Credit Card Unauthorized Charge Dispute: How to Get Your Money Back

You check your credit card statement and see a charge you did not make. Maybe it is a purchase at a store you have never visited, a subscription you never signed up for, or a duplicate charge from a legitimate merchant. Whatever the case, federal law is firmly on your side. The Fair Credit Billing Act (FCBA) and Regulation Z give you powerful protections against unauthorized credit card charges, including a strict process that your card issuer must follow. This guide covers everything you need to know to get your money back.

Your Rights Under the Fair Credit Billing Act

The Fair Credit Billing Act, codified at 15 U.S.C. §§ 1666-1666j, protects consumers who use credit cards (not debit cards, which fall under different law). Under the FCBA, your maximum liability for unauthorized charges on a credit card is $50. In practice, virtually every major card issuer offers $0 liability as a policy benefit, meaning you will not pay anything for truly unauthorized charges.

What Counts as an Unauthorized Charge?

An unauthorized charge is any charge made without your permission. This includes:

• Fraudulent charges: Someone stole your card number (physically or digitally) and made purchases
• Charges by someone with limited permission: You gave your card to a family member for a specific purchase, but they made additional unauthorized purchases
• Merchant errors: A merchant charged you twice for the same transaction, charged the wrong amount, or charged you for something you returned
• Subscription charges after cancellation: A service you cancelled continues billing your card
• Charges for goods or services not received: You paid for something that was never delivered

Step-by-Step: How to Dispute an Unauthorized Charge

Step 1: Act Quickly

Under the FCBA, you have 60 days from the date the statement containing the unauthorized charge was mailed to you to file a written dispute. Do not wait. While most issuers are flexible about this deadline for clearly fraudulent charges, acting quickly strengthens your position.

If your card was physically stolen or you suspect your card number was compromised, call your issuer immediately to freeze or cancel the card. This prevents additional unauthorized charges.

Step 2: Notify Your Card Issuer in Writing

While most issuers allow you to initiate disputes by phone or online, the FCBA's strongest protections require a written notice sent to your card issuer's billing inquiries address (not the payment address — these are often different). Your written dispute should include:

• Your name and account number
• The specific charge you are disputing (date, amount, merchant name)
• Why you believe the charge is unauthorized or incorrect
• Any supporting documentation (police report for fraud, cancellation confirmation for zombie charges, delivery tracking for undelivered goods)

Send it via certified mail with return receipt requested. Keep a copy for your records.

Step 3: Understand the Investigation Timeline

Under Regulation Z (12 C.F.R. § 1026.13), once your issuer receives your written dispute, they must:

1. Acknowledge your dispute in writing within 30 days of receipt
2. Complete the investigation within two complete billing cycles (and no more than 90 days)
3. Not report the disputed amount as delinquent to credit bureaus during the investigation
4. Credit the disputed amount back to your account or provide a written explanation of why the charge is correct

During the investigation, you are not required to pay the disputed amount. Your issuer cannot charge interest on the disputed amount or impose any penalties for non-payment of the disputed charge.

Step 4: Review the Outcome

After completing their investigation, your card issuer will send you a written determination. If they find in your favor:

• The charge is permanently removed from your account
• Any related interest or fees are credited back
• No negative impact on your credit report

If they find against you (meaning they believe the charge was authorized), they must:

• Provide a written explanation with evidence supporting their conclusion
• Offer you the documentation they relied on for their decision
• Give you at least 10 days to pay the disputed amount before reporting it as delinquent

Step 5: Escalate If Necessary

If your card issuer denies your dispute and you believe they are wrong, you have several escalation options:

Escalation Channels

CFPB Complaint

The Consumer Financial Protection Bureau enforces the FCBA and Regulation Z. File a complaint at consumerfinance.gov/complaint. Include your original dispute letter, the issuer's denial, and any evidence supporting your claim. Banks take CFPB complaints seriously because the CFPB publishes complaint data and can take enforcement action.

State Attorney General

Your state's consumer protection division investigates credit card billing complaints. Many states have their own credit card protection statutes that supplement the federal FCBA.

Arbitration or Small Claims Court

Check your card agreement's arbitration clause. If you prefer, you can often opt out of arbitration and file in small claims court. Small claims court is designed for individuals without attorneys, and filing fees are typically $30-75.

Credit Card vs. Debit Card Disputes

It is critical to understand the difference in protections:

• Credit cards (FCBA): Maximum $50 liability for unauthorized charges. Disputed amount does not need to be paid during investigation. Most issuers offer $0 liability.
• Debit cards (EFTA/Regulation E): Your liability depends on when you report the fraud. If reported within 2 business days, maximum liability is $50. Between 2 and 60 days, maximum is $500. After 60 days, you could lose everything taken from your account. And with a debit card, the money leaves your bank account immediately.

This is one reason consumer advocates strongly recommend using credit cards instead of debit cards for purchases, especially online.

Protecting Yourself Going Forward

After resolving an unauthorized charge, take these steps to prevent future incidents:

• Enable transaction alerts: Set up real-time notifications for every charge on your card. Most issuers let you set a minimum threshold (e.g., alert me for any charge over $1).
• Use virtual card numbers: For online purchases and subscriptions, use virtual card numbers that can be deactivated without affecting your primary card.
• Review statements monthly: Do not rely solely on alerts. Spend five minutes each month reviewing your full statement for charges you do not recognize.
• Freeze your credit: If your card was compromised, consider freezing your credit with all three bureaus (Equifax, Experian, TransUnion) to prevent new accounts from being opened in your name.
• File a police report: For clearly fraudulent charges (someone stole your card information), file a police report. This creates an official record and strengthens any dispute or claim.

Common Mistakes When Disputing Charges

• Disputing by phone only: Phone disputes are convenient, but they do not trigger the full FCBA protections that a written dispute provides. Always follow up in writing.
• Missing the 60-day window: The FCBA requires disputes within 60 days of the statement date. Set a reminder to check each statement as it arrives.
• Sending to the wrong address: Your dispute must go to the card issuer's billing inquiries address, not the payment address. These are different. Check your statement or the issuer's website for the correct address.
• Not keeping copies: Keep copies of every letter you send, every response you receive, and every phone call you make (with dates, times, and names).
• Paying the disputed charge: You are not required to pay a disputed charge during the investigation. Paying it does not help your case and may complicate the refund process.