Valid reasons for disputing a credit or debit card charge include unauthorized fraudulent transactions, billing errors (wrong amount/date), non-receipt of goods or services, and items that are defective or not as described. Other valid reasons are duplicate charges, canceled subscriptions that were still billed, or returns that were not properly credited.
That is, if a transaction was unauthorized, or if something you bought arrives broken, isn't what you ordered, or never arrives at all. You may also be able to dispute if the merchant fails to provide your refund, makes a mistake, or is otherwise uncooperative.
Successful disputes typically involve inaccurate or incomplete information, including items such as: Account information, such as closed accounts reported as open, timely payments incorrectly reported as delinquent, and inaccurate credit limits or account balances.
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.].
How Often do Merchants Actually Win Chargebacks? According to the 2024 State of Chargebacks Report, merchants win on average about one-third of the disputes they face. 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.
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).
The federal Fair Credit Billing Act gives you the right to dispute a charge under certain circumstances, and many issuers make the process much easier than the law requires. But just as you shouldn't abuse a generous return policy, you shouldn't dispute credit card purchases without a legally valid reason.
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.
Common Dispute Reasons
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.
Sample Letter to Credit Bureaus Disputing Errors on Credit...
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.
What Is the 15/3 Rule?
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.
a detailed description of the goods or services you paid for (e.g. colour, brand, size of goods), and estimated delivery dates. what has gone wrong with the goods or services delivery. proof of the return of goods to the retailer, if they are faulty.
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.
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.
The most frequent causes of denials fall into a few key categories.