Many people who file a chargeback do it by calling the number on the back of their credit card and telling the representative what happened. That call is reasonable, but the FCBA’s billing error procedure depends on a written notice, and the bank bases its decision largely on the documents it receives. Documents supplied at the start can also save time later, since the bank does not have to request them.
The problem is that many consumers do not know which documents the bank wants to see, so they describe the situation verbally and assume the bank will figure out the rest. In some cases the bank does, but in many others the dispute is delayed or denied because the supporting evidence was never submitted.
What the law provides
The Fair Credit Billing Act of 1974 is the federal law under which consumers have the right to dispute charges on credit card accounts. [1] [10] Its billing error procedure covers charges for the wrong amount, unauthorized charges, charges for goods that were not accepted or not delivered as agreed, and payments or credits that were not posted. [1] [3]
The dispute has to be made in writing, and the letter must be received by the card issuer (the bank that issued the card) within 60 days after the first statement containing the disputed charge was sent. The letter has to be sent to the issuer’s billing inquiries address (not the payment address). The Federal Trade Commission (FTC) suggests certified mail with a return receipt, so there is proof the letter was received. [1] [3]
The issuer must acknowledge the dispute within 30 days of receiving it and must then complete its investigation within two billing cycles, which cannot exceed 90 days. During the investigation, the cardholder is not required to pay the disputed amount, and the issuer cannot report the cardholder as delinquent on that amount. The written notice and the issuer’s deadlines together form the billing error procedure of the FCBA. [1] [3]
Liability for unauthorized charges is limited to $50 under federal law. The limit applies to charges made before the issuer is notified, and nothing is owed for unauthorized charges made after that, so a lost or stolen card should be reported as soon as the loss is discovered. This protection is separate from the billing error procedure and does not depend on that procedure’s notice requirement or time limit. [1] [6]
A problem with the quality of goods or services is handled by a separate provision (15 U.S.C. § 1666i), which allows the cardholder to withhold payment for the purchase and raise the complaint with the card issuer. That right is available only after a good faith attempt to resolve the problem with the merchant, and only for a purchase of more than $50 made in the cardholder’s home state or within 100 miles of the billing address. The amount and distance limits do not apply in some cases, for example, when the merchant is also the card issuer. [3] [6] [10]
An important limitation of the FCBA is that it applies only to credit cards and other open-end credit accounts and does not cover debit card transactions. [1] Debit card transactions are subject instead to Regulation E under the Electronic Fund Transfer Act, which has its own timelines and a different liability structure. [4] [9] Under Regulation E, liability for unauthorized debit card use is limited to $50 when the bank is notified within two business days after the cardholder learns of the loss or theft of the card, and it can be as much as $500 after that. Unauthorized transactions made more than 60 days after the statement showing the problem was sent may not be refunded at all if the bank has still not been told. [9]
What the bank actually wants to see
When a dispute is filed, the bank assigns the chargeback a reason code, which is a short label for the type of dispute. [2] The documents that are relevant depend on that type, and in a dispute about a purchase the bank expects some combination of the six documents described below. A dispute about an unauthorized charge is the exception, because the cardholder made no purchase and has no receipt for it, and the statement and the written description are then the main documents.
The receipt. The receipt proves what the customer was charged for, and an itemized receipt is more useful than a summary receipt because it lists each item or service with its quantity and price. The bank needs that level of detail to determine whether the charge matches the purchase described in the dispute. If the original paper receipt has been lost, a digital copy from an email inbox or the store’s app can be submitted instead, and a photograph of the paper receipt, if one exists, is also acceptable.
The card statement. The statement shows the charge as it appeared on the account, and the date and amount of the charge identify the specific transaction being disputed. The merchant name should be copied into the dispute as it is printed on the statement.
Communication with the merchant. This includes emails, chat transcripts, text messages, and notes from phone calls showing an attempt to resolve the issue with the merchant. The bank looks for this evidence because the legal right to dispute a quality problem requires that attempt, as explained earlier. [3] [6]
Photos of the product. If the dispute is about defective or wrong merchandise, photos showing the defect or the damage are strong supporting evidence, and photos showing the difference between what was advertised and what was received are equally useful.
Proof of return. If the item was returned and the merchant did not issue a refund, the return tracking number and the delivery confirmation prove that the item was sent back and received. The carrier’s receipt for the parcel and the shipping label should be included with them if they are available.
A written description of the dispute. The bank will ask for an explanation of what happened, either on a form or in a letter. The description should be specific about dates, amounts, what was ordered, what was received (or not received), and what the merchant said when contacted. The dispute letter described in step four below can serve as this description.
| Document | What it proves | When it is most relevant |
|---|---|---|
| Itemized receipt | What was purchased, at what price, and when | Every dispute about a purchase |
| Card statement | The charge exists on the account and the amount matches | Every dispute type |
| Communication with merchant | The customer tried to resolve the issue with the merchant | Quality disputes, delivery disputes, refund disputes |
| Photos of product | The item is defective, damaged, or wrong | Wrong item, defective item, not as described |
| Return tracking and confirmation | The item was sent back and the merchant received it | Refund not received after return |
| Written dispute description | The customer’s account of what happened and why the charge is wrong | Every dispute type |
The difference between FCBA rules and card network rules
Many consumers are unaware that two sets of rules apply to a chargeback, and the two sets have different deadlines for the same dispute.
Under the FCBA, a billing error has to be reported in writing within the 60 days described above, and the card issuer then has to comply with fixed deadlines during its investigation. [1] [3]
Visa and Mastercard each have their own chargeback rules, which exist separately from the FCBA and classify every dispute by reason code. Visa uses code 13.1 for merchandise or services not received and code 13.3 for merchandise that is defective or not as described, while Mastercard uses code 4853 for a range of cardholder disputes that includes both of those problems. [2] [5] [8]
The networks also have their own filing deadlines, which are generally 120 days from the transaction date and in some cases are counted from the expected delivery date instead. [5] [8] A dispute under the network rules is submitted through the card issuer, which files it with the network on the cardholder’s behalf. [5]
A cardholder who misses the FCBA deadline can no longer use the billing error procedure, but other routes remain available. [3] [6] The card issuer may still be able to file a chargeback under the network rules, where the limits are generally 120 days and vary by reason code. [5] [8] Two federal protections also remain, the first being the $50 limit on liability for unauthorized charges described earlier. The second is the right under § 1666i to raise a quality complaint with the issuer when the conditions set out above are met. That right covers only the amount still owed on the purchase when the cardholder first notifies the issuer or the merchant. [6]
The safest approach is still to make sure the issuer receives the dispute letter within the 60 days, because the fixed deadlines for the issuer’s investigation apply only to the billing error procedure. [3] [6]
The process, step by step
The five steps below are best completed in the order given, and step one explains the cases in which the card issuer should be contacted before the merchant or on the same day.
Step one. Contact the merchant. For a problem with the quality of an item, the FTC advises contacting the merchant before the card issuer, and the legal right to dispute a quality problem depends on that attempt. [3] [6] Send an email or use the merchant’s customer service chat so that there is a written record of the attempt and of the merchant’s reply. For most other problems, the FTC advises contacting the issuer first so that the right to dispute is not lost through the timing requirements, and the merchant can be contacted at the same time. [3] [7] An unauthorized charge should be reported to the issuer immediately.
Step two. Gather the documents. Collect the receipt (the paper original or a digital copy of it), the card statement showing the charge, any communication with the merchant, photos of the product if applicable, and any return tracking information. Having everything ready before sending the dispute letter saves time later.
Step three. Contact the card issuer. Call the number on the back of the card, or use the issuer’s app or website, to report the dispute. Describe the situation clearly and identify the specific charge by the date and amount shown on the statement. Write down the name of the representative and the date of any call, because the FTC advises keeping a record of both. [7] The issuer will usually explain what documentation to submit.
Step four. Send the dispute letter and the documentation. A phone call or an online form should be backed up with a letter, because the FCBA deadlines for the issuer are counted from the day it receives written notice, and a letter removes any doubt that it did. The FTC advises sending a letter even when the dispute was submitted online. [3] [7] Address it to the location the issuer lists for billing inquiries and send it by certified mail with a return receipt. Enclose copies of the documents gathered in step two and keep the originals. Many issuers also accept the same documents as uploads through their app or website.
Step five. Monitor the investigation. While the investigation continues, payment of the disputed amount is not required, but the rest of the bill still has to be paid on time. [3] Check the account periodically for updates, and answer any request for additional information as soon as it arrives, because the bank may need that information to decide the dispute.
A woman orders a coat online, and when it arrives, the lining is torn, and the return label included in the box is invalid. She emails the merchant twice over 10 days and receives no response, so she decides to file a chargeback. She gathers the order confirmation email (her receipt), the card statement showing the charge, a screenshot of the product listing, a photo of the torn lining, and screenshots of both unanswered emails. She then calls her bank to explain the situation and uploads the documents through the bank’s app, and on the same day she sends a dispute letter with copies of them by certified mail. The bank issues a temporary credit within a week and resolves the dispute in her favor within 45 days.
Why the receipt is so important
In a chargeback dispute about a purchase, the receipt connects the charge on the statement to a particular order and lists the items bought and the price paid for each, details that the card statement does not include. A statement shows, for example, that the customer paid $120 to a merchant on a certain date, and the receipt adds that the $120 was for one jacket, with the size and the order number listed. Without the receipt, the bank knows a payment was made but not what it was for, and that gap makes the dispute harder for the bank to evaluate.
The receipt is especially important in disputes about items that were defective or not as described. Combined with photos of what was received, it lets the bank compare what was ordered and paid for with what was actually delivered, and a statement alone cannot support that comparison.
For anyone who regularly shops online or makes purchases that might need to be disputed later, keeping digital receipts is one of the cheapest forms of consumer protection available. A digital receipt can be a photograph of a paper receipt, a saved email confirmation, an order detail page downloaded from the retailer’s website, or a copy kept in the store’s app.
5 chargeback mistakes that weaken a case
1. Filing a quality complaint without contacting the merchant
A quality complaint can be raised with the card issuer only after the merchant has had a chance to resolve it. [6] A short email to customer service, even one that receives no reply, creates a record of that attempt. In other kinds of disputes, the issuer can be contacted first, and contacting the merchant as well may still help. [7]
2. Waiting too long to file
The billing error procedure is available only when the issuer receives the dispute letter within 60 days after the statement was sent. A later dispute may still be possible under card network rules or under the other federal protections described above, but the fixed FCBA deadlines for the issuer’s investigation no longer apply.
3. Describing the problem verbally but not submitting documentation
A dispute can be reported by phone, but a report that is never put in writing or supported by documents is weak. If the bank’s representative says, “We’ll look into it,” and neither the letter nor the receipt is ever sent, the bank has much less evidence on which to base its decision, and the legal deadlines for its investigation may never apply.
4. Not keeping a copy of the return tracking number
If the item was returned and the merchant claims it was never received, the tracking number and the delivery confirmation are the strongest evidence that it was. Without them, the bank has two conflicting claims and little means of deciding which is accurate.
5. Assuming a debit card dispute is handled like a credit card dispute
Debit card payments are governed by Regulation E rather than the FCBA, and the FTC describes the legal protections for credit cards as stronger. [4] [7] A debit card payment is also made with the customer’s own money, which has already been paid out of the account by the time the dispute is filed, so the customer can be without that money while the dispute is investigated. Where there is a choice, a credit card is the safer way to pay for a purchase that might later be disputed.
Frequently asked questions
How long do I have to dispute a credit card charge?
The dispute letter must be received by the card issuer within 60 days after the first statement showing the charge was sent, which is the deadline for the FCBA billing error procedure. [1] [3] Card network rules generally allow up to 120 days for a chargeback to be filed, and the federal $50 limit on liability for unauthorized charges does not depend on the FCBA deadline. [5] [6] [8]
Does my bank need the actual receipt to process a chargeback?
The original paper receipt is not required, and the FTC advises sending copies and keeping the originals. [3] A digital copy, a photograph, an email confirmation, or an order history screenshot can serve the same purpose, since the bank needs proof of what was purchased and any of these documents can provide it.
Can I file a chargeback if I paid with a debit card?
Yes, but the legal protections are different, because the applicable law for a debit card is Regulation E (Electronic Fund Transfer Act) rather than the FCBA. [1] [4] For an unauthorized transaction, the bank generally has 10 business days to investigate and must usually issue a temporary credit if it needs longer. The full investigation of a debit card purchase can last as long as 90 days. [9] A complaint about the quality of the goods is not among the errors that Regulation E lists, and card network rules may provide additional protection in that case. [4] The FTC describes the legal protections for debit cards as weaker than those for credit cards and notes that some debit card issuers voluntarily offer more than the law requires. [7]
What happens if I lose the chargeback dispute?
If the investigation finds that the charge was correct, the issuer must explain in writing how much is owed and why, and copies of the documents it relied on can be requested. The amount then has to be paid, including any finance charges that accumulated while it was in dispute. A cardholder who still disagrees can write to the issuer again, within 10 days of receiving the explanation or within the time allowed for payment if that is later, and can file a complaint with the Consumer Financial Protection Bureau. The issuer is allowed to begin collection at that stage, and any delinquency report it sends to a credit bureau has to state that the amount is still disputed. [3]
Should I file a chargeback or ask the merchant for a refund first?
For a problem with the quality of an item, the FTC advises contacting the merchant first, and a direct refund is simpler for everyone involved. [3] A chargeback is a formal dispute process that involves the card issuer, the card network, the merchant’s bank, and the merchant’s payment processor. A Visa dispute can often last 45 to 90 days from start to finish, and a chargeback also generates fees for the merchant. [5] With other kinds of problems, the FTC advice is to contact the card issuer first so that no deadline is missed, and a refund can be requested from the merchant in the meantime. [3] [7]
The Bottom Line
When a purchase is disputed, the bank will normally want the card statement and the itemized receipt or another proof of purchase. A written description of the problem and the correspondence with the merchant are expected with them, and photos of the product or proof of return are added when the dispute is about the goods themselves. The receipt is usually the most important of these documents because it shows what the charge was for, while the correspondence is evidence of an attempt to settle the problem with the merchant.
The dispute should also be put in writing and should arrive at the issuer within 60 days after the statement was sent, because the issuer’s duty to investigate within fixed deadlines begins when that written notice is received. Keeping receipts from the day of purchase is even more useful than knowing the deadline, since a dispute filed on time can still be denied when there is no receipt and no record of contacting the merchant to support it.