How Long Do You Have to Dispute A Credit Card Charge

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One of the valuable benefits of using a credit card is the ability to dispute credit card charges.

Where people get confused is regarding the amount of time you have to dispute a credit card charge. 

Many mistakenly assume that you have 60 days to dispute a charge. Though there is valid reasoning to that mistake, it is not true that a charge must be disputed within 60 days.

As a matter of fact, you often have a lot more time than that.

Let’s dive in.

Two Types of Credit Card Disputes

There are two ways to initiate a credit card dispute.

1. To file a dispute under the Fair Credit Billing Act (FCBA)

2. To file a dispute under the Chargeback laws

The terms dispute and chargeback, though often used interchangeably, are not the same thing. Each one has its own rules and regulations. Let’s check out the difference between a dispute under the FCBA and a dispute under the Chargeback laws. 

Your Right to Dispute a Credit Card Charge under the Fair Credit Billing Act

Following are the types of errors you have the right to dispute under the FCBA.

1. Unauthorized charges
2. Charges that list the wrong date or amount
3. Charges for goods and services you didn’t accept or that weren’t delivered as agreed
4. Math errors
5. Failure to post payments and other credits, such as returned items
6. Failure to send bills to your current address (assuming the creditor has your change of address in writing, at least 20 days before the billing period ends)
7. Charges for which you ask for an explanation or written proof of purchase, along with a claimed error or request for clarification

When you file a dispute, the dispute letter must reach the creditor within 60 days by mail after you receive the statement you’re disputing.

There’s the 60 days people know about. But there’s more coming, under chargebacks.

Your Right to Dispute a Credit Card Charge under Chargeback Laws

As we discussed earlier in this post, you have the right to demand money back from a merchant, through the credit card issuer. Your right is under Regulation Z of the Truth in Lending Act, Article 4 of the Uniform Commercial Code.

Many credit card disputes automatically result in a chargeback but if you fail to meet one of the requirements for a dispute, as listed above, you will not have legal protection under the FCBA.

Regarding how long you have to do a chargeback, each credit card issuer has its own time frame guidelines and reasons. Keep in mind that the following timelines are general and apply in some, but not all cases. You should look at your credit card issuer’s specific timelines before proceeding. Let’s check it out.

Chargeback Timeframes and Reasonings

Visa and Mastercard

Consumers usually have 120 days from the date the transaction was processed to file a chargeback with the issuing bank if the reason for the chargeback is one of the following:

• Fraud
• Incorrect purchase amount
• Duplicate charge
• Canceled recurring transactions

Consumers have 75 days from the date the transaction was processed to file a chargeback with the issuing bank if the reason for the chargeback is the following:

• Unauthorized charges

Consumers have 540 days from the date the transaction was processed to file a chargeback with the issuing bank if the reason for the chargeback is one of the following:

• Services not provided
• Merchandise not received, or received not as described, or defective merchandise

Amex 

Consumers have a maximum of 120 to file a chargeback. A chargeback filed for the following reason may be filed for an extended amount of days, though Amex does not specify just how much more than 120 days. They can extend it based on given circumstances for what they feel is justified.

• Goods/services not received
• Goods/services returned/canceled, redisputes

Discover

In general you need to initiate the chargeback within 120 days. Discover may accept charge backs even past 120 days in good faith but will not always be enforced. 

How to Properly Dispute a Charge

As a general rule, always make sure to review your credit card statements and look out for suspicious activity. It may take some tedious work but statements often have errors and you want to catch them. 

If you come across an amount that is incorrect, a charge for goods or services that were not received as agreed, or an outright fraud charge, contact the bank immediately to dispute the charge.

The best way to file a dispute is in writing since legally, if you want to have the protection of the FCBA, the dispute must be in writing. However, in most cases, calling by phone to dispute the charge should be sufficient.

If you’re sending the dispute by mail, write out your dispute letter and mailed to the credit card issuer’s dispute address.

Once you submit the dispute, whether by mail or phone, the credit card issuer will contact the merchant for their side of the story.  During the time of the dispute, you are not liable to make payments for charges disputed.

Within around 30 days of the dispute, the credit card issuer will get back to you in writing with their decision. They decide if you are right or if the merchant is. If you lose the dispute, you have 15 days to respond to have it reconsidered.

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