The Dispute Process Starts With Your Card Issuer, Not the Merchant

When you dispute a credit card charge, you are initiating a formal investigation with your card issuer—the bank or financial company that issued your card. You do not contact the merchant first through the dispute system; you contact your card issuer. The issuer then investigates on your behalf and decides whether to reverse the charge, return it to the merchant, or leave it in place.

The process is governed by the Fair Credit Billing Act (FCBA) for credit cards and similar rules for debit cards under Regulation E. These rules set timelines, what counts as a valid dispute, and what your issuer must do at each step. The merchant has the right to respond to your dispute with evidence, and your issuer weighs both sides before making a final decision.

You have 60 days from the date the charge appeared on your statement to file a dispute. This is a hard deadline. If you wait longer, your issuer is not required to investigate, though some may do so anyway as a courtesy.

Key Takeaways

  • You must file a dispute with your card issuer within 60 days of the charge appearing on your statement, not from the transaction date.
  • Your issuer must acknowledge your dispute in writing within 30 days and complete the investigation within 90 days, though they may extend to 180 days if the merchant requests more time.
  • During the dispute, your issuer may issue a provisional credit while investigating, but you are not may provide to keep it if the merchant provides proof of the transaction.
  • If you lose the dispute, the charge goes back on your account, and you may owe interest that accrued during the dispute period.
  • Disputing a charge does not automatically close your account or damage your credit score, but filing multiple disputes on the same account can trigger fraud alerts or account review.

How to File a Dispute With Your Card Issuer

Contact your card issuer directly by phone, mail, or through your online account portal. Most issuers have a dedicated dispute department. When you call, have your statement in front of you and be ready to explain what happened with the charge—whether it was unauthorized, the merchant charged you twice, the amount was wrong, or you never received the goods or service.

Put your dispute in writing if possible. A phone call starts the process, but sending a letter or email creates a documented record. Your issuer is required to acknowledge receipt of your dispute in writing within 30 days. Keep copies of everything: your statement, the charge in question, your correspondence with the issuer, and any communication with the merchant.

You do not need to prove your case at this stage. You only need to state that you dispute the charge and give a reason. The issuer's job is to investigate, not to take your word for it.

What Happens During the Investigation Period

Once your issuer receives your dispute, they have up to 90 days to investigate. If the merchant requests additional time to gather evidence, your issuer can extend the deadline to 180 days, but they must notify you in writing if they do. During this time, the issuer contacts the merchant, asks for proof of the transaction, and reviews the evidence both sides provide.

Your issuer may issue a provisional credit while the investigation is ongoing. This is not a final decision—it is a temporary credit to your account so you are not out the money while waiting. The provisional credit usually appears within 10 business days of filing your dispute. However, if the merchant later provides proof that the charge was valid, your issuer will remove the provisional credit and you will owe the amount again.

You can continue using your account during the dispute. The charge remains on your statement as disputed, and you are not required to pay the disputed amount while the investigation is underway. However, if you have a balance on your card, interest continues to accrue on the undisputed balance.

What Counts as a Valid Reason to Dispute

The FCBA covers specific types of disputes. Unauthorized charges are the most common—someone used your card without permission. Billing errorsNon-receipt disputes

Disputes also cover quality issues

If the merchant is a merchant cash advance lender, a payday lender, or another high-risk category, dispute rules may be stricter or handled differently. Check your issuer's specific policies for these types of merchants.

When Your Issuer Decides in Your Favor

If your issuer determines the charge was unauthorized or the merchant cannot prove the transaction was valid, they will reverse the charge permanently. The provisional credit becomes final, and the charge is removed from your account. Your issuer will send you a written explanation of their decision.

If you had a provisional credit during the dispute, you keep it. If you were not issued a provisional credit, the reversal appears on your next statement. You do not owe interest on the reversed amount, and the charge does not count against your credit history.

Your issuer may also close the account or reissue your card if the dispute involved unauthorized use, depending on their fraud policies. They will notify you of any account changes.

When Your Issuer Decides Against You

If the merchant provides proof that the charge was valid—such as a signed receipt, delivery confirmation, or evidence you received the service—your issuer will deny your dispute. The charge stays on your account. If you received a provisional credit during the investigation, your issuer will remove it, and you will owe the full amount again.

When the provisional credit is removed, the charge reappears on your account. If your statement has already closed, the charge appears on your next statement. You are responsible for paying it, and if you do not, interest will accrue at your card's regular rate. The charge will also be reflected in your account balance and may affect your credit utilization ratio.

You have the right to request a written explanation of why your dispute was denied. Your issuer must provide this if you ask. If you believe the decision was wrong, you can escalate the dispute within your issuer's complaint process, though the outcome is unlikely to change without new evidence.

How Disputes Affect Your Account and Credit

A single dispute does not damage your credit score or close your account. The dispute itself is not reported to credit bureaus. However, if the charge is ultimately upheld and you do not pay it, the unpaid balance will be reported as delinquent, which does affect your credit.

Filing multiple disputes on the same account within a short period can trigger fraud alerts or cause your issuer to review your account for patterns of abuse. Some issuers have policies that close accounts if a customer files too many disputes that are later denied. This is rare, but it can happen if disputes appear to be frivolous or part of a pattern.

If you dispute a charge and lose, the charge counts toward your credit utilization ratio if you do not pay it off. This can lower your credit score temporarily. Once you pay the charge, your utilization drops and your score recovers.

What Happens If the Merchant Disputes Your Dispute

Merchants can respond to disputes by providing evidence that the transaction was legitimate. Common evidence includes signed receipts, delivery confirmations from shipping carriers, email confirmations of service, or records showing you accessed a digital product. If the merchant provides this evidence and your issuer finds it credible, your dispute will be denied.

Some merchants use chargeback representment, which means they formally contest your dispute with additional documentation. This extends the timeline and may require your issuer to make a second decision. If the merchant wins representment, the charge is restored to your account, and you are notified in writing.

You cannot dispute the same charge twice. Once your issuer makes a final decision, that decision stands unless you have new evidence that was not available during the original investigation.

Frequently Asked Questions

Can I dispute a charge after 60 days?

The 60-day deadline is set by the Fair Credit Billing Act, and your issuer is not required to investigate after that date. However, some issuers will investigate disputes filed after 60 days as a courtesy. Contact your issuer and ask—the worst they can say is no. If they refuse, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), though this does not may provide the dispute will be reopened.

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

No. You are not required to pay a disputed amount while your issuer is investigating. However, if you have other charges on your card, you must pay those. If you do not pay the undisputed balance, interest will accrue on it and your account may be reported as delinquent.

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

Your issuer will still investigate the dispute based on the evidence available. If the merchant is no longer in business and cannot respond, your issuer may rule in your favor by default. However, this is not may provide—it depends on your issuer's policies and whether they can verify the transaction through other means, such as payment processor records.

Will disputing a charge hurt my credit score?

The dispute itself does not appear on your credit report and does not affect your score. However, if you lose the dispute and do not pay the charge, it will be reported as delinquent, which does hurt your score. Once you pay it, the impact lessens over time.

Can my card issuer close my account because I filed a dispute?

A single dispute will not cause closure. However, if you file many disputes that are later denied, or if your issuer suspects you are filing disputes in bad faith, they may close your account. This is uncommon, but it is within their rights. You would be notified in writing before closure.