A credit card perk that doesn't get talked about much is consumer protection. If you have a problem with a transaction, you're not stuck hoping the merchant gives you a refund. You can file a credit card dispute with your card issuer. The issuer will put a temporary credit for that charge on your account while it investigates. If the investigation ends in your favor, that temporary credit becomes permanent.
Disputes are an option with all credit cards, from the most basic to the best credit cards on the market. But you can't dispute anything and everything. To get your money back, there needs to be a valid reason behind your dispute.
1. It's fraud
Fraud is always a valid reason to dispute a credit card charge. Legally, cardholders are liable for up to $50 in unauthorized transactions. But all the major card issuers have zero-liability policies, meaning if it's credit card fraud, you're not liable for anything. When you report it, your card issuer will refund the charge and send you a replacement credit card in the mail.
2. You weren't able to work it out with the merchant
Credit card companies require that you contact the merchant before disputing a transaction. The only exception is fraud, which you can and should dispute immediately. For everything else, contact the merchant first to see if you can resolve the issue. If not, then you can proceed with a dispute.
Keep a record of when you contacted the merchant and what the result was. If you called, make some quick notes about it. If you emailed, save the email chain.
3. You were charged an incorrect amount
When there's a billing error that the merchant won't fix, you can dispute it. You don't need to dispute the entire amount -- credit card companies let you file a partial dispute. For example, if your bill was $90, but you were charged $120, you can dispute $30. Upload your receipt to your credit card company as evidence, and it should be a cut-and-dry case. You can also file a dispute if you were double charged for a purchase.
4. You're still getting charged for a service you canceled
This is one of the more common reasons people need to file disputes. Sometimes you cancel a service, but the merchant keeps on billing you. Maybe it's a gym where you ended your contract or a meal delivery service you're no longer using.
You should always request a cancellation confirmation so you have evidence if you ever run into this problem. Also, make sure to check how much notice is required when canceling a service. Some contracts require a 30-day notice, which means if you cancel 15 days before your next billing date, you'll still be charged that next payment. You're unlikely to win a dispute in this situation because the merchant has the right to charge you under the terms of the contract.
5. Your order wasn't delivered
Online shopping is great, until that order you were excited about doesn't show up. Most companies that ship products have had this happen before, so you can often contact the merchant to get a free replacement order sent out.
But this doesn't always work. If the tracking says the order was delivered, the merchant may argue that it fulfilled the order. It's frustrating, and you can file a dispute, although it can go either way. Regardless, it's worth a shot to get a refund.
6. You had a quality issue with a product or service
When you don't get the product or service you paid for, you're entitled to a refund. For example, if an item you order is nothing like the pictures online, you could dispute that. If you pay a landscaper, and they do a terrible job, that's also something you can dispute.
With quality issues, get as much evidence as possible to support your case. A picture is worth a thousand words -- and could be what gets a dispute closed in your favor.
7. You returned the purchase
After you make a return, refunds don't happen instantly. They normally process within five to seven business days. But if you've been waiting for a refund, and the merchant hasn't been helpful, you can file a dispute to make sure you get your money back.
Keep in mind that you need to follow the merchant's refund policy. If you had 30 days to make a return and you waited until day 60, you probably won't win a dispute. But if your credit card has return protection, you may be able to file a claim and get a refund through that.
When you make sure you have a valid reason before filing a dispute, you're more likely to win it. If you need to dispute a charge on your credit card, you can do so online or by calling your card issuer.
