How Long Do I Have to Dispute a Debit Card Charge?

Debit cards offer convenient access to funds, but errors or unauthorized activity can occur. Understanding how to dispute a debit card charge is important for protecting your financial well-being. This knowledge helps address issues promptly and effectively.

Key Timeframes for Disputing Charges

Regulation E of the Electronic Fund Transfer Act (EFTA) establishes timelines for disputing debit card charges. For unauthorized transactions, prompt notification limits your liability. If you report a lost or stolen debit card within two business days of learning about the loss, your maximum liability for unauthorized transactions is limited to $50. However, if you notify your bank after two business days but within 60 calendar days of your statement showing the unauthorized transfer, your liability could increase to as much as $500.

Beyond this, if an unauthorized transaction appears on your bank statement and you do not report it within 60 calendar days of the statement’s issue date, you could be held liable for all unauthorized transfers that occur after that 60-day period. While federal law provides these guidelines, some banks or card networks may offer additional protections, such as zero-liability policies, which can further limit your responsibility for fraudulent charges.

For issues beyond unauthorized transactions, such as goods not received or services not rendered, card network rules often provide different timeframes. For example, Visa allows cardholders up to 120 days from the transaction or expected delivery date to file a dispute for issues like merchandise not received, defective goods, or canceled recurring transactions. Mastercard also provides a 120-day limit for most chargebacks, though some specific issues may have a shorter 45-day deadline. The start date for these timeframes can vary, measured from the transaction date, the expected delivery date, or the statement date.

Common Types of Disputable Transactions

Unauthorized transactions are a common reason for disputes, occurring when someone uses your card details without permission due to theft or fraud, including stolen physical cards or compromised online information. Billing errors also frequently lead to disputes, such as incorrect amounts, duplicate charges, or charges for undelivered goods or services.

If you cancel a subscription or recurring payment but charges continue, this is also disputable. Disputes can also arise if you receive merchandise significantly different from its description or that is defective.

Initiating a Debit Card Dispute

When you identify a charge to dispute, contact your bank promptly. Many financial institutions offer multiple channels for initiating a dispute, including phone, online portals, or in-person visits to a branch. Even if you begin the process verbally or online, your bank may require a written follow-up to formalize the dispute, especially for issues covered under Regulation E.

When contacting your bank, be prepared to provide specific details about the transaction. This includes your account number, the transaction date, the merchant’s name, and the exact charge amount. A clear, concise explanation of why you are disputing the charge is also important. For instance, state whether it was an unauthorized transaction, a duplicate charge, or an item not received.

Following up any initial contact with a written communication is a good practice, as it creates a record of your dispute. Sending this letter via certified mail can provide proof of delivery. The written communication should reiterate all the details provided during your initial contact and request a formal investigation. Gather any supporting documents, such as receipts, order confirmations, or records of communication with the merchant, as these can strengthen your claim.

What Happens After Filing Your Dispute

Once you file a dispute, your bank will begin an investigation into the claim. This process often involves the bank contacting the merchant to gather their perspective and evidence regarding the transaction. For unauthorized transactions, particularly those covered by Regulation E, your bank may issue a provisional credit to your account while the investigation is ongoing.

This temporary credit allows you access to the disputed funds. It is important to understand that this provisional credit can be reversed if the investigation concludes that the dispute is not valid, or if the merchant provides sufficient evidence to refute your claim.

The timeline for resolution varies, but banks aim to complete investigations within specific timeframes. Under Regulation E, financial institutions have 10 business days to investigate and report back. If more time is needed, the investigation can extend up to 45 days, or even 90 days for certain point-of-sale or out-of-state transactions, provided a provisional credit was issued within the initial 10-day period. Upon completion of the investigation, the bank will notify you of the outcome, which could result in the charge being permanently removed, or the dispute being denied with an explanation.