How to Successfully Dispute a Credit Card Charge

When you spot an unfamiliar charge on your credit card statement, you want to act quickly. No need to panic – federal law limits your liability to $50 for an unauthorized charge to your credit card (and you may not even have to pay that amount) – but to get your money back, you’ll need to prove that the charge funds was unauthorized by filing an application. formal dispute.

Initiating a dispute process with your credit card issuer allows you to dispute payments and possibly have them removed from your account. If you notice a suspicious transaction or think you’ve been unfairly charged, here’s how to deal with it.

Review your credit card statement carefully

The first thing to do is to make sure that the accusation actually justifies the dispute. Sometimes payments may appear under unfamiliar names or differ slightly from the date the purchase was actually made. Consider checking with family members or other authorized card users if you are unsure of specific costs. Make sure you recognize all charges, check them for duplicate charges, and make sure there are no patterns of unauthorized or fraudulent transactions that could indicate there is more to the game than a simple billing error.

Decide who to call

Before initiating a formal dispute with your credit card issuer, consider contacting the seller directly. Perhaps someone has made a real mistake or can provide a clarification that will quickly resolve the issue.

If you haven’t been able to contact the seller, haven’t received a satisfactory response, or confirmed that the payment is not a simple billing error, but is indeed fraudulent, then it’s time to initiate a formal dispute with your card issuer. The seller can resolve the billing error, but is unlikely to help if your card details have been compromised.

Gather Evidence

If you are unable to resolve a problem with a merchant or suspect fraudulent activity, gather all relevant evidence related to the disputed payment. This evidence can include receipts, order confirmations, tracking information, emails, or any communication with the seller—anything that can strengthen your position during a dispute. If you don’t know the payment at all, check the information on the invoice – payments usually include the place where the payment was made, a reference number, and/or a description of the expense category. Be prepared to explain how these factors can help determine that it was not your purchase.

Initiate dispute process

Contact your credit card issuer’s customer service department as soon as possible to initiate a dispute process. The customer service number is located on the back of your credit card or on the issuer’s website. Be prepared to provide the following information:

• Your name and account number.
• Date and amount of the disputed payment.
• Brief explanation of why you dispute the charge.
• Mention that you have already tried to resolve the issue with the seller (if applicable).
• Any evidence you have collected.

In the event of a fraudulent payment, your credit card issuer will most likely issue you with a new credit card number (sometimes immediately).

Consider filing a dispute letter

According to the Federal Trade Commission, while it’s often possible to initiate a dispute over the phone, it can be helpful to send a written letter about the dispute to your credit card issuer. The letter should include all the important details mentioned during the phone call. More than anything, this letter serves as the official record of your dispute.

Request a temporary payment delay

While your dispute is pending, you have the right to request a temporary hold on payment for the amount in dispute. This ensures that you are not required to pay the disputed charge while the credit card issuer evaluates the situation.

If your issuer does not agree to a temporary hold, it is best to pay off the balance as if the payment were legal. Hope you get a refund; otherwise, you could be on the hook not only for the fee, but for any applicable late fees in the future.

Wait for an answer

After your dispute is filed, your credit card issuer will investigate the charge. The investigation process can take from several days to several weeks, depending on the complexity of the case. During this time, the issuer will work with the seller to resolve the dispute.

After the investigation is complete, your credit card issuer will notify you of its decision in writing. If they decide in your favor, the disputed amount will be removed from your statement and you will not be liable for any payment. If the fee is deemed legal, you will be required to pay the amount, together with any applicable fees.

If you disagree with the results of the investigation or think the decision is unfair, you have the right to appeal. Contact your credit card issuer again and provide additional evidence or arguments to support your case. The appeal process will include one more review and the issuer will inform you of the final result.

Bottom line

Disputing a credit card payment can be tricky, but it’s important to protect your finances and keep your credit history intact. Be proactive, collect evidence, and contact your credit card issuer in a timely manner to improve your chances of a successful resolution. Keep in mind that keeping a close eye on your credit card transactions can help you identify and resolve problems early.