What happens when you dispute a charge
When you dispute a charge, you are telling your credit card company that a transaction on your statement is wrong — either because you did not make it, the merchant charged you twice, the item never arrived, or the amount is incorrect. Your card issuer then investigates by asking the merchant for proof that the charge was legitimate. If the merchant cannot provide that proof, or if your reason falls under federal protection, the company removes the charge from your bill while the investigation happens. You do not have to pay the disputed amount during this time.
The process is governed by the Fair Credit Billing Act, a federal law that sets out exactly how card companies must handle disputes and how long they have to resolve them. The law protects you from having to pay for things you did not authorize or that were not delivered as promised.
Key Takeaways
- You must contact your card issuer within 60 days of the statement date showing the wrong charge, or you lose your right to dispute it.
- Your card company must acknowledge your dispute in writing within 30 days and resolve it within 90 days, removing the charge from your bill while they investigate.
- The merchant has the burden of proving the charge was legitimate — you do not have to prove it was wrong.
- Disputes for unauthorized charges (fraud) and disputes for billing errors (wrong amount, duplicate charge, item not received) follow slightly different timelines and rules.
- If you lose a dispute, the charge goes back on your bill, but you can still pursue the merchant directly or through your state's small claims court.
The difference between unauthorized charges and billing errors
Credit card disputes fall into two categories, and your card company handles them differently. An unauthorized charge is one you did not make — someone stole your card number, hacked your account, or used your card without permission. A billing error is a charge you did authorize but something went wrong: the merchant charged you twice, charged you the wrong amount, charged you for something that never arrived, or posted the charge to your account months late.
For unauthorized charges, your liability is capped at $50 under federal law, and most card companies waive even that if you report it quickly. For billing errors, the card company must investigate and correct the error if they find one. The merchant's burden of proof is the same in both cases — they have to show the transaction was legitimate — but the timelines and what counts as proof differ slightly.
How to start a dispute with your card company
Contact your card issuer as soon as you spot the wrong charge. You can call the number on the back of your card, log into your online account, or visit a branch if you have a card from a bank. Tell them the charge is wrong and why — be specific about the date, amount, and merchant name. They will ask you to describe what happened: you did not make this purchase, the merchant charged you twice, the item did not arrive, or the amount is wrong.
Your card company will send you a dispute form to fill out, either by mail or through your online account. Fill it out completely and return it within the important date they give you — usually 10 to 15 days. Keep a copy for your records. The key important date is 60 days from the statement date that shows the charge. If you wait longer than that, you lose your right to dispute it under federal law, though some card companies may still help you if you contact them.
What your card company does during the investigation
Once you file a dispute, your card company must acknowledge it in writing within 30 days. They will then contact the merchant and ask for documentation proving the charge was legitimate. The merchant might send a signed receipt, a delivery confirmation, or a record showing you used the card in person. Your card company reviews this evidence and decides whether the merchant has proved their case.
While the investigation is happening — which can take up to 90 days — the disputed charge is removed from your bill. You do not have to pay it. If you have a balance on your card, the company cannot charge you interest on the disputed amount during this time. The merchant also cannot report the charge as unpaid to a collection agency while the dispute is pending.
Your card company must finish the investigation and tell you the outcome within 90 days of receiving your dispute. If they find in your favor, the charge stays off your bill permanently. If they find in the merchant's favor, the charge goes back on your bill and you owe it, plus any interest that would have accrued if it had never been removed.
When the merchant has proof and you lose the dispute
If the merchant provides documentation that the charge was legitimate — a signed receipt, a tracking number showing delivery, or a record of the transaction — your card company will likely rule against you. This happens most often with billing error disputes: you ordered something, it arrived, and you are now claiming you did not receive it, but the merchant has a signature or delivery photo.
When you lose a dispute, the charge returns to your bill. You then have options outside the dispute process. You can contact the merchant directly and try to resolve it — ask for a refund, ask them to correct the amount, or ask them to resend the item. You can also file a complaint with your state's attorney general or the Federal Trade Commission if you believe the merchant acted unfairly. If the amount is small enough, you can pursue the merchant in small claims court in your county.
Disputes for items that never arrived or were damaged
If you ordered something online or by phone and it never arrived, or it arrived damaged or not as described, you can dispute the charge. Your card company will ask the merchant for a tracking number or delivery confirmation. If the merchant shows the item was delivered to your address, they have usually met their burden of proof, and you will lose the dispute.
In this situation, your real remedy is often with the merchant, not your card company. If the item was lost in shipping, the merchant may reship it or refund you directly — many do this without a dispute. If it arrived damaged, contact the merchant with photos and ask for a replacement or refund. If the merchant refuses and the amount is significant, you can file a complaint with the FTC or pursue small claims court. Your card company's dispute process is not the right tool for items that were delivered but defective.
How disputes affect your credit and your account
Filing a dispute does not hurt your credit score. The dispute itself is not reported to the credit bureaus. However, if you lose the dispute and the charge goes back on your bill, and then you do not pay it, that unpaid balance can damage your credit. The merchant also cannot report a disputed charge as unpaid while the dispute is pending — that protection is built into the law.
Your card company can close your account if you file disputes that are clearly fraudulent or if you dispute nearly every charge on your bill. This is rare, but card companies do monitor for patterns of abuse. If you file legitimate disputes for real errors or unauthorized charges, your account will not be affected.
Frequently Asked Questions
What if I miss the 60-day important date to dispute a charge?
You lose your right to dispute it under federal law. However, contact your card company anyway — many will still investigate if you have a good reason for the delay, such as being out of the country or not receiving your statement. Some card companies extend the important date in these situations, though they are not required to.
Can I dispute a charge if I authorized the transaction but changed my mind?
No. Buyer's remorse is not a valid reason for a dispute. You can only dispute a charge if it was unauthorized, the amount is wrong, you were charged twice, or the item was not delivered or not as described. If you want to return something, contact the merchant directly about their return policy.
How long does a dispute take to resolve?
Your card company has up to 90 days to investigate and tell you the outcome. Most disputes are resolved faster — often within 30 to 45 days — but the law gives them the full 90 days. During this time, the charge is off your bill and you do not owe it.
What happens if the merchant goes out of business during my dispute?
Your card company will still investigate, but if they cannot reach the merchant, they may rule in your favor by default since the merchant cannot provide proof. If the merchant is unreachable, your card company may also cover the charge under their own fraud protection, depending on the circumstances.
Can I dispute a charge on someone else's card?
Only if you are an authorized user on that card. If the card belongs to someone else and you are not authorized to use it, that is a matter for the cardholder to dispute, not you. If you are an authorized user, you have the same dispute rights as the primary cardholder.