How to Dispute a Charge With Your Bank

Disputing a charge with your bank is a fundamental consumer right when facing unauthorized or incorrect transactions. Banks provide mechanisms to resolve these issues, ensuring account accuracy. Understanding this process is important for protecting your financial well-being. This guide outlines the necessary steps, from preparing your claim to understanding the bank’s investigation and potential outcomes.

Preparing Your Dispute

Before contacting your bank, gather all relevant information and documentation. Disputable charges often include unauthorized transactions, incorrect amounts, duplicate billing, services not received, or goods not as described. Examples include being charged twice for a single purchase or a canceled subscription continuing to bill you.

The evidence you collect is crucial for your dispute’s success. This includes the transaction date, exact amount, and merchant’s name as it appears on your statement. Gather any receipts, order confirmations, or contracts related to the transaction. If you attempted to resolve the issue directly with the merchant, collect proof of communication, such as emails, call logs, or chat transcripts.

Observe time limits for disputing charges. For credit card billing errors, federal regulations require written notification to your bank within 60 days of the statement date. While some banks may offer more lenient timeframes, adhering to the 60-day rule is a reliable approach. For debit card transactions, the Electronic Fund Transfer Act (EFTA) also sets dispute timelines, often requiring notification within 60 days of the statement showing the error. Your dispute form should detail the transaction, explain the reason, and include supporting documentation.

Initiating the Dispute Process

After preparing your dispute, formally submit it to your bank. Most financial institutions offer several methods: online banking portals, phone calls, mail, or visiting a physical branch.

For online submissions, log into your account, navigate to the transaction, and follow prompts to report a problem. This involves selecting the transaction and providing details through an online form. Upload all prepared documentation. Phone calls offer a direct way to speak with a representative. Note the date, time, representative’s name, and request a reference number.

If submitting via mail, download and complete a transaction dispute form from your bank’s website. Send this form, along with copies of all supporting documents, to the specific billing inquiries address. Regardless of the method chosen, always obtain confirmation of your submission, such as a reference number for phone or online disputes, or a return receipt for mailed documents. This confirmation serves as proof your dispute has been officially initiated and allows tracking its progress.

Understanding the Bank’s Review

After you initiate a dispute, your bank begins an internal investigation to determine your claim’s validity. The bank communicates with the merchant and reviews all evidence provided. This process involves analyzing transaction records, cardholder details, and any documentation you submitted to ascertain whether a billing error or unauthorized activity occurred.

A common aspect of this review is provisional credit. This temporary refund is credited to your account while the investigation is ongoing. It allows access to disputed funds, preventing undue financial hardship. While provisional credit provides immediate relief, it is temporary and can be reversed if the investigation concludes against your favor.

Investigation timelines vary. Federal regulations for credit card billing errors require banks to acknowledge your dispute within 30 days and complete their investigation within two billing cycles, not exceeding 90 days. For debit card disputes, banks have 10 business days to investigate, which can extend up to 45 or 90 days if provisional credit is provided. Your bank communicates updates through online banking messages, email, or mail.

Resolution and Next Steps

The bank’s investigation concludes with a determination, resulting in one of two main outcomes. If the bank finds in your favor, the dispute is granted, and a chargeback is processed. The disputed charge is permanently removed from your account, and any provisional credit received becomes permanent. The credit appears on your statement as of the original transaction date, correcting the error.

Conversely, if the bank denies your dispute, the original charge remains on your account, and any provisional credit granted is reversed. When denied, the bank is required to provide a reason and may offer supporting documentation. Understanding the reason for denial clarifies why the bank determined the charge valid or your claim unsubstantiated.