What Is a Disputed Charge? A Guide To Understanding Contested Credit Card Transactions
It’s hard to imagine what a disputing a credit card charge would entail. Many of us are used to the convenience and simplicity of using a credit card for payments, but we still need to be aware of the risks that come with it. Even when shoppers fully understand their rights and responsibilities, things can go wrong, and charges can be disputed.
Understanding what a disputed charge is and how to go about disputing it can save you time, money and complications down the road.
What Is a Disputed Charge?
A disputed charge is a specific type of complaint filed with the credit card issuer relating to an underlying consumer transaction. It occurs when a customer questions the legitimacy of a bill or payment, which may be due to an inaccuracy, or fraud, in the associated charges.
A customer may dispute the transaction by filing a request with the issuer, asking them to look into it further. This is called a “chargeback.” If the claim is validated, the issuer will issue the customer a refund.
Common Types of Disputed Charges
Unrecognized Charges: If the customer does not recognize a charge on their account, they may dispute it as fraudulent.
Unauthorized Purchases: Often, fraudulent charges may list companies or organizations the customer has never done business with, or the cardholder did not grant the company permission to charge the account.
Duplicate Charges: Customers may mistakenly receive more than one charge for the same purchase.
Erroneous Billing: Customers may dispute charges if the itemized bill does not match what was purchased.
Misleading Charges: A customer may dispute a charge if it does not reflect what was sold correctly.
Reversal of Credit: Customers may dispute a credit if the transferred amount of credits was incorrect.
What Is a Valid Disputed Charge Claim?
In order for a disputed charge to be accepted, there must be a legitimate reason behind it. This can include any of the above, as well as:
• Unauthorized use of a credit card or account
• Fraudulent or unauthorized purchases
• Merchant wrongly charged or a customer charged multiple times
• Inaccurate or incorrect description, product, or quantity listed
• Services were not provided as promised
• Product received was not as described
• Product received was not what the customer wanted
• Unreasonable additional fees (such as for shipping)
• Goods damaged, incorrect, or lost in the mail
Steps To Dispute a Charge
If you need to dispute a charge, the process is relatively simple:
- Contact The Merchant:
The first step is to try and contact the merchant who processed the charge directly. Ask to speak to customer service, and explain the issue. They may address the issue at this point, or they may provide you with a contact number to their card issuer to speak to.
- File A Dispute With The Credit Card Issuer:
If the merchant is unable to resolve the issue, then you’ll need to contact the credit card issuer and dispute the charge. Depending on the type of credit card, you may be able to do this online, over the phone, or by mailing in a dispute form.
- Ask For Documentation:
If the dispute is not resolved during the first call, you will likely need to provide additional information. This may include copies of receipts, copies of your bank and credit card statements, and any other itemized transaction documents.
- Receive A Decision:
Once the credit card issuer has all the relevant information, they will conduct an investigation and make a decision on whether or not to reverse the charge.
- Follow Up:
The decision to reverse the charge should arrive within a few weeks. In the meantime, you may need to follow up with the credit card issuer if you haven’t heard a response.
Protect Yourself When Disputing A Charge
Following a few guidelines can help protect you when disputing a charge:
• Understand Billing Cycles: If you see a charge on your monthly statement that you no longer recognize, take note of when the purchase date was. Make sure it was within the past billing cycle.
• Document Every Conversation: Keep a record of every conversation and its content to support your case if needed.
• Don’t Accept Checks: If someone wants to reimburse you with a check, be wary. The check may never clear, and you’ll be out of money. This may be a sign of a fraudulent purchase.
• Refunds Vs. Credit: When getting a resolution with the merchant, it is important to ask for a refund as opposed to a credit.
In short, a disputed charge is a claim filed with the credit card issuer in which a customer questions the legitimacy of a bill or payment. It is important to understand what a valid disputed charge claim is, the steps to dispute a charge and how to protect yourself when doing so. Following these guidelines can help ensure the process is fair, accurate and resolved swiftly.
