What happens when you dispute a credit card charge
When you dispute a charge, your credit card company investigates whether the transaction was authorised by you and whether the merchant fulfilled their obligation. The card issuer does not straightforward reverse the charge — they contact the merchant, ask for proof of the sale, and make a information based on what both sides provide. During the investigation, the charge is typically removed from your balance, but you may owe it again if the merchant proves the transaction was legitimate.
The process takes 30 to 90 days depending on the card issuer and the complexity of the case. Your card issuer has specific timelines set by the Fair Credit Billing Act and card network rules (Visa, Mastercard, American Express, Discover). If the merchant does not respond with documentation within the timeframe, the dispute is usually decided in your favour.
Key Takeaways
- You must contact your card issuer within 60 days of the charge appearing on your statement to start a dispute.
- The card issuer will remove the charge from your balance while investigating, but you may owe it if the merchant provides proof of authorisation.
- Merchants can respond with receipts, delivery confirmation, or other documentation to defend the charge.
- Disputes over unauthorised charges are handled differently from disputes over quality or service issues.
The difference between unauthorised charges and billing errors
An unauthorised charge is one you did not make and did not permit someone else to make. This includes fraud, identity theft, or a stolen card used without your knowledge. Your card issuer has a strong obligation to reverse these charges, and your liability is capped at $50 under federal law (though most issuers waive this entirely).
A billing error is a charge that was authorised by you but something went wrong: you were charged twice for one purchase, the amount was wrong, or the merchant charged you after you cancelled. These disputes are also protected under the Fair Credit Billing Act, but the card issuer's investigation is different — they are checking whether the merchant's records match yours, not whether you authorised the charge.
A quality or service dispute — you received the item but it was damaged, defective, or not as described — is harder to win. The card issuer may still investigate, but the merchant can often defend themselves by showing they delivered what was ordered. These disputes sometimes succeed if the merchant refuses to refund you directly, but they depend heavily on the card network's rules and the card issuer's policy.
How to start a dispute with your card issuer
Contact your card issuer by phone, online, or mail. The phone number is on the back of your card or on your statement. Tell them the charge is wrong and describe what happened — whether it was unauthorised, charged twice, the wrong amount, or a service issue. Have your statement in front of you with the transaction date, merchant name, and amount.
The card issuer will ask you to provide details in writing. Some allow you to submit this through their online account portal; others send you a form to sign and return. You do not need a lawyer or a dispute service to do this — the card issuer is required by law to investigate at no cost to you.
Keep copies of everything you send and note the date and name of anyone you speak with. If you initiated the dispute by phone, follow up with a written statement (email or mail) so there is a record. The card issuer will send you a case number — save this for your records.
What the card issuer does during the investigation
The card issuer contacts the merchant and requests documentation: a signed receipt, proof of delivery, a record of the authorisation, or evidence that the service was provided. The merchant has a set number of days to respond (usually 10 to 30 days, depending on the card network). If the merchant does not respond, the dispute is typically decided in your favour.
If the merchant does respond with documentation, the card issuer reviews it against your account and your statement. They check whether the amount matches, whether the date is correct, and whether the authorisation code or signature is valid. For online purchases, they may verify the shipping address or delivery confirmation.
The card issuer then notifies you of the outcome. If the dispute is upheld, the charge is permanently removed and you owe nothing. If the dispute is denied, the charge is put back on your account and you are responsible for paying it. You have the right to appeal the decision if you believe new information changes the outcome.
Temporary credit while the investigation is ongoing
Most card issuers remove the disputed charge from your balance when ready or within a few days of opening the dispute. This is called a provisional credit. It is not permanent — it is removed if the merchant proves the charge was valid.
The provisional credit means you do not have to pay the disputed amount while the investigation happens. However, if the dispute is decided against you, the charge goes back on your account and you will owe it. The card issuer will notify you before this happens.
Some card issuers take longer to issue the provisional credit, particularly for large disputes or complex cases. If you do not see the credit within 10 days, contact the card issuer and ask for a status update.
What to do if the dispute is denied
If the card issuer decides against you, the charge is reinstated on your account. You can appeal the decision if you have new evidence — for example, a written statement from the merchant admitting the error, or proof that the item was never delivered despite what their tracking shows.
To appeal, contact your card issuer and explain what new information you have. Provide copies of any documents that support your case. The card issuer will review the appeal and make a final information. This process also takes 30 to 90 days.
If the appeal is also denied, you have the right to file a complaint with the Consumer Financial Protection Bureau (CFPB) if you believe the card issuer did not follow the law. You can also pursue the merchant directly through small claims court if the amount is small enough, though this is time-consuming and the card issuer will not help you with this.
How to prevent disputes in the first place
Review your statement every month and look for charges you do not recognise. The sooner you spot a problem, the sooner you can dispute it — and you have 60 days from when the charge appears on your statement. Set a calendar reminder if monthly reviews do not come naturally to you.
For online purchases, keep your receipts and confirmation emails. If a merchant charges you twice, you will have proof of both transactions. If an item never arrives, you will have the order confirmation and tracking information to reference.
Use a credit card instead of a debit card for online and phone purchases when possible. Credit card disputes are protected by federal law; debit card disputes have weaker protections and take longer to resolve. If you must use a debit card, monitor that account closely.
Frequently Asked Questions
What if I authorised the charge but the merchant never delivered?
This is still a valid dispute. You authorised the payment, but the merchant did not hold up their end of the agreement. The card issuer will ask the merchant for proof of delivery. If the merchant cannot show that the item reached you, the dispute is usually upheld. Keep any tracking information or delivery confirmation you receive.
Can I dispute a charge after I have already paid it off?
Yes. You have 60 days from when the charge appears on your statement to dispute it, regardless of whether you have paid the full balance. If the dispute is upheld, the card issuer will credit your account or issue a refund depending on your card issuer's policy.
Will disputing a charge hurt my credit score?
No. Disputing a charge does not appear on your credit report and does not affect your credit score. The card issuer is required to investigate without penalising you. However, if the dispute is decided against you and you do not pay the reinstated charge, that unpaid balance can damage your score.
What if the merchant is a foreign company or an online marketplace?
The process is the same. Your card issuer still contacts the merchant and requests documentation. Foreign merchants and online marketplaces (like Amazon or eBay) are bound by the same card network rules. However, these disputes sometimes take longer because of communication delays or language barriers.
Do I need to contact the merchant before disputing with my card issuer?
It is not required, but it can help. If you contact the merchant first and they agree to refund you, the dispute is resolved without involving the card issuer. If the merchant refuses or does not respond, then open a dispute. Either way, you have 60 days from the charge date to start the formal process.