How to Resolve a Credit Card Dispute
Review your credit card bills., Try to resolve the issue with the merchant., Learn your rights as a consumer., Learn the restrictions on chargeback claims and defenses.
Step-by-Step Guide
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Step 1: Review your credit card bills.
You should carefully look over your statement every month to catch any instances of fraud or unauthorized charges.
You may also be able to check your statement online, which can help you stay on top of your account on a daily or weekly basis.
If you have a debit card, you should also check your online checking account balance on a regular basis.Save your receipts.
You'll need your receipt in case you need to return an item, and having a receipt may help you cross-check how an item was rung up at the register. -
Step 2: Try to resolve the issue with the merchant.
Whether you were over-charged for an item, rung up more than once for the same item, or believe you've been the victim of credit card fraud, contacting the merchant may be a useful first step.
Some merchants are willing to work with customers to resolve credit card disputes in-store.In cases where a customer disputes the quality or condition of goods/services, the customer may even be required to make an effort to resolve the issue with the merchant before initiating a charge dispute with the credit card company, which emphasizes the importance of alerting the merchant as soon as possible.Be polite and courteous.
Remember that it may not be the merchant's fault, especially in the case of fraud.
Be polite and respectful, and you're likely to get a better reaction than customers who are angry and demanding.Even if you try to resolve the issue with the merchant, you should also let your credit card issuer know about the discrepancy.
This is because in the case of fraud, the abuse may have originated within the store where the unauthorized charge took place., If a charge discrepancy arises, you have certain rights under the Fair Credit Billing Act (FCBA).
However, some merchants may try to limit those rights.
Some online retailers, for example, have sales policies that restrict a customer's right to dispute charges, and threaten to add list disputing customers on a chargeback abuser database.
This violates both the FCBA and the user policies that most major credit card companies have in place.Consumers have the right to dispute any billing errors, erroneous charges, or fraudulent charges.
Under the FCBA, credit card companies may not harm a consumer's credit or threaten to do so for refusing to pay disputed charges while the charges in question are being investigated.
Credit card companies can not demand payment of disputed charges while those charges are being investigated.
Credit card companies are also forbidden from filing a collection lawsuit against the consumer while a charge is being disputed.
Consumers have a right to withhold payment for incomplete or unsatisfactory services until the claim is investigated and a decision is reached by the credit card company.
A consumer wishing to stop payment must inform the credit card company of his desire to do so, and must be willing to make the payment if the investigation determines that the consumer was still responsible for making that payment.
It is expected that the consumer will attempt to resolve the dispute with the party or parties who performed the unsatisfactory/incomplete services.
The FCBA requires all disputed transactions to be investigated and resolved as quickly as possible, and is designed to protect consumers against fraud and abuse., Disputing a charge under the defense of "claims and defenses" allows you to notify the bank that issued your credit card of the unauthorized charge up to one year from the date of the statement that outlined that charge.
If you meet the qualifications for a claims and defenses dispute, you may be eligible for a chargeback.
But a chargeback, which is the reversal of a charge determined to be unauthorized, has certain limits and restrictions of its own.
Knowing those restrictions is just as important as knowing your rights.The amount in dispute must be in excess of $50.If you have already paid your credit card debt down to zero, you can no longer dispute an unauthorized charge under the defense of "claims and defenses".
If you have only paid back a portion of your bill, you may still dispute the remaining balance that you haven't yet paid.The disputed transaction cannot be with a merchant more than 100 miles from your residence or outside your state of residence.
If, for example, you purchase an item with your credit card while on vacation out of state and realize upon returning home that the box was empty or contained the wrong item, you still have 60 days to notify your bank and exercise your "billing errors" rights.
But because the item was purchased outside the covered region for claims and defenses, if you miss the 60 day window you are not eligible to file a claims and defenses dispute.You must make a good faith attempt at securing a refund or store credit from the merchant before you can dispute the charge with the bank that issued the credit card.
Sending a written correspondence or a notice of cancellation to the merchant qualifies as an attempt at securing a refund or store credit.Be prepared for the possibility that a customer service representative may not be familiar with "claims and defenses" rights, and may attempt to refuse your dispute if more than 60 days have passed.
In this case you should make it clear, either in your letter or through your phone correspondence, that you are invoking your "claims and defenses" rights under state and federal law, and that those rights are not limited to the 60 day restriction that "billing error" rights are. -
Step 3: Learn your rights as a consumer.
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Step 4: Learn the restrictions on chargeback claims and defenses.
Detailed Guide
You should carefully look over your statement every month to catch any instances of fraud or unauthorized charges.
You may also be able to check your statement online, which can help you stay on top of your account on a daily or weekly basis.
If you have a debit card, you should also check your online checking account balance on a regular basis.Save your receipts.
You'll need your receipt in case you need to return an item, and having a receipt may help you cross-check how an item was rung up at the register.
Whether you were over-charged for an item, rung up more than once for the same item, or believe you've been the victim of credit card fraud, contacting the merchant may be a useful first step.
Some merchants are willing to work with customers to resolve credit card disputes in-store.In cases where a customer disputes the quality or condition of goods/services, the customer may even be required to make an effort to resolve the issue with the merchant before initiating a charge dispute with the credit card company, which emphasizes the importance of alerting the merchant as soon as possible.Be polite and courteous.
Remember that it may not be the merchant's fault, especially in the case of fraud.
Be polite and respectful, and you're likely to get a better reaction than customers who are angry and demanding.Even if you try to resolve the issue with the merchant, you should also let your credit card issuer know about the discrepancy.
This is because in the case of fraud, the abuse may have originated within the store where the unauthorized charge took place., If a charge discrepancy arises, you have certain rights under the Fair Credit Billing Act (FCBA).
However, some merchants may try to limit those rights.
Some online retailers, for example, have sales policies that restrict a customer's right to dispute charges, and threaten to add list disputing customers on a chargeback abuser database.
This violates both the FCBA and the user policies that most major credit card companies have in place.Consumers have the right to dispute any billing errors, erroneous charges, or fraudulent charges.
Under the FCBA, credit card companies may not harm a consumer's credit or threaten to do so for refusing to pay disputed charges while the charges in question are being investigated.
Credit card companies can not demand payment of disputed charges while those charges are being investigated.
Credit card companies are also forbidden from filing a collection lawsuit against the consumer while a charge is being disputed.
Consumers have a right to withhold payment for incomplete or unsatisfactory services until the claim is investigated and a decision is reached by the credit card company.
A consumer wishing to stop payment must inform the credit card company of his desire to do so, and must be willing to make the payment if the investigation determines that the consumer was still responsible for making that payment.
It is expected that the consumer will attempt to resolve the dispute with the party or parties who performed the unsatisfactory/incomplete services.
The FCBA requires all disputed transactions to be investigated and resolved as quickly as possible, and is designed to protect consumers against fraud and abuse., Disputing a charge under the defense of "claims and defenses" allows you to notify the bank that issued your credit card of the unauthorized charge up to one year from the date of the statement that outlined that charge.
If you meet the qualifications for a claims and defenses dispute, you may be eligible for a chargeback.
But a chargeback, which is the reversal of a charge determined to be unauthorized, has certain limits and restrictions of its own.
Knowing those restrictions is just as important as knowing your rights.The amount in dispute must be in excess of $50.If you have already paid your credit card debt down to zero, you can no longer dispute an unauthorized charge under the defense of "claims and defenses".
If you have only paid back a portion of your bill, you may still dispute the remaining balance that you haven't yet paid.The disputed transaction cannot be with a merchant more than 100 miles from your residence or outside your state of residence.
If, for example, you purchase an item with your credit card while on vacation out of state and realize upon returning home that the box was empty or contained the wrong item, you still have 60 days to notify your bank and exercise your "billing errors" rights.
But because the item was purchased outside the covered region for claims and defenses, if you miss the 60 day window you are not eligible to file a claims and defenses dispute.You must make a good faith attempt at securing a refund or store credit from the merchant before you can dispute the charge with the bank that issued the credit card.
Sending a written correspondence or a notice of cancellation to the merchant qualifies as an attempt at securing a refund or store credit.Be prepared for the possibility that a customer service representative may not be familiar with "claims and defenses" rights, and may attempt to refuse your dispute if more than 60 days have passed.
In this case you should make it clear, either in your letter or through your phone correspondence, that you are invoking your "claims and defenses" rights under state and federal law, and that those rights are not limited to the 60 day restriction that "billing error" rights are.
About the Author
Alexander Ruiz
Creates helpful guides on home improvement to inspire and educate readers.
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