A dispute charge, commonly called a chargeback, is a formal request you make to your credit card issuer to reverse a transaction on your account. You’re essentially telling your bank that a charge is wrong, whether because you didn’t authorize it, the amount is incorrect, or you never received what you paid for. The bank then investigates and decides whether to remove the charge from your bill. Federal law gives you the right to do this, and the process is free.
When You Can Dispute a Charge
The Fair Credit Billing Act protects consumers who use credit cards and revolving charge accounts. Under this law, you can dispute billing errors that fall into several categories:
- Unauthorized charges. Someone used your card without your permission, whether through theft, a data breach, or a fraudulent transaction you never made.
- Wrong amounts or dates. The merchant charged you $150 instead of $15, billed you twice, or posted the transaction on the wrong date.
- Goods not delivered as agreed. You paid for something that never arrived, or what you received was significantly different from what the merchant promised.
- Missing credits. You returned an item or were promised a refund, but the credit never appeared on your statement.
- Requests for clarification. You see a charge you don’t recognize and want an explanation or written receipt.
- Bills sent to the wrong address. Your issuer mailed statements to an old address, as long as you notified them of your new address in writing at least 20 days before the billing period ended.
There’s also a separate protection for quality problems. If you bought something that turned out to be defective or misrepresented, you may be able to dispute it, but only if the purchase was more than $50, it happened in your home state or within 100 miles of your billing address, and you tried to resolve the problem with the seller first.
How the Dispute Process Works
Disputing a charge follows a predictable timeline with specific deadlines for both you and your card issuer.
Start by contacting your credit card company. Most issuers let you open a dispute through their app or website, though you can also call or send a written letter. For billing errors specifically, the law gives you 60 days from the date the statement containing the charge was mailed to you. Missing that window doesn’t necessarily mean you’re out of luck, but it weakens your legal protections significantly.
Once you file, your issuer has 30 days to acknowledge receipt of your dispute. During this period, you don’t have to pay the disputed amount, and the issuer cannot report it as delinquent or take any action that hurts your credit standing. That protection stays in place throughout the investigation.
The issuer then has 90 days to complete its investigation. During this process, the bank reviews your card’s transaction history, contacts the merchant for evidence (which can include receipts, delivery confirmations, or even security footage), and uses automated fraud detection tools. You’ll likely be asked to provide supporting documentation on your end, such as screenshots of order confirmations, emails with the merchant, or photos of damaged goods.
What Happens After the Investigation
If the issuer rules in your favor, the charge is permanently removed from your account along with any related interest or fees. Your statement will show a credit for the disputed amount.
If the issuer denies your dispute, it must contact you with an explanation and, if you request it, provide the documentary evidence that supports its decision. You’re then responsible for paying the charge. However, you have the right to appeal within 10 days of being notified about the denial, or before the deadline to pay the disputed amount, whichever comes later. This gives you a second chance if you have additional evidence or believe the investigation missed something.
Disputes vs. Contacting the Merchant Directly
Filing a dispute with your bank isn’t always the first step you should take. For straightforward issues like a double charge or a missing refund, calling or emailing the merchant can often resolve things faster. Many merchants will process a refund within a few business days, while a formal bank dispute can take up to 90 days.
A bank dispute makes more sense when the merchant is unresponsive, refuses to issue a refund, has gone out of business, or when you’re dealing with outright fraud. For quality-related complaints specifically, the law actually requires you to try resolving the issue with the seller before disputing through your card issuer.
What to Know Before You File
While there’s no fee to dispute a charge, the process isn’t without consequences worth considering. Merchants who lose chargebacks pay fees on their end, and some maintain internal records of customers who file disputes. Retailers and subscription services may close your account or refuse future business if you dispute a charge they believe was legitimate.
Filing frivolous or dishonest disputes, sometimes called “friendly fraud,” can also backfire. If your issuer determines you received the goods and had no valid reason for the dispute, it can deny your claim and may flag your account. Repeated baseless disputes could lead your card issuer to close your account entirely.
Keep records of everything related to the disputed transaction: order confirmations, shipping notifications, correspondence with the merchant, and screenshots of product listings. The stronger your documentation, the more likely the investigation resolves in your favor. If you’re disputing an unauthorized charge, check your other accounts and consider updating your passwords and requesting a new card number to prevent further fraudulent activity.