It’s a frustrating scenario that’s all too common: you check your bank or credit card statement and spot a charge you don’t recognize or worse, one you know is wrong. Maybe it’s a duplicate transaction, a billing error, or even a sign of fraudulent activity. Whatever the case, incorrect charges can disrupt your budget, damage your credit if left unresolved, and cause unnecessary stress.
The good news? You have rights and clear steps you can take to dispute incorrect charges and protect your finances. Whether the error is on a credit card, debit card, utility bill, or online subscription, knowing how to properly dispute it is essential. In this guide, we’ll walk you through the process of identifying, reporting, and resolving incorrect charges so you can get your money back and move forward with confidence.
Step 1: Identify and Verify the Incorrect Charge
Before jumping into dispute mode, take a moment to carefully review the charge. Sometimes, what looks like an error isn’t actually a mistake.
- Check the merchant name: Businesses may appear on statements under different names than their public-facing brand. A charge from “AMZN Digital” might be from Amazon Prime, for example.
- Review your receipts or order confirmations: Compare the charge with your emails, app notifications, or physical receipts.
- Look for recurring subscriptions: That $12.99 charge might be from a streaming service or software subscription you forgot about.
- Consider timing: Transactions may not post immediately; a delayed charge could appear as a duplicate.
If, after digging deeper, you’re still confident the charge is invalid or unauthorized, it’s time to take action.
Step 2: Contact the Merchant First
Before involving your bank or credit card issuer, it’s often best to try resolving the issue directly with the company that billed you.
Why contact the merchant first? Many businesses have customer service departments trained to handle billing disputes. In fact, most reputable companies prefer to resolve issues directly to maintain customer satisfaction and avoid chargebacks.
What to do:
- Call or email customer service. Be polite but clear about the issue.
- Provide documentation: include the transaction date, amount, order number (if applicable), and a brief explanation of why you believe the charge is incorrect.
- Request a refund or correction. Ask for a written confirmation of any resolution.
Pro tip: Keep a record of all communication, including names of representatives, dates, and reference numbers. This becomes crucial if you need to escalate the dispute.
In many cases, especially with honest billing errors or misunderstandings, contacting the merchant resolves the issue quickly sometimes within 24 to 48 hours.
Step 3: File a Formal Dispute with Your Financial Institution
If the merchant refuses to cooperate, doesn’t respond, or you suspect fraud, it’s time to involve your bank or credit card company.
You are protected by federal laws—specifically the Fair Credit Billing Act (FCBA) for credit cards and the Electronic Fund Transfer Act (EFTA) for debit cards. These laws grant you the right to dispute billing errors and place a temporary hold on the disputed amount while the investigation takes place.
Credit Card Disputes:
- Act quickly: You typically have 60 days from the statement date to dispute a charge.
- Submit your dispute: You can usually do this online through your issuer’s website or mobile app. Look for “Dispute a Charge” or similar options.
- Provide details: Include the transaction date, amount, merchant name, and your reason for disputing. Attach any supporting documents (emails, receipts, screenshots).
- Wait for investigation: The issuer has up to 90 days to investigate. During this time, you’re not required to pay the disputed amount, and interest stops accruing on that portion.
- Receive resolution: If the investigation favors you, the charge will be removed, and you’ll get a credit. If not, you may owe the amount and have the right to appeal.
Debit Card Disputes:
- The process is similar, but timing is even more critical. For unauthorized transactions, you generally have:
- Up to 2 business days to report: you’re liable for up to $50.
- More than 2 days but less than 60 days: liability rises to $500.
- More than 60 days: you could lose all the money.
- File the dispute through your bank’s online portal or by calling customer service.
Step 4: Escalate If Necessary
Sometimes, the investigation doesn’t go your way or the response takes too long. If you’re dissatisfied with the outcome:
- Request a review: Ask your card issuer or bank for a formal explanation and the opportunity to submit additional evidence.
- File a complaint with regulators: If your bank fails to resolve the issue fairly, contact the Consumer Financial Protection Bureau (CFPB). The CFPB accepts complaints about banks, credit cards, and other financial products and works to ensure companies respond.
- Consider legal action: For high-value disputes or repeated issues, consulting a consumer rights attorney may be worthwhile.
Step 5: Prevent Future Billing Errors
After resolving a dispute, take steps to reduce the chances of future issues:
- Monitor accounts regularly: Check your statements weekly. Many banks offer alerts for transactions over a certain amount.
- Use virtual cards: Some banks and digital wallets offer virtual card numbers for online purchases, limiting exposure if a site is compromised.
- Cancel unused subscriptions: Use services like Rocket Money or Truebill to track and cancel recurring payments.
- Secure your accounts: Enable two-factor authentication and use strong, unique passwords.
Real-Life Example: A Duplicate Charge on a Hotel Booking
Imagine you booked a hotel stay online and later saw two identical charges on your credit card—totaling double the room rate. You contact the hotel, but their billing department is unresponsive.
Here’s what you do:
- Gather your booking confirmation and transaction details.
- Dispute one of the charges through your credit card’s online portal, marking it as “duplicate transaction.”
- Upload your confirmation and a brief explanation.
- The card issuer contacts the hotel, verifies the single booking, and reverses the duplicate charge—usually within 30 days.
Without your action, you’d be out hundreds of dollars. With persistence and the right steps, you recover your funds.
Final Thoughts: You Have the Power to Fix Billing Errors
Incorrect charges don’t have to mean lost money. Whether it’s a simple mistake or suspected fraud, you’re not powerless. By following a clear process verifying the error, contacting the merchant, disputing through your financial institution, and escalating when needed you can protect your finances and maintain control over your accounts.
The key is acting quickly, documenting everything, and knowing your rights. Most disputes are resolved in the consumer’s favor, especially when supported by clear evidence.
So the next time you see a charge that doesn’t add up, take a breath, follow these steps, and know that you’re fully equipped to make it right.