How to Dispute a Charge: Everything You Should Know ❤️

How to Dispute a Charge: Everything You Should Know

Dispute a Charge Consumers can contest a credit card transaction regardless of whether it was issued as a mistake, fraudulent or the seller didn’t offer satisfactory products or services. 

It is recommended to dispute fraudulent charges right away however, you should only file other kinds of disputes once in an attempt to resolve the problem by contacting the seller.

You generally have to submit a dispute within 60 days after the transaction. However, the exact timeframe will depend on the kind of dispute that you’re submitting. Dispute a Charge.

No matter what kind of dispute you have to file, we’ll explain everything you must be aware of when disputing the credit card charge.

Dispute a Charge

  • Contesting a credit card charge
    • Fraud or unauthorized charge
    • Billing errors
  • How do you contest a credit-card charge due to a poor service or services that were not delivered?
    • Example letter
  • How do I contact the important issuers

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Contesting a credit card charge

Consumers can challenge fraudulent charges on their bills by contacting their credit card issuer. Dispute a Charge.

It is usually a simple process in which the issuer can cancel the card at issue and issue a new card.

You can also choose to challenge the credit card charge you have received for a purchase you’ve made. 

This is possible due to a variety of reasons that include services not being rendered or dissatisfaction with the services provided. 

For instance, if you purchase something from the internet that is damaged the credit card company may assist in recovering your money.

But, there’s an official procedure that you have to follow for non-fraud-related credit card issues. Dispute a Charge.

In this scenario, you usually are given 60 calendar days after when you receive your statement to take action.

The type of dispute Time limit Note
Fraudulent charges Unlimited Contact your bank directly
Billing error 60 days Needs a particular protocol. Refer to the following.
Service that is not satisfactory or poorly provided 60 days Needs a an explicit protocol. Check below for more details.

Fraudulent or unauthorized credit card charges

You can challenge any fraudulent credit card charges by contacting your credit card provider directly and advising them of the issue. 

Under the law, you can’t be held responsible for in excess of $50 of fraud charges. 

But, a charge that is even this much is highly unlikely. Nowadays, the majority of large banks provide the “no liability” feature on many of their credit cards. 

They’ll waive the $50 charge for as long as you notify them of the fraud within the first two billing cycles.

It is recommended that the Federal Deposit Insurance Corporation (FDIC) suggests that you make a police report. 

This isn’t required but it will assist officers and authorities to trace the perpetrators of these crimes. Dispute a Charge.

One fraudulent transaction on your account might be part of a bigger problem that may be identified.

You must determine whether an item purchased was fraudulent or it wasn’t. 

It is important to ensure that the purchase was not made by someone close to you or a family friend.

without your permission or due to an unintentional miscommunication. 

In general, you should challenge any credit card charges only if you’re prepared to make a police investigation. 

If the charge was unauthorized and resulted from an unintentional error, discuss the issue with the person responsible prior to calling your bank to claim it was a fraud.

Billing errors

The Federal Trade Commission states that you are entitled to contest charges based upon the following factors:

  • Charges that show the wrong date or the incorrect amount
  • Charges for products and services you did not accept or were not delivered as per the contract
  • Math errors
  • Inability to pay for payments, and other credits like a return
  • Failure to forward bills to your current address as long as the creditor has changed your address in writing at least 20 days prior to the date that the expiration date of the billing period
  • Charges that you request for an explanation or write a proof of purchase with a claim of mistake or demand clarification

You can challenge charges on your credit card by writing a letter to the creditor. You can find an example letter found at the bottom of this article. 

In the course of the investigation, you will not be legally bound to pay for the charge at issue, however, you must pay the remainder of your charge. 

You have to send the letter in 60 days to your lender which is the legal requirement that they reply to you in written form — in 30 days. 

The card issuer is legally required to resolve disputes within 2 billing cycles. 

If you are not satisfied with the decision made you must wait 10 calendar days before you inform the creditor of your disagreement. 

At this point, the creditor will be permitted to initiate a collection process. 

If they choose to report the matter to credit bureaus they should include a statement in which you deny that to pay the debt.

How do I contest a credit card charge due to poor service or for services not provided

It is the Fair Credit Billing Act -an act of the United States Congress passed in 1975 – that provides you with the right.

to challenge charges if you are unhappy with the purchase through the process known as Claims and Defenses. 

You are required to file a complaint regarding a purchase that is disputed within 60 days from the statement date that the charge was spotted. 

Before you report your dispute the law requires that you try and resolve the dispute directly with the seller. 

Find out if they’re willing to offer you an exchange or a form of credit to the store.

Save any documents that show you tried to solve the problem. This could include email correspondence or even a witness of you talking to the seller. 

If this doesn’t work then you should consider Claims and Defenses.

It is crucial that you don’t pay for the undisputed credit card transaction. Contact your issuer immediately and let them know that you are trying to resolve the problem. 

During the examination, your creditor might lower your credit limit according to the amount you are disputing. 

For instance, if you are disputing the purchase of a credit card for $500 with a credit limit of $2,000 the creditor could reduce your credit limit by $1,500 as the purchase is being investigated. 

In addition, complaints regarding the quality of products and services are only valid only if you are satisfied with the following:

  • The total amount must not exceed $50.
  • The purchase has to be done within the exact state as the buyer’s address at least within 100 miles from the address. This is not the case for online transactions.
  • The customer is required to provide a “good faith attempt to obtain satisfactory resolution of a disagreement or problem relative to the transaction”

If you are able to meet the requirements above If you do, then you must submit a request email to your lender’s billing inquiries department. 

This address is different from the one you used to make money. 

It is best to send your mail using a certified service and ask for a return receipt to ensure you can prove that the bank has received the letter. 

The letter must include any documentation supporting it such as a copy of sales slips, photographs of damaged items, and correspondence between you and your merchant. 

Below is the sample letter that was provided by the Federal Trade Commission (FTC).

Dispute Credit Card Charge Sample Letter:

[Your Name] [Your Address] [Your City, State, Zip Code] [Your Account Number]

[Name of Creditor] [Billing Inquiries] [Address] [City, State, Zip Code]

Dear Sir or Madam:

I am trying to contest a billing error that was in the amount of [$_______] that was billed to my account. 

The amount is not correct due to [describe the issue. I’m requesting for the error to be corrected and that any financial or.

other charges associated with the amount in dispute be credited to me, and I receive a true statement.

The enclosed documents include the copies [use this word to describe the data that you’re attaching.

like invoices, sales slips, or other records that support my claim. Investigate this issue and correct the error in billing immediately.

Sincerely,

[Your name]

Enclosures: [List all enclosures enclosures

How do you reach the major card issuers

These are the mailing addresses that are associated with several of the biggest creditors of credit cards within the United States.

Issuer Mailing Address
American Express American Express Attn: Billing Inquiries P.O.Box 981535 El Paso, TX 79998-1535
Bank of America Bank of America Attn: Billing Inquiries PO Box 982234 El Paso, TX 79998-2234
Capital One Capital One Attn: Disputes PO Box 30279 Salt Lake City, UT 84130-0279
Chase Bank Chase Bank Card Services Attn: Billing Inquiries P.O. Box 15298 Wilmington, DE 19850
Citibank Citibank Customer Service Attn: Billing Inquiries P.O. Box 65006 Sioux Falls, SD 57117
Discover Discover Bank Attn: Billing Inquiries PO Box 30416 Salt Lake City, UT 84130

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Dispute a Charge Also Ask

What happens if there are disputes with more than one charge?

A high chargeback rate
For each chargeback you make, you lose out on the amount of transaction (if you fail to file the case, or choose to not to contest that charge). Additionally, you are hit with charges. This is money taken out from your pocket.

What are legitimate grounds to contest the validity of a charge?

Valid Reasons to Dispute a Credit Card Charge
  • Charges that are not correct in dates or dollar amounts.
  • Math-related errors (such as an incorrect number after adding the tip)
  • Inability to pay or credit.
  • Failure to send the bill to the address you have at present (assuming you have provided it at least within 20 days of the closing date of the billing cycle)

Does a dispute hurt your credit score?

How Will the Results of My Dispute Impact My Credit Scores? Filing a dispute has no impact on your score, however, if information on your credit report changes after your dispute is processed, your credit scores could change.

Can a bank deny a dispute?

The majority of banks do not make this mistake and instead send you an email that says they have denied your request. You could have an action in court if the bank does not provide you with the reason they rejected your dispute.