How to dispute a credit card charge

Whether you were double-billed, overcharged or hit with credit card fraud, disputing a charge on your credit card is one of your rights under the Fair Credit Billing Act. And while it should be (and often is) fairly simple, the process varies widely by credit card, card issuer, the merchant and your situation.

If you need to dispute a charge, here’s how to report the problem, follow through and have that erroneous item removed from your bill — along with a few tips for resolving the situation when things don’t go exactly as planned.

How long do you have to dispute a credit card charge?

You have 60 days from when the disputed charge appears in your monthly statement to dispute it. So dispute the charge as soon as you discover it.

Ira Rheingold, executive director of the National Association of Consumer Advocates, suggests setting aside one day each week to look over your financial records. That way, the minute an unrecognized charge appears, you can take action.

Andrew Milz, a consumer protection attorney for Flitter Milz P.C. in Philadelphia, encourages prompt responses to any fraud alerts sent by your card issuer — allowing you to spot fraud or errors as they occur. Additionally, disputing a charge based on the issuer’s own alert strengthens your case to have the item removed from your bill.

How to dispute a credit card charge

It’s important to adhere to the standard process to dispute a charge, or your claim might be delayed or dismissed completely. The Fair Credit Billing Act sets out “a procedure that must be followed,” says Edward Kroub, partner and head of litigation for Mizrahi Kroub LLP. “Any deviation can be a fatal flaw to your claim and it could be dismissed,” he adds. “I’ve seen that happen.”

Let’s take a look at the steps you should take in order to dispute a credit card charge:

Review the charges

Before you dispute a charge with your credit card company, review the transaction details on your account. If you decide the charge is inaccurate, consider why you’ll be disputing the charge. Were you denied a refund after buying a defective product? Did a merchant double-charge you? Or are you seeing charges that you never made, maybe at merchants you never visited or even cities/states you weren’t in? The specifics of your situation will determine how you move forward.

Contact the merchant

In the case of charge errors, for example, contact the merchant involved and see if the problem can be resolved before getting your credit card issuer involved.

If you decide to go this route, document the date you contact the merchant, who you speak with and their response to your problem. The bank may ask for this information later on. If reaching out to the merchant involved ends in a stalemate, call your credit card company.

Contact the issuer

Charge errors are not the only thing consumers can dispute. You may want to dispute an unsatisfactory service or a fraudulent charge. Regardless of the nature of your dispute, call the card company immediately once you discover a problem that cannot be resolved on your end of things. Report the disputed charge, and find out what the issuer requires to get that item removed from your bill.

Your rights when disputing charges

Many card issuers have a place on their website or within their app where you can dispute charges. But you may want to think twice about using it, says Kroub.

The reason: It may mean you’re signing away some of your dispute rights. That’s because some issuers include arbitration clauses and other binding language in a site or app’s fine print.

And while you’ve likely already agreed to some form of arbitration just by using the card, “Why solidify their defense?” Kroub says.

His advice: After you report the disputed charge by phone, follow up in writing — either a letter with a return receipt or an email.

When you call, state that you’re lodging a dispute, he says. “Most big card companies will have procedures. Often a phone call won’t be enough — you’ll want to follow it up with a letter. A letter will preserve your rights under the Fair Credit Billing Act.”

Example letter for disputing credit card charges

When preparing your letter, be sure to include the following important information regarding your dispute:

• Your name
• Account number
• Date of the disputed charge
• Amount of the charge you are disputing
• An explanation of why you are disputing the charge

Here is a quick example of what a credit card charge dispute letter may look like:

May 1, 2025
Attn: Billing Inquiries
Re: Notice of disputed charge to Account #: 123456789

To Whom It May Concern:

I am writing to dispute a charge of $100 to my Chase Freedom Unlimited on April 1, 2025. This charge is for an item I purchased at Walmart on April 1, 2025, and returned on April 5, 2025. I have attempted to resolve this issue with the merchant but have been unsuccessful.

I am requesting that the billing error be corrected and credited to my account, including any amounts for finance or other charges that I may have incurred. Additionally, please send me an accurate statement reflecting these changes.

Please find a copy of the receipt for the purchased item and a copy of the return receipt enclosed. I appreciate your prompt attention to this matter.

Sincerely,
John Doe

Next steps: Following up on a credit card dispute

Just because you’ve contacted the merchant or issuer and sent the letter doesn’t mean you’re done. Keep copies of your letter, your documentation and proof it was sent.

According to Kroub, it’s also important to follow up with the company to make sure it received your letter and find out what action it’s taking. It’s also important to keep a log with detailed notes every time you contact the company. Get the time, date, employee’s name and their company ID number. Jot down a short summary of what was said.

If you do end up in court, “the more that you can show that you were diligent, the better off you’ll be,” says Kroub.

What happens next

The company has one month to acknowledge your dispute and another two months (or billing cycles) to investigate, according to the terms laid out in the Fair Credit Billing Act.

When the company completes its investigation, it must notify you in writing of its decision. And if the company elects not to remove the charge, it must give you an explanation of why it made that decision, says Milz.

If the company decides not to remove the charge from your bill, you have 10 days to respond, says Milz. And you may wish to consult with a consumer protection attorney, he adds.

Look for one “who is fluent in the Fair Credit Billing Act and who regularly appears on behalf of consumers in federal court,” says Kroub. You can find a list of consumer attorneys in your state through the National Association of Consumer Advocates. And often the representation will end up being free, as many consumer protection statutes are fee-shifting statutes, he says.

Another consideration: Depending on the arbitration agreement in your credit card agreement, you may not be able to sue, says Rheingold.

The FTC enforces the Fair Credit Billing Act, and the Consumer Financial Protection Bureau investigates companies accused of financially harming consumers. So if you’re disputing a charge and not getting any traction, it can be helpful to file complaints with both, says Kroub. “The more you can put this on other people’s radar, the more successful you’ll be.”

To pay or not to pay

So do you have to pay a charge while it’s being disputed? Technically no, says Milz.

If you’ve officially disputed a charge, the Fair Credit Billing Act gives you the right to withhold payment for that one item until the card issuer’s investigation is complete. And the issuer isn’t allowed to send you to collections, sue you or report your action on the disputed item to the credit bureaus as a late or missed payment, he says.

Practically speaking, though, it can be smart to pay the charge and accept an account credit later, says Milz. Because if the account is reported to the credit bureaus, correcting that record can be much more difficult than rectifying a card billing error.

And it can cost you big money in terms of a diminished credit score resulting in higher interest rates on a car or home. If there are errors on your credit report, you should dispute them with the credit bureaus and consult a consumer attorney, Milz says.

The bottom line

Whether you’re dealing with credit card fraud or just incorrect or unwanted charges from merchants, disputing erroneous charges is a crucial tool for consumers. But the process can take a lot of time and might not be resolved in your favor. Still, it’s important to keep a close eye on your credit card statements and follow up on anything that looks odd or incorrect. In the case of fraud, you want to report the charge as soon as possible and make sure your accounts are secure.