A Credit Card Charge Dispute may Rectify a Billing Error

A credit card charge dispute may only be an option if you have attempted to resolve the billing issue with the vendor. I'm going to provide the details of disputing a credit card charge. Also, see examples of what qualifies for a credit card charge dispute and get tips for resolving charge disputes.

Credit Card Charge Dispute

Charge disputes arise for many reasons. Among these, the most common is due to an unauthorized transaction. An unauthorized transaction is defined as a charge on your bill in which you have had no dealings with that merchant. In most cases, you have not even heard of them and definitely did not provide your credit card number to them. To most banks, this is a security risk. Your account will need closed and a new card reissued. See Credit Card Fraud for more information.

Don't recognize a transaction on your credit card bill? It does not necessarily mean that is it unauthorized. Some merchants bill with names that you are not familiar with. For example, the store "Robinson's May" can be shown on your bill as "Rob May Meier & Frank". This is a good reason to keep your credit card receipts. You can match up the dollar amounts at the end of the month to verify all your transactions.

You can always contact your credit card issuer to request a charge copy. Some credit cards may charge you a fee for this. If you choose to do so, keep in mind it may take 4 to 6 weeks to receive a charge copy. The bank has to go back to the merchant to get this. It can take some time for the merchant to respond.

Unlike unauthorized transactions, a regular credit card charge dispute is not considered a security risk. A regular dispute consists of a merchant you have dealt with. This merchant has potentially done one of the following:

Billed your credit card twice for one purchase
Sent you merchandise different than what you ordered or was described to you at the time of sale
Sent you damaged or defective merchandise
Not provided the merchandise or service but billed your credit card
Billed your account after the date of cancellation of a service
Billed your credit card for an amount different than what is on your receipt
Billed your credit card even though you paid for the charge by another form of payment

This list is not all inclusive. Check with your credit card issuer for specific details about your situation.

What do you do if you find a charge on your bill that matches the above criteria? Your first step should be to contact the merchant to request a credit. Make a note of the date you contacted the merchant and their response. Also, always request a credit slip showing the words "credit" or "refund" from the merchant. Read some additional tips below in case a dispute arises.

If the charge is a mail, phone or internet order and the merchandise needs returned, always get a receipt from the shipping service used for the return.
If you cancel a service, write down the date, a confirmation number, and the name of the person you spoke with.
Always keep your receipts and statement copies for at least 6 months if you don't have access to them online. You may need proof of over billings and multiple billings.

If you have contacted the merchant and they still refuse to correct the situation, you couldn't get a hold of them, or they are not returning your calls or emails, contact your credit card issuer. Your credit card issuer will ask you several questions to validate the credit card charge dispute and may send you a credit card dispute letter. Please note that not all billing errors are eligible for dispute. If a credit card dispute letter is required in your situation, fill it out promptly. A bank may not be able to issue a charge back with the merchant without this signed letter from you!

I also want to let you know some circumstances that do not qualify as a billing dispute. See them below.

You see an automatic billing on your credit card statement and want to cancel it, but have not contacted the merchant to do so.
You receive an item shipped to you by a merchant and it's not what you ordered, you never sent it back.
You took a cruise and were upset that they showed the movie "Titanic" while you were on board.
You did not check into a hotel you had reserved and did not cancel the reservation.

A credit card charge dispute may not always be resolved in your favor. Follow the guidelines I have laid out here and there's a good chance that it will. If it's not, you still have the option to go back to the merchant and request a refund. One other warning, if a credit card charge dispute is resolved in your favor and credit is given by the credit card, the vendor may send you a bill by mail. This usually only happens if you somehow tricked the system and the merchant has proof. Just follow the credit card charge dispute guidelines and you'll be good to go!

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