How Do I Dispute a Charge on My Credit Card Bill?

Many people (maybe even everyone reading this article) have had the experience of finding a fraudulent charge on their credit or debit cards. It can happen in any number of ways. Perhaps you were scanning your statement and saw a charge from a merchant you never purchased from. Or you spotted a duplicate transaction among the legitimate charges on your bill. Sometimes it is that a product you did order never arrived, or arrived in worse condition than advertised, and the seller has stopped answering emails. Whatever the specifics, the instinct that follows is usually some mix of anxiety and uncertainty: How can I fix this, and who will help me?

Fortunately, disputing a charge is a legal right under the Fair Credit Billing Act (FCBA), a federal law that spells out exactly what counts as a billing error, exactly how long you have to report it, and exactly what your card issuer is required to do once you have. 

Knowing the legal process can make the difference between a dispute that gets resolved cleanly and one that drags on because a step got missed.

What Actually Counts as a Billing Error

The FCBA’s definition of a billing error is probably broader than you expect. It includes:

• Unauthorized charges, such as a transaction you didn’t make or approve, including fraud
• Incorrect amounts. An example of this would be if you were charged $89 for something priced at $79
• Math errors, such as the issuer making arithmetic mistakes on your statement
• Missing credits, including a return or refund the merchant said they processed but never actually showed up on your account
• Goods or services never delivered, or not as described. In cases like these, you authorized a payment, but you never receive what you ordered, though you may have received something like it.
• Statements sent to the wrong address. This only counts as a billing error if you gave your card issuer written notice of your address change at least 20 days before the billing period ended

The 60-Day Timeline

You have 60 days to dispute a billing error, but the clock doesn’t start on the date of the purchase. It starts on the date the first statement containing the error was mailed to you. If a fraudulent charge from March doesn’t show up until your April statement, your 60 days begins in April, not March.

That said, the sooner you file the dispute, the better, and most of us don’t need to wait for paper statements to see pending charges. Latitude 32 Credit Union allows you to see the charges made on your card since your last statement. The CFPB says you should report the problem to your card company right away. Waiting doesn’t cost you anything under the law until you actually hit day 60, but it does give a fraudsters time to make more charges to your card, and it delays the investigation clock from starting.

Step-by-Step: How to Actually Dispute a Charge

1. Contact your card issuer immediately. A phone call, your issuer’s app, or their online portal will typically flag the charge fast and may trigger a provisional credit while it’s investigated. 
2. Follow up in writing. To get the full legal protection the FCBA provides, the FTC recommends sending a written dispute in addition to any phone call. The FTC provides a sample letter template you can adapt easily to your own circumstances.
3. Include the specifics. Your account number, the exact charge amount, the date it posted, the merchant name, and a clear, factual explanation of what’s wrong. Vague disputes take longer to resolve than specific ones.
4. Send it to the right address. The address for billing disputes can be different from the address you send payments to. Check your statement or your card agreement for the correct one.
5. Use certified mail. Certified mail is the best way to prove your issuer actually received your letter within the 60-day window, just in case a timing question comes up later. Letters can be misplaced after they are delivered, and you don’t want to be liable for charges just because your letter fell into the cracks.
6. Keep copies of everything: Your letter, any receipts or documentation, and ideally, even records of who you spoke with and when (if you called before sending the letter).

What Happens After You Dispute

Once your issuer receives a written dispute, the law gives them a deadline. They must acknowledge your complaint in writing within 30 days, unless the problem is resolved before then. They then have two billing cycles — no more than 90 days — to investigate and reach a conclusion.

During that investigation, you are not required to pay the disputed amount, and your issuer cannot charge you interest on it. They also cannot report the disputed amount as late to a credit bureau, and they cannot close your account over it while the investigation is ongoing. You do still need to pay every other part of your bill that isn’t in dispute, on time, as usual.

If the Issuer Sides With the Merchant

Not every dispute ends in the consumer’s favor. If your issuer investigates and determines the charge was valid, you have the right to request the documentation they used to make that call. You can also appeal the decision. If you believe your issuer didn’t follow the FCBA’s required process, then that’s a violation you can report to the CFPB or the FTC.

Chargeback vs. Refund

These two terms get used interchangeably, but they’re not the same thing. A refund is initiated by the merchant, voluntarily. A chargeback is initiated by you, through your card issuer, and can be pursued even if the merchant refuses to cooperate. We’ve covered this distinction in more depth, along with why it matters so much for how you choose to pay online, in Why You Should Always Pay With a Credit Card Online.

Why This Process Works So Well With a Credit Card Specifically

The FCBA’s dispute rights apply to credit card transactions. Debit cards and bank transfers are governed by a different law, Regulation E, with weaker protections and a much narrower timeline. If you want to see exactly what you’d be on the hook for depending on how you paid, our payment method liability calculator walks through the real numbers for credit cards, debit cards, Zelle and Venmo, and wire transfers side by side.

Where to Go From Here

If you’re currently comparing how different cards handle disputes and fraud protection, the Latitude 32 Credit Union Visa includes full chargeback rights and Visa’s zero liability policy on every purchase at credit union rates. For a broader look at protecting your accounts year-round, visit our Fraud Prevention & Cybersecurity Resource Center.