How to Dispute a Wrong Charge on Your Credit Card

If you find a charge on your credit card that looks incorrect, you have the legal right to dispute it. This can include unauthorized purchases, billing errors, or issues with the product or service you paid for. The law gives you 60 days from the date the statement was sent to raise the issue in writing, and your credit card issuer must respond.

What Qualifies as a Wrong Charge on a Credit Card

Not all incorrect charges are the same. These are the most common types:

1. Unauthorized or Fraudulent Charges

If someone used your card without permission, the law limits your liability to $50, and most issuers have zero-liability policies.

2. Billing Errors

This includes being charged twice, being charged the wrong amount, or being billed for something you canceled.

3. Products or Services Not Received

You can dispute a charge if what you paid for never arrived or was not delivered as promised.

4. Faulty, Damaged, or Misrepresented Goods

If the item was broken, fake, or not what was advertised, and the merchant won’t help, you can escalate it to a formal dispute.

Can you dispute a charge you authorized?

Yes, in some cases. If you paid for something that never arrived or was misrepresented, or if you canceled a subscription but still got charged, you may still have a valid dispute.

What if you received the product, but it wasn’t what you expected?

If the product was defective or significantly different from the description, you can file a dispute after trying to resolve it with the seller first.

Step-by-Step Guide to Disputing a Credit Card Charge

Follow these steps carefully to protect your rights and increase your chances of success.

Step 1: Review Your Statement

Find the charge you’re disputing. Note the date, amount, and merchant name. Double-check for duplicates or other signs of error.

Take a screenshot or print your statement for your records.

Step 2: Contact the Merchant (Optional but Recommended)

Sometimes the fastest way to fix an issue is to go directly to the source. Call or email the business and explain what happened.

What to say:

“I noticed a charge on [date] for [amount] that I believe is incorrect. I’d like to request a refund or correction. Can you help resolve this?”

If the merchant agrees to fix it, get confirmation in writing. If they refuse, proceed to file a dispute with your card issuer.

Step 3: Contact Your Credit Card Issuer

Call the number on the back of your card or log in to your account online. Look for a link to "Dispute a Transaction" or “Report a Billing Error.”

Ask to be connected with the billing disputes department. Note the date and name of the representative you spoke to.

Step 4: Follow Up with a Written Dispute Letter

This is the step that activates your rights under the FCBA. Your letter should include:

1. Your name and address
2. Your account number
3. The date and amount of the disputed charge
4. A clear explanation of why you are disputing it
5. Copies of any supporting documents (emails, receipts, screenshots)

Send it to the billing dispute address, not the payment address. Use certified mail with a return receipt to prove delivery.

Keep a copy of your letter and all related documents.

Step 5: Monitor the Investigation

Once your issuer receives your letter, they must respond within 30 days. The full investigation must be completed within 90 days.

While the dispute is open, you can withhold payment for the disputed amount and related fees. You are still required to pay the rest of your bill on time.

You may receive updates or requests for more information. Respond quickly to avoid delays.

Your Rights Under the Fair Credit Billing Act

The Fair Credit Billing Act (FCBA) protects you from billing errors on your credit card. It gives you the right to dispute charges and lays out clear steps for doing so.

Key protections include:

1. You must send a written dispute within 60 days of the first bill showing the error.
2. You are not responsible for paying the disputed amount while it’s under review.
3. The issuer must respond to your written complaint within 30 days.
4. The investigation must be completed within two billing cycles, or no more than 90 days.

Why written notice matters

Phone calls and online submissions help start the process, but only written disputes trigger your full legal rights. Send it by certified mail to the billing inquiries address listed on your statement.

What happens during the investigation

Your card issuer will look at the documents, contact the merchant, and review your account. During this time, they can’t report the disputed charge as late or take collection action on that amount.

Sample Credit Card Dispute Letter Template

Use this template to write your formal dispute letter:

[Your Name]

[Your Address]

[City, State, ZIP Code]

[Date]

Billing Inquiries Department

[Credit Card Issuer Name]

[Issuer's Address for Disputes]

[City, State, ZIP Code]

Subject: Dispute of Billing Error – Account #[Your Account Number]

To whom it may concern,

I am writing to dispute a billing error on my credit card account. The charge in question is for [amount], made on [date], and listed as [merchant name].

This charge is incorrect because [state your reason, e.g., "the item was never delivered," "I canceled the service," "I was charged twice for the same purchase"].

I am requesting that the charge be removed and my account corrected. Enclosed are copies of supporting documents, including [list any receipts, emails, screenshots, etc.].

Please acknowledge this letter and notify me of the outcome of your investigation.

Sincerely,

[Your Signature]

[Your Printed Name]

After You File: What Happens Next

Once the investigation is complete, the credit card issuer will inform you of the outcome in writing.

Possible outcomes include:

1. Approved: The charge is removed or refunded.
2. Denied: The charge remains. You’ll be told why and given the evidence they used.
3. Partial: You may receive a credit for part of the amount.

If you disagree with the outcome:

You can appeal the decision or submit a new dispute with more evidence. If you still believe the issuer acted unfairly, you can report them to the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC).

Impact on your credit

As long as your dispute is genuine and you’ve followed the proper steps, your credit score won’t be affected during the process. The issuer cannot report the charge as delinquent while it's under investigation.

What if the dispute was incorrect or false?

Knowingly filing a false dispute can have serious consequences, including account closure or legal action. Always use the dispute process honestly.

Common Situations That Lead to Disputes, And What to Do About Them

Some disputes are straightforward. Others require more context. Here’s how to handle the most common real-world scenarios.

Charged After Canceling a Subscription

If you canceled a subscription but still got charged, start by checking for confirmation of the cancellation (email, screenshot, or support message). Contact the merchant to reverse the charge. If they refuse or don’t respond, file a dispute with your card issuer. Attach the cancellation proof.

Charged Twice for the Same Purchase

Look at your statement for duplicate charges with the same or similar amounts. Merchants sometimes authorize and capture transactions twice. If it isn’t fixed automatically, contact the merchant, then your card issuer with screenshots showing the duplication.

Never Received the Product or Service

If the item never arrived or the service was never rendered, try reaching the merchant first. Keep records of order confirmations and shipping timelines. If you can’t resolve it, dispute the charge. Include proof of non-delivery, like tracking data showing no movement or delivery failure.

Received a Faulty, Broken, or Fake Item

If the product arrived damaged, counterfeit, or not as described, take photos and request a refund from the merchant. If denied, file a dispute. Include your order details, product photos, and correspondence.

Authorized the Charge, But Regret the Purchase

Regret doesn’t qualify as a valid reason on its own. But if the product was misrepresented, defective, or part of deceptive sales tactics, and the merchant refuses to help, a dispute may be possible. Gather all evidence to prove your case.

Victim of a Scam or Fraud

If the charge is tied to a scam, like phishing or a fake online store, report it as fraud. Call your issuer immediately and freeze your card. Dispute the transaction and explain that it was unauthorized or made under false pretenses. Also, report the scam to the FTC or local consumer protection agency.

Timeline Rules and Deadlines You Must Follow

The 60-Day Rule

You must send a written dispute to your credit card issuer within 60 days after the first statement containing the error was sent. This is non-negotiable under the Fair Credit Billing Act.

Response Deadline for Credit Card Issuers

The issuer must acknowledge your written complaint within 30 days. They then have 90 days (or two billing cycles) to complete the investigation and resolve the matter.

How Long the Dispute May Take

Most disputes are resolved in under 90 days, but the complexity and the merchant’s response time can stretch it. Keep communication records and respond promptly to any requests from your issuer.

Can You Dispute a Charge After 6 Months?

In most cases, no. If you miss the 60-day window, your legal protections weaken significantly. Some issuers may still investigate, especially for fraud, but you are no longer guaranteed help.

Retroactive Disputes

The law doesn’t support retroactive disputes beyond the 60-day window. If the charge happened months ago but was hidden or delayed in processing, document the timeline carefully and ask your issuer if they’ll consider it.

What You Need to Support Your Dispute

Having the right documentation strengthens your claim and speeds up the process.

1. Copies of your credit card statement showing the charge
2. Order confirmations or receipts
3. Screenshots of your communication with the merchant
4. Proof of product issues (photos or videos)
5. Cancellation emails or service termination confirmations
6. Tracking numbers and delivery statuses
7. Return shipping records (if you sent something back)
8. Certified mail receipt for your written dispute letter

Key Differences Between Credit and Debit Card Disputes

Credit Cards: FCBA Protections

The Fair Credit Billing Act covers credit card disputes. It allows you to challenge charges and withhold payment during the investigation. Liability for unauthorized charges is capped at $50, and most issuers waive that.

Debit Cards: Electronic Fund Transfer Act

Debit cards fall under the Electronic Fund Transfer Act. You may have as little as two business days to report an unauthorized transaction to retain full protection. Once funds leave your bank account, recovery is more difficult.

Which Is Safer?

Credit cards offer more time, more control, and stronger dispute protections. For online shopping or dealing with unfamiliar merchants, using a credit card is the safer option.

What Happens to the Merchant When You File a Dispute

Do They Lose the Money?

If your dispute is successful, the merchant loses the amount of the transaction. This can be reversed later if they appeal and win.

Are They Penalized?

Merchants with high dispute rates may face penalties from their payment processor. This could include higher fees or even losing the ability to accept card payments.

Can They Fight the Dispute?

Yes. Merchants can submit a rebuttal with supporting documentation. If their case is strong, they may overturn the chargeback.

If You’re the Buyer and the Seller

If you run a business and are also a cardholder, handle disputes carefully. Follow all procedures. As a seller, you can challenge disputes. As a buyer, avoid using business credit to dispute personal issues and vice versa.

How to Avoid Future Credit Card Disputes

Being proactive can reduce the chances of needing to dispute charges in the future.

1. Turn on transaction alerts to catch unusual charges quickly
2. Use credit cards instead of debit cards for better protection
3. Only shop with verified and trustworthy merchants
4. Set reminders to cancel trial subscriptions before billing
5. If your card is lost or stolen, freeze it immediately and report it
6. Use identity theft protection services to monitor suspicious activity

Frequently Asked Questions

Do I have to pay the charge while it’s being disputed?

No. You may withhold payment on the disputed amount during the investigation. However, you must continue paying the rest of your balance.

Will my credit be affected?

As long as you follow the dispute process correctly, your credit score won’t be hurt. The issuer cannot mark the charge as delinquent while it’s under review.

What happens if I falsely dispute a charge?

Submitting a dispute for a legitimate charge, knowingly or by omission, may result in account closure, debt collection, or fraud charges. Always be truthful.

Can I dispute a charge I made while drunk?

Being impaired at the time of purchase doesn’t automatically qualify the charge for dispute. Only charges that fall under billing error, fraud, or misrepresentation qualify.

Do I need a lawyer to dispute a charge?

No. The process is designed for consumers to use on their own. However, if the dispute is large or the issuer breaks federal law, you can speak to an attorney or report them to the CFPB.