Under the Fair Credit Billing Act (FCBA), you have the right to dispute unauthorized charges or billing errors within 60 days of the statement date. You can withhold payment on the disputed amount during investigation, which must be resolved within 90 days. The issuer cannot close your account or report it as delinquent during this process.
Charge-backs can be tricky. Because increasing numbers of consumers are filing fraudulent disputes, many merchants are trying to put the brakes on these cancellations. So it's important to play by the rules, or you might get turned down. What's worse, even if you win, you could end up losing.
File a dispute via phone, mail or online through your credit card's customer service portal. Include supporting evidence of the issue, such as emails, invoices or receipts, if you have them.
For buyers, the best dispute reason is arguably fraud or unauthorized activity. Cardholders who can produce compelling evidence showing that they did not approve a transaction are more likely to win a dispute than if it was initiated for another reason.
The issuer may deny the entire disputed amount or a part of it; either way, it should inform you in writing about the denial and how much you owe. You will also be notified about when you need to make your payment, including any interest that accumulated on the amount while it was in dispute.
I am writing to dispute a charge of [$______] to my [credit or debit card] account on [date of the charge]. The charge is in error because [explain the problem briefly. For example, “the items weren't delivered,” “I was overcharged,” “I returned the items,” “I did not buy the items,” etc.].
The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule).
Depending on the type of dispute, merchants win roughly 44% of “friendly fraud” cases, but their chances plummet to just 9% when true fraud is involved. Transaction size also plays a role—low value purchases under $30 see win rates around 45%, while disputes on purchases over $300 drop closer to 28%.
Negotiation is the most common approach to resolving disputes, and it is less formal than arbitration or mediation and affords parties more flexibility. Effective negotiation can be an alternative to litigation, especially when parties are willing to work together in good faith.
Disputing a charge on your credit card will not negatively affect your credit standing, although the credit card company may add a statement to your credit report indicating that the account is currently in dispute.
In many instances, documents proving your position can be helpful for the credit bureaus, as well as jurors. If you choose to dispute by phone, you lose the opportunity to show that your position is correct. Phone calls may be used as a means of following up on a prior credit dispute.
In civil cases, businesses usually sue for the disputed amount plus court fees. Losing a civil case doesn't lead to jail time.
Will my credit score go down if I dispute? Don't worry, there's no impact to your credit score because you start a dispute. However, if your dispute results in items being changed or removed from your credit report, your score may change due to that.
The most frequent causes of denials fall into a few key categories.
When you dispute a charge, your card issuer starts an investigation, often giving you a temporary credit and pausing payment/interest on that amount while they contact the merchant, who then has a chance to refute the claim with evidence; ultimately, the issuer decides, issuing a permanent credit (if you win) or requiring payment (if you lose), with potential for arbitration if you disagree.
A chargeback can be a powerful tool for consumers who do not receive products or services they paid for, but it comes with several caveats. Even if the credit card company sides with you, the merchant may not—and they may try to collect the chargeback funds. This is called a chargeback dispute.
To win a civil case, you need evidence that proves each legal element of your claim by a preponderance of the evidence. This typically includes documents, witness testimony, physical or digital proof, and sometimes expert opinions.
Chargeback dispute win rates
Accertify found that the median win rate for fraud-coded chargebacks is 36.5%, with a rate of 56.6% for non-fraud chargebacks.
If you have an issue with a charge on your credit card statement, you can turn to your issuer to resolve the matter. The bank is legally required to look into your dispute and give you a report about what it finds. However, consumers often don't get any concrete feedback about such investigations.