Learn more about what the Fair Credit Billing Act says about your right to dispute credit card charges, along with when you should and shouldn’t do it.
Can I Dispute a Credit Card Charge I Willingly Paid For?
The short answer is yes, in some circumstances, you can dispute credit card charges you willingly made and paid for. This is in accordance with the Fair Credit Billing Act, which affords consumers some protections regarding their credit purchases. Whether it’s a billing error or you weren’t given your goods or services as promised, credit card disputes give people an avenue for recovering their money from purchases.
What You Can Dispute
There are some specific instances for which disputing credit card charges is acceptable. These include:
Fraudulent charges: If you notice a charge on your account that was not made by you or an authorized user of your account, report it immediately. Creditors typically investigate such matters quickly, issue a refund, and possibly change your account number. Billing error: Unlike a fraudulent charge, this is an example of a time when you can dispute a charge for a purchase you actually made. It could be that a vendor entered an incorrect amount, or you were charged for items you didn’t receive. If you’re not satisfied with the quality of the goods or services: Whether an item was delivered broken or defective, or you paid a service provider that didn’t follow through, you are entitled to get your money back. But first, a reasonable effort must be made to get the merchant to offer you the refund. If they refuse, then you can dispute the charge.
What You Shouldn’t Dispute
Disputing a credit card charge must be done responsibly. When you file a dispute, if it is approved, the retailer not only loses the sale but incurs an additional cost called a chargeback fee, which can range from $20 to $100. Doing this on purpose to try to score a freebie or because you regret a purchase is considered “friendly fraud.” With that in mind, here are some of examples of when you should not dispute a charge: If you didn’t contact the merchant about the issue first. You place a catering order and pay with your credit card, but when the food arrives, there’s an item missing and the sandwiches are all wrong. Your first recourse always should be to call the caterer and let them know about the error. If they fail to take action, you can go ahead and file a dispute—but you need to give the vendor a chance to make it right first.
How To Dispute a Credit Card Charge
Follow these steps to improve the odds of getting your dispute approved:
Make sure you have a good case: Was the charge fraudulent or was your card stolen? Was there a pricing error the merchant will not fix? Were you dissatisfied with the goods or service, but the vendor would not issue a refund? Did you send back an item for return but didn’t get a credit to your account? In any of those scenarios, you should have a good case. Gather any evidence that can help prove why you should get your money back: This can include things such as a copy of your bill that includes the pricing error; a service listed in your contract that was not provided; proof you returned an item; or a screenshot of your correspondence with a vendor in which they refused to refund you. File your dispute in a timely manner: You can do this online with some credit card issuers, or you can send a letter by mail. Be sure to put your story in writing and upload/provide copies of any supporting documentation.
If your dispute is approved, your account will be credited, along with any finance charges or fees related to the original charge. If it is not approved, you must be given a written explanation as to why, and you will be responsible for paying the charge.
Billing errorsFraudulent chargesThe quality of goods and services did not meet expectations (and you weren’t able to get resolution from the merchant)
