Reasons For Disputing A Charge

Monitoring credit card statements is crucial for maintaining financial security. Understanding when and how to dispute a charge can save money and protect your credit. This guide covers key reasons for disputes, steps to take, and practical advice for navigating the process.

Introduction

Credit card disputes are a fundamental consumer right under the Fair Credit Billing Act (FCBA). This federal law ensures protection from unauthorized charges and billing errors. Consumers have 60 days from the transaction date to dispute a charge and seek resolution.

Common Reasons for Disputing a Charge

1. Unauthorized Charges

• Data: Unauthorized transactions made up 47% of all disputes in 2023 (Source: Visa).
• Example: Stolen card details leading to fraudulent charges.
• Action: Verify if the charge is unauthorized by checking with all authorized users.

1. Billing Errors

• Data: Billing errors, such as duplicate charges or incorrect amounts, account for 25% of disputes.
• Example: Double billing or a wrong amount on your statement.
• Action: Review your statements regularly to identify and address these errors promptly.

1. Quality of Goods/Services

• Data: Disputes over the quality of goods or services represent 15% of all cases.
• Example: Receiving a defective product.
• Action: Attempt to resolve the issue with the merchant before escalating to a dispute.

1. Canceled Subscriptions/Services

• Data: 10% of disputes arise from canceled services that continue to be billed.
• Example: A subscription continues to charge after cancellation.
• Action: Keep records of cancellation requests and monitor your statements for recurring charges.

1. Non-Delivery of Products

• Data: Non-delivery of purchased goods accounts for about 8% of disputes.
• Example: Paying for a product that never arrives.
• Action: Keep all purchase confirmations and communication records.

Steps to Dispute a Charge

1. Confirm the Charge

• Ensure the charge has posted to your account and isn’t pending. Check with all authorized users on the account.
• Source: Visa’s official chargeback guidelines.

2. Contact the Merchant

• Direct contact with the merchant often resolves disputes quickly. Document all interactions.
• Source: Mastercard’s guidelines recommend resolving issues with merchants first.

3. Contact Your Credit Card Issuer

• If unresolved with the merchant, contact your card issuer. Provide details like the transaction date, amount, and merchant’s name.
• Source: Guidelines from Mastercard and Stripe on initiating disputes.

4. Gather Evidence

• Gather all relevant documentation: receipts, order confirmations, and communication records.
• Source: Checkout.com advises on the importance of evidence in dispute resolution.

What Happens After a Dispute Is Filed?

Once a dispute is filed, the issuer will investigate, which can take up to 60 days. A temporary credit may be issued during this time. If the dispute is resolved in your favor, the credit becomes permanent; otherwise, the charge is reapplied.

• Fact: Comprehensive documentation increases the likelihood of a successful dispute.

Table 1: Common Dispute Reasons and Success Rates

Table 2: Required Documentation for Disputes

Merchanto.org: A Partner in Chargeback Prevention

For businesses, preventing chargebacks is critical. Merchanto.org, an official partner of VISA and Mastercard, specializes in chargeback prevention. They offer advanced solutions to reduce disputes and protect revenue. Learn more about their services at Merchanto.org.

Conclusion

Knowing your rights and reasons for disputing charges is crucial for protecting your finances. By following these steps and using reliable resources, you can effectively handle disputes.

Table 3: Major Payment Processors’ Dispute Policies

Regularly reviewing statements and understanding the dispute process can protect you from erroneous charges and ensure your financial well-being.