Credit Card Disputes: How to Win Chargebacks and Billing Disputes

Credit cards offer powerful consumer protections that many people don't fully utilize. Whether you're dealing with fraud, a merchant dispute, or billing errors, understanding the chargeback process can help you recover your money. Learn more about your credit card rights from the Consumer Financial Protection Bureau's credit card resources.

60-Day Rule: Under the Fair Credit Billing Act, you generally have 60 days from the statement date to dispute charges. Act quickly to preserve your rights.

Types of Credit Card Disputes

Unauthorized Transactions

  • Fraudulent charges you didn't make
  • Card theft or skimming
  • Account hacking
  • Family member misuse

Billing Errors

  • Incorrect amount charged
  • Duplicate charges
  • Charges for items not received
  • Mathematical errors
  • Charges on wrong account

Merchant Disputes

  • Item not as described
  • Service not rendered
  • Defective merchandise
  • Cancelled subscription still billing
  • Refund promised but not processed

Your Legal Rights

Fair Credit Billing Act (FCBA)

Federal law protects you from:

  • Billing errors must be corrected
  • Maximum $50 liability for unauthorized charges
  • Most issuers offer $0 liability as policy
  • Issuer must investigate disputed charges
  • Cannot collect disputed amount during investigation

Additional Card Protections

  • Purchase protection (damage/theft)
  • Extended warranty coverage
  • Price protection (some cards)
  • Return protection

Debit vs. Credit: Debit cards have weaker protections. Liability can be $500+ if not reported within 2 days. Always prefer credit for purchases when possible.

How to File a Dispute

Step 1: Try the Merchant First

For merchant disputes (not fraud):

  • Contact merchant customer service
  • Request refund or resolution
  • Document your attempt
  • This strengthens your dispute case

Step 2: Contact Your Card Issuer

  • Call number on back of card
  • Explain the dispute clearly
  • Get reference number
  • Ask about provisional credit

Step 3: Submit Written Dispute

Within 60 days, send written notice:

  • Your name and account number
  • Description of the error
  • Amount and date of charge
  • Why you believe it's an error
  • Supporting documentation

Step 4: Investigation Period

  • Issuer must acknowledge within 30 days
  • Must resolve within 2 billing cycles (max 90 days)
  • Cannot collect disputed amount during investigation
  • Cannot report as delinquent to credit bureaus

Strengthening Your Dispute

Documentation to Provide

  • Receipts or order confirmations
  • Photos of defective items
  • Correspondence with merchant
  • Shipping/tracking information
  • Return receipts
  • Screenshots of product listings

Effective Dispute Language

  • Be specific about dates and amounts
  • Explain what you ordered vs. received
  • Detail attempts to resolve with merchant
  • Reference applicable card benefits

Common Dispute Scenarios

Item Not Received

  • Show order confirmation
  • Provide tracking (if shows non-delivery)
  • Document contact attempts with seller
  • Usually straightforward to win

Item Not as Described

  • Screenshots of product description
  • Photos of what you received
  • Explanation of material differences
  • Evidence of return attempt if applicable

Cancelled Service Still Billing

  • Cancellation confirmation
  • Date of cancellation
  • Communications with company
  • Evidence of continued charges

Refund Not Processed

  • Refund promise documentation
  • Return tracking/receipt
  • Time elapsed since return
  • Merchant communications

If Your Dispute Is Denied

Request Reconsideration

  • Ask for written explanation
  • Provide additional documentation
  • Request supervisor review
  • Escalate to executive office

Regulatory Complaints

  • CFPB: Consumer Financial Protection Bureau
  • OCC: For national banks
  • State AG: Consumer protection division

Legal Options

  • Small claims court against merchant
  • Private attorney for larger amounts
  • Arbitration if required by card agreement

Preventing Future Issues

Safe Shopping Practices

  • Use credit cards (not debit) for purchases
  • Save receipts and confirmations
  • Review statements monthly
  • Set up transaction alerts
  • Use virtual card numbers when available

Red Flags to Watch

  • Unfamiliar merchant names
  • Small "test" charges
  • Recurring charges you don't recognize
  • Charges from foreign countries

Special Situations

Recurring Charges

  • Can dispute ongoing unauthorized charges
  • May need to close card to stop charges
  • Document cancellation attempts

Free Trial Traps

  • Read terms before providing card
  • Set calendar reminder to cancel
  • Screenshot all terms
  • Dispute if terms were deceptive

International Purchases

  • Same dispute rights apply
  • May be harder to resolve with merchant
  • Document everything carefully
  • Consider exchange rate issues

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