Whether you found a billing error on your credit card statement, suspect a fraudulent charge or simply aren’t satisfied with a product you purchased, the Fair Credit Billing Act of 1974 (FCBA) gives cardholders recourse to dispute charges and get their money back. But that grace period comes with a time limit, as disputes must be submitted in writing no later than 60 days after your credit card statement is issued.
Here’s what you need to know about the FCBA, including credit card dispute time limits, valid reasons for filing a dispute and how long credit card disputes take once they are filed.
» MORE: How to dispute a credit card charge
Understand your legal rights
The ability to dispute false charges isn’t just a courtesy extended by credit card issuers; it’s a legal right protected by the FCBA. In accordance with that federal law, you have 60 days from the date your credit card statement is issued to dispute a billing error. To comply with this policy, your dispute must be submitted in writing.
🤓Nerdy Tip
The legal minimum time frame for filing a dispute is 60 days,but some credit card processors allow for a longer window. For example, Visa, Mastercard and American Express each allow chargeback requests up to 120 days from the date of the transaction in certain cases. If it’s been longer than 60 days, check with your issuer directly to determine whether you can still file a dispute.
Once you’ve filed your dispute, the FCBA provides that the credit card issuer must acknowledge receipt of your dispute and launch an investigation within 30 days. From there, it has 90 days to either resolve the dispute with a credit to your account or provide a written explanation of why the charges stand.
Before you dispute a credit card charge
Although all cardholders have the legal right to dispute unfair credit card charges, the process can be complicated, so it’s best to make sure your dispute is valid before filing it.
🤓Nerdy Tip
Disputes can’t be filed on pending charges, so if you see a suspicious transaction, you’ll have to wait until it has fully processed. Note that pending transactions can sometimes be caused by credit card holds, meaning they don’t match the final amount that will be charged.
To save yourself from unnecessary paperwork, take these steps before you follow through with initiating a dispute:
Run a search on the name of the company. Some companies operate under multiple names, using one name for customer-facing purposes and a different one for operations and logistics. If you see a transaction from a company name you don’t recognize, a quick online search may help you realize what the charge is.
Check your email, past statements and other payment records. Do you have a free trial or subscription that you forgot to cancel? Or do you have recurring but infrequent charges, like an annual bill? If you take a few minutes to check through your email for order confirmations and review past credit card statements, that will help ensure this isn’t a charge you simply forgot about.
Talk to authorized users to see if they recognize the charge. If your spouse, child, employee or anyone else is an authorized user on your credit card or has access to use the card, they may be the source of the unrecognized transaction.
Contact the merchant directly. If you’re certain there was a billing error — or alternatively, if you’re simply not satisfied with a product you purchased — contact the merchant directly. Explain the issue with the transaction and request a chargeback. If the chargeback is approved, the transaction will be reversed and funds will be returned. And even if the merchant is uncooperative, that documentation will help speed up the investigation once your dispute is filed.
Put your dispute in writing
Although it may make sense to initiate a credit card dispute online or by phone, full compliance with the FCBA requires that you follow up that initial contact in writing within that 60-day window. This ensures that both you and your credit card issuer have record of the dispute and that an investigation can be conducted with accurate information.
🤓Nerdy Tip
Many major issuers offer options to dispute a charge in writing from your online account. Simply go to your account activity, select the charge in question and look for a link that says “report a problem,” “dispute charge” or similar. Then follow the prompts to complete your written dispute.
Your written dispute should include your name and account number, the date you’re filing the dispute, the date of the transaction in question and an explanation of why you’re disputing the transaction. If you’re dissatisfied with the quality of a product and have already reached out to the merchant, include that information as well. And make sure to include copies of any supporting documentation.
» MORE: When credit card disputes become 'friendly fraud'
FAQs
Found a billing error on your credit card statement? You have 60 days to dispute it. Here's how to do it and what to expect. Jaime Hanson is a former NerdWallet credit card writer.
Can I dispute a charge from 2 years ago? ›
Federal law only protects cardholders for a limited time — 60 days to be exact — after a fraudulent or incorrect charge has been made.
Is there a time limit to dispute a credit card charge? ›
Send your dispute to your credit card company in writing. You can also call to dispute a charge, but to get your legal protections, you must send a letter within 60 days of the issuance date of the first bill that shows the disputed charge.
Can you dispute a debit card charge after 90 days? ›
The time frame guidelines may depend on whether your debit card was lost or stolen or if it's still in your possession. By law, billing errors must be disputed in writing within 60 days of the date that the first statement with the billing error is sent to you.
How long does a company have to respond to a credit card dispute? ›
Within 30 days of getting your complaint, the issuer must acknowledge it in writing, unless the problem has been resolved. Within 90 days of getting your complaint, the issuer must resolve the dispute.
How late is too late to dispute a charge? ›
The legal minimum time frame for filing a dispute is 60 days, but some credit card processors allow for a longer window. For example, Visa, Mastercard and American Express each allow chargeback requests up to 120 days from the date of the transaction in certain cases.
Can I dispute a credit card charge that I willingly paid for? ›
Can I dispute a credit card charge that I willingly paid for? There are many cases where you can make a claim for a credit card refund under Section 75, even if you agreed to the purchase. For example, the goods or services you received didn't meet the standards promised by the seller.
How successful are credit card disputes? ›
You might not always get a fair outcome when you dispute a chargeback, but you can increase your chances of winning by providing the right documents. Per our experience, if you do everything right, you can expect a 65% to 75% success rate.
What is the federal law on credit card disputes? ›
What Is the Fair Credit Billing Act? The Fair Credit Billing Act is a 1974 federal law enacted to protect consumers from unfair credit billing practices. It enables individuals to dispute unauthorized charges on their accounts and those for undelivered goods or services.
Is there a limit on credit card disputes? ›
Are there any limitations on raising claims and defenses? Yes. In order to assert claims and defenses, the purchase must have been made in the same state you live in, or within 100 miles of your home. Also, the amount of the disputed charge must be more than $50.
Each card network and issuing bank sets its own time limits for filing a chargeback, but U.S. law sets a minimum time limit of 60 days. Most banks give cardholders 120 days to dispute a charge.
Can you dispute a credit card charge after 120 days? ›
Disputes must be processed no later than 120 calendar days from either: The transaction processing date. The date on the credit transaction receipt; if the CTR is undated, then from the date the cardholder returned the merchandise or canceled services.
Can you dispute a charge after 180 days? ›
For most disputes the time frame is 120 days (U.S.) and 180 days (International) from the transaction date of the original sale or the date of discovery of the issue (i.e., defective merchandise). However, in some instances the time frame may be longer or shorter depending on the specific reason code.
Can disputing hurt your credit? ›
Disputing a credit card charge does not hurt your credit. However, if the information on your credit report changes because of the dispute, your score may change accordingly. Credit agencies can also note the dispute by placing the “XB” code on your account, which simply means the dispute is under investigation.
What is the 540 day rule for chargebacks? ›
Within 120 days of the last date, the cardholder expects to receive the goods or services (not to exceed 540 calendar days from transaction). Within 120 days of the date, the cardholder was informed that the goods/services would not be provided (not to exceed 540 calendar days from transaction).
What are valid reasons for disputing a credit card charge? ›
To get your money back, there needs to be a valid reason behind your dispute.
- It's fraud. ...
- You weren't able to work it out with the merchant. ...
- You were charged an incorrect amount. ...
- You're still getting charged for a service you canceled. ...
- Your order wasn't delivered. ...
- You had a quality issue with a product or service.
Most transactions must be disputed within 60 days of the date of your statement on which the error appeared.
How far back can you dispute something? ›
What's the Time Limit for Filing a Chargeback? Each card network and issuing bank sets its own time limits for filing a chargeback, but U.S. law sets a minimum time limit of 60 days. Most banks give cardholders 120 days to dispute a charge.
How do I dispute an old charge off? ›
If there is an incorrect charge-off on your credit report, you'll need to contact the credit bureau directly and do so in writing. You can send them a “dispute” letter that outlines who you are, what information you would like to have removed, and why the information in question is incorrect.
Can I dispute a PayPal transaction from 2 years ago? ›
Significantly Not as Described: Dispute must be opened within 30 days of the date of delivery or fulfillment (as applicable) of an order or within 180 days of the date you sent the payment to the seller, whichever is sooner.
