by: Debbie Dragon

For the most part, credit cards are just as safe as using cash. In fact, some would argue that credit cards offer additional security and protections that you can't get when you buy products with cash. Sometimes though, mistakes happen and a merchant may charge you more than they should have for products or services you didn't receive. Some cardholders have been charged for transactions that didn't take place at all.

If you find you've been charged too much or in error, you'll want to dispute the charge. There are directions on the back of every credit card statement that tell you what to do if you need to dispute a charge and they include the mailing address. You don't want to dispute a charge by phone, as you will have no written record of the conversation.

Some examples of reasons that cause people to dispute a credit card charge include:

An unauthorized charge: if you didn't buy a product or pay for a service that appears on your statement, and you did not give someone else permission to use your card to make that purchase, it is considered an unauthorized charge.
Goods not received: if you ordered something online or by phone, or even at a retailer for a later delivery and the product never arrives, this is cause for a dispute. When you don't receive the items you ordered, you shouldn't pay for them.
Returned goods not credited: if you return items to the store or through the mail because they are not what you expected or not the correct items - the money should be refunded to your credit card. If you've returned the products but not received a refund in the stated number of days, you should dispute the transaction.
Wrong order: if the merchant sends you the wrong order and refuses to make the order right, your credit card can help you get what you ordered or get your money back if you dispute the transaction.
Uncompleted services: when you pay a contractor or service provider for services rendered and they don't complete the services according to the agreement, you can dispute the charge.
Incorrect amount: if you are paying for a $10 item but a $100 fee appears on your billing statement, you can dispute the charge to get the difference back as it was a transaction made in error.

How to Dispute the Charge

Write a letter that clearly describes the reason you are disputing a charge, the amount of the charge, the retailer making the charge and the date it occurred. If possible, include any documentation to help support your case. The credit card company is required to investigate your dispute and you do not have to pay the amount in question while it is being disputed. The credit card company must get back to you with a response within 90 days (or two billing cycles). Most of the time, the disputed charge will be canceled, and any interest charged due to that purchase will also be refunded to your credit card.

If the dispute is not settled in your favor, you may have a few other options and it would be in your best interest to contact an attorney to determine what those options may be.

Did you find this article helpful?

Compare Credit Cards

Business Credit Cards