How to Block Charges on a Credit Card

“Blocking charges” on a credit card refers to disputing transactions that appear unauthorized, incorrect, or fraudulent on a credit card statement. Credit card companies offer protections to safeguard consumers from billing errors and unauthorized activity. This dispute mechanism allows cardholders to address discrepancies and avoid responsibility for illegitimate charges.

Identifying Disputable Charges

A credit card charge can be disputed under several common scenarios. Unauthorized or fraudulent charges occur when a credit card number is used without permission, such as in cases of a stolen card, compromised account information, or identity theft. Consumers generally have limited liability for these charges, often capped at $50 under the Fair Credit Billing Act, though many card issuers provide zero-liability policies.

Disputes also arise from billing errors, like an incorrect amount charged or duplicate transactions. Goods or services not received, meaning purchased items were never delivered or a service was not performed as promised, are also disputable.

Charges for defective or misrepresented goods and services, where items received differ significantly from their description, frequently lead to disputes. Additionally, transactions that should have been reversed due to a cancellation or return but were not processed by the merchant also qualify.

Gathering Details for Your Dispute

Before contacting a credit card issuer to dispute a charge, collect specific information and documentation.

Transaction Details

Gather all transaction details, including:
The exact date of the charge
The merchant’s name
The precise amount
The last four digits of the credit card used
Any transaction identification numbers

Merchant Communication

If the dispute involves an issue with a merchant, such as unreceived goods, gather proof of attempts to resolve the issue directly with them. This includes dates of communication, names of individuals spoken to, and a summary of discussions. Retain copies of emails, chat transcripts, or call logs as evidence. Attempting merchant resolution often strengthens a dispute.

Supporting Documentation

Further documentation can support your claim. This includes:
Receipts
Order confirmations
Contracts
Delivery confirmations or evidence of non-delivery
Photographs for defective or misrepresented items
Screenshots of product descriptions or terms and conditions
Personal notes or a chronological log of events

Review your credit card statements to pinpoint the exact charge, as this will be the primary reference point for the issuer.

Submitting Your Dispute to the Card Issuer

Once all necessary information has been gathered, formally initiate the dispute process with your credit card issuer. Most issuers offer several contact methods, including a dedicated dispute phone number, an online portal, or the option to submit a written dispute via mail. It is advisable to choose the method that best suits the nature of your claim and your comfort level.

Adhering to time limits is important. Under the Fair Credit Billing Act, consumers generally have 60 days from the statement date on which the error first appeared to notify their credit card company in writing. Promptly reporting a discrepancy increases the likelihood of a successful resolution.

Submitting Your Dispute

Online Portal: Log into your account, locate the transaction, select the dispute reason, and upload supporting documents.
Phone: Be prepared to provide all details verbally and request a case or reference number.
Written Mail: Draft a letter outlining the issue and include copies of relevant documentation. Send it to the billing inquiries address, often via certified mail for proof of delivery.

What Happens After You File a Dispute

After you submit a dispute, the credit card issuer will acknowledge its receipt and begin an investigation. Under the Fair Credit Billing Act, the issuer must acknowledge your dispute within 30 days of receiving it, unless the problem is resolved. During the investigation, the issuer cannot attempt to collect the disputed amount, charge interest on it, or report it as delinquent to credit bureaus.

Many card issuers issue a provisional credit for the disputed amount while the investigation is ongoing. This temporarily reverses the charge, preventing you from having to pay it during the review period. It is not a final resolution and can be reversed if the investigation concludes the charge was valid. The investigation typically takes up to two billing cycles, but generally not longer than 90 days.

Throughout the investigation, the card issuer may contact you or the merchant for additional information. If the dispute is found in your favor, the charge will be permanently removed from your account, a process known as a chargeback. If denied, the issuer must provide an explanation for their decision, along with supporting documentation upon request. Should a dispute be denied and you believe the decision is incorrect, you generally have a limited timeframe, often around 10 days, to appeal or provide further evidence. Monitoring your credit card statements is important to confirm the final resolution.