issuer. Most issuers allow you to file disputes online, by phone, or by mail. Online disputes are typically the fastest and most convenient method.

Provide as much documentation as possible with your dispute. This includes receipts, order confirmations, shipping tracking numbers, correspondence with the merchant, and photos of damaged or incorrect items.

Types of Chargebacks

Unauthorized charge disputes involve charges you did not make or authorize. This includes fraudulent charges from stolen credit card information, charges by merchants you have never done business with, and charges that exceed the authorized amount.

Goods or services not received disputes apply when you paid for something that was never delivered. This includes online orders that never arrived, subscription services that were canceled but continued charging, and prepaid services that were never provided.

Defective or not as described disputes apply when you received something that does not match the merchant description or is defective. This includes products that arrive damaged, services that are not performed as agreed, and items that are significantly different from their advertising.

What Happens During the Investigation

When you file a dispute, the credit card issuer will investigate the charge. They will contact the merchant and request evidence that the charge is valid. The merchant must provide documentation such as a signed receipt, proof of delivery, or evidence that the service was provided.

If the merchant cannot provide adequate evidence, the charge will be reversed in your favor. This is called a chargeback, and the amount will be credited back to your account. You will not be responsible for the charge or any related finance charges.

If the merchant provides evidence that the charge is valid, the dispute will be denied. You will then be responsible for the charge and any accrued interest. You have the right to appeal the decision if you believe the investigation was inadequate.