Is There a Time Limit to Dispute a Credit Card Charge?

Navigating credit card statements can sometimes reveal unfamiliar or incorrect charges. Understanding the process for disputing these charges is an important aspect of consumer protection. Federal laws and credit card issuer policies provide a framework for addressing these discrepancies.

Key Time Limits for Disputes

The Fair Credit Billing Act (FCBA) establishes a primary time limit for disputing “billing errors” on credit card statements. Consumers generally have 60 days from the date the first statement containing the error was mailed or made available to them to notify their issuer.

If a dispute is not submitted within this timeframe, cardholders may lose certain legal rights to challenge the charge under federal law. While 60 days is the federal standard, some credit card issuers and card networks may offer extended courtesy periods beyond this minimum. However, relying on the FCBA’s 60-day requirement ensures the strongest consumer protections.

Types of Charges You Can Dispute

Many types of credit card charges qualify for a dispute. Unauthorized charges, often indicative of fraud, are a common reason for initiating a dispute. These include purchases made by someone without permission to use the account.

Billing errors encompass a range of issues such as incorrect amounts charged, duplicate transactions for the same item or service, or charges for goods or services not received. If a credit for a returned item was not processed, or if a service was not provided as agreed, these can also be disputed. Charges for products that were damaged during shipping or not as described may also be eligible for dispute.

Steps to Dispute a Charge

Initiating a credit card dispute involves several steps. The first action is to contact your credit card issuer directly and promptly. Many issuers provide options for reporting a problem through their online portals or by phone.

When contacting the issuer, be prepared to provide specific details about the charge, including the account number, transaction date, merchant name, and exact amount. A clear explanation of why the charge is being disputed is also necessary. It is advisable to follow up any initial phone or online contact with a written letter, sent within the 60-day window, preferably by certified mail with a return receipt requested. This written communication creates a formal record and helps preserve your rights under the FCBA. Keeping copies of all correspondence and supporting documentation, such as receipts, is also important for your records.

What Happens After You File a Dispute

Once a dispute is filed, the credit card issuer is required to acknowledge receipt of your complaint, typically within 30 days if sent in writing. During the investigation, the issuer often provides a temporary credit, known as a provisional credit, for the disputed amount. This credit prevents you from having to pay the disputed amount or any associated finance charges while the investigation is ongoing, though you remain responsible for other undisputed balances.

The credit card issuer will then investigate the claim, which may involve contacting the merchant and reviewing evidence. This investigation process generally takes up to two billing cycles, but it cannot exceed 90 days from the time the dispute was received. Upon conclusion, the issuer will inform you of their decision. If the dispute is resolved in your favor, the charge will be permanently removed; otherwise, the original charge will be reinstated, and any provisional credit will be reversed.