How to Stop a Payment on a Credit Card

Credit cards offer a convenient and secure way to manage purchases. However, situations can arise where a cardholder needs to challenge a charge on their statement. Consumers can dispute or stop certain payments, a process that provides protection against billing inaccuracies.

Situations for Stopping a Payment

Stopping a payment on a credit card, often called disputing a charge, applies under specific circumstances. Unauthorized transactions, such as those from fraud or a stolen card, are primary reasons. Federal law, the Fair Credit Billing Act (FCBA), limits consumer liability for unauthorized charges to $50. Additionally, charges for goods or services that were not received, were not as described, or were defective, also qualify.

Billing errors, including duplicate charges, incorrect amounts, or mathematical mistakes on the statement, are another common category. If a consumer cancels a service or subscription but continues to be charged, this is also a valid reason. The FCBA outlines a dispute process for these errors, while card networks and issuers establish their own detailed procedures.

Gathering Information Before Contacting Your Bank

Before contacting a credit card issuer to dispute a charge, gathering specific information can streamline the process. Identify the exact transaction details, including the date of the transaction, the merchant’s name, and the precise amount of the charge. It is also helpful to have a clear description of the goods or services. Any supporting documentation, such as receipts, order confirmations, or contracts, should be collected.

Documentation of attempts to resolve the issue directly with the merchant is beneficial, as many issuers may require this step first. This can include dates and times of communication, names of individuals spoken to, and summaries of conversations or written exchanges. Demonstrating a good-faith effort to resolve the problem with the seller can strengthen a dispute claim.

Contacting Your Credit Card Issuer

Initiating a dispute with a credit card issuer involves contacting them through various channels. Most issuers provide options such as phone calls, online portals, or written letters. When making contact, be prepared to provide the specific transaction details previously gathered, such as the date, merchant, and amount. For online disputes, selecting the problematic transaction from recent activity and following prompts to report an issue.

If contacting by phone, locate the customer service number on the back of the credit card or on the issuer’s website. Clearly explain the nature of the dispute to the representative. Following an initial phone call with a written dispute, sent via mail or an online portal, is recommended to protect consumer rights under the Fair Credit Billing Act. This written notice should be sent within 60 days of the statement showing the error to ensure legal protections.

What Happens After You File a Dispute

Once a dispute is filed, the credit card issuer begins an investigation into the contested charge. The issuer must acknowledge receipt within 30 days and generally has two billing cycles, or no more than 90 days, to investigate and resolve the claim. During this investigation period, the consumer is typically not responsible for paying the disputed amount, nor will interest accrue on that specific charge. Many issuers will provide a temporary or provisional credit to the account for the disputed amount while the investigation is underway.

The issuer acts as a mediator, often contacting the merchant and their bank to gather information and evidence. The merchant has an opportunity to respond and provide evidence to validate the charge. If the investigation concludes that a billing error occurred, the charge will be removed, and any temporary credit will become permanent. Conversely, if the issuer determines the charge is valid, the temporary credit may be reversed, and the consumer will be notified in writing, including the reason for the decision and the amount owed.