How to Dispute a Credit Card Charge

Steps to dispute a credit card charge

When you need to dispute a charge, it can feel daunting at first. But if you have an issue with a charge on your credit card, consider these options to help you sort it out.

1. Review your credit card statement for errors

Make sure you aren’t missing errors or signs of fraudulent activity by reading your credit card statement thoroughly and confirming your statement balance each month. You can review your statement online or in your paper-based credit card bill that arrives by mail.

When you review your credit card statement, watch out for any unusual activity like:

• Double charges
• Transactions you don’t recognize
• Purchases from strange locations
• An unfamiliar company name

An unusual item or a strange merchant name can signify that something isn’t right.

2. Contact the retailer to dispute the transaction

You can resolve some unauthorized credit card charges with a simple phone call to the company where the charge originated. For example, if a store made a billing error by charging you twice for an item, they may offer you a refund.

A transaction from an unfamiliar name or location could mean a couple things, and a call to the merchant could clear things up. For example, they might operate their business under a different name than their storefront or have an office or warehouse in another town.

If you’re unsatisfied with a purchase, the store may agree to offer you a replacement or a refund without the need to dispute a charge. The most important lesson here is that you should reach out to the merchant or service company first and try to figure out what’s going on.

3. Contact your card issuer to dispute a charge

If you can’t resolve a billing dispute directly with the merchant, the next step would be to contact your credit card issuer and work through their dispute process. You'll likely need to specify the name of the business as it appears on your statement, the date of the charge, the disputed amount, and the reason for the disputed charge. The Consumer Financial Protection Bureau states that to protect their rights, consumers must send a written billing error notice to their credit card company within 60 days.

Per the FTC, credit card companies cannot charge you for the disputed amount and related charges while the investigation is ongoing. However, you’ll still need to pay the part of your bill not in question.

4. Be patient while your disputed charge is under review

It may take a while to complete the investigation. Look for messages from your credit card issuer, either asking for additional information or to inform you that the investigation has been completed. Quickly responding to these messages will help speed up the process.

If the merchant or credit issuer resolves the dispute in your favor, they’ll provide a credit card chargeback and the credit becomes permanent. If the investigation concludes that you’re not entitled to the credit, the original charge will be reapplied to your account and you’ll be responsible for payment.

You can settle most disputes one way or another in approximately 60 days. Check with your credit card company for specific timeframes.

The bottom line

When you find a strange charge on your credit card statement, you may immediately feel panicked or stressed, especially when facing the idea of late fees or interest charges that could affect your credit score. For greater peace of mind, check your statement diligently, understand your credit card company’s protection policy, and follow these steps to dispute an unauthorized charge.