How to Dispute a Credit Card Charge

Despite the fact that fraudulent losses amount to only $0.05 per $100 in credit and debit card transactions, consumers have an obvious and increasing fear of fraud – particularly the digital variety. Identity theft and hacking are actually Americans' two biggest fears, according to a recent Gallup poll, reflecting the toll recent data breaches have taken on our cultural psyche.

Fear of fraud has unfortunately been known to influence consumer banking and spending habits, often dictating which payment vehicles we use and, in extreme cases, fostering a debilitating level of paranoia that makes operating within the modern banking system impossible. But is it really something we need to worry about? And, if so, how worried should we be?

This study will strive to provide consumers with a valuable source of information regarding their vulnerability to financial losses as a result of card-related fraud, allaying concerns and clearing up common fallacies in the process.

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A chargeback is when a merchant refunds a customer after a customer successfully disputes a charge made to their credit card. Although all major credit card networks and issuers have a chargeback policy in place, the methods and standards that a customer must meet when seeking a chargeback varies among credit institutions.

Therefore, WalletHub.com conducted its 2012 Chargeback Policy Report to determine the key information needed in order for a consumer to successfully dispute charges made to their credit cards. To conduct the report, WalletHub.com contacted the 4 major credit card networks and the 10 largest U.S. credit card issuers for information on how they would proceed in common chargeback scenarios, including when a merchant is unresponsive to a costumer's dispute, when a customer receives the wrong item, and when a customer disputes an inflated tip with and without supporting documentation, among others.

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Credit-report errors are all too common. The Federal Trade Commission estimates that roughly one in four consumers have an inaccurate credit report. And it can take only one error for a lender, landlord or other credit checker to decide you can't be trusted to meet your financial obligations.

That is why it's important to review your credit report on a regular basis and dispute any errors. You can check your latest TransUnion credit report for free on WalletHub. And if you find an error, you can file a dispute with TransUnion directly from your WalletHub account.

Alternatively, you can get all three major credit reports once every year from AnnualCreditReport.com. Below, we'll explain the three ways to dispute credit report errors, the types you can dispute and more.

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To dispute a charge for bad service, your credit card transaction must be for more than $50 and charged in either your home state or within 100 miles of your current billing address. You must also make a good-faith effort to resolve the issue with the merchant before you're eligible to file a dispute. If the merchant refuses to work with you or refund your money, and you've met all the applicable requirements, you can then begin filing a dispute for bad service.

Understand that your claim must be more than a minor customer service issue – such as a long wait time at a restaurant – to qualify as a legitimate dispute for bad service. If you're not satisfied with the quality of goods or services, if a product was never received or if a service was not rendered, those situations would meet the criteria for a dispute.

How to Dispute a Credit Card Charge for Bad Service

1. Log in to your online account or call customer service within 60 days from when the statement with the disputed charge was mailed to you or released online.
2. Navigate the account info menu to find the option to dispute a charge.
3. Search for the transaction you want to dispute.
4. Select the transaction for more details.
5. Click the “dispute charge” link or button to open an inquiry. Be sure to provide ample documentation to support your claim, including all communications with the merchant.
6. Submit the dispute.

Once you've initiated the dispute, the credit card issuer must acknowledge your complaint in writing within 30 days of receiving it. The issuer must then notify you of the outcome no later than 90 days after it received your dispute.

The credit card company will either issue a chargeback to your account for the disputed amount or allow the charge to stand. If the disputed charge is determined to be valid, you are responsible for paying the purchase amount, along with any fees and interest.

You have 60 days to dispute a credit card charge, per the Fair Credit Billing Act of 1974. The 60 days start from the day the statement containing the erroneous charge was mailed to you or made available online (if you're enrolled in paperless billing).

So, waiting for a paper statement to arrive in the mail could cost you at least a few of those 60 days, whereas you can examine your statement online right away. You can typically start the dispute process online or by giving the card's issuer a call. The issuer must acknowledge your dispute within 30 days of receiving it and resolve the matter within 90 days.

Here's how long you have to dispute a credit card charge:

• You have 60 days from when the relevant monthly statement was sent. That's the postmark date for paper statements or the sent date for an email statement. 
• The issuer must send a written acknowledgment within 30 days of receiving your dispute. They must evaluate your claim and contact you with their decision within 90 days of receiving the dispute. If they agree with you, you'll get a refund. Otherwise, you'll still have to pay for the charge.
• The credit card's issuer may ask you to submit your dispute in writing, along with proof that the charge is incorrect, like receipts or a police report.
• Because of the limited time to dispute, you should always go over your statements right after you receive them. Make sure there are no charges you didn't make, no wrong amounts, no inflated tips, and no items that arrived damaged that were not refunded.
• If you review your monthly statement online, you may see a button to dispute charges. Otherwise, call the number on the back of your card to reach the issuer's customer service and explain the situation. 

While 60 days usually is plenty of time to dispute a credit card charge, it's always a good idea to be proactive. Waiting too long might mean having to pay more than you really owe. 

A credit card chargeback is a process in which someone disputes a charge to their credit card account, hoping to not have to pay the amount in question or to get a refund from their card issuer. Chargebacks are usually initiated by cardholders who believe they were wrongly charged by a merchant. The cardholder has 60 days after receiving their credit card statement to notify the card issuer of the error. The issuer then has 90 days to resolve the situation one way or another.

If the issuer rules in favor of the merchant, the disputed charge will stay on the cardholder's bill. But if they rule in favor of the cardholder, the payment to the merchant is voided, and removed from the customer's account. The word “chargeback” is likely a reference to what happens in that latter scenario, when the charge is rolled back instead of being completed.

If you're thinking about disputing a credit card charge, there are a few more details about the process that will be helpful to know.

A few things to keep in mind before attempting a credit card chargeback:

• A chargeback is for unauthorized charges, damaged or unreceived items, and merchant errors – not for buyer's remorse. The process can be long, too. So if there's an error, try resolving the dispute with the merchant first. If you believe you've been charged in error by a merchant you frequent, the merchant will probably be responsive, and you may be able to clear up the mistake faster – and more amicably. If all goes well, the merchant will void the transaction, and it won't show up on your monthly statement.
• Find your receipts – you'll need them. Credit card receipts are used to determine who is correct when there's a disputed charge, so it is a good idea to save them. For instance, say an online merchant sent a customer the wrong item, and the merchant refused to correct the error. If the customer has the email receipt, they could prove what they actually bought.
• It's possible that your credit card information has been stolen. If you see charges on your statement from a merchant you've never done business with, you may be the victim of identity theft. You should alert your card issuer as soon possible, so they can cancel your card and send you a new one. You should also keep eye on your credit reports, so you can dispute fraudulent information. You may even want to put a freeze on your reports to keep unauthorized individuals from applying for credit in your name. And there are a few other steps you could take, too, such as changing the passwords to your email and key financial accounts.

It's important to keep in mind that chargebacks can't be used to avoid paying for things you  purchased legitimately. For example, if you didn't like the taste of a meal at a restaurant, that's not a reason to dispute the charge. Those things should be taken up with the merchant directly.

However, both merchants and card issuers usually are eager to help customers resolve any wrongful charges. Just make sure to check your statements carefully and register disputes as soon as possible, since you only have 60 days to do so.

A dispute essentially means a disagreement between you and a credit company, through which you're looking to correct a piece of information. When it comes to credit cards (or other lines of credit), a dispute is related directly to a charge or fee you believe should not be on your account. When it comes to your credit report, disputing is trying to remove a piece of incorrect info on your file (like a late payment or a wrong name). 

What is a credit card dispute?

Basically, a credit card dispute is when you see a fraudulent charge on your bill, and you make a request for it to be removed by the credit card company. Keep in mind that disputes must be mailed and received by the credit card company within 60 days of receiving your statement. After this, your credit card company must acknowledge the dispute within 30 days and either correct the mistake or send you a letter explaining why there was no error within 90 days. 

You should dispute a credit card charge when: 

• You did not receive an item you purchased
• You did not receive a refund after returning an item
• You were charged for a payment you did not make
• Your bill includes math errors
• You were charged for an item that you refused upon delivery

What is a credit report dispute?

A credit report dispute, on the other hand, means sending an inquiry to one of the credit bureaus due to an error on your credit report. You can dispute credit report information online by visiting Experian, Equifax, and TransUnion. You can also file a dispute by phone or by mail.  

You should dispute a credit report when:

• There is inaccurate personal information such as a misspelled name or an unknown address 
• Your account is listed twice by mistake
• You have noticed a fraudulent account
• There is inaccurate payment history

If you identify an error on your credit card bill or your credit report, it's crucial to dispute it as soon as possible. It is important to always read your credit card statements and check your credit report regularly. You can check your credit report for free on WalletHub.

To dispute an American Express charge, log in to your American Express account online and search for the transaction to dispute, or call American Express customer service at 1 (800) 528-4800. Alternatively, the address to dispute a charge by mail is:

American Express Customer Service
P.O. Box 981535
El Paso, TX 79998

American Express disputes are typically resolved within 30 days, though more complex issues may take a little longer.

How to Dispute a Charge on an American Express Card Online

1. Log in to your online account.
2. Click Open a Billing Dispute.
3. Search for the transaction in question.
4. Select the transaction for more details.
5. Click on the Inquiry & Dispute Center to open an inquiry.
6. Check for a confirmation e-mail from American Express verifying receipt of the inquiry.

Before you dispute a charge through American Express, you should first contact the merchant associated with the charge on your American Express card. Merchants have easier access to your purchase information and should be better able to quickly remedy the issue. If for some reason, the merchant is unable or unwilling to work with you on a disputed charge, you can then file a dispute with American Express.

Once you've initiated the dispute, American Express will then contact the merchant and review any information provided by both parties. You won't be charged for the disputed transaction, nor any associated fees or interest, while the dispute is under investigation. And you can still use your American Express card as you normally would while a dispute is ongoing.

American Express will notify you of the outcome of the dispute after they've completed their investigation. They will either issue a chargeback to your account for the contested amount, or allow the charge to stand. If the disputed charge is ruled to be valid, you would then have to pay that amount, including any applicable fees and interest charges that accrued during the dispute, starting from the original purchase date.

You can dispute a charge on a Discover card online or by calling Discover customer service at 1 (800) 347-2683. To dispute a charge online, click on the “Activity & Statement” page and select the transaction you want to dispute. Alternatively, the address to dispute a charge by mail is: P.O. Box 30945 / Salt Lake City, UT, 84130-0945. Discover disputes are typically resolved within 30 to 60 days, though more complex issues may take a little longer.

How to Dispute a Charge on a Discover Card Online

1. Log into your online account on Discover's website.
2. Click on “Activity & Statement” at the bottom of the page.
3. Search for the transaction in question.
4. Select the transaction for more details.
5. Click “Dispute Charge” to open an inquiry.
6. Check for a letter or e-mail from Discover confirming receipt of the dispute.

Before you dispute a charge through Discover, however, you should first contact the merchant directly. Merchants have easier access to your purchase information and should be better able to quickly remedy the issue. If, for some reason, the merchant is unable or unwilling to work with you on a disputed charge, you can then file a Discover dispute.

Once you've initiated the dispute, Discover will contact the merchant and review any information provided by both parties. You won't be charged for the transaction, nor any associated fees or interest, while the dispute is under investigation. And you can still use your Discover card normally while a dispute is ongoing.

Discover will notify you of the outcome of the dispute after they've completed their investigation. They will either issue a chargeback to your account for the contested amount, or allow the charge to stand. If the disputed charge is ruled to be valid, you would then have to pay that amount, including applicable fees and any interest charges that accrued during the dispute, starting from the original purchase date.

To dispute a American Express Cash Magnet® Card charge, log in to your Amex Cash Magnet Card account online and search for the transaction to dispute, or call American Express customer service at 1 (800) 528-4800. Alternatively, the address to dispute a charge by mail is:

American Express Customer ServiceP.O. Box 981535El Paso, TX 79998

Amex Cash Magnet Card disputes are typically resolved within 30 days, though more complex issues may take a little longer.

How to Dispute a Amex Cash Magnet Card Charge Online

1. Log in to your online account.
2. Click Open a Billing Dispute.
3. Search for the transaction in question.
4. Select the transaction for more details.
5. Click on the Inquiry & Dispute Center to open an inquiry.
6. Check for a confirmation e-mail from American Express verifying receipt of the inquiry.

Before you dispute a charge through American Express, you should first contact the merchant associated with the charge on your card. Merchants have easier access to your purchase information and should be better able to quickly remedy the issue. If for some reason, the merchant is unable or unwilling to work with you on a disputed charge, you can then file a dispute with American Express.

Once you've initiated the dispute, American Express will then contact the merchant and review any information provided by both parties. You won't be charged for the disputed transaction, nor any associated fees or interest, while the dispute is under investigation. And you can still use your Amex Cash Magnet Card as you normally would while a dispute is ongoing.

American Express will notify you of the outcome of the dispute after they've completed their investigation. They will either issue a chargeback to your account for the contested amount, or allow the charge to stand. If the disputed charge is ruled to be valid, you would then have to pay that amount, including any applicable fees and interest charges that accrued during the dispute, starting from the original purchase date.

All information about the American Express Cash Magnet® Card has been collected independently by WalletHub. The American Express Cash Magnet® Card is no longer available to new applicants through WalletHub, but may be available on the American Express website.