Finding an unfamiliar charge on your credit card can be stressful, but disputes are often easy and simple. In fact, 96% of credit cardholders who've filed a dispute had a successful resolution the most recent time, according to the latest LendingTree survey of nearly 2,000 U.S. consumers.
Disputing a credit card charge has a 96% success rate
Of those who disputed a claim, 75% had an authorized charge, 21% claimed they didn't receive the goods they paid for or they were defective and 21% said they canceled a subscription and were still charged.
Winning chargeback disputes is a challenge for merchants, with success rates typically hovering around 20-40%, depending on the industry and the quality of the evidence provided. Many disputes are lost due to insufficient documentation, delayed responses, or lack of expertise in presenting a compelling case.
Key takeaways
If the credit card issuer denies the dispute, the customer can request supporting documents and can also appeal the decision or file a complaint with consumer protection agencies. If the dispute is still not resolved, customers can seek legal advice and file a case.
Key Takeaways
In some cases, even if you willingly paid for something, you can file a dispute. This includes when there is a billing error, you did not get the item in acceptable condition, or you did not receive the full services promised.
You might not always get a fair outcome when you dispute a chargeback, but you can increase your chances of winning by providing the right documents. Per our experience, if you do everything right, you can expect a 65% to 75% success rate.
The issuer (cardholder's bank) is responsible for determining the winner and loser, but your processor inspects the case first. Only certain cases are forwarded on to the issuer for decisioning. If your chargeback response doesn't advance, you can't win.
Disputing credit report inaccuracies doesn't affect your credit, but some changes made in response to disputes can help your credit scores. The removal of inaccurate late payments, new-credit inquiries or bankruptcies could result in credit score increases.
What does the credit card company have to do? They must acknowledge receipt of your letter within 30 days. Within 90 days or two billing cycles, they must investigate your dispute.
The acquiring bank notifies the merchant when a customer has disputed a charge. It will provide the merchant with the deadline for deciding whether to dispute the chargeback and for submitting all compelling evidence that shows the dispute is unwarranted. Timeframes for acquirers average 10-35 days.
If the company finds an error, the amount must be credited back to you, along with any related finance charges. But if the card issuer decides the charges were accurate, you'll be responsible for paying the disputed amount, including any finance charges that accrued while the disputed charge was being investigated.
Disputing a charge on your credit does not directly impact your credit score. However, if your credit report changes due to the dispute, your score may change accordingly. For example, resolving an inaccurate credit utilization error might increase your score.
Within 120 days of the last date, the cardholder expects to receive the goods or services (not to exceed 540 calendar days from transaction). Within 120 days of the date, the cardholder was informed that the goods/services would not be provided (not to exceed 540 calendar days from transaction).
If you successfully dispute a charge, the bank will notify the merchant and return funds to the issuing consumer via a chargeback. From here, merchants can decide if they want to dispute the chargeback or not.
Loss of revenue: Chargebacks result in a direct loss of revenue for merchants, as they have to refund the disputed amount to the customer.
Chargebacks negatively impact a merchant's reputation.
Even if you win a dispute, a chargeback reflects poorly on your company. If multiple claims are filed against you, you will be enrolled in a monitoring program, which becomes even more costly.
Traditional refunds come directly from the merchant. With disputes, though, the bank pays the consumer upfront. They then claw back the transaction amount from the merchant's account. From a customer's perspective, there doesn't seem to be much of a difference: they get their money back either way.
Bottom Line. Disputing a credit card charge may take time. But winning a dispute is possible, especially if you're aware of the laws that protect you and you have plenty of documents that can help your case.
You should dispute a debt if you believe you don't owe it or the information and amount is incorrect. While you can submit your dispute at any time, sending it in writing within 30 days of receiving a validation notice, which can be your initial communication with the debt collector.
The credit bureau must give you the results in writing and, if the dispute results in a change, a free copy of your credit report.
Fraudulent Transactions: One of the most common reasons for a chargeback is fraud. A customer might notice charges on their credit card statement for purchases they did not authorize. Upon investigation, they discover their credit card information was stolen and contact their bank to file chargebacks.
Charges for the wrong amount or date; Charges for goods and services that you ordered but did not receive or accept; Charges that you don't recognize and want more information about; and. Bills that have calculation errors or that didn't credit a payment or return that you made.
If you paid a scammer
Here's what your bank can do depending on the type of transaction: Credit card: These transactions are usually the easiest to refund because the chargeback process is straightforward and well-established. Many credit card companies also provide strong consumer protections.