What happens when you dispute a charge

When you tell your card issuer you don't recognize a charge or believe it was processed incorrectly, the issuer opens a dispute case and temporarily removes the charge from your balance while they investigate. You are not responsible for paying that amount during the investigation. The merchant gets notified that you've disputed the charge and has a window—usually 7 to 10 days—to respond with evidence that the charge was legitimate.

The investigation typically takes 30 to 90 days from start to finish. Your issuer will review both your account activity and the merchant's response, then make a decision: the charge gets reversed and stays off your account, or it gets put back on and you owe it. Either way, you'll be notified in writing of the outcome.

Key Takeaways

  • You must report a dispute to your card issuer within 60 days of the charge appearing on your statement, or you lose the right to dispute it.
  • During the investigation, the disputed amount is removed from your balance and you don't have to pay it, even if the merchant later wins.
  • Merchants can submit receipts, shipping records, or other proof that the charge was legitimate, and the issuer weighs that evidence against your claim.
  • If the issuer rules against you, the charge goes back on your account and you'll owe it, but you can still pursue the matter with the merchant directly.

The 60-day window and how to start a dispute

You have 60 days from the date a charge appears on your statement to report it to your card issuer. This is a hard deadline set by federal law. After 60 days, the issuer is no longer required to investigate, even if the charge is clearly fraudulent.

To start a dispute, contact your card issuer directly—by phone, through their website, or through their mobile app. You don't need a lawyer or a third party. Tell them the charge is unrecognized or incorrect and provide as much detail as you can: the date, the amount, the merchant name, and why you believe it's wrong. Write down the name of the person you spoke with and the date and time of the call. If you dispute online or through the app, you'll usually get a confirmation number.

The issuer will send you a written confirmation of the dispute within a few days, including a reference number and the timeline for resolution. Keep this confirmation and any follow-up letters.

What the merchant can do to defend the charge

Once notified of your dispute, the merchant has a limited time to submit evidence that the charge was legitimate. This evidence might include a signed receipt with your name, a shipping confirmation showing delivery to your address, an email confirmation of the transaction, or a record that you accessed the service after purchase.

If the merchant doesn't respond within the window, your dispute is more likely to be decided in your favor. But many merchants do respond, especially larger ones with established dispute-handling processes. The issuer will review whatever the merchant submits and compare it to your account history and the details you provided.

The strength of the merchant's evidence matters. A signed receipt or a delivery confirmation to your address is harder to argue against than a vague transaction log. If you genuinely did not authorize the charge, be specific about that in your dispute—for example, "I never received this item" or "I did not authorize this charge" rather than simply saying "I don't recognize it."

How the issuer decides who wins

The issuer weighs the evidence from both sides. They look at whether the charge matches your typical spending patterns, whether you had access to the card at the time, whether the merchant's evidence is credible, and what you claimed in your dispute. They also consider whether you've disputed charges with this merchant before.

If you're disputing a charge because the merchant never delivered what you paid for, or charged you twice, or processed the wrong amount, the issuer will ask the merchant to prove they delivered the service or item. If the merchant can't prove it, you win. If they can, the issuer may still rule in your favor if the evidence doesn't match your account details or if the merchant's explanation doesn't make sense.

If you're disputing a charge because you claim you never authorized it (fraud), the issuer will look at whether someone else had access to your card, whether the charge was made in a location you were in, and whether the merchant's evidence shows you actually received the item or service. Fraudulent charges are often easier to win because the merchant's evidence usually doesn't hold up.

What happens if you lose the dispute

If the issuer decides the charge was legitimate, it goes back on your account and you owe the full amount. You'll receive a written explanation of why the issuer ruled against you. This does not mean you have no other options—it means the issuer's investigation found the merchant's evidence more convincing than your claim.

You can still contact the merchant directly and try to resolve the issue outside the dispute process. You can ask for a refund, explain why you believe the charge was wrong, or request a partial refund if there was a service problem. Some merchants will work with you even after winning a dispute, especially if you have a legitimate complaint about the product or service.

You cannot file another dispute with the issuer for the same charge unless you have new evidence or information that wasn't available during the first investigation. Filing multiple disputes for the same charge can result in the issuer closing your account.

Disputes for different types of problems

Unrecognized charges (fraud or unauthorized use): You claim you didn't make the purchase and didn't authorize anyone else to use your card. The issuer will investigate whether someone had access to your card or card number. If you report it quickly, you're usually protected—your liability is capped at $50 under federal law, and many issuers waive even that.

Billing errors: You were charged the wrong amount, charged twice for the same item, or charged for something you canceled. Provide documentation of what you were supposed to be charged. If you have a confirmation email or receipt showing a different amount, include it with your dispute.

Item not received: You paid for something that never arrived. The issuer will ask the merchant for proof of delivery. If the merchant can't show the item was delivered to your address, you win. If they can, you may still win if the tracking shows it was delivered to the wrong place or if you can prove you never received it.

Item not as described: You received something that doesn't match what was advertised or promised. This is harder to win because the merchant can argue the item was delivered as ordered. You may have better luck asking the merchant for a refund directly, or filing a complaint with the Federal Trade Commission if the merchant was deceptive.

How disputes affect your account and credit

Filing a dispute does not hurt your credit score. The dispute itself is not reported to credit bureaus. However, if you lose the dispute and don't pay the charge, the issuer can report it as a late payment or unpaid debt, which will hurt your score.

Filing many disputes in a short time can raise a red flag with your issuer. They may contact you to verify that your account hasn't been compromised. If you file disputes that the issuer determines are frivolous—meaning you're disputing charges you actually authorized—the issuer may close your account. This is rare, but it can happen if you develop a pattern of disputing legitimate charges.

If you win a dispute, the charge is removed and there's no impact on your credit. If you lose, the charge goes back on and you owe it. If you don't pay it, it will be reported as delinquent after 30 days past due.

When to dispute versus when to ask for a refund

A dispute is the right move when you genuinely don't recognize the charge, believe it was fraudulent, or the merchant is unresponsive to refund requests. It's also the right move if the merchant refuses to refund you for a legitimate problem.

Asking for a refund directly is faster and simpler if you know the merchant and the issue is straightforward—for example, you received a damaged item or the merchant charged you twice by mistake. Many merchants will refund you within days if you contact them. A dispute takes 30 to 90 days and requires the merchant to defend themselves, so it's worth trying a direct refund request first if you have a working relationship with the merchant.

If the merchant is a small business or a service you use regularly, disputing the charge can damage that relationship. If it's a large retailer or an online marketplace, they expect disputes and have processes for handling them. Use your judgment about whether a direct conversation or a formal dispute makes more sense.

Frequently Asked Questions

What if I dispute a charge and the merchant goes out of business before responding?

If the merchant doesn't respond within the investigation window, the issuer will usually rule in your favor and remove the charge. A closed business can't submit evidence, so your dispute is more likely to succeed. However, if the merchant had already submitted evidence before closing, the issuer will still review it.

Can I dispute a charge if I authorized it but changed my mind?

No. A dispute is for charges you didn't authorize or that were processed incorrectly. If you authorized the charge but regret the purchase, you need to contact the merchant and ask for a refund. Some merchants have return policies; others don't. A dispute won't help you in this situation.

How long does a dispute take, and can I use my card while it's pending?

Most disputes are resolved within 30 to 90 days. You can use your card normally during the investigation. The disputed amount is removed from your balance, so it doesn't count against your credit limit. You don't have to pay the disputed charge while the investigation is ongoing.

What if the merchant claims I signed for the delivery but I didn't receive the item?

This is a common dispute scenario. If the merchant has a signature confirmation showing delivery to your address, the issuer may assume you received it. However, if you can provide evidence that you didn't—such as a photo showing the package wasn't at your door, or a police report if it was stolen—include that with your dispute. You can also dispute the charge with the shipping carrier separately if the package was lost in transit.

Do I have to pay the disputed charge while the investigation is happening?

No. The disputed amount is removed from your balance during the investigation, and you're not required to pay it. If the issuer rules against you, the charge goes back on and you'll owe it at that point. You'll receive a bill or statement showing the charge has been reinstated.