What is a credit card chargeback?
Definition
A credit card chargeback is when your card issuer takes a charge back off your bill after you dispute it, for example because it was unauthorized, the amount was wrong, or you never got what you paid for.
- Category
- Scams
- Also called
- chargeback, card dispute
- Last updated
A chargeback is the result of disputing a card charge. You tell your card issuer that a charge is wrong, the issuer investigates, and if you're right the money goes back to you. Chargeback is the usual name for this in the card industry. In US consumer guidance the process is often described as disputing a billing error.
What counts
The FTC lists errors such as unauthorized charges, wrong amounts or dates, and goods that were never delivered or not accepted as agreed. A complaint about quality alone isn't treated as a billing error.
How it works in the US
According to the FTC, you generally have 60 days from the first statement showing the error to raise it, and the issuer asks for the dispute in writing. The issuer must acknowledge it within 30 days and resolve it within two billing cycles, and no more than 90 days. While it's being investigated you don't have to pay the disputed amount, though you still owe the undisputed part. For unauthorized charges, federal law caps your liability at $50.
Debit cards have weaker protections than credit cards, so the rules above apply mainly to credit cards. Some pages are a few years old, so check current deadlines with your card issuer.
A typical case: you pay for a concert ticket from a seller who never sends it. You contact the seller first, get no reply, then dispute the charge with your issuer.
Chargeback vs. refund
A refund is the merchant choosing to return your money. A chargeback is your bank pulling the money back after you dispute it. Try the merchant first when you can: it's usually faster.
Why it matters for scams
Paying by credit card gives you a way to recover money that gift cards, wire transfers and crypto usually don't. If you've been scammed, report it at ReportFraud.ftc.gov as well.
How to protect yourself
- 1
Dispute quickly
Look at the date on the first statement showing the charge. The FTC says you generally have 60 days from then, so don't wait.
- 2
Contact the seller first, then your card issuer
Keep emails, receipts and screenshots. Then send the dispute to the billing disputes address on your statement, and keep a copy of it.
- 3
Pay with a credit card for online purchases
Credit cards have stronger dispute protections than debit cards, and a gift card or wire transfer is much harder to recover.
- 4
Check your statements
Scan them every month for small charges you don't recognize, which are often tests before bigger fraud. If you see unauthorized charges, tell your issuer straight away.
See where your personal data is exposed
Serus finds it on data brokers and people-search sites and removes it.
Frequently asked
How long does a chargeback take?
According to the FTC, the issuer must acknowledge your dispute within 30 days and resolve it within two billing cycles, and no more than 90 days.
Can I do a chargeback on a debit card?
Debit cards have weaker protections than credit cards, according to the FTC. Many banks still accept disputes, so ask your bank how it works for your card.
Will a chargeback hurt me?
A fair dispute normally doesn't affect your credit. A merchant may refuse to deal with you again. Dispute only charges you believe are wrong.
Sources
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