How Many Days Do You Have to Dispute a Credit Card Charge?

Inaccuracies or unauthorized transactions can appear on credit card statements. Understanding how to dispute a credit card charge is a key consumer right. The Fair Credit Billing Act (FCBA) provides federal protections for cardholders, establishing clear processes for addressing billing errors and limiting liability for incorrect or fraudulent charges.

Understanding Dispute Deadlines

Federal law provides specific timeframes for disputing credit card charges, which consumers must adhere to to preserve their rights. The Fair Credit Billing Act (FCBA), enacted in 1974, stipulates that consumers have 60 days to dispute a “billing error” after the first statement containing the error was sent. This 60-day period begins from the date you receive the statement, not necessarily the transaction date itself.

Prompt action upon identifying a suspicious charge is always advisable, even if the 60-day window seems sufficient. While the FCBA establishes a federal baseline, many credit card issuers offer more generous policies, sometimes extending the dispute window for certain types of claims, such as unauthorized charges. For instance, many issuers offer “zero-liability” policies if reported promptly, which can provide greater protection than the FCBA’s $50 liability limit for unauthorized charges reported within 60 days.

For full legal protection, disputes generally need to be submitted in writing. This formal notification ensures that the credit card issuer acknowledges your complaint within 30 days and has up to two billing cycles, or a maximum of 90 days, to investigate and resolve the issue. During this investigation period, the issuer cannot attempt to collect the disputed amount, charge interest on it, or report it as late to credit bureaus.

Common Reasons for Disputes

Credit card disputes typically arise from various billing errors. Common reasons include:
Unauthorized charges: Transactions you did not approve, which may signify fraudulent activity or the use of a lost or stolen card.
Incorrect amounts: Charges listed for a different sum than what was actually agreed upon or processed.
Goods or services not received: This includes situations where an item was paid for but never arrived, or if a service was cancelled but the charge persisted.
Duplicate charges: The same transaction appearing multiple times on your statement.
Calculation errors: Such as incorrect totals or mathematical mistakes made by the creditor.
Goods or services not as described: Items received were significantly not as described or were damaged upon delivery.

While the FCBA provides a framework for these types of billing errors, it generally does not cover disputes related solely to the quality of goods or services if they were otherwise delivered as expected.

Preparing Your Dispute

Before contacting your credit card issuer, gather all relevant information and documentation concerning the disputed charge. Begin by clearly identifying the specific transaction, including its exact date, the merchant’s name, and the precise amount. Having your credit card statement readily available will help pinpoint these details accurately.

Collect any supporting documents that can substantiate your claim. This might include receipts, order confirmations, shipping confirmations, or contracts related to the purchase. If the dispute involves a service, any written agreements or booking confirmations are also valuable. For issues like non-delivery or damaged goods, photographic evidence or tracking information can strengthen your case.

It is also beneficial to document any attempts you made to resolve the issue directly with the merchant. Record the dates and times of your communications, the names of individuals you spoke with, and a summary of the discussions. Keep copies of any emails, letters, or chat transcripts exchanged with the merchant. This documentation demonstrates a good-faith effort to resolve the problem before escalating it to your card issuer.

Initiating and Following Up on Your Dispute

Initiating your dispute involves formally notifying your credit card issuer. While many issuers allow initial contact by phone or through online portals, it is strongly recommended to follow up with a written communication to ensure full legal protection under the Fair Credit Billing Act. This written notice should be sent to the specific billing inquiries or error resolution address provided by your card issuer, not the general payment address.

Your written dispute letter should clearly state your name, account number, the transaction date, the disputed amount, and a concise explanation of why you believe there is an error. Include copies of all supporting documents you prepared, such as receipts, communication with the merchant, and any other evidence that bolsters your claim. Keep original documents for your records and send copies. The issuer must acknowledge receipt of your complaint in writing within 30 days.

Following acknowledgment, the credit card issuer conducts an investigation, which typically takes up to two billing cycles or 90 days. During this period, the issuer may provide a “provisional credit” to your account, temporarily removing the disputed amount while the investigation proceeds. This temporary credit allows you access to the funds, but it can be reversed if the dispute is ultimately resolved in the merchant’s favor.

The issuer will communicate with the merchant, who then has the opportunity to present their side and evidence. Upon conclusion of the investigation, you will be notified of the final decision. If the dispute is found in your favor, the provisional credit becomes permanent, and any associated finance charges are removed. If the dispute is denied, the issuer must provide a written explanation, and the provisional credit, if issued, will be reversed.