How to Dispute a Credit Card Charge

6 Min Read | Last updated: February 16, 2024

This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

You’re legally entitled to dispute erroneous or fraudulent credit card charges. Learn how to do it and what your rights are during and after the investigation.

At-A-Glance

The Fair Credit Billing Act gives you the right to dispute a credit card charge if you believe there’s an error or your card has been fraudulently used.
Opening a dispute on a questionable charge can be as easy as clicking on a couple of buttons.
You usually can withhold payment on the disputed charge but still must pay the rest of your bill.

Credit card users are protected from mistakes under the Fair Credit Billing Act of 1974 (FCBA).¹ That means if you find billing errors on your monthly statement or discover your card was fraudulently used, you may be able to dispute those credit card charges.¹ If the charges were indeed invalid, your card issuer will then correct the error by crediting your statement and issuing a refund for any interest or fees charged because of the false charge.²

But disputes must be opened up within 60 days after you receive your bill, so it’s important to carefully check and scan your statement every month for fraudulent charges and billing errors.¹ If you do detect credit card fraud, see “How to Report Credit Card Fraud” before opening a dispute to protect yourself from any additional unwanted charges.

When Can You Dispute a Credit Card Charge?

Before disputing a credit card charge, the first step is to make sure you actually need to – and can – file a dispute. For example, if you see a charge that you don’t recognize, check with any additional card members or authorized users to see whether they made the purchase. If that’s the case, you, as the primary card member, are responsible for those charges.³

Otherwise, your right to open a dispute on questionable credit card charges is protected by law, as long as it follows some requirements:

The disputed charge is a legitimate error. The FCBA states that disputed charges must be legitimate billing errors, such as incorrect dates or amounts, returns or canceled orders that weren’t credited, or goods that weren’t delivered as agreed.¹ You can also file a dispute if your credit card issuer fails to send bills to your current address, provided they receive written notice of an address change at least 20 days before the billing period ends.¹
The disputed charge is fraudulent. If not a mistake, the disputed charge must be fraudulent or unauthorized.¹
The disputed charge is over $50. According to the FCBA, only charges over $50 are eligible to be disputed.² But many credit card issuers fully protect their customers from fraudulent purchases by providing $0 liability policies, as long as the customer took reasonable care to protect their account information.² Before disputing a charge, it’s a good idea to make sure it will be covered by your card issuer.
An “open-ended” credit account was charged. Only “open-ended” credit accounts – accounts like credit cards or department store accounts where you can make repeated withdrawals and payments – are covered by the FCBA.¹ Installment loans or similar extensions of credit are not covered.¹
You act promptly. From the day you receive the erroneous bill, you have 60 days to file a dispute.¹ If you wait longer, it’s not guaranteed your credit issuer will acknowledge the dispute.

The FCBA also states that you can file a dispute with your card issuer if you make a legitimate charge but have a problem with the goods or service you paid for – for example, if the quality of the goods didn’t match what was advertised, or they were defective.² However, there are additional stipulations:²

You must have made the purchase within 100 miles of your current billing address.
The charge must exceed $50, unless your card issuer says otherwise.
You must have first made a good faith attempt to resolve the issue with the seller.

The Process to Dispute a Credit Card Charge

If you find you have a charge eligible for dispute, it’s time to take action. Exactly how to dispute a charge might depend on your card issuer.⁴ But according to the Federal Trade Commission (FTC), there’s one additional step you should always take to ensure your rights as a customer are fully protected by the FCBA: Send a written letter of dispute.¹ Here’s how to dispute a charge and what to expect.

Contact your credit card issuer. For some card companies, filing a dispute can be as simple as making a phone call to customer service or even logging onto your online account, clicking on the charge in question, then clicking a button that says “Dispute This Charge” – or something similar.⁴ In many cases, this is all you need to do to take care of the issue. But the government recommends proceeding to step two in order to fully protect your rights, which could come in handy if for some reason the dispute investigation gets complicated.¹
Write a letter of dispute. After you contact your credit issuer, write a letter to confirm the dispute.¹ This letter must be addressed to your credit card issuer’s “billing inquiries” address, not the address you would use to send a mail-in payment.¹ The FTC provides a sample draft letter on its website to help you correctly file the dispute.¹ Your letter should include the following information:⁵
- Personal information, like your name, address, and credit card account number.
- A description of the billing error, such as the type of charge, the dollar amount, the date of the charge, and an explanation of the error.
- Any additional proof that backs up your dispute, such as pictures of goods damaged upon arrival, receipts showing different prices or quantities than what you were billed for, etc.
Then send your letter ASAP. To be fully protected by the FCBA, your credit card issuer must receive the letter within 60 days of when you received your credit card bill with the erroneous charge.¹ The FTC recommends sending the letter by certified mail and asking for a return receipt, so you have proof of when your card issuer received the letter.¹ The FTC also recommends keeping a copy of the letter for your own personal records.¹

Wait it out. Your credit issuer is required to acknowledge the dispute in writing within 30 days of receiving your letter.¹ The creditor must then resolve the dispute within two billing cycles – but no more than 90 days – after receiving your letter.¹ Meanwhile, you’re legally allowed to withhold payment on the disputed charge, but the disputed amount may be deducted from your credit limit.¹ If the dispute is approved, the charge must be removed from your account.¹

Know Your Rights

Since credit card disputes are a legal matter, and you’re protected thanks to the FCBA, it’s a good idea to know your rights as a consumer. Here are a few to keep in mind:

Making payments during the dispute investigation: You’re allowed to withhold payment on the disputed amount and related charges while the dispute is open, but you still must pay any part of the bill that’s not being investigated.¹
If the dispute isn’t approved: If the investigation determines there were no mistakes in the bill, you’re entitled to a written response – letter or email – with your creditor’s explanation as to why, how much you owe, and when payment is due.¹
If the dispute is approved: If the investigation determines there was a mistake, the written response must show the corrections that will be made. The charge and any related fees must be removed.¹
If you disagree with the investigation results: You may write to the creditor if you disagree with the investigation results for up to 10 days after receiving a response.¹ Be advised, though, that if you refuse to pay the disputed amount after the investigation deemed it not a mistake, the creditor has the right to report you as delinquent.¹

The Takeaway

Disputing a credit card charge may be a good solution for a potentially frustrating situation. You can dispute fraudulent charges and charges related to billing errors and damaged or inadequate goods and services. Credit card issuers simplify the process online and may offer $0 liability for unauthorized charges.

¹ “Using Credit Cards and Disputing Charges,” Federal Trade Commission

² “Disputing Credit Card Charges,” MyCreditUnion.gov

³ “Credit Card Authorized User: What You Need to Know,” Experian

⁴ “How to Dispute a Credit Card Charge,” Experian

⁵ “Sample Letter for Disputing Credit and Debit Card Charges,” Federal Trade Commission

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Megan Doyle is a business technology writer and researcher whose work focuses on financial services and cross-cultural diversity and inclusion.

All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

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