The Credit Card Dispute Clock: Why Waiting Too Long Can Kill a Chargeback
Correcting an error on your credit card statement — whether it be for an unauthorized fraudulent transaction, your card being charged twice or another issue — can be challenging. But it’s important to act fast.
Under federal law, you generally only have 60 days from when the statement was sent to notify your credit card issuer and receive money back from an illegitimate transaction.
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What counts as a credit card billing error
A credit card billing error occurs when a product or service shows up on a card that you did not buy or receive. You can demonstrate that the product never arrived at your door or that a service was fraudulently purchased by someone else who obtained your details.
Unauthorized charges, duplicate charges, charges with the wrong date or amount, math errors, items not delivered as agreed, returned items that were still billed and charges that need clarification are all covered under the Fair Credit Billing Act. You can dispute any of those types of charges, but a dispute isn’t for if you have buyer’s remorse after a product or service was properly delivered to you.
While it’s optimal to resolve the issue with the seller first, you should know your rights as a credit cardholder and file disputes when necessary. This disputing process works for credit cards and revolving credit lines, but installment loans like car loans and personal loans have different rules.
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The 60-day clock
It’s best to pounce on any billing errors the moment you see them, but if you just noticed a mistake, you might have time to correct it. The 60-day window starts when the first bill with the error was sent. That means you may have more than 60 days from the purchase date. However, if this mistake appeared in a previous statement, you may have fewer than 60 days to resolve the issue.
You don’t have to complete the entire process within this 60-day clock. You just have to file a dispute with your card issuer within the 60-day window. Even if the entire process takes more than 60 days, you may receive your money back if your card issuer determines it is an error or a mistake.
Cardholders will have to provide evidence that the transaction is fraudulent. Any relevant copies of emails, delivery confirmations, cancellation notices, screenshots or merchant correspondence can help you prove your case.
Calling a representative or entering a customer service chat is not the same thing as filing a dispute. When you can’t reach a resolution with the seller, it’s important to contact your card issuer right away. You may want to go straight to the card issuer and file a dispute instead of reaching out to the seller if they are close to the 60-day deadline.
What happens after you dispute
A credit card issuer must acknowledge your dispute in writing within 30 days unless the issue has already been fixed, and any dispute must be resolved within 90 days. Consumers do not have to pay the disputed amount while the investigation is ongoing, but they must continue to pay their remaining bills.
The disputed charge generally will not impact your credit score or report if you do not pay it right away. In the event the issuer determines the transaction was legitimate, they must provide a written explanation. Then, you will be responsible for it. However, you can submit an appeal within the issuer’s deadline or 10 days after receiving the explanation, depending on which is later.