A chargeback is a reversal of a credit or debit card transaction handled through your bank, which pulls the disputed funds back from the merchant and returns them to your account without the merchant’s agreement. Federal law caps your liability for unauthorized credit card charges at $50, and you generally have 60 days from the date your statement is sent to file a written dispute over a billing error.1Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors The protections are stronger for credit cards than debit cards, and missing a deadline can cost you the right to dispute at all.
Chargeback vs. Refund
A refund is voluntary. You ask the merchant, and the merchant sends the money back. A chargeback goes around the merchant: you ask your bank to reverse the charge, and the bank withdraws the funds from the merchant’s account. Because your bank is overriding a completed transaction, the process comes with formal investigation requirements, legal deadlines, and consequences for both sides. Try the merchant first. Use a chargeback when that fails or when the charge is fraudulent.
When You Can File a Chargeback
Federal law and card network rules recognize three main grounds.
Unauthorized Charges
If someone used your card without permission through identity theft, a stolen card, or a compromised number, you have the clearest basis to dispute. For credit cards, 15 U.S.C. § 1643 caps your personal liability for unauthorized use at $50, provided the card issuer met certain disclosure requirements.2GovInfo. 15 USC 1643 – Liability of Holder of Credit Card
Billing Errors
The Fair Credit Billing Act covers wrong amounts, duplicate charges, and failures to credit a return.1Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors A merchant’s system that processes a $100 charge twice gives you a clean basis to dispute the duplicate.
Goods Not Delivered or Not as Described
When a merchant fails to deliver what you paid for, or delivers something materially different from what was advertised, the charge qualifies for a dispute. The statute specifically covers goods or services not delivered in accordance with the agreement made at the time of the transaction.1Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors Ordering a new laptop and receiving a used tablet is the textbook example.
Deadlines and How Much You Could Owe
This is where credit and debit cards separate sharply.
Credit Cards
To preserve your rights under the billing-error process, send written notice to your card issuer within 60 days of the date the statement containing the error was sent to you. The notice must include your name and account number, the charge you believe is wrong, and a brief explanation.1Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors Most issuers accept disputes through online portals or mobile apps, but written notice to the billing inquiries address on your statement is the method the statute specifically protects. Your maximum out-of-pocket exposure for unauthorized charges stays at $50 no matter how long the fraud goes unnoticed.
Debit Cards
Debit disputes fall under the Electronic Fund Transfer Act and Regulation E. Your liability rises the longer you wait:
- Reported within 2 business days of learning about the loss or theft: liability is capped at the lesser of $50 or the amount of unauthorized transfers before you notified the bank.3eCFR. 12 CFR 1005.6 – Liability of Consumer for Unauthorized Transfers
- Reported after 2 business days but within 60 days of your statement: liability can rise to $500.3eCFR. 12 CFR 1005.6 – Liability of Consumer for Unauthorized Transfers
- Reported more than 60 days after your statement is sent: you can be liable for the full amount of any unauthorized transfers that occur after that 60-day window closes, with no cap.3eCFR. 12 CFR 1005.6 – Liability of Consumer for Unauthorized Transfers
Waiting too long with a compromised debit card can leave you responsible for every dollar taken after the window closes. That risk does not exist with a credit card.
Quality-of-Goods Disputes Have Extra Requirements
If your dispute is not fraud or a billing error but dissatisfaction with what you received, a separate provision applies. Under 15 U.S.C. § 1666i, you can assert claims against your card issuer over a purchase, but only if three conditions are met:
- You made a good-faith attempt to resolve the problem with the merchant first.
- The initial purchase exceeds $50.
- The transaction occurred in the same state as your billing address, or within 100 miles of it.
The dollar and geographic limits fall away if the merchant is the same company as the card issuer, is controlled by the card issuer, or obtained the transaction through a mail solicitation the card issuer participated in.4Office of the Law Revision Counsel. 15 USC 1666i – Assertion by Cardholder Against Card Issuer of Claims and Defenses Online purchases that cross state lines can create complications under these rules, so call your card issuer to discuss your specific situation.
How to File
Gather your documentation before you contact the bank. A well-supported claim moves faster and is more likely to succeed.
- Transaction details: the exact date the charge appeared, the merchant name as it shows on your statement, the dollar amount including taxes or fees, and any transaction or reference number.
- Receipts and confirmations, including order confirmation emails and shipping tracking numbers, especially tracking that shows a package was never delivered.
- Records of your attempts to resolve the issue directly with the merchant: emails, chat transcripts, call logs.
- A short written explanation of why the charge is wrong or fraudulent.
Most banks provide a dispute form through their online portal or mobile app, and customer service can send you one if the digital option isn’t available. For credit card billing errors, remember that written notice must go to the billing inquiries address on your statement, not the general payment address.1Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors
What Happens After You File
Credit Card Investigation
After receiving your written dispute, the card issuer must send a written acknowledgment within 30 days. It then has two complete billing cycles, and no more than 90 days, to either correct the error or send you a written explanation of why it believes the charge was correct.1Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors While the investigation is open, the issuer cannot try to collect the disputed amount or report it as delinquent to credit bureaus.
Debit Card Investigation
Your bank must investigate and determine whether an error occurred within 10 business days of receiving your notice. If it needs more time, it can extend the investigation to 45 days, but only if it provisionally credits your account for the disputed amount within the initial 10 business days.5CFPB. 12 CFR 1005.11 – Procedures for Resolving Errors You must have full use of those provisional funds during the investigation.6Office of the Law Revision Counsel. 15 USC 1693f – Error Resolution If the bank concludes the charge was legitimate, any provisional credit is reversed and the bank must explain its findings within three business days. If the bank finds an error, it must correct it within one business day.
The Merchant’s Chance to Fight Back
A chargeback is not automatically final. When your bank reverses a charge, the merchant’s bank notifies the merchant and offers a chance to contest through a process called representment. Under Visa’s network rules, for example, merchants generally have 30 days to respond.7Visa. Visa Claims Resolution – Efficient Dispute Processing for Merchants The merchant may submit delivery confirmation, purchase history, refund policies you agreed to, address and card verification matches, and correspondence with you.8Mastercard. How Can Merchants Dispute Credit Card Chargebacks If the evidence is strong, the bank can reverse its initial decision and pull back any provisional credit. If the merchant fails to respond or the evidence is thin, the reversal stands.
If You Lose the Dispute
When the investigation concludes against you, any provisional credit is removed and you become responsible for the original charge. The bank must notify you of its findings and the reasons for its decision. That’s not necessarily the end of your options. You can file a complaint with the Consumer Financial Protection Bureau, which oversees both the Fair Credit Billing Act and Regulation E. You can also pursue the merchant in small claims court, where filing fees vary by jurisdiction but are generally modest. Either path is worth considering if the amount is significant and you have documentation.
Don’t File a Chargeback You Can’t Support
Filing a chargeback for a purchase you actually received and were satisfied with, sometimes called “friendly fraud,” carries real risk. Merchants who can prove you got the goods will likely win the representment, leaving you responsible for the charge plus any fees. A pattern of questionable disputes can prompt your bank to close your account, since financial institutions monitor customer dispute activity and unusual volume gets flagged. Merchants can pursue civil suits over false disputes, and in extreme cases involving significant amounts, fraudulent chargebacks may expose you to criminal liability for wire fraud or bank fraud. Reserve the tool for the situations it was built for.