What should you do if you've paid for something and it's not what you expected?
Under certain circumstances, consumers have the right to dispute credit card charges, including those for items they willingly purchased. However, abusing this privilege by disputing it when it isn't justified isn't fair to retailers, who risk being held liable for the merchandise cost plus a chargeback fee.
Learn more about your right to dispute credit card charges under the Fair Credit Billing Act, as well as when you should and shouldn't do so.
Important Points to Remember
- Consumers have 60 days after a credit card charge posts to their account to dispute it under the Fair Credit Billing Act.
- Even if you willingly paid for something, you may be able to file a dispute in some cases. This includes situations where there was a billing error, the item was not delivered in acceptable condition, or you did not receive all of the services that were promised.
- Before filing a credit card charge dispute, you should always try to resolve an issue with your merchant/service provider.
- It's not acceptable to dispute credit card charges simply because you have buyer's remorse, a family member used your card without your permission, or you want to get something for free. This is a form of financial fraud.
Is it possible to contest a credit card charge that I willingly paid for?
The short answer is that you can dispute credit card charges that you willingly made and paid for in some circumstances. This complies with the Fair Credit Billing Act, which provides consumers with certain protections when it comes to credit purchases. Credit card disputes give people a way to get their money back from purchases, whether it's because of a billing error or because they weren't given their goods or services as promised.
What can you dispute?
There are a few situations where disputing credit card charges is appropriate. These are some of them:
- False charges: If you notice a charge on your account that you or an authorized user of your account did not make, report it right away. Creditors usually investigate quickly, issue a refund, and change your account number if necessary.
- A billing blunder: This is an example of when you can dispute a charge for a purchase you actually made, as opposed to a fraudulent charge. It's possible that a vendor entered an incorrect amount or that you were charged for items that were never delivered.
- You are entitled to a refund if you are dissatisfied with the quality of the goods or services, whether an item was delivered broken or defective, or you paid a service provider who failed to deliver. But first, you must make a reasonable effort to persuade the merchant to give you a refund. If they refuse, you have the option of disputing the charge.
According to the Fair Credit Billing Act, disputes can only be won if purchases total more than $50 and were made in your home state or within 100 miles of your billing address, in addition to making a good-faith effort to resolve an issue with the merchant first.
What You Shouldn't Argue About
It is necessary to act responsibly when disputing a credit card charge. If your dispute is approved, the retailer not only loses the sale but also has to pay a chargeback fee, which can be anywhere from $20 to $100. It's considered "friendly fraud" if you do it on purpose to get a freebie or because you regret a purchase.
With that in mind, consider the following scenarios in which you should not contest a charge:
If the purchase was made by a friend or family member, let's say your child uses their tablet to make purchases or places a one-click order on your Amazon account without your knowledge. You can work directly with the merchant to try to cancel the order, issue a return, or refund (then set parental controls on the device and account to prevent it from happening again), but you can't dispute the charge because it was technically your fault for not protecting your account.
You placed a catering order and paid with your credit card because you didn't contact the merchant about the problem first, but when the food arrived, there was an item missing and the sandwiches were all wrong. Your first course of action should always be to contact the caterer and inform them of the error. You can file a dispute if they don't take action, but you must first give the vendor a chance to make things right.
If you're disputing a fraudulent charge, contact your creditor right away to report it. That way, they can not only open an investigation but also freeze your account to prevent further charges.
How to Refuse a Charge on Your Credit Card
To increase your chances of getting your dispute approved, follow these steps:
Make certain you have a strong case: Was your card stolen or was the charge fraudulent? Was there a pricing error that the merchant refused to correct? Were you dissatisfied with the goods or service but refused to accept a refund from the vendor? Have you sent an item back for a refund but have yet to receive a credit to your account? You should be able to make a strong case in any of these scenarios.
Gather any evidence that will help you prove your case for a refund: This can include things like a screenshot of your correspondence with a vendor in which they refused to refund you; a service listed in your contract that was not provided; proof you returned an item; or a copy of your bill that includes the pricing error.
File your complaint as soon as possible: Some credit card issuers allow you to do this online, or you can mail a letter. Make sure to write down your story and upload or provide copies of any supporting documents.
Commonly Asked Questions (FAQs)
What is the time limit for disputing credit card charges?
To dispute a credit card charge, you have two billing cycles (60 days) to do so. If you choose to mail a letter, it must arrive at the creditor within 60 days of the date the charge first appeared on the bill. Request a return receipt when sending certified mail. If you file online, you'll have to do so within 60 days.
What Is the Fair Credit Billing Act, and How Does It Work?
When it comes to credit card bills, the Fair Credit Billing Act of 1974 outlines a number of consumer rights. Consumer creditors must allow consumers to dispute charges within 60 days if there is a billing error, undelivered or unacceptable goods or services, or fraudulent charges by an unauthorized user.
What happens if you dispute a credit card charge?
The credit card company is required to notify you that it received your dispute request (you'll receive a letter in the mail within 30 days, and most likely an email or account alert before that). After that, the creditor has two billing cycles to investigate the situation and make a decision, and you aren't liable for that charge during that time.
Your account will be credited, along with any finance charges or fees associated with the original charge, if your dispute is approved. If it is not approved, you must be given a written explanation as to why, and you must pay the charge.
What can I do if I have a credit card dispute?
Charges on your credit card that meet one of the following criteria can be challenged:
Errors in billing
charges that are false.
The goods and services were of poor quality (and you were unable to obtain a resolution from the merchant).
