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Whether you found a billing error on your credit card statement, suspect a fraudulent charge or simply aren’t satisfied with a product you purchased, the Fair Credit Billing Act of 1974 (FCBA) gives cardholders recourse to dispute charges and get their money back. But that grace period comes with a time limit, as disputes must be submitted in writing no later than 60 days after your credit card statement is issued.
Here’s what you need to know about the FCBA, including credit card dispute time limits, valid reasons for filing a dispute and how long credit card disputes take once they are filed.
» MORE: How to dispute a credit card charge
Understand your legal rights
The ability to dispute false charges isn’t just a courtesy extended by credit card issuers; it’s a legal right protected by the FCBA. In accordance with that federal law, you have 60 days from the date your credit card statement is issued to dispute a billing error. To comply with this policy, your dispute must be submitted in writing.
🤓Nerdy Tip
The legal minimum time frame for filing a dispute is 60 days,but some credit card processors allow for a longer window. For example, Visa, Mastercard and American Express each allow chargeback requests up to 120 days from the date of the transaction in certain cases. If it’s been longer than 60 days, check with your issuer directly to determine whether you can still file a dispute.
Once you’ve filed your dispute, the FCBA provides that the credit card issuer must acknowledge receipt of your dispute and launch an investigation within 30 days. From there, it has 90 days to either resolve the dispute with a credit to your account or provide a written explanation of why the charges stand.
Before you dispute a credit card charge
Although all cardholders have the legal right to dispute unfair credit card charges, the process can be complicated, so it’s best to make sure your dispute is valid before filing it.
🤓Nerdy Tip
Disputes can’t be filed on pending charges, so if you see a suspicious transaction, you’ll have to wait until it has fully processed. Note that pending transactions can sometimes be caused by credit card holds, meaning they don’t match the final amount that will be charged.
To save yourself from unnecessary paperwork, take these steps before you follow through with initiating a dispute:
Run a search on the name of the company. Some companies operate under multiple names, using one name for customer-facing purposes and a different one for operations and logistics. If you see a transaction from a company name you don’t recognize, a quick online search may help you realize what the charge is.
Check your email, past statements and other payment records. Do you have a free trial or subscription that you forgot to cancel? Or do you have recurring but infrequent charges, like an annual bill? If you take a few minutes to check through your email for order confirmations and review past credit card statements, that will help ensure this isn’t a charge you simply forgot about.
Talk to authorized users to see if they recognize the charge. If your spouse, child, employee or anyone else is an authorized user on your credit card or has access to use the card, they may be the source of the unrecognized transaction.
Contact the merchant directly. If you’re certain there was a billing error — or alternatively, if you’re simply not satisfied with a product you purchased — contact the merchant directly. Explain the issue with the transaction and request a chargeback. If the chargeback is approved, the transaction will be reversed and funds will be returned. And even if the merchant is uncooperative, that documentation will help speed up the investigation once your dispute is filed.
Put your dispute in writing
Although it may make sense to initiate a credit card dispute online or by phone, full compliance with the FCBA requires that you follow up that initial contact in writing within that 60-day window. This ensures that both you and your credit card issuer have record of the dispute and that an investigation can be conducted with accurate information.
🤓Nerdy Tip
Many major issuers offer options to dispute a charge in writing from your online account. Simply go to your account activity, select the charge in question and look for a link that says “report a problem,” “dispute charge” or similar. Then follow the prompts to complete your written dispute.
Your written dispute should include your name and account number, the date you’re filing the dispute, the date of the transaction in question and an explanation of why you’re disputing the transaction. If you’re dissatisfied with the quality of a product and have already reached out to the merchant, include that information as well. And make sure to include copies of any supporting documentation.
» MORE: When credit card disputes become 'friendly fraud'
FAQs
Visit your My NerdWallet Settings page to see all the writers you're following. You have up to 60 days from the date your credit card statement is issued to dispute a charge, according to the Fair Credit Billing Act.
Can I dispute a charge from 2 years ago? ›
Each card network and issuing bank sets its own time limits for filing a chargeback, but U.S. law sets a minimum time limit of 60 days. Most banks give cardholders 120 days to dispute a charge.
Is there a time limit to dispute a credit card charge? ›
However, there's a catch: you need to dispute charges within 60 days from when the purchase appeared on your statement. Since that's a relatively small timeline, make sure you regularly review your credit card account for signs of billing errors.
How long does a company have to respond to a credit card dispute? ›
Each network has different chargeback dispute rules and timeframes, but the deadline is typically 20 to 45 days after the merchant is notified.
What is the 540 days chargeback rule? ›
Cardholders have just 75 days to file a dispute for card recovery bulletin or authorization issues. On the other hand, when disputes are related to services not provided, merchandise not received or not as described, or defective merchandise, cardholders have 540 days to file.
Can I dispute a 2 year old transaction? ›
For example, Visa, Mastercard and American Express each allow chargeback requests up to 120 days from the date of the transaction in certain cases. If it's been longer than 60 days, check with your issuer directly to determine whether you can still file a dispute.
Can you dispute a credit card charge after 120 days? ›
For most disputes the time frame is 120 days (U.S.) and 180 days (International) from the transaction date of the original sale or the date of discovery of the issue (i.e., defective merchandise). However, in some instances the time frame may be longer or shorter depending on the specific reason code.
How late is too late to dispute a charge? ›
You generally have at least 60 days to dispute credit card charges when there's a billing error or fraudulent transaction, and 120 days if you have a complaint about the quality of goods or services.
Can I dispute a credit card charge that I willingly paid for? ›
Can I dispute a credit card charge I willingly paid for? You should never dispute a credit card charge you willingly paid for. Not only is doing so unethical, but you won't be able to keep the initial credit you receive if you don't deserve it.
What is the federal law on credit card disputes? ›
The Fair Credit Billing Act is a 1974 federal law enacted to protect consumers from unfair credit billing practices. It enables individuals to dispute unauthorized charges on their accounts and those for undelivered goods or services.
Disputing a credit card charge does not hurt your credit. However, if the information on your credit report changes because of the dispute, your score may change accordingly.
Are credit card disputes usually successful? ›
Generally, cardholders may find success if they have clear evidence of fraud or merchant error, while merchants can prevail by providing solid documentation of the transaction and fulfillment of service or delivery of goods.
How often do customers win credit card disputes? ›
According to a study by the Consumer Financial Protection Bureau , about 42 % of credit card disputes were resolved in favor of the customer in 2019 . This means that almost half of the time , customers were successful in getting their money back or having fraudulent charges removed from their credit card statement .
How far back can I dispute a charge? ›
How Long Do You Have to Dispute a Credit Card Charge? In most cases, you have 60 days from when a charge appears on your credit card statement to dispute it. However, if fraud is involved, there's not a time limit.
What is the 120 day chargeback rule? ›
Typically, they allow customers around 120 days from the date they made a purchase or noticed an issue to file a chargeback. This time frame ensures customers have a fair chance to dispute transactions they believe are incorrect or fraudulent.
Can you dispute a credit card charge after 2 years? ›
You must send your credit card company a letter disputing the charge within one year of the issuance date of the first bill that shows the disputed charge. Send the letter to your credit card company's address for billing inquiries or errors, not the regular address for payments.
How do I dispute an old charge off? ›
One option is to scour the charge-off entry for any mistakes. If even the smallest detail is incorrect, you can dispute the whole entry. This includes account numbers, names, addresses, etc. If you find an error, you can dispute the entry with the credit bureaus and the creditor to have it fixed or removed.
What is the statute of limitations charge back? ›
Most chargebacks have a 75, 90, or 120 day time limit.
The reason code used to describe the dispute will determine the chargeback time limit. Each code has a different timeline.
