You have the right to dispute a charge, and your card issuer must investigate it
When you see a charge on your credit card statement that you didn't make or don't recognize, you can tell your card issuer and ask them to look into it. This is called disputing a charge. Your card issuer — the bank or company that issued your card — is required by federal law to investigate your dispute and either reverse the charge, explain why it's valid, or credit your account while they look into it.
The process is free and doesn't require a lawyer or special service. You start by contacting your card issuer directly, usually through the phone number on the back of your card or your online account. The issuer then has specific timelines to respond, and you have the right to see the evidence they use to make their decision.
Key Takeaways
- Contact your card issuer as soon as you notice a charge you didn't make — most require you to report it within 60 days of the statement date.
- Your issuer must acknowledge your dispute in writing within 30 days and complete their investigation within 90 days.
- During the investigation, the issuer must credit your account for the disputed amount if it's more than $50, so you don't pay interest on money you're challenging.
- Keep records of every communication with your issuer, including dates, names, and what was said, because you may need to prove you reported the dispute.
- If the issuer rules against you, you can request the evidence they used and file a complaint with the Consumer Financial Protection Bureau if you believe they didn't follow the law.
The difference between fraud, billing errors, and merchant disputes
Not every charge you disagree with falls into the same category, and the category matters for how your issuer handles it. A fraudulent charge is one you didn't authorize at all — someone used your card number without permission. A billing error is a mistake by the merchant or issuer, like being charged twice for one purchase or charged the wrong amount. A merchant dispute is a charge from a merchant you authorized, but you're unhappy with the product or service, or the merchant won't refund you.
Fraud disputes move fastest because federal law gives you strong protection — you're typically not liable for unauthorized charges. Billing errors also have clear legal timelines. Merchant disputes are trickier: your issuer will investigate, but if you authorized the charge, the burden is partly on you to show the merchant didn't deliver what they promised.
When you contact your issuer, be clear about which type of dispute you're filing. Say "I didn't authorize this charge" for fraud, "I was charged twice" for a billing error, or "I ordered X but received Y" for a merchant dispute. The issuer will categorize it, but starting with the right language helps them move faster.
Step-by-step: How to report a disputed charge
Step 1: Call or log in within 60 days. Most card issuers require you to report a dispute within 60 days of the statement date on which the charge appeared. Don't wait. Call the number on the back of your card or log into your online account and look for a "dispute" or "report a problem" option. Some issuers let you start the dispute online; others require a phone call.
Step 2: Have your statement and card ready. When you call, have your card number, the date of the charge, the merchant name, and the amount in front of you. If you have any emails or receipts related to the charge, have those too. The issuer will ask you to describe what happened in your own words.
Step 3: Get a dispute reference number. Before you hang up or close the online form, write down the dispute reference number the issuer gives you. This is your proof that you reported it. Ask when you should expect to hear back — most issuers say 30 days for an acknowledgment and up to 90 days for a decision.
Step 4: Follow up in writing. After the call, send a follow-up letter or email to the issuer's dispute department (ask for the address or email during your call). Write a short, factual summary: the date you called, the reference number, the charge details, and why you're disputing it. Keep a copy for your records. This creates a paper trail if you need to escalate later.
What happens while your dispute is being investigated
Once you report a dispute, your issuer has 30 days to acknowledge it in writing and tell you what they're doing next. They must also tell you the amount they're investigating and give you a important date for their decision — usually 90 days from when they received your dispute.
If the disputed amount is more than $50, your issuer must credit your account for that amount while they investigate. This means you won't be charged interest on money you're challenging, and the charge won't count against your credit limit. If the issuer later decides the charge was valid, they can remove the credit, but they have to tell you first and give you a chance to respond.
During this time, the issuer contacts the merchant to ask for proof that the charge was authorized and that you received what you paid for. The merchant has to respond within a set timeframe. If the merchant doesn't respond or can't prove the charge was valid, the issuer typically rules in your favor and removes the charge permanently.
What to do if the issuer rules against you
If your issuer decides the charge was valid and denies your dispute, they must send you a written explanation of their decision and the evidence they used to make it. Read this carefully. Ask yourself: Did they actually address your specific complaint, or did they just say the merchant said it was authorized?
You have the right to request copies of the documents the issuer reviewed — the merchant's proof of authorization, any signature or transaction record, shipping confirmation, or other evidence. If the issuer won't give you these documents, or if you believe they didn't follow the law, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB doesn't overturn the issuer's decision, but they investigate whether the issuer followed the rules, and complaints become part of the issuer's record.
If you believe the charge is fraudulent and the issuer still won't remove it, you can also dispute it again if you have new evidence. Some issuers allow one re-dispute per charge; others have different policies. Ask your issuer about their re-dispute process.
How disputing a charge affects your credit and account
Disputing a charge does not hurt your credit score. The dispute itself is not reported to credit bureaus. However, if the charge remains on your account while you're disputing it, it could affect your credit utilization — the percentage of your credit limit you're using. Once the charge is removed (if your dispute is successful), your utilization goes down and your score may improve slightly.
Disputing a charge also does not get you in trouble with your card issuer. You're using a right the law gives you. However, if you file many disputes that are all ruled invalid, some issuers may close your account or flag your account for review. This is rare and usually only happens if there's a pattern of frivolous disputes.
If you're disputing a charge because your card was lost or stolen, ask your issuer whether they'll issue you a new card number. Many issuers do this automatically for fraud cases. A new number protects you from future unauthorized charges on the same card.
Common reasons disputes get denied and how to avoid them
The most common reason a dispute is denied is that the merchant has proof you authorized the charge — a signed receipt, a confirmed order with your name and address, or a shipping confirmation to your address. If you ordered something online and it was delivered to you, the issuer will likely rule that you authorized it, even if you're unhappy with the product.
Another common reason is that you waited too long to report it. If more than 60 days have passed since the charge appeared on your statement, most issuers won't investigate. Mark your calendar to review your statements within a week of receiving them so you catch problems early.
Disputes are also denied when the cardholder authorized the charge but forgot, or when the merchant name on the statement is different from the business name you know. If you don't recognize a merchant name, search for it online or call the merchant before disputing — you may find it's a legitimate charge you straightforward didn't remember.
Frequently Asked Questions
What if the merchant is out of business or won't respond to the issuer?
If the merchant is out of business or doesn't respond to your issuer's investigation, the issuer typically rules in your favor and removes the charge. The issuer has a important date to get a response from the merchant, and if they don't hear back, that counts as the merchant failing to prove the charge was valid.
Can I dispute a charge if I authorized it but changed my mind?
Technically, yes, but your issuer will likely deny it if the merchant can prove you authorized the charge and received the product or service. This is a merchant dispute, not fraud. Your better option is to contact the merchant directly and ask for a refund. If they refuse, then dispute it and explain that the merchant won't refund you.
How long does it take to get my money back?
If the charge is more than $50, your issuer must credit your account within 30 days while they investigate. If your dispute is successful, the credit becomes permanent. If it's denied, the issuer removes the credit and you're responsible for the charge again. The entire process usually takes 30 to 90 days.
What if I have multiple disputed charges from the same merchant?
You can dispute each charge separately, and your issuer will investigate each one. However, if you're disputing many charges from the same merchant, consider contacting the merchant's customer service first — there may be a billing system error affecting multiple customers. If the merchant won't help, file disputes for each charge and mention in your dispute description that you have multiple charges from this merchant.
Do I have to pay the disputed charge while the investigation is happening?
No. If the disputed amount is more than $50, your issuer must credit your account, so you don't have to pay it. If it's $50 or less, your issuer may still credit it, but they're not required to. Either way, you won't be charged interest on the disputed amount during the investigation.