How to Dispute a Credit Card Charge

A wrong charge on a credit card — the amount doesn't match, the item never arrived, or someone else used the card — has a specific legal path for fixing it: the Fair Credit Billing Act's (FCBA) billing-error process. This guide walks through, step by step, how to write the notice, where to send it, and what the issuer has to do.

What counts as a billing error under the FCBA?

A billing error has a specific legal definition under 12 CFR §1026.13(a). It isn't just any disagreement with the issuer — it's one of these seven categories:

• A charge reflected on the statement that the cardholder didn't make, and that wasn't made by anyone with actual, implied, or apparent authority to use the card. This is an unauthorized charge.
• A charge that the statement doesn't identify correctly (for example, missing the merchant name or required date).
• A charge for goods or services the cardholder didn't accept, or that weren't delivered as agreed.
• The issuer's failure to properly credit a payment or other credit to the account.
• A computational or accounting-type error made by the issuer.
• A charge the cardholder reasonably asks for clarification or additional documentation about.
• The issuer's failure to mail the statement to the cardholder's correct address, if the cardholder gave written notice of the address change at least 20 days before the end of the billing cycle.

The first type of error — an unauthorized charge — also triggers a separate protection on how much the cardholder can be made to pay. Our guide to unauthorized charges and fraud covers that separate rule, including the $50 cap.

Where and how to send the billing-error notice

The FTC recommends sending the letter by certified mail with return receipt requested, for proof of the send and receipt dates. Include copies — not originals — of receipts, order confirmations, or any other supporting documents, and keep a copy of the letter itself.

What the dispute letter must contain

The FTC publishes a free sample letter that many cardholders adapt to their own situation.

The step-by-step procedure

1. Review your statement and gather documentation

   Confirm the date of the first statement that shows the charge you're questioning — that date is what starts the 60-day clock. Gather receipts, order confirmations, or any communication with the merchant.

2. Write the billing-error notice

   Use the checklist above as a guide. Be specific about the type of error and the exact amount in dispute.

3. Send it to the billing-inquiries address within 60 days

   Confirm the correct address on your statement — not the payment address. Certified mail with return receipt creates a record of both the send and receipt dates.

4. Withhold payment on the disputed amount while it's investigated

   The cardholder doesn't have to pay the disputed amount or related finance charges while the investigation is pending. The rest of the balance, unrelated to the dispute, is still due as usual.

5. Wait for the acknowledgment and the resolution

   The issuer generally acknowledges the notice within 30 days and resolves the dispute within 90 days (or 2 complete billing cycles).

6. Respond based on the outcome

   If the issuer confirms the error, it must correct the account and credit related charges. If it concludes no error occurred, or a different error occurred, it must explain that in writing and provide copies of the evidence it relied on if the cardholder requests them. If the dispute is denied, our guide to what to do when a charge dispute is denied covers the next steps.

What the issuer must do, and by when

Deadline	What must happen
Within 30 days of receiving the notice	The issuer must acknowledge it in writing, unless it has already resolved the dispute within that same window.
Within 2 complete billing cycles, and never more than 90 days	The issuer must finish investigating and resolve the dispute: correct the error and credit the account, or explain in writing why it believes no error occurred (or that a different error occurred).

These deadlines come directly from 12 CFR §1026.13(c). The FTC notes that an issuer that misses them can forfeit the right to collect up to $50 of the disputed amount, even if the bill turns out to be correct.

The right to withhold payment during the investigation

Until the billing error is resolved, the cardholder doesn't have to pay (and the issuer can't try to collect) any part of the required payment tied to the disputed amount, including related finance or other charges (12 CFR §1026.13(d)(1)). This doesn't cover the rest of the balance — the undisputed portion of the bill, including finance charges on that portion, is still due on its normal schedule.

Protections during the investigation: what the issuer can't do

If, after investigating, the issuer determines the cardholder owes all or part of the disputed amount, it must promptly notify them in writing, stating the amount and the payment due date (12 CFR §1026.13(g)(1)). The issuer may report the account as delinquent only after allowing that payment period (or 10 days, whichever is longer). If the cardholder sends, within that window, a further written notice saying the billing error is still disputed, the issuer can't simply report it as delinquent — it must instead report that the amount is in dispute, notify the cardholder of everyone who received that report, and promptly report any later resolution (12 CFR §1026.13(g)(4)).

If the issuer denies the dispute

If the investigation concludes no error occurred, the issuer must explain its reasons in writing, and must provide copies of the documentary evidence it relied on if the cardholder asks (12 CFR §1026.13(f)). At that point, many cardholders appeal in writing within the payment period the issuer gave, or within 10 days of getting the explanation, whichever is later. Our guide to what to do when a charge dispute is denied covers that escalation in more detail, including filing a CFPB complaint.

This isn't a chargeback

The FCBA's billing-error process is a federal legal right, distinct from a chargeback, which runs on the card network's private rules (Visa, Mastercard, and similar networks). The same charge sometimes qualifies for both paths at once. Our guide to chargeback vs. billing dispute explains in detail how the two differ and when each one fits.

Common mistakes to avoid

• ✕Disputing only by phone and never sending the written notice, which forfeits the FCBA's protections.
• ✕Sending the letter to the payment address instead of the address designated for billing inquiries.
• ✕Letting more than 60 days pass from the first statement showing the error before sending the notice.
• ✕Stopping payment on the rest of the undisputed balance, which can create separate charges and a real delinquency.
• ✕Assuming a denied dispute is the end of the road, without requesting the documentary evidence or considering a CFPB complaint.
• ✕Not keeping a copy of the letter or proof of the send date.

When to talk to a professional

Frequently asked questions

How is the 60-day deadline for disputing a charge counted?

The clock runs from the date the issuer transmitted the first statement showing the disputed charge or error — not from the date of the transaction itself. The written notice must reach the issuer within those 60 days.

What address should I send my dispute letter to?

The address the issuer designates specifically for billing inquiries, which appears on the statement or in the card agreement. That address is often different from the one payments are sent to.

Do I have to pay the disputed amount while it's being investigated?

No. While the investigation is underway, the cardholder can withhold payment on the disputed amount and related finance charges. The rest of the undisputed balance is still due as usual.

Can the issuer report me as delinquent while the dispute is open?

Generally not, as long as the dispute was properly raised and is being investigated in good faith. The issuer can't report the disputed amount as delinquent solely because the cardholder didn't pay it during the investigation.

What happens if the issuer denies my dispute?

The issuer must explain in writing why it believes no error occurred, and must provide copies of the evidence if asked. From there, many cardholders appeal in writing or file a CFPB complaint. Our guide to what to do when a charge dispute is denied covers the next steps.