A chargeback is a formal dispute you file with your credit card company to reverse a charge you believe is wrong or fraudulent
When you spot a charge on your statement that you didn't make, didn't receive, or was processed incorrectly, you can contact your card issuer and ask them to investigate. The card company then reaches back to the merchant's bank with your version of what happened. If the card company finds in your favour, the charge is removed from your account and the merchant is debited instead. This process is called a chargeback, and it is your right under federal law — specifically the Fair Credit Billing Act.
The chargeback is not when ready. It typically takes 30 to 90 days from the time you file your dispute until the card company makes a final decision. During that time, the charge usually stays on your statement but is often marked as disputed, and you are not required to pay it while the investigation is underway. The merchant has the right to respond with their own evidence, and the card company weighs both sides before deciding.
Key Takeaways
- You must file a chargeback dispute with your card issuer within 60 days of the charge appearing on your statement, though filing sooner is better.
- Contact your card company by phone, online portal, or mail — do not rely on email alone, as you need a documented record of your dispute.
- Provide specific details: the transaction date, the merchant name, the amount, and a clear explanation of why the charge is wrong or unauthorized.
- Keep copies of all correspondence, receipts, and evidence you send to your card company, because the merchant may challenge your dispute.
- If the card company rules against you, you can request a second review called a pre-arbitration chargeback, though this rarely changes the outcome.
When a chargeback is the right move
A chargeback works best for specific situations. Use it when a merchant charged you twice for the same purchase, charged you for an amount different from what you agreed to, or processed a charge after you cancelled an order. It also covers unauthorized charges — someone used your card number without permission. If you received a refund from the merchant but it never appeared in your account, a chargeback can force the issue.
A chargeback is not the right tool for a dispute over the quality of goods or services. If you ordered a shirt that arrived damaged, or a contractor did poor work, those are merchant disputes, not billing errors. You should contact the merchant first and ask for a refund or replacement. Only if the merchant refuses or ignores you should you consider a chargeback — and even then, the card company may side with the merchant if they can show you received what you ordered.
Similarly, do not file a chargeback for a transaction you later regret. Buyer's remorse is not a reason the card company will reverse a charge. The merchant has to have done something wrong — failed to deliver, charged the wrong amount, or processed without your consent.
The step-by-step process for filing a dispute
Start by contacting your card issuer directly. Call the number on the back of your card, log into your online account, or visit a branch if you bank with a credit union or local bank. Tell them you want to dispute a charge and explain what happened. The representative will ask for the transaction date, the merchant name, the amount, and your reason for the dispute. Be specific: "I was charged twice" is clearer than "This charge is wrong."
The card company will then send you a dispute form to complete. This form asks you to describe the transaction and explain why you believe it is incorrect. Write clearly and stick to the facts. Include any supporting evidence: a receipt showing a different amount, an email from the merchant confirming cancellation, a screenshot of the charge, or a statement from your bank showing the same charge twice. Do not send originals — send copies only, because you will not get them back.
Submit the completed form and all supporting documents within the timeframe the card company gives you, usually 10 to 15 days from when you first filed the dispute. Keep a copy of everything you send, along with the date you sent it and the name of the person who received it. This creates a paper trail if you need to escalate the dispute later.
The 60-day window and why timing matters
Federal law gives you 60 days from the date a charge appears on your statement to file a chargeback dispute. If you miss this important date, you lose the right to file. The clock starts when the charge first shows up on your bill, not when you receive the physical statement in the mail or when you log in online. If you spot a fraudulent charge, report it when ready — do not wait.
Filing early also helps because it gives the card company more time to investigate and gives you more time to gather evidence. If you wait until day 55, you have only five days to respond if the card company asks for more information. Early filing also signals to the merchant that you are serious, which sometimes prompts them to refund you voluntarily before the chargeback process even begins.
What happens after you file
Once you file, your card company assigns the dispute a reference number. Write this number down — you will need it for all future communication. The card company then contacts the merchant's bank with your dispute and asks the merchant to respond. The merchant has a set time, usually 7 to 10 days, to provide their side of the story and any evidence they have.
During this period, the charge typically remains on your account but is flagged as disputed. You are not required to pay a disputed charge while the investigation is ongoing. Some card companies will credit the amount back to you temporarily, but this is not may provide — check with your issuer about their specific policy.
The card company then reviews both your evidence and the merchant's response. They look at transaction records, shipping confirmations, communication between you and the merchant, and the terms of the sale. If the evidence supports your version, they rule in your favour and remove the charge permanently. If the merchant's evidence is stronger, they rule against you and the charge stays on your account.
When the card company rules against you
If the card company decides the merchant was right, you have one more option: a pre-arbitration chargeback, also called a second chargeback or re-presentment. This is a formal request for the card company to reconsider their decision. You submit new evidence or point out errors in their reasoning. However, pre-arbitration rarely changes the outcome — the card company usually stands by their first decision unless you have significant new information.
To file a pre-arbitration chargeback, contact your card company within 10 days of receiving the unfavourable ruling. Ask specifically for pre-arbitration or a second review. Explain what new information you have or why you believe the first decision was wrong. Again, provide copies of all supporting documents.
If the card company rules against you a second time, the chargeback process is over. The charge stays on your account and you are responsible for paying it. At this point, your only remaining option is to pursue the matter through small claims court if the amount is large enough to justify the cost and effort.
How chargebacks affect merchants and why merchants fight back
Merchants take chargebacks seriously because they lose money twice: once when the card company debits their account, and again in chargeback fees, which typically range from $15 to $100 per dispute. If a merchant receives too many chargebacks, their payment processor may terminate their account or raise their fees significantly. This is why merchants often respond aggressively to disputes, even small ones.
When a merchant challenges your chargeback, they will submit evidence designed to prove the transaction was legitimate. This might include a signed receipt, a shipping confirmation showing delivery, an email exchange with you, or a record of your account activity. If you ordered online and the item was delivered to your address, the merchant has strong evidence in their favour, even if you claim you never received it or that it was damaged.
This is why documentation matters so much on your side. If you can show that you contacted the merchant and they refused to help, or that you cancelled the order in writing before it shipped, you have a much stronger case. Merchants expect some chargebacks from fraud, but they also expect customers to try to resolve issues directly first.
Protecting yourself from needing a chargeback
The best chargeback is the one you never have to file. Keep receipts for all purchases, especially online orders. Save confirmation emails that show what you ordered, the price, and the delivery address. If you cancel an order, get written confirmation from the merchant. If an item arrives damaged or wrong, photograph it and contact the merchant when ready with the photo.
For recurring charges like subscriptions, review your statement every month. Fraudulent charges are often small and repeated, and catching them early makes them easier to dispute. If you see a charge you do not recognize, contact the merchant first before filing a chargeback — many charges are straightforward mislabeled on your statement or are from a company you forgot you subscribed to.
Monitor your credit card for signs of fraud: charges in locations you did not visit, merchants you do not recognize, or amounts that seem wrong. If your card is lost or stolen, report it to your card company when ready. Most card companies offer fraud protection that covers unauthorized charges, so you may not owe anything even before a chargeback is filed.
Frequently Asked Questions
Can I file a chargeback if I paid with a debit card instead of a credit card?
Yes, but the process is different and slower. Debit card disputes are handled under the Electronic Funds Transfer Act, which gives you 60 days to report an unauthorized charge but only 10 days if you want the fastest investigation. Contact your bank when ready. Debit card chargebacks often take longer than credit card disputes and offer less protection, so credit cards are generally safer for online purchases.
What if the merchant goes out of business before the chargeback is resolved?
The chargeback process continues regardless. Your card company still investigates and makes a decision based on the evidence available. If the merchant is out of business and cannot respond, the card company may rule in your favour by default. However, there is no merchant account to debit, so the loss falls to the merchant's bank or payment processor instead.
Will filing a chargeback hurt my credit score?
A chargeback itself does not appear on your credit report and does not directly affect your credit score. However, if the merchant reports you to a chargeback database or files a claim against you in court, that could show up on your record. Legitimate chargebacks for fraud or billing errors should not harm your credit, but filing multiple chargebacks for the same merchant or filing chargebacks you cannot support may raise red flags.
How long does a chargeback take from start to finish?
Most chargebacks take 30 to 90 days. The timeline depends on how quickly the merchant responds, how much evidence both sides submit, and how busy your card company is. Some are resolved in three weeks; others take the full 90 days. During this time, the charge is usually marked as disputed on your account, and you are not required to pay it.
Can I file a chargeback if I authorized the charge but the merchant never delivered?
Yes. A chargeback covers charges for items or services you paid for but never received, even if you authorized the original charge. This is called a "non-delivery" dispute. You will need to show that you ordered the item, paid for it, and never received it. Tracking information showing the package was not delivered to your address strengthens your case.