Start a dispute with your card issuer, not the merchant
When you spot a charge on your credit card statement that you didn't make or that was billed incorrectly, contact your card issuer — the bank or company that issued your card — not the store or business that charged you. Your issuer has a legal obligation to investigate billing disputes under the Fair Credit Billing Act, a federal rule that protects cardholders. You have up to 60 days from the date the charge appeared on your statement to report it.
The process is faster and more formal than asking the merchant directly. Your issuer will freeze the disputed amount while they investigate, which means you won't have to pay that portion of your bill. Most disputes are resolved within 30 to 90 days, though some take longer if the merchant contests the claim.
Do not wait for the charge to appear on your next statement. Report it as soon as you notice it, even if the statement hasn't closed yet. The sooner you report, the sooner the clock starts on the investigation.
Key Takeaways
- Contact your card issuer within 60 days of the charge appearing on your statement; waiting longer may forfeit your right to dispute.
- You can dispute unauthorized charges, charges for items you returned, duplicate charges, and math errors on your bill.
- Your issuer must acknowledge your dispute in writing within 30 days and complete an investigation within two billing cycles (usually 60 to 90 days).
- You are not responsible for paying the disputed amount while the investigation is underway, and your credit report cannot be damaged by a pending dispute.
- Keep copies of all correspondence with your issuer and gather receipts, emails, or other proof that supports your claim before you file.
What types of charges you can dispute
The Fair Credit Billing Act covers four main categories of billing errors. Unauthorized charges are purchases you did not make and did not permit someone else to make — a stolen card number, identity theft, or a fraudulent online transaction. Billing errors include charges for the wrong amount, duplicate charges, charges posted to your account twice, or math mistakes on your statement.
Merchandise disputes cover items you ordered but never received, items that arrived damaged or defective, or items you returned but were still charged for. Credit not posted means a refund or credit the merchant promised never showed up on your bill. You can also dispute a charge if the merchant charged you a different amount than what you agreed to pay.
You cannot dispute a charge straightforward because you changed your mind about a purchase, even if you never used the item. You also cannot dispute a charge if you authorized it, even if the merchant's service was poor or the product disappointed you. For those situations, you would need to contact the merchant directly and ask for a refund or chargeback through a different process.
How to file a dispute with your card issuer
Call the customer service number on the back of your card or log into your online account and look for a "Report a Problem" or "Dispute a Charge" option. Some issuers let you start a dispute through their mobile app. Have your statement in front of you and be ready to describe the charge: the date, the amount, the merchant name, and why you believe it is wrong.
The representative will ask you to explain what happened. Be clear and factual. If the charge is unauthorized, say so directly. If you returned an item, explain when and how you returned it. If the amount is wrong, state what you were charged and what you should have been charged. The issuer will create a case number and send you a written confirmation within 30 days that includes the case number, the amount in dispute, and the steps they will take to investigate.
Write down the name of the representative you spoke with, the date and time of the call, and the case number. If you prefer to file in writing, send a letter to the address listed on your statement for billing inquiries. Include your name, account number, the case number (if you already have one), the date of the charge, the amount, the merchant name, and a brief explanation of why you are disputing it. Send it certified mail with return receipt so you have proof the issuer received it.
What happens during the investigation
Your issuer will contact the merchant and ask them to provide proof that you authorized the charge and received what you paid for. The merchant has to respond within a set timeframe, usually 10 to 30 days. If the merchant cannot provide proof — a signed receipt, an email confirmation you sent, a delivery confirmation — the issuer will rule in your favor and remove the charge from your account.
If the merchant does provide proof, the issuer will review it and decide whether it supports the charge. For example, if you claim you never received an item but the merchant shows a delivery confirmation to your address, the issuer may rule against you. If you claim the charge was unauthorized but the merchant shows an email from your account authorizing it, the issuer may side with the merchant. If you claim you returned an item but the merchant has no record of receiving it, the issuer will likely rule in your favor.
During the investigation, the disputed amount is frozen on your account. You do not have to pay it, and it will not be reported to credit bureaus as unpaid. If the issuer rules in your favor, the charge is removed and you owe nothing. If the issuer rules against you, they will notify you in writing and explain why. You can then contact the merchant directly to try to resolve it, but you will be responsible for paying the charge.
Gather evidence before you file
The stronger your case, the faster the issuer will resolve it. Before you contact your issuer, collect any documents that support your claim. If the charge is unauthorized, gather any evidence that your card was compromised — a police report if you reported identity theft, a statement from your bank if they flagged suspicious activity, or emails showing you did not make the purchase.
If you claim you returned an item, find the return receipt, the tracking number from the return shipment, or an email from the merchant confirming they received the return. Take a screenshot of the return status if it is available online. If you claim the charge was for the wrong amount, pull up the original order confirmation showing what price you agreed to pay and compare it to what was charged.
If you claim you never received an item, check your email for any delivery confirmation or tracking information. If the merchant shows a delivery confirmation but you genuinely did not receive it, you can file a claim with the shipping carrier or ask the merchant to file one on your behalf. Keep all of this documentation in one place and reference it when you speak with your issuer.
What to do if the issuer rules against you
If your issuer decides the charge was valid and you disagree, you have options. First, contact the merchant directly and explain your side of the story. Provide them with the evidence you gathered — photos of damage, return receipts, emails showing you did not authorize the charge. Many merchants will issue a refund if you can prove your claim, even if the issuer sided against you.
If the merchant refuses, you can file a second dispute with your issuer, but only if you have new evidence that was not part of the first investigation. straightforward disagreeing with the issuer's decision is not enough to reopen the case. If you have new documentation — a receipt you found, an email you located, a witness statement — submit it in writing with a request to reconsider.
You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) if you believe your issuer did not investigate fairly or did not follow the rules. The CFPB will review your complaint and may contact your issuer to ask why they ruled the way they did. This does not overturn the issuer's decision, but it creates a record and may pressure the issuer to reconsider if they made an error.
How disputes affect your credit and your account
A pending dispute does not damage your credit score or appear on your credit report. The disputed charge is frozen, so it is not reported as unpaid. Once the dispute is resolved, the outcome depends on who wins. If you win, the charge is removed and your account is unaffected. If you lose, the charge stays on your account and you are responsible for paying it like any other charge.
Disputing a charge does not close your account or trigger any penalty from your issuer. You can continue using the card normally while the investigation is underway. However, if you file multiple disputes in a short period of time, your issuer may flag your account for review or ask you to explain the pattern. Filing disputes for legitimate reasons is your right, but filing false disputes is fraud and can result in account closure and legal consequences.
Frequently Asked Questions
What if I authorized the charge but the merchant charged me the wrong amount?
This is a billing error and you can dispute it. Contact your issuer and explain that you authorized the purchase but the charge does not match the agreed price. Provide the original order confirmation or receipt showing the correct amount. The issuer will ask the merchant to explain the difference, and if the merchant cannot justify it, the charge will be corrected.
Can I dispute a charge if I used the item and then changed my mind?
No. The Fair Credit Billing Act does not cover buyer's remorse. If you authorized the purchase and received the item, the charge is valid even if you are unhappy with it. Your only option is to contact the merchant and ask for a refund under their return policy. If they refuse, you cannot force a chargeback through your issuer.
How long does a dispute investigation take?
Your issuer must complete the investigation within two billing cycles, which is usually 60 to 90 days. Some disputes are resolved faster if the merchant responds quickly or if the evidence is clear. You will receive written notice of the outcome before the important date. If the issuer needs more time, they must notify you in writing and explain why.
What if the merchant goes out of business before the dispute is resolved?
Your issuer will still investigate the dispute even if the merchant is no longer in operation. If the merchant cannot be reached or does not respond, the issuer will rule in your favor based on the lack of response. The charge will be removed from your account.
Can I dispute a charge on someone else's card?
Only the cardholder or an authorized user on the account can file a dispute. If you are a family member or friend, the cardholder must contact their issuer directly. If the cardholder has passed away, their estate or a court-appointed representative may be able to file, but you will need to provide legal documentation.