How Long Do You Have to Dispute a Credit Card Charge?

The Quick Answer: Under US federal law, consumers can legally dispute a credit card charge within 60 days of the statement date. But each credit card network has its own dispute rules, allowing cardholders to dispute charges up to 120 days of the transaction date. 

Finding an unauthorized charge or error on your credit card statement can be unsettling. I’ve been there myself, more than once. The immediate concern is understandable, but my background in credit card processing quickly turns those worries into reassurance—credit card companies have our backs. There are even laws in the United States that protect consumers from fraudulent credit card charges.

So if you’re staring down an error or unrecognized charge on your account, take a deep breath. The odds are in your favor, likely absolving you of responsibility for the disputed transaction. 

Read on to learn more about the credit card dispute process, including important deadlines you need to know for disputing a claim. 

Understanding Credit Card Charge Disputes

A credit card dispute arises when a cardholder challenges a charge on their statement that they believe is incorrect, fraudulent, or unfair based on what was provided by the merchant. The dispute process involves the cardholder notifying their credit card issuer of the charge they’re challenging, and then the issuer investigates the dispute to determine whether a correction, refund, or chargeback is warranted. 

At the core of credit card usage is the consumer’s ability (and legal right) to dispute questionable charges. This safeguard is in place not only for personal financial security but also for maintaining the integrity of business transactions. 

Most disputable charges generally fall into one of four broad categories:

• Unauthorized Transactions: Charges made without the cardholder’s consent, possibly indicating fraud. 
• Billing Errors: Mistakes made by the business or card company (like double billing or charging the wrong amount). 
• Undelivered Goods or Services: Payments for items or services that were paid for but never received.
• Quality Disputes: Situations in which the product or service was delivered, but not as advertised. 

For a more in-depth breakdown of specific scenarios, check out our complete list of valid reasons to dispute a credit card charge. 

The Timeline for Disputing a Credit Card Charge

When disputing a credit card charge, it’s important to act within the timeframe allowed by law and your credit card’s policies. According to the Fair Credit Billing Act (FCBA), consumers have a 60-day window to dispute a charge. 

However, most major credit card networks generally allow consumers up to 120 days from the transaction date to file a dispute. 

So you’re only legally protected within the first 60 days of the date that a charge first appears on your statement. But credit card companies considerably extend that protection window. 

Note: Disputes cannot be filed on pending charges. So if you notice a suspicious or inaccurate transaction, you must wait until the transaction has been fully processed and settled to file a dispute. 

Initiating the dispute is just the first step. From there, the issuing bank still needs to conduct an investigation on whether the charge was legitimate. The merchant who processed the transaction also has time to respond, typically 20-45 days—depending on the card network and situation. 

Most card networks will instantly credit your account when you initiate a dispute. But that’s often just a gesture of good faith until the final ruling is made. 

The Dispute Process Explained

To help you further understand the credit card dispute timeline, let’s take a closer look at each step in the dispute process.

1. Initiation — Disputes begin when the cardholder contacts the credit card issuer to report a charge that they believe is incorrect or fraudulent. This must occur within the 120 days of the transaction for Visa, Mastercard, Discover, and American Express. 
2. Documentation — Once initiated, the issuer often asks the cardholder to provide any supporting evidence. This may include receipts, emails, contracts, photos, or anything else to substantiate the claim.
3. Investigation — The credit card issuer will begin their investigation by reviewing the information provided by the cardholder and reaching out to the merchant for additional details. 
4. Merchant Response — Merchants have an opportunity to respond to disputes with their own evidence. This may include proof of delivery, signed receipts, or justification of charges. The maximum allowable timeline for merchant responses range from 20 to 45 days, depending on the card network and nature of the dispute. 
5. Resolution — After the investigation has been completed, the card issuer makes a decision on whether the dispute is legitimate. If the dispute is upheld, the charge will be permanently removed from the cardholder’s account. If not, any provisional credits to the cardholder will be reversed and the charges will remain on the statement. 
6. Potential Appeals — If either the cardholder or merchant disagrees with the ruling, they each have the right and ability to appeal the decision by providing additional evidence or clarification regarding the claim. 

The dispute process is designed to be both fair and thorough, allowing both parties to present their case. 

That said, this process almost always favors the cardholder. Merchants have less time to respond, and even if they provide supporting evidence, we often see card networks siding with the cardholder unless it’s a clear case that the customer is trying to game the system. 

Is a Dispute the Same as a Chargeback?

No, a dispute and chargeback are not the same. A dispute begins when a cardholder questions a charge and their credit card statement and contacts the card issuer. A chargeback occurs if the issuer upholds the cardholder’s dispute, and forcibly reverses the funds from the merchant’s account as a credit to the consumer’s account. 

Essentially, a dispute is a process that could lead to a chargeback. 

Can You Dispute a Charge After Paying Your Credit Card Bill?

Yes, you can dispute charges even after you’ve paid your bill. Paying a credit card bill does not waive a cardholder’s right to dispute a charge—as long as it falls within the timeline allowed by the card issuer. 

If you notice a questionable charge, make sure to report it as soon as possible, regardless of whether the bill has been paid, to ensure the dispute is filed within the allowable period. 

Can You Dispute a Charge After 60 Days?

You can dispute a charge after 60 days, but your ability to do so depends on the policies of your card network and issuing bank. While the Fair Credit Billing Act (FCBA) provides a 60-day window from the statement date to dispute a charge, many card issuers extend this period to 120 to file a dispute. 

Can You Dispute a Charge After 120 Days?

No, you cannot typically dispute a charge after 120 days. You can try, but this will be challenging—as most credit card issuers set the maximum time frame at 120 days for initiating a dispute. However, there might be some exceptions for instances related to extended warranties or in cases where the delivery of goods or services were delayed. 

If you need to dispute a charge beyond 120 days, be prepared to provide detailed information and any support documentation, as issuers may consider these on a case-by-case basis. 

Pro Tips and Best Practices For Credit Card Disputes

Navigating the waters of credit card disputes can be intimidating for cardholders and merchants alike. To help simplify things for you, here are some pro tips and best practices to keep in mind:

Tips and Actionable Advice For Cardholders

• Review Statements Regularly: Catch unauthorized transactions or errors early by checking your credit card statement monthly.
• Keep Documentation: Save receipts, emails, and screenshots related to your purchases as evidence in case of a dispute.
• Act Quickly: The sooner you report a suspicious charge, the better your chances of a favorable resolution.
• Understand Your Rights: Familiarize yourself with the Fair Credit Billing Act and your credit card issuer’s policies.
• Be Precise: When disputing a charge, clearly state the reason and provide all necessary documentation to support your claim.
• Follow Up: Keep track of your dispute’s progress and be prepared to provide additional information if requested.
• Know When to Escalate: If you’re not satisfied with the resolution, understand how to escalate the dispute with your credit card company.
• Use Disputes Sparingly: Frequent disputes can be a red flag to issuers, so ensure your claim is legitimate before proceeding.
• Secure Your Accounts: Implement security measures like alerts for unusual activity to prevent unauthorized charges.
• Educate Yourself: Stay informed about common scams and fraud practices to protect yourself from becoming a victim.

Tips and Actionable Advice For Merchants

• Clear Communication: Ensure that your billing descriptors are clear and recognizable to your customers to avoid confusion and potential disputes.
• Provide Detailed Receipts: Issue itemized receipts that include specific details about the transaction and customer service contact information.
• Offer Excellent Customer Service: Make it easy for customers to resolve issues directly with you before they turn to a dispute.
• Maintain Records: Keep detailed records of transactions, communications with customers, and delivery proof for at least the duration of the dispute window.
• Understand Dispute Codes: Familiarize yourself with common dispute codes and reasons to better prepare your responses.
• Train Your Staff: Ensure your team understands how to prevent, recognize, and respond to potential disputes.
• Monitor for Fraud: Implement fraud prevention tools and practices to detect and address suspicious activities early.
• Review and Update Policies: Regularly review your return, refund, and cancellation policies to ensure they’re fair and clear to customers.
• Respond Promptly to Disputes: Acknowledge and address disputes quickly to avoid escalations and potential chargebacks.
• Learn from Disputes: Analyze each dispute for underlying issues that can be corrected to prevent future occurrences.

Final Thoughts

Credit card disputes aren’t as daunting as they sound. With a clear understanding of the timelines, processes, and rights involved, both cardholders and merchants can approach disputes with confidence. 

The biggest takeaway is to act in a timely manner. While the law protects you for 60 days, credit card issuers will typically offer cardholders up to 120 days to dispute a charge. Merchants only have 20-45 days to respond. 

Unless it’s a clear case of fraud, consumers should always contact the merchant first before disputing a charge. Most problems can be resolved without a third-party investigation, either as a return, refund, credit, or new product. Save the dispute process for times when you really need it.