How to Dispute a Credit Card Charge You Did Not Approve

Unauthorised charges, billing errors, and charges for goods that were never delivered are all disputes you have the legal right to raise with your credit card company. The Fair Credit Billing Act (FCBA) gives consumers specific protections and sets clear timelines for both you and the card issuer.

What You Can Dispute

Under the Fair Credit Billing Act, you can dispute:

• Charges you did not make or authorise
• Charges for goods or services you never received
• Charges for the wrong amount
• Charges for goods that were not as described
• Duplicate charges for the same transaction
• Charges made by someone who no longer has permission to use your card

What you cannot dispute under the FCBA: Disputes about the quality of goods or services you did receive are handled differently. If you received a product but are unhappy with it, that is a dispute with the merchant first, and a chargeback if the merchant refuses to resolve it.

Your Rights Under the Fair Credit Billing Act

Liability limit: For unauthorised charges (someone used your card without permission), your maximum liability is $50. Most major issuers have a zero-liability policy, meaning you pay nothing for fraudulent charges reported promptly.

Timeline: You must dispute billing errors within 60 days of the date the statement containing the charge was mailed or made available to you.

Issuer obligations: Once you dispute a charge, the card issuer must acknowledge your dispute within 30 days and resolve it within two billing cycles (no more than 90 days). During the investigation, you are not required to pay the disputed amount and the issuer cannot report it as past due.

How to File a Dispute

Step 1: Contact your card issuer

Phone: Call the number on the back of your card. Explain that you are disputing a charge and provide the amount, date, and merchant name. Ask for a dispute reference number.

Online: Log into your card account. Most issuers have a "Dispute a transaction" option within the transaction history. This creates a written record automatically.

In writing: For the strongest documentation, send a letter by certified mail. See the sample letter below.

Step 2: Provide supporting documentation

Gather anything relevant:

• Your statement showing the disputed charge
• Receipts showing the correct amount (for overcharge disputes)
• Email or chat records showing a merchant refused to help
• Tracking information showing a package was never delivered
• Screenshots of what was advertised versus what you received

Step 3: Continue making payments on undisputed amounts

Do not stop paying your entire bill during a dispute. You are only protected from paying the specific disputed amount. Continue paying everything else to avoid late fees and credit score damage.

Sample Dispute Letter

Send by certified mail with return receipt. Keep a copy of the letter and the receipt.

What Happens After You Dispute

What to expect: The issuer investigates by contacting the merchant for documentation of the transaction. The investigation must be completed within two billing cycles (maximum 90 days).

During the investigation: The disputed amount is typically placed in a temporary hold status. You do not have to pay it, and the issuer cannot report it as delinquent.

Possible outcomes:

• The issuer rules in your favour and removes the charge permanently
• The issuer rules in the merchant's favour and the charge is restored. You have the right to request the documentation the issuer used in its decision.
• The dispute is partially resolved (for example, a partial credit)

If you disagree with the outcome, you can escalate to the CFPB at consumerfinance.gov/complaint or your state attorney general.