How Long Do You Have to Dispute Credit Card Charges?

Disputing credit card charges allows consumers to challenge erroneous or unauthorized transactions. This process helps protect personal finances by ensuring credit card statements accurately reflect legitimate purchases and services.

Understanding Your Dispute Rights and Timeframes

Federal safeguards exist for credit card billing issues. The Fair Credit Billing Act (FCBA), codified at 15 U.S.C. § 1666, provides federal safeguards for individuals using open-ended credit accounts, such as credit cards.

Under the FCBA, consumers generally have a 60-day window to notify their credit card issuer of a billing error. This 60-day period begins from the date the first monthly billing statement containing the error was sent. Notification must typically be sent in writing to the address designated for billing inquiries. While some credit card providers may offer longer dispute periods, the 60-day timeframe is the federally mandated minimum.

The FCBA mandates that once a written dispute is received, the creditor must acknowledge it within 30 days. Following this acknowledgment, the issuer has a maximum of two billing cycles, or 90 days, whichever is shorter, to investigate and resolve the dispute. During this investigation period, the consumer can withhold payment for the disputed amount, and the creditor cannot attempt to collect it or report it as delinquent to credit bureaus.

Identifying Disputable Charges

The Fair Credit Billing Act covers several specific categories of billing errors that consumers can dispute. These errors are generally related to inaccuracies on the credit card statement, rather than issues with the quality of goods or services.

One common type of disputable charge is an unauthorized transaction, which includes purchases made without the cardholder’s permission or due to fraud. Incorrect amounts charged for a legitimate purchase, or charges for goods or services that were never delivered or accepted as agreed, also fall under the FCBA’s definition of a billing error. This also extends to situations where goods were received but were not as described.

Further examples of disputable charges include double billing, where a transaction appears twice, or calculation errors on the statement. Payments made but not properly credited to the account, or a failure to reflect a credit for returned merchandise, are also considered billing errors. Charges for which the consumer needs clarification or proof of purchase can also be disputed under the act.

Preparing Your Dispute

Before formally notifying your credit card issuer, it is often beneficial to attempt to resolve the issue directly with the merchant. This direct approach can sometimes lead to a quicker resolution without needing to involve your credit card company. When contacting the merchant, record the date and time of the interaction, the name of the representative you spoke with, and a summary of your discussion. Note any proposed resolutions and the outcome of the conversation.

Gathering comprehensive information is a necessary step before initiating a dispute with your issuer. You should collect:
The transaction date and exact amount of the charge.
The merchant’s name and contact details.
A clear and concise description of the goods or services involved.
The specific reason for your dispute.

Supporting documentation strengthens your case significantly. This includes receipts, order confirmations, and any written communications (emails or messages) exchanged with the merchant regarding the issue. For damaged goods, photographs can serve as valuable evidence, and for unauthorized charges, a police report can be relevant.

The Official Dispute Process with Your Issuer

Once all necessary information has been compiled, initiating the formal dispute process with your credit card issuer is the next step. While some issuers allow disputes via phone or online portals, sending a written notice is generally recommended as it creates a clear paper trail, which is important for your records. The written notice should be sent to the specific address provided by your issuer for billing inquiries. It should include:
Your name
Account number
The transaction details
A clear explanation of the billing error

Many issuers may provide a provisional credit to your account for the disputed amount while the investigation is ongoing. This temporary credit offers financial relief, but it is not a final resolution and can be reversed if the dispute is ultimately denied.

Upon completion of their investigation, the issuer must inform you of their findings. If the dispute is found in your favor, the charge will be reversed; if denied, the issuer must provide a written explanation for their decision. Should your dispute be denied, you can request a written explanation for the denial and may appeal the decision with the issuer, often within a short timeframe, such as 10 days. You also have the option to escalate the matter by filing a complaint with regulatory bodies like the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC).