What happens when you dispute a charge
When you dispute a charge on your credit card, you are telling your card issuer that a transaction is wrong — either you did not make it, the merchant charged you twice, or they charged you for something different than what you received. Your card issuer then investigates by asking the merchant for proof that the charge was legitimate. If the merchant cannot prove it, the money goes back to you. This process is called a chargeback, and it is a protection built into your card agreement.
The investigation usually takes 30 to 90 days. During that time, the charge may stay on your account, or your issuer may remove it temporarily while they look into it — this varies by bank. You do not lose money while the dispute is open; you are protected either way.
Disputing a charge is different from asking a merchant for a refund. A refund is between you and the store. A dispute is between your bank and the store, and your bank has legal power to force the merchant to prove the charge was correct.
Key Takeaways
- You can dispute a charge by calling your card issuer or using their online portal, usually within 60 days of the charge appearing on your statement.
- Your bank will ask the merchant for proof that you authorized the charge and received what you paid for.
- The investigation takes 30 to 90 days, and you are not responsible for the disputed amount during that time.
- If the merchant cannot prove the charge was correct, your money is returned and the charge is removed from your account.
- Disputing a charge does not hurt your credit score, but repeatedly disputing legitimate charges can lead your bank to close your account.
When you can dispute a charge
You can dispute a charge if you did not make the purchase, if someone used your card without permission, if the merchant charged you the wrong amount, or if you paid for something and never received it. You can also dispute a charge if the merchant promised a refund and did not deliver it, or if they charged you after you cancelled a subscription.
You must start the dispute within 60 days of the charge appearing on your statement. Some card issuers allow longer — check your card agreement or call the number on the back of your card to ask. If you wait too long, your bank may not be able to help you, because the merchant will have already spent the money and moved on.
You cannot dispute a charge straightforward because you changed your mind about a purchase, or because you did not like the product. The merchant has to have done something wrong — failed to deliver, charged the wrong amount, or processed a transaction you never authorized.
How to start a dispute with your card issuer
Call the customer service number on the back of your credit card and tell them you want to dispute a charge. Have your statement in front of you so you can give them the exact amount, the merchant name, and the date. They will ask you to describe what went wrong — be specific and factual. Do not guess or exaggerate; stick to what you know.
Most card issuers also let you start a dispute through their website or mobile app. Log into your account, find the transaction, and look for a "dispute" or "report a problem" button. The online route is faster and creates a written record you can reference later.
After you report the dispute, your bank will give you a case number and tell you what happens next. Write down the case number and the name of the person who helped you. Ask them how long the investigation will take and whether they will remove the charge from your account while they investigate.
What your bank will ask the merchant
Your card issuer will contact the merchant and ask them to prove that you authorized the charge and that the transaction was completed correctly. The merchant has to provide a signed receipt, an email confirmation, or other proof that you agreed to pay. If you ordered something online, they might show a delivery confirmation or a tracking number.
If the merchant cannot provide this proof within the time limit — usually 10 to 14 days — your bank will assume the charge was wrong and return your money. If the merchant does provide proof, your bank will review it and decide whether it is convincing. If it is not, they will still return your money.
The merchant can also respond by saying they already refunded you, or that you contacted them and agreed to the charge. If they claim this, your bank will ask you to respond with your side of the story. This is why it helps to keep emails, text messages, or chat logs from the merchant.
What to do while your dispute is being investigated
Do not ignore letters or emails from your bank about the dispute. They may ask you for more information or for proof that you did not make the purchase. Respond quickly — if you do not, your bank may close the dispute and rule against you.
If the merchant contacts you directly during the investigation, do not agree to anything or accept a partial refund without talking to your bank first. Tell the merchant that the dispute is open and that your bank is handling it. Any agreement you make with the merchant can affect the outcome of the dispute.
Keep a record of everything: the case number, the dates you called, the names of the people who helped you, and copies of any emails or letters. If the dispute is not resolved in your favor, you may need this documentation to escalate the case or file a complaint with your state's banking regulator.
What happens if you win the dispute
If your bank decides the charge was wrong, they will remove it from your account and return the money to you. The timeline varies — some banks credit your account within days, others take up to two weeks. The charge will no longer appear on your statement, and you will not owe it.
Your bank will notify the merchant that the chargeback was upheld. The merchant loses the money and may also be charged a fee by their bank for the chargeback. If a merchant receives too many chargebacks, their bank may close their account or raise their fees.
Disputing a charge and winning does not hurt your credit score. The dispute itself does not appear on your credit report. Only the original charge would have affected your score, and once it is removed, that impact is gone.
What happens if the merchant wins the dispute
If your bank decides the merchant's proof is convincing, they will close the dispute and you will owe the charge. The money will stay on your account or be charged back to you, depending on whether your bank had temporarily removed it. Your bank will send you a letter explaining their decision.
If you disagree with the decision, you can ask your bank to reconsider, but you will need new evidence — something you did not provide the first time. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state's banking regulator if you believe your bank did not investigate fairly.
Losing a dispute does not hurt your credit score either. It only affects whether you have to pay the charge. However, if you dispute many charges and lose most of them, your bank may decide you are a risky customer and close your account.
Frequently Asked Questions
Can I dispute a charge if I authorized it but the merchant did not deliver?
Yes. If you paid for something and the merchant never sent it, or sent it damaged and refused to refund you, that is a valid reason to dispute. Your bank will ask the merchant for proof of delivery. If they cannot show that the item arrived in good condition, your bank will return your money.
How long does a dispute take?
Most disputes are resolved within 30 to 90 days. Your bank has to investigate, contact the merchant, and wait for their response. Some banks resolve disputes faster if the merchant does not respond within the first 10 days. Ask your bank for a timeline when you report the dispute.
Will disputing a charge hurt my credit score?
No. Disputing a charge does not appear on your credit report and does not affect your score. Only if you lose the dispute and do not pay the charge would it hurt your credit — but that would be the same as any unpaid debt, not because of the dispute itself.
What if the merchant says I agreed to the charge?
Your bank will ask you to respond. If you have emails, text messages, or other proof that you did not agree, send those to your bank. If you have no proof and it is your word against theirs, your bank will look at other factors — whether you have disputed many charges before, whether the merchant is known for this problem, and whether the charge matches your normal spending pattern.
Can I dispute a charge after 60 days?
Most card issuers have a 60-day window, but some allow up to 120 days. Check your card agreement or call your bank to ask. If you are past the important date, your bank may still help you if the merchant committed fraud or if there are other special circumstances. It is worth calling to ask.