A chargeback is a reversal of a charge on your credit card, initiated by your card issuer when you dispute a transaction

When you contact your card issuer to say a charge is wrong — either because you didn't make it, the merchant charged you twice, or the item never arrived — the issuer can reverse that charge and return the money to your account. That reversal is the chargeback. The card issuer pulls the funds back from the merchant's bank account, which is why merchants take chargebacks seriously and why the process has specific rules and timelines.

The chargeback is not the same as a refund. A refund comes directly from the merchant when you ask them to reverse a sale. A chargeback bypasses the merchant entirely — your card issuer handles it, and the merchant's bank is the one that actually moves the money. This matters because chargebacks carry consequences for merchants, which is why they exist as a consumer protection tool.

Key Takeaways

  • You must report a disputed charge to your card issuer within 60 days of the statement date showing the charge, or you lose the right to dispute it.
  • Your card issuer will investigate by asking the merchant for proof the transaction was legitimate — a receipt, shipping confirmation, or signature.
  • During the investigation, the money is usually returned to your account temporarily, though the merchant can challenge the chargeback with evidence.
  • Merchants who receive too many chargebacks face higher processing fees, account restrictions, or loss of their merchant account entirely.
  • A chargeback is different from a refund: a refund comes from the merchant, a chargeback comes from your card issuer pulling money from the merchant's bank.

When you can request a chargeback

You can request a chargeback for several reasons. The most common are: you didn't authorize the charge at all (fraud or identity theft), the merchant charged you twice for the same item, the merchant charged you a different amount than what you agreed to, or you ordered something that never arrived or arrived damaged. You can also dispute a charge if the merchant promised something in the transaction that they didn't deliver — for example, they said the item was new but sent you a used one.

You cannot use a chargeback simply because you changed your mind about a purchase or because you're unhappy with the quality of something you received as described. Those situations are refund issues between you and the merchant, not chargeback issues. If a merchant refuses to refund you for a legitimate reason — like a no-return policy you agreed to — a chargeback will likely fail because the merchant can prove you authorized the charge and received what you ordered.

The 60-day reporting window

You have 60 days from the date the charge appears on your credit card statement to report it to your card issuer. This is a hard deadline set by federal law. If you wait longer than 60 days, your card issuer cannot process a chargeback, and you lose your right to dispute the charge through that channel.

The 60 days starts from the statement date, not the date you made the purchase. If you buy something on the 5th of the month but your statement closes on the 20th, the 60-day clock starts on the 20th. Mark your calendar or set a phone reminder if you notice a suspicious charge — waiting too long closes the door entirely.

How the investigation works

When you report a charge, your card issuer opens a dispute and typically asks the merchant to provide evidence that the transaction was legitimate. The merchant must submit documentation like a signed receipt, a shipping confirmation with a delivery signature, or a record showing you used the card in person. The card issuer reviews this evidence and decides whether the chargeback should go through.

During the investigation, your card issuer usually returns the disputed amount to your account temporarily — you get the money back while they investigate. This is called a provisional credit. However, the merchant can challenge the chargeback by submitting their own evidence. If the merchant's evidence is strong enough, the card issuer may reverse the provisional credit and put the money back in the merchant's account, leaving you responsible for the charge again.

The entire process typically takes 30 to 90 days, depending on how quickly the merchant responds and how complex the dispute is. Some card issuers move faster than others, and some merchants respond immediately while others take weeks.

What happens to the merchant

A single chargeback costs a merchant money in two ways. First, they lose the sale amount itself — if you charged $150 and won the chargeback, that $150 goes back to you. Second, they pay a chargeback fee to their payment processor, which typically ranges from $15 to $100 per chargeback, though the exact amount varies by card network and processor.

More importantly, merchants are tracked by their chargeback rate — the percentage of transactions that result in chargebacks. If a merchant's chargeback rate exceeds a certain threshold (usually 0.5% to 1%, depending on the card network), they face escalating penalties: higher processing fees, mandatory monitoring programs, or loss of their merchant account entirely. This is why merchants often try to resolve disputes directly with customers before a chargeback is filed — it's cheaper and faster than fighting one through the card network.

Chargeback fraud and when merchants win

Some people file chargebacks for purchases they actually authorized and received, hoping to get free products or services. This is called chargeback fraud or "friendly fraud." Card issuers and merchants have become better at detecting it. If a merchant can prove you received the item, authorized the charge, and made no legitimate complaint to them before filing a chargeback, the chargeback will likely fail.

Merchants win chargebacks most often when they have clear evidence: a signature on a receipt, a tracking number showing delivery to your address, or a record of you using the card in person at their location. Digital purchases are harder to dispute if the merchant has a record of you downloading or accessing the product. If you genuinely did not authorize a charge or did not receive an item, keep any communication with the merchant, take screenshots, and provide that to your card issuer when you file the dispute — it strengthens your case.

Chargeback versus refund: which to pursue first

Always try to get a refund from the merchant first. Contact them by phone, email, or their customer service portal and explain the problem. Most merchants will refund you quickly to avoid a chargeback. If the merchant is unresponsive, refuses to refund you, or is out of business, then file a chargeback with your card issuer.

Filing a chargeback when a merchant is willing to refund you can backfire. The merchant may view it as fraud, and if they submit evidence that they offered a refund, your card issuer may side with them. Additionally, some card issuers track how many chargebacks you file — if you file too many, they may close your account or flag you as a high-risk customer. Use chargebacks as a last resort, not a first step.

How to report a chargeback to your card issuer

Contact your card issuer directly — call the number on the back of your card or log into your online account. Tell them the charge is incorrect and explain why. They will ask you questions about the transaction and may ask you to submit the dispute in writing or through their app. Some card issuers let you start a dispute online; others require a phone call first.

Have the following information ready: the transaction date, the merchant name, the amount charged, and a clear explanation of why the charge is wrong. If you have any communication with the merchant — emails, receipts, tracking numbers, or screenshots — gather those before you call. The more specific you are, the faster the investigation moves.

Frequently Asked Questions

Can a merchant sue me over a chargeback?

A merchant can sue you if they believe you filed a fraudulent chargeback, but they must prove you knowingly lied about the charge. A single chargeback is unlikely to trigger a lawsuit because the legal costs exceed the amount in dispute. Merchants are more likely to pursue legal action if you file multiple chargebacks on the same account or if the amount is very large.

What if the merchant wins the chargeback?

If the merchant provides evidence that the charge was legitimate, your card issuer will reverse the provisional credit and the money goes back to the merchant. You are responsible for the charge again. At that point, your only option is to work directly with the merchant on a refund or payment plan, or to dispute the charge through a different method if one is available.

Does a chargeback hurt my credit score?

A chargeback itself does not appear on your credit report and does not directly damage your credit score. However, if a chargeback leads to a negative balance on your account or causes your card issuer to close your account, those actions can affect your credit. The chargeback is a transaction dispute, not a payment problem.

How many chargebacks can I file before my card issuer closes my account?

Card issuers do not publish a specific number, but filing multiple chargebacks in a short period — especially if some are denied — can trigger account review or closure. If you file more than three or four chargebacks in six months, your issuer may contact you to investigate whether your card has been compromised or whether you are filing fraudulent disputes.

Can I file a chargeback on a debit card?

Yes. Debit card chargebacks follow similar rules to credit card chargebacks, though the process and timelines vary slightly by bank. You still have 60 days to report the charge, and your bank will investigate. The main difference is that a debit card chargeback pulls money from your bank account rather than a credit line, so the investigation may take longer because it involves your actual funds.