How To Dispute A Credit Card Charge?
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You open your credit card statement and recoil in horror as you see an unfamiliar charge on your bill. That isn’t good. However, that time you purchased something online, and it never came. Or the item was not what it was advertised to be.
There are several situations where you may have to dispute a charge on your credit card. When that happens, it’s a good idea to know how to deal with credit card companies. Here’s a look at how you can dispute a credit card charge.
Types of charges to dispute
The first thing you need to do is see what kind of charges can be disputed. Here is an overall look at the three major types of charges that you will be able to dispute.
- Fraudulent charge
- Billing error
- Bad service or service not delivered
Fraudulent Charge
A fraudulent charge is pretty straightforward. This is a charge on your credit card that you did not authorize.
A fraudulent charge can arise from several situations. For instance, your credit card may have been stolen, and someone could secure a purchase on your card. Perhaps your credit card information was stolen online.
Also, you can experience a fraudulent charge from a company. No matter how the fraudulent charge was placed on your card, it can be disputed.
It is recommended that you file a police report if you believe that you have been the victim of a stolen credit card. While this is not required, you can help law enforcement stop credit card thieves from victimizing other credit cardholders.
With a fraudulent charge, there is typically no time limit for you to dispute the charge. However, the faster that you dispute the charge, the better.
Billing Error
A billing error is another charge that can be disputed. Usually, credit card companies are really good at making sure that your bills are accurate. However, there are times when errors may show up. In these cases, you will be able to dispute the charge.
Here are some situations where you may encounter a billing error on your account:
- Charges that have the wrong amount
- Charges that were placed on the wrong date
- The credit card company did not credit a payment to your account
- The credit card company falsely charged you a late fee
- The credit card company falsely charged you a fee for a service that you did not use
- Other math errors
Most credit card companies will give you up to dispute a billing error on your credit card. Therefore, you should carefully check your credit card statement each month to ensure that it is accurate.
You have up to 60 days to send in your dispute in writing. In turn, the credit card company has up to 30 days to give you a written response.
Bad Service or Services Not Delivered
Yes, there are cases where you can dispute a charge due to bad service and service that was not delivered. Usually, it will be easier to dispute a charge for a product or service that was not delivered.
However, it may be a challenge to dispute a charge for bad service. Therefore, when you attempt to dispute a charge for bad service, you will need an ample amount of evidence to back up your case.
Note that even if the company says that their product or service is non-refundable, you can still dispute the charge. Just make sure that you have documentation that can state why the charge should be reversed.
Most credit card companies give you up to 60 days to dispute a charge due to bad service or services not delivered. Therefore, be sure to dispute the charge as early as you believe that you have a reason to dispute the charge.
Charges that You Can’t Dispute
Now that you are familiar with charges that you can dispute, let’s take a look at a couple of types of charges that you will not be able to dispute:
- Charges from buyer’s remorse
- Unhappy with purchase from an authorized user
Charges from buyer’s remorse
Perhaps you feel bad about paying $400 for that pair of alligator shoes. Sorry, a charge like this can not be disputed. If you ever feel that you may make a purchase that you won’t like, be sure to take some time to consider if you really need that product or service.
Unhappy with purchase from an authorized user
So your adult son just bought $300 worth of Pokemon cards on your credit card. That may not make you happy. However, if your son is an authorized user, you will not dispute the charge.
How to Contact a Major Credit Card Company in Order to File a Dispute
Just about every credit card company has a simple way to contact them to dispute a credit card charge.
Getting Disputed Charges Off Your Credit Card
Be sure to check your credit card companies website to see where you can either mail or e-mail your dispute. If you have an online account with your credit card company, then there should be a section where you can dispute a charge.
Zero-Dollar Liability Policies
Most credit card companies have what is known as a zero-dollar liability policy. That means that if your credit card is stolen or fraudulent charges are on your credit card, you are not liable for those charges.
Be sure to check your credit card policy to ensure that you have a zero-dollar liability policy on your card.
Chargebacks versus a refund
When your dispute is resolved in your favour, you may either receive a chargeback or a refund. A chargeback is when the credit card reverses the charge on your card.
A refund is when a credit card company pays you back for the money you already paid to cover the fraudulent charge.
Getting your disputed resolved
Dealing with credit card companies does not have to be difficult when it comes to resolving a dispute.
Be sure to have all the information that you need and be persistent. You’ll be surprised by how easy it can be to resolve your credit card dispute.
Disputing a charge and your credit score
You may be wondering if disputing a charge can hurt your credit score. The answer is that disputing any charge on any credit card will not adversely affect your credit score.
Frequently Asked Questions about disputing a credit card charge
Here are frequently asked questions in the milesopedia community about this topic.
How long do I have to dispute a charge on my credit card in Canada?
For billing errors, undelivered services, or unsatisfactory products, Canadian consumers generally have up to 60 days from the statement date to file a dispute in writing with their card issuer. Fraudulent transactions have no specific deadline under the Visa, Mastercard or American Express zero-liability policies, but the sooner you report unauthorized charges the easier they are to resolve. Once a dispute is filed, the card issuer has up to 30 days to acknowledge it and typically up to 90 days to investigate and provide a final written response with their decision.
Will disputing a credit card charge hurt my credit score?
No. Filing a dispute on your credit card has no direct impact on your credit score. Equifax and TransUnion do not record disputes, and the credit card issuer does not report the disputed amount differently to credit bureaus while the investigation is ongoing. You also do not need to pay the disputed amount during the investigation – most issuers credit it back provisionally. The only indirect risk is letting the rest of your statement go unpaid, which would affect your payment history (35% of your credit score).
What is the difference between a chargeback and a refund?
A refund is initiated by the merchant when they agree to reverse the charge – funds typically appear within 5–10 business days, no card-issuer involvement is required. A chargeback is initiated by your credit card issuer (Visa, Mastercard, Amex) on your behalf when you formally dispute a charge: the issuer pulls the funds back from the merchant and you receive a temporary credit while the case is investigated. Always try to resolve directly with the merchant first, since chargebacks are slower and merchants may add you to internal blocklists for future purchases.
What charges cannot be disputed on a credit card?
Buyer’s remorse – simply changing your mind after a purchase – is not a valid dispute reason. You also cannot dispute charges made by authorized users you added to your account, since they are legally entitled to use the card. Cash advances, balance transfers and convenience cheque transactions are also generally not disputable, though fees associated with fraud can sometimes be reversed. For online purchases, document the issue with screenshots, emails and tracking numbers before contacting your issuer, since dispute resolution depends heavily on the evidence you can provide.
