How To Dispute a Credit Card Charge—The Dispute Process Explained
PYMNTS’s 2022 report shows that 24% of e-commerce customers across the U.S., U.K., and Australia have disputed at least one credit card charge during the previous year.
Be it a small miscalculation or a large unauthorized transaction, you have the right to file a dispute and, if accepted, receive a refund.
To carry out the dispute process successfully, it is critical to understand its intricacies. This article aims to educate on credit card disputes, answering questions like:
- What are some valid reasons for disputing a credit card charge?
- How to dispute a credit card charge
- What happens when you dispute a credit card charge?
Valid Reasons for Disputing a Credit Card Charge
As per the Fair Credit Billing Act (FCBA), consumers generally have the right to withhold any disputed payment made with a credit card until the dispute gets investigated and resolved, which typically takes place within 90 days. Charges you can dispute usually include:
- Duplicate charges or charges containing a processing error, such as a wrong authorization date or total amount charged
- Charges for undelivered, canceled, returned, or defective goods or services
- Unauthorized or fraudulent charges
Conditions To Be Aware Of
To be able to withhold a payment, the charge must fulfill the following three conditions:
- The cost of the goods or services in question must be over $5.
- You must have paid for said items in your home state or within 100 miles of your current billing address.
- You must have attempted to resolve the issue with the seller first.
It is also important to acknowledge that you must initiate the dispute process within a certain time frame to successfully withhold a payment. The table below details how much time you have to dispute a payment based on the type of issue you’re dealing with: