How To Dispute A Credit Card Charge: Step By Step

In today's financial climate, knowing how to effectively dispute credit card charges that may appear on your credit card bill is an important skill that can save you from potential fraud. From unauthorized transactions to billing errors, understanding your rights under the Fair Credit Billing Act (FCBA) is paramount. Understand the dispute process endorsed by credit card companies and recognized by the Consumer Protection Bureau to protect your financial health.

Legitimate Reasons To Dispute A Charge On Your Credit Card

There are many reasons for cardholders to dispute a credit card charge, and some may be hard to identify or act upon. No matter how big or small the disputed amount is, cardholders need to be prepared to deal with fraudulent or unjust charges on their credit card bill.

Fraudulent Charges

As a credit card holder, you may encounter fraudulent charges on your credit card bill. The reason for fraudulent charges can vary widely, but some common reasons for unfamiliar charges could be due to identity theft, phishing, using deceptive emails, or links that lead cardholders to divulge their personal information, application fraud, when the information on your credit card is used to open new credit cards, and so much more.

When you notice a fraudulent charge, even if it's small, you must act swiftly before your financial earnings or identity could become compromised. Some severe cases of fraud may warrant an entirely new credit card or filing a police report. Police reports are among a few precautions you can take to protect yourself from any future risk.

Another simple way of keeping your finances safe is signing up for transaction alerts, so your bank will notify you of any transactions or suspicious activity on your credit cards. This way, you can monitor charges made by you or any other authorized users.

Additionally, you can contact other enforcement agencies like the Federal Trade Commission (FTC), which specializes in addressing identity theft and scams. Throughout your dispute, be sure to keep detailed records of any communications or relevant information you experience. Federal law provides certain protections to consumers in cases of unauthorized charges, making it important for cardholders to assert their rights and report any disputed charge promptly.

Billing Errors

Billing errors can occasionally appear on credit card accounts, prompting consumers to initiate an inquiry with their creditors. Common types of billing errors include unauthorized charges, charges for items that weren’t received, duplicate charges, or correct charges with incorrect dates or time stamps. A lot of times, these errors come from discrepancies in the account number when processing the payment. If you notice any of these charges, be sure to alert your creditor immediately after careful review.

Issues The Merchant Wouldn’t Resolve

A good rule of thumb is to contact the merchant before escalating the issue to your credit card company. Oftentimes, this entails putting forth a good-faith effort to resolve the issue through the merchant’s customer services, and discussing your issue until you resolve it. Not only is this approach more efficient, but it can also help maintain a good relationship between you and the merchant.

Incorrect Price

Incorrect charges on your bank statement can be most efficiently solved using a good-faith effort by contacting the retailer first. In instances where a merchant charged the wrong amount to your card, oftentimes this is a result of a mistake, or a misunderstanding. If you cannot reach an agreement with the merchant, then it is advised that you proceed to open a dispute with your bank.

The Return Item Not Being Processed

In case you haven’t been refunded for a return you made, approach the issue methodically. Begin by reviewing the merchant's return policy. Be sure to take note of any important time frames or prerequisites that pertain to your purchase. Once you have a better understanding of the merchant's conditions, contact them to resolve your issue. Be sure to dutifully keep track of your communication with them, including dates, times and contents of each conversation. If needed, you may contact your credit card issuer who can help in the chargeback process. If these steps are ineffective, initiate a dispute with your credit card company to resolve the issue.

The Item Not Being Received

If you have not received an item, yet are still charged for it, this is grounds for filing a dispute with your credit card issuer. In this situation, consider consulting with the merchant first about a refund, a verified expected delivery date, or issuing a replacement. It is best to keep detailed records of your communications with the merchant in the case you choose to initiate a dispute with your credit card issuer if the problem persists.

At A Glance: Who To Contact About Credit Card Disputes

Depending on the issue on your credit card statement, you may need to contact a different party to get it resolved:

How To Dispute A Charge On Your Credit Card In 4 Steps

Refer to the following steps when disputing a credit card charge.

Step 1: Investigate The Charge You Want To Dispute

Prior to filing a dispute, be sure to thoroughly investigate the charge on your credit card account. Verify important information such as who the merchant was, the date and time of the purchase, and what card number was charged. Also be sure it wasn’t a payment that you may have made and forgotten about.

Step 2: Gather Evidence About The Charge

When preparing to dispute a charge, you as the cardholder should gather as much relevant evidence as possible to present to your bank. Carefully review your credit card statement to find any previous transaction history you may have with the merchant.

Step 3: Contact The Correct Party

If possible, contact the merchant before disputing the charge with your bank. Sometimes the retailer that charged your card can resolve your issue quicker than your bank, as it may simply be a result of a billing error. If your issue is not resolved this way, proceed to contact your credit card issuer through your banking app, in person, or over the phone. You can find your issuer's phone number on the back of your credit card or on your credit card statement.

Step 4: Take Action

Taking action in a card dispute means formally communicating your financial concerns with your bank. One of the most effective methods of doing so is by sending a dispute letter to your credit card issuer. This letter should include any relevant evidence/information you have collected about your dispute along with your name, address, and account number. You may send this letter via certified mail with a return receipt to maintain a paper trail of your communication. Be sure to send this letter in a timely manner so your issuer receives it within 60 days from the initial charge – otherwise it may be harder to dispute. Keep track of your communication with your issuer by keeping copies of your dispute letter and any follow-up communications.

FAQs: Disputing A Credit Card Charge

Credit card disputes can have many rules and guidelines. Here are the most common questions asked when disputing a credit card charge.

Can credit card disputes affect my credit score?

Filing a credit card dispute does not typically negatively impact your credit score. When your bank or credit card company further investigates the disputed charges, there could be temporary changes that will affect your credit if things don’t result in your favor. An example of this is if the charge is upheld on your account. Or, if compromising information is revealed in this process, this could certainly impact your credit.

My debit card was charged for something I didn’t buy. Can I dispute it?

Yes, you can dispute a debit card charge that you did not make. For a debit card, you can dispute unauthorized charges, but it may be more time-sensitive, and your liability protections may vary depending on when you report the fraud and your bank's policies. In the case of a credit card, you can typically report the unauthorized charge to your credit card issuer, and they will investigate and potentially remove the charge from your statement.

How long do I have to dispute credit card charges?

Typically, you will have 60 days from the date of your credit card statement that shows the charge to dispute it with your credit card issuer. After this window of time, your ability to dispute the charge lessens, and you could be held responsible for the charge.

What if the credit card company denied my dispute?

Your credit card company can deny your dispute for a number of reasons including insufficient amount of evidence, the charge not being recent enough, or no proof indicating merchandise was returned. If your dispute results in denial, the charge could go back onto your credit card; however, if you would still like to uphold your dispute, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). Alternatively, you could file an appeal with your credit card company.

The Bottom Line: Collect Evidence And Contact The Right People To Dispute A Credit Card Charge

Disputing a credit card charge can have many caveats and stipulations. Keeping an eye on your financial transactions is the most efficient way to catch an unfamiliar charge. By remaining attentive, you can dispute incorrect charges early and ensure your financial transactions remain in your control. Being informed and proactive is key to a secure financial future. Download the Rocket Money℠ app so you can track your spending in one place.