How Long Do You Have to Dispute a Charge?

When an unexpected or incorrect charge appears on your financial statement, understanding how to dispute it is important. A charge dispute involves formally questioning a transaction with your financial institution, seeking its removal or correction. Common reasons for a dispute include unauthorized transactions, billing errors, or issues where goods or services were not delivered as agreed. Acting promptly is advisable, as time limitations apply.

Understanding Dispute Timeframes

The timeframe to dispute a charge depends on the type of card used (credit or debit) and the nature of the error. For credit card transactions, the Fair Credit Billing Act (FCBA) provides specific protections. This federal law grants consumers 60 days from the date they receive the credit card statement containing the error to submit a dispute to their card issuer. Billing errors covered by the FCBA include unauthorized charges, incorrect transaction amounts, charges for items not accepted or delivered, and calculation errors.

For debit card transactions and other electronic fund transfers (EFTs), the Electronic Fund Transfer Act (EFTA) governs consumer protections. If your debit card is lost or stolen and used for unauthorized transactions, your liability depends on how quickly you report the loss. Reporting the loss or theft within two business days limits your maximum liability to $50.

If you report after two business days but within 60 calendar days of the statement date showing the unauthorized transaction, your maximum liability could increase to $500. Failing to report within 60 days of the statement date could result in unlimited liability for transactions occurring after that 60-day period. For other types of debit card errors, such as incorrect amounts or uncredited deposits, you have 60 days from the statement date to notify your financial institution.

Gathering Information for Your Dispute

Before initiating a dispute, collect all relevant information and documentation. Begin by identifying specific details about the charge, including the transaction date, the exact amount, the merchant’s name, and any available transaction identification numbers. This information helps your financial institution quickly locate the transaction.

Gather any supporting documentation that can substantiate your claim. This might include receipts, order confirmations, or invoices related to the purchase. If the dispute involves services not rendered or goods not delivered, retain copies of communication with the merchant, such as emails, chat logs, or call records. For returned items, proof of return, like shipping labels or confirmation emails, can be valuable. Maintaining personal records, such as bank and credit card statements, allows for prompt identification of discrepancies.

Navigating the Dispute Resolution Process

Once you have gathered all necessary information, initiate the dispute with your financial institution. Most banks and credit card issuers offer several methods to begin this process, including phone calls, online portals, or sending a written letter. While verbal notification is possible, it is advisable to follow up with a written submission to ensure a clear record of your dispute. Submitting your dispute within the established timeframes is important to protect your consumer rights.

When submitting your dispute, provide all the documentation you previously collected. For online portals, you will upload digital copies of receipts, communications, and other evidence. If mailing a written dispute, include copies, not originals, of your supporting documents and keep a copy of everything for your records.

After receiving your dispute, the financial institution is required to acknowledge it in writing within 30 days for credit card disputes. They may issue a provisional credit for the disputed amount, particularly for debit card issues, while they investigate. The investigation process for credit card disputes can take up to 90 days, while debit card investigations are typically resolved within 10 business days, though they can extend to 45 or even 90 days under certain circumstances. Upon conclusion, the financial institution will inform you of their decision and, if the dispute is denied, provide an explanation and your rights to appeal.