How to Dispute a Charge With Your Bank

An unfamiliar or incorrect charge on your bank statement can be confusing. Banks offer established processes for addressing these discrepancies, whether on a debit or credit card statement. Understanding these procedures and acting promptly are important steps in resolving such financial matters. This guide provides information on effectively navigating the process of disputing a charge with your financial institution.

Understanding Disputable Transactions

You can dispute a transaction with your bank for several reasons. These include unauthorized charges, which occur when your payment card is used without your consent due to loss, theft, or compromised details. Other common reasons involve billing errors, such as duplicate charges, incorrect amounts, or charges for canceled subscriptions or services that were still applied. You may also dispute charges for goods or services not received, or if items received were significantly different from their description.

Consumer protection laws establish specific time limits for reporting these errors. For debit card transactions, Regulation E provides protections for electronic fund transfers. Consumers have 60 days from the statement date to report an error to their financial institution. For credit card transactions, the Fair Credit Billing Act requires disputes to be submitted within 60 days from the statement date. While some credit card networks and issuers may offer extended periods, acting within the initial 60-day window ensures full legal protection.

Before initiating a formal dispute, review the transaction details. A charge may appear unfamiliar because a merchant uses a different business name, or it could be a forgotten recurring payment or a purchase by another authorized cardholder. Contacting the merchant first can often resolve issues more quickly, such as obtaining a refund or correcting a billing mistake, potentially avoiding a bank dispute.

Preparing Your Dispute Information

Gathering specific information and supporting documentation is important before contacting your bank. This preparation helps substantiate your claim and streamline the dispute process. Collect these essential details:

The precise transaction date
The exact amount of the charge
The name of the merchant involved
Any reference numbers, such as an authorization code

Supporting documentation provides verifiable evidence for your dispute. A copy of your bank statement showing the disputed charge is necessary. If the charge relates to a purchase, gather receipts, order confirmations, or invoices. Any communication with the merchant regarding the issue, such as emails, chat logs, or notes from phone calls including dates, times, and names of representatives, is useful. This demonstrates your attempt to resolve the issue directly.

In cases of suspected fraud or identity theft, a police report is strong evidence. This formal documentation lends credibility to your claim of unauthorized activity. Organize all collected information clearly, as the bank will require these details to investigate your claim thoroughly. Having everything ready before you contact them can help expedite the initial filing process.

Filing Your Dispute with the Bank

Once all necessary information and documentation are prepared, you can file your dispute with the bank. Financial institutions offer several methods for initiating a claim. The most common avenues include online portals, phone calls, or sending a dispute letter via mail.

Many banks provide an online dispute resolution feature through their website or mobile application. This method allows you to navigate to the specific transaction on your statement, select a “dispute transaction” option, and fill out an electronic form. You will be prompted to enter the details you prepared, such as the date, amount, merchant, and reason for the dispute, and may upload supporting documents directly. Ensure the transaction has posted, as pending charges cannot be disputed.

Alternatively, you can contact your bank’s customer service or fraud department by phone. When calling, have all your prepared information available, including your account number and transaction details, as the representative will ask for these to verify your identity and initiate the claim. Note the date and time of your call, the name or ID of the representative, and request a dispute reference number for your records. This reference number helps track your claim’s progress.

For those who prefer a written record or if required by the bank, disputes can be filed via mail. This involves sending a formal dispute letter that clearly outlines the transaction details and the reason for the dispute. Include copies of all relevant supporting documents, but retain the originals. Sending the letter via certified mail with a return receipt requested provides proof of mailing and delivery.

The Bank’s Investigation and Resolution

After you file your dispute, the bank begins its investigation. The timeline for this process can vary, ranging from 10 to 90 days, depending on the charge type and case complexity. Federal regulations guide these timeframes. For debit card disputes under Reg E, banks resolve within 10 business days, or may extend the investigation up to 45 or 90 days for certain transaction types. For credit card disputes under FCBA, the issuer must acknowledge your complaint within 30 days and resolve the matter within two billing cycles, or up to 90 days.

During the investigation, especially for debit card disputes, the bank may issue a provisional credit to your account. This temporary credit, for the full disputed amount, allows you access to the funds while the bank reviews your claim. Remember that this credit is provisional and can be reversed if the investigation concludes the dispute is not valid. The bank will notify you within two business days if a provisional credit is issued.

The investigation may involve the bank contacting the merchant for more information or evidence. Once the bank completes its review, it will inform you of the outcome. Possible resolutions include the dispute being upheld, meaning the charge is permanently removed from your account, or the dispute being denied, in which case the charge remains, and any provisional credit may be reversed. If the dispute is denied, the bank should provide a written explanation of its findings. Keep records of all communications with the bank and respond promptly to any requests for additional information to avoid delays. If a dispute is denied and you disagree, you may appeal the decision with the bank or file a complaint with consumer protection agencies, such as the Consumer Financial Protection Bureau (CFPB).