Start a dispute by contacting your card issuer, not the merchant

When you see a charge you don't recognize or believe is wrong, call the phone number on the back of your card or log into your online account to report it. Your card issuer—the bank or company that issued the card—handles disputes, not the merchant. You have up to 60 days from the date the charge appeared on your statement to start the process, though disputing sooner is better because the investigation takes time.

The card issuer will ask you to describe what's wrong: the charge was unauthorized, the amount is incorrect, the merchant never delivered what you paid for, or the item arrived damaged or not as described. Have your statement in front of you and be specific about the date, amount, and merchant name. The issuer will assign your dispute a reference number—write this down and keep it.

While your dispute is being investigated, the card issuer must remove the charge from your balance within two billing cycles (usually 30 to 60 days). You won't owe interest on that amount during the investigation. This is a legal protection under the Fair Credit Billing Act, which applies to all credit cards.

Key Takeaways

  • Contact your card issuer by phone or through your online account within 60 days of the charge appearing on your statement.
  • The card issuer must remove the disputed amount from your balance within two billing cycles while they investigate.
  • Provide specific details: the date, amount, merchant name, and what went wrong (unauthorized, wrong amount, item not delivered or damaged).
  • Keep your reference number and any documentation—receipts, emails, tracking numbers—that supports your dispute.
  • The investigation typically takes 30 to 90 days, and the issuer will notify you in writing of the outcome.

What counts as a valid dispute

An unauthorized charge is one you did not make and did not allow someone else to make. This includes fraud, a stolen card number, or a compromised online account. Report it immediately; the sooner you report it, the less liability you may have if the card was physically stolen.

A billing error is when the amount charged differs from what you agreed to pay, the merchant charged you twice for the same purchase, or the charge posted to your statement twice. If you agreed to $50 and were charged $500, that's a billing error. If you were charged $50 twice in one day for a single item, that's also a billing error.

A merchandise dispute covers items that never arrived, arrived damaged, or arrived significantly different from what was described. You ordered a blue widget and received a red one. You paid for overnight shipping and it took a week. The item showed up broken. These are all valid grounds for a dispute.

A service dispute applies when a service was never performed or was performed incorrectly. You paid for a haircut that the salon never gave you, or you paid for a repair that wasn't done. If you paid for a subscription and were charged after you cancelled, that's also a service dispute.

What does not count as a dispute

Buyer's remorse is not a valid dispute reason. You changed your mind about a purchase, decided you don't like the item, or found it cheaper elsewhere—these are not disputes. You need to contact the merchant directly about returns or refunds.

A dispute is also not the right tool if you simply forgot you made the charge. Check your email for confirmation messages or receipts. If you authorized the charge but forgot about it, the card issuer will close your dispute and you'll owe the amount.

Disputes don't cover disagreements about the merchant's quality or your satisfaction with their work if the item or service was delivered as promised. If a restaurant gave you a meal you didn't enjoy, or a contractor finished a job you're unhappy with, those are complaints to take up with the merchant, not disputes with your card issuer.

The investigation process and timeline

Once you report a dispute, the card issuer sends a notice to the merchant asking them to respond. The merchant has a set window—usually 10 to 30 days—to provide evidence that the charge was legitimate: a signed receipt, proof of delivery, or documentation that you received the service. During this time, the disputed amount stays off your bill.

The card issuer reviews both your account of what happened and the merchant's response. They look at transaction records, shipping confirmations, communication between you and the merchant, and any other relevant documentation. If the merchant doesn't respond or provides weak evidence, the dispute is usually decided in your favor.

The full investigation typically takes 30 to 90 days. The card issuer will send you a written notice explaining the outcome: either the charge is removed permanently and you owe nothing, or the charge is restored to your account because the merchant provided sufficient proof it was valid. If the charge is restored, you can still pursue the matter with the merchant directly or through small claims court, but the card issuer's investigation is closed.

How to strengthen your dispute

Gather any documentation you have before you call. If the charge was unauthorized, note the date you discovered it and when you reported it. If the item never arrived, pull up the tracking number showing it was lost or the delivery confirmation showing it went to the wrong address. If the item arrived damaged, take photos of the damage and the packaging.

If you communicated with the merchant about the problem—by email, chat, or phone—save those records. Screenshots of text messages or emails where the merchant promised a refund or acknowledged the issue are powerful evidence. If you have a receipt showing a different amount than what was charged, keep that too.

Write a clear, factual summary of what happened and include dates. "Charged $200 on March 15 for a laptop that never arrived. Tracking shows it was delivered to wrong address on March 18. Merchant has not responded to three emails requesting a refund." This is more useful than "I never got my order."

When you contact the card issuer, mention any documentation you have. Ask whether you should mail or upload copies, or whether the issuer will request them from you. Some issuers ask you to submit evidence upfront; others gather it themselves during the investigation.

What happens if the merchant disputes your dispute

The merchant can respond to your dispute with their own evidence. If they provide a signed receipt showing you authorized the charge, or a tracking confirmation showing the item was delivered to your address, the card issuer may rule in their favor. This doesn't mean you're wrong—it means the merchant's documentation is stronger than yours.

If the merchant's evidence is weak or missing, the card issuer will likely rule in your favor even if the merchant disputes your claim. Many merchants don't respond at all, which usually results in the dispute being decided in your favor by default.

If the card issuer rules against you and restores the charge, you have the right to request that they reconsider if you have new evidence. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) if you believe the card issuer didn't follow the dispute process correctly, though this won't overturn the decision—it will be reviewed for compliance with regulations.

Preventing unauthorized charges in the future

Check your statements regularly—at least monthly, ideally weekly if you use your card frequently. Many fraud cases go unnoticed for months because people don't review their statements. Set up account alerts through your card issuer's app or website so you're notified of large purchases or purchases in unusual locations.

If your card is physically lost or stolen, call your card issuer immediately. Under federal law, your liability for unauthorized charges is capped at $50 if you report the loss before any fraudulent charges are made, and $0 if you report it after fraudulent charges appear but before the card issuer discovers them. The sooner you report it, the better.

For online purchases, use a card with fraud protection features if available, or consider using a virtual card number—a temporary number linked to your real account that can be used once or for a limited time. This prevents merchants from storing your actual card number.

Frequently Asked Questions

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

No. The card issuer must remove the disputed amount from your bill within two billing cycles. You won't owe interest on that amount during the investigation. If the dispute is decided in the merchant's favor, the charge will be restored and you'll owe it then.

What if the merchant goes out of business before the dispute is resolved?

The investigation continues regardless. The card issuer will attempt to contact the merchant, but if they're no longer in business or don't respond, the dispute is usually decided in your favor. You won't be charged.

Can I dispute a charge on a debit card the same way?

Debit card disputes follow similar steps but have different legal protections. You have 60 days to report unauthorized charges, but the liability rules are stricter than credit cards. Contact your bank immediately if you notice fraud on a debit card.

What if I dispute a charge and then the merchant refunds me anyway?

Contact your card issuer and let them know the dispute should be withdrawn. If you don't, the card issuer may still investigate and rule in your favor, resulting in a credit you didn't expect. It's cleaner to withdraw the dispute once you've received the refund.

How long does a dispute stay on my credit report?

Disputes themselves don't appear on your credit report. If the card issuer removes the charge and the dispute is closed in your favor, there's no record. If the charge is restored and you don't pay it, that unpaid balance could affect your credit, so follow up with the merchant or pursue other options if you disagree with the outcome.