The Fair Credit Billing Act gives you powerful rights to dispute credit card charges. 96% of consumers win their disputes. Learn the 60-day deadline, how to file, and what evidence wins.
A chargeback is your legal right to reverse a credit card charge by disputing it with your card issuer (the bank that gave you the card). It's not a courtesy or a favor—it's a federal consumer protection enacted in the Fair Credit Billing Act of 1974 after widespread credit card fraud and merchant abuse.
Think of it as a legal mechanism to force your bank to investigate and potentially reverse a charge you didn't authorize, didn't receive, or that was fundamentally different from what you were promised. Unlike asking a merchant for a refund (which they can refuse), a chargeback puts the power in your hands and the burden of proof on the merchant.
The process is straightforward but time-sensitive: you notify your card issuer in writing within 60 days of the statement date containing the disputed charge. They investigate, and if they find in your favor, the charge is permanently removed from your account. According to recent data, 96% of consumers who file chargebacks get a resolution, and 91% resolve within just one month—much faster than most legal remedies.
Chargebacks protect you from the worst risks of credit card use: fraud, merchant deception, and billing errors. But they're not without limits. You can't abuse the system by falsely claiming fraud when you simply changed your mind. You must act within strict deadlines. And you need reasonable evidence supporting your claim. Understanding these rules is the difference between recovering your money and losing it permanently.
The FCBA defines "billing errors" broadly, covering most situations where a charge is wrong, unauthorized, or unfulfilled. Here are the valid reasons to file a chargeback:
Someone used your card without your permission—whether they stole your physical card, got your number online, or you were victim of a data breach. This is the strongest chargeback reason and almost always succeeds.
Examples: Card stolen and used before you reported it lost, online purchase you didn't make, subscription you never signed up for, charges continuing after you canceled and returned your card.
Your liability: $0 under card network policies ($50 max under FCBA, but all major issuers waive this). File a police report to strengthen your case.
You were charged the wrong amount, charged twice for the same purchase, or billed for something you already paid for or returned. These are clear-cut errors that card issuers routinely reverse.
Examples: Restaurant added extra zero to tip ($20 tip charged as $200), item rang up twice at checkout, hotel charged you despite using points for free night, gym charged annual fee when you have month-to-month membership.
Evidence needed: Original receipt showing correct amount, statement showing duplicate charge, proof of payment via another method, merchant's advertised price vs. what you were charged.
You paid for something but never received it, and the merchant hasn't refunded you. This applies whether the merchant never shipped it, it was lost in transit, or services were never performed.
Examples: Online order shows "delivered" but you never got it, event tickets for concert that was canceled, contractor took deposit and disappeared, digital product purchased but download link never worked.
Evidence needed: Merchant's promised delivery date (from confirmation email), proof of payment, tracking showing no delivery or delivery to wrong address, emails to merchant about the issue.
What you received is materially different from what was advertised—defective, broken, counterfeit, or significantly misrepresented. This is more subjective, so strong evidence is critical.
Examples: "New" item arrived clearly used, electronics DOA (dead on arrival), clothing is completely different color/size than ordered, furniture arrived with major damage, fake designer goods when authentic was promised.
Evidence needed: Photos/videos of defect or mismatch, product description from merchant's website, manufacturer's specs showing you got counterfeit/wrong model, emails attempting return that merchant ignored.
You properly canceled a subscription, membership, or recurring service, but the merchant continues charging you. This is extremely common with gyms, streaming services, and "free trial" subscriptions.
Examples: Gym membership you canceled 3 months ago still charging, streaming service you canceled per their process, "free trial" you canceled before billing date but charged anyway, magazine subscription that auto-renewed despite cancellation.
Evidence needed: Confirmation email of cancellation, merchant's cancellation policy showing you followed it, timeline proving you canceled before next billing cycle, screenshots of canceled account status.
You paid for a service that was either not performed at all, or performed so poorly it's essentially worthless. Think contractors, professionals, or service providers who failed to deliver.
Examples: Wedding photographer who never showed up, contractor who did shoddy work that needs redoing, lawyer who took retainer and did nothing, home repair that made problem worse.
Evidence needed: Contract or agreement showing what was promised, photos/documentation of substandard work, communications with provider about the failure, third-party assessment (if applicable), proof you gave them opportunity to fix it.
Filing false chargebacks can result in account closure, permanent blacklisting by merchants, and in extreme cases, criminal fraud charges. Only dispute when you have a legitimate, documented reason.
The Fair Credit Billing Act (FCBA), enacted in 1974 and codified in Regulation Z, is your federal legal protection against credit card billing errors. It applies to all "open-end" credit accounts—credit cards, charge cards, and revolving lines of credit.
Under FCBA § 170, you can sue your card issuer (not just the merchant) for quality/delivery problems IF all these conditions are met:
This is powerful because card issuers have deep pockets and want to avoid litigation. Mentioning this provision in your dispute letter (when applicable) often gets faster resolution.
The single most important rule in chargeback law is this: You have 60 days from the statement date (not transaction date, not when you noticed the error) to file a written dispute. Miss this deadline by even one day and you permanently lose your FCBA rights.
The clock starts:
When your credit card statement was mailed to you, NOT when you:
Example timeline:
Critical: The deadline is 60 days from Jan 1 (statement date), NOT from Jan 20 when you discovered it. You don't get 60 days from discovery—you get 60 days from statement date, period.
Your FCBA chargeback rights are gone. The charge becomes legally "final" and you cannot dispute it under federal law. However, you still have options:
Lesson: Review your credit card statement THE DAY you receive it. Set calendar reminders for questionable charges. Don't procrastinate—the 60-day clock is absolute.
Filing a chargeback requires written notice to your card issuer. Verbal notification (phone call) doesn't preserve your FCBA rights—you MUST put it in writing. Here's the step-by-step process:
While not legally required, calling first helps you:
⚠️ IMPORTANT: Verbal notice is NOT sufficient. Even if the rep says "it's handled," you MUST send written confirmation to preserve your legal rights.
Your letter must include:
Required Information:
Where to send: Look on your credit card statement for the address labeled "Billing Errors" or "Disputes"—it's different from the payment address. If unclear, call and ask for the exact address.
Method: Send via certified mail, return receipt requested. This gives you proof of delivery in case the issuer claims they never received it. Keep copies of everything you send.
Don't just describe the problem—prove it. Include copies (never originals) of:
For Fraud/Unauthorized:
For Non-Delivery:
For Defective Goods:
For Billing Errors:
Many card issuers now accept disputes through their website or app. This can be faster and creates automatic documentation. However:
[Your Name]
[Your Address]
[Date]
[Card Issuer Name]
[Billing Errors Department Address]
Re: Dispute of Billing Error - Account #[last 4 digits]
Dear Sir or Madam,
I am writing to dispute a billing error on my account per the Fair Credit Billing Act.
• Account Number: [full number]
• Disputed Charge Amount: $[amount]
• Transaction Date: [date]
• Merchant: [merchant name]
• Statement Date: [date of statement containing charge]
This charge is in error because: [Detailed explanation - fraud, non-delivery, defective, billing error, etc. Be specific: dates, what happened, what you did to resolve with merchant]
Enclosed are copies of [list attached documents: police report, emails, photos, receipts, etc.]
I request that you remove this charge from my account and reverse any associated interest or fees. Please provide a written response within the timeframes required by the FCBA.
Sincerely,
[Your signature]
[Your name printed]
Once your card issuer receives your written dispute, federal law mandates specific actions and deadlines. Here's the timeline and what to expect at each stage:
Your card issuer must send written acknowledgment that they received your dispute. This is a brief letter saying "We got your dispute, we're investigating."
What it means: Your dispute is officially in the system. The disputed amount cannot accrue interest or fees from this point forward (they'll reverse any that did accrue if you win).
The card issuer contacts the merchant (through their payment processor) and requests a response. The merchant has 30-45 days (depending on card network—Visa 30, Mastercard 45) to submit evidence that the charge was valid.
Merchant can:
Statistics: Many merchants (especially small businesses) don't respond. They automatically lose if they miss the deadline.
The issuer reviews evidence from both sides—your documentation and the merchant's response (if any). They make a determination: is this a valid dispute or a valid charge?
Decision factors:
Statistic: 96% of consumers get a resolution in their favor. 91% resolve within just 1 month, well before the 90-day maximum.
The issuer must resolve your dispute within 90 days (two billing cycles) or explain in writing why they need more time (rare). Resolution comes in two forms:
You Win ✓
You Lose ✗
If You Win:
Nothing else needed. The charge is gone. If you received provisional credit earlier, it becomes permanent. Consider whether to continue doing business with that merchant (many will blacklist you after a chargeback, but that's their loss).
If You Lose But You're Certain You're Right:
While the investigation is ongoing:
Not all chargebacks are equal. Success rates vary significantly based on the type of dispute and the evidence you can provide. Here's a breakdown:
Someone used your card without permission. This has the highest success rate because you're protected by both FCBA and card network Zero Liability policies.
What wins: Police report, affidavit you didn't make purchase, proof card was in your possession (or reported stolen), timeline showing you discovered fraud quickly, no pattern of similar "fraud" claims.
Clear mathematical errors: charged twice, wrong amount, billed for returned item. These are easy to prove and rarely disputed by merchants.
What wins: Original receipt vs. statement showing discrepancy, proof of return with refund policy, tracking showing item sent back, bank statement showing you paid elsewhere (if double-billed).
You paid but never received the product. Succeeds if merchant can't prove delivery. Lower rate if tracking shows "delivered" but you claim you didn't get it.
What wins: No tracking, tracking shows undelivered or wrong address, merchant's delivery deadline passed, emails to merchant about non-delivery, photos showing no package (if claimed delivered to doorstep).
Item is defective, damaged, counterfeit, or materially different from description. More subjective, so evidence quality matters enormously.
What wins: Photos/videos showing defect or mismatch, merchant's product description vs. reality, attempts to return following their policy, expert opinion (for high-value), manufacturer specs proving counterfeit.
You properly canceled but merchant keeps charging. High success rate if you have cancellation confirmation; lower if merchant claims you missed cancellation deadline.
What wins: Cancellation confirmation email, merchant's cancellation policy showing you complied, timeline proving cancellation before next billing, screenshot of canceled account status.
Services not performed or done so poorly they're worthless. Most subjective category—"poor quality" is harder to prove than "didn't show up."
What wins: Service contract showing what was promised, photos/documentation of poor work, third-party assessment, emails to provider ignored, proof you gave chance to fix it, clear failure to meet professional standards.
Software, downloads, streaming services. Harder because merchant can prove "delivery" (you accessed it). Mainly succeed for non-functional products or unauthorized subscriptions.
What wins: Screenshots showing product doesn't work, proof of cancellation before charge, technical errors preventing use, significant mismatch between advertised and actual features, unauthorized subscription signup.
Across all dispute types, 96% of consumers who file chargebacks get a resolution (refund, correction, or acceptable settlement). The key is choosing the right dispute reason, gathering strong evidence, and acting within the 60-day deadline.
The #1 factor determining chargeback success is evidence. Card issuers can't just take your word for it—they need documentation proving your claim. Here's what wins:
Credit card statement
Showing the disputed charge with date and amount
Order confirmation / Receipt
Proof of what you actually purchased and for how much
Communication with merchant
Emails, chat logs, letters attempting to resolve the issue
Timeline documentation
When you discovered the error, what you did about it, merchant responses (or lack thereof)
Fraud: Police report
File immediately when you discover unauthorized charges
Non-delivery: Tracking info
Showing no delivery, wrong address, or lost package
Defective: Photos/videos
Visual proof of defect, damage, or mismatch from description
Cancellation: Confirmation email
Proof you canceled before the charge, following merchant's process
Strong evidence has these characteristics:
When you file a chargeback, merchants don't just accept it—they can (and often do) fight back. Understanding what merchants submit and how to counter it gives you a significant advantage.
Merchants win about 1 in 4-5 chargebacks they contest. This means even when they submit evidence, you still have a 70-80% chance of winning if your evidence is strong. The merchants who win typically have bulletproof proof of delivery or clear evidence of fraud on your part.
What they submit:
How to counter:
What they submit:
How to counter:
What they submit:
How to counter:
What they submit:
How to counter:
Approximately 40-50% of merchants don't respond to chargebacks at all. Reasons:
If merchant doesn't respond, you automatically win. The card network rules require them to respond within the deadline or forfeit the chargeback.
The FCBA grants you specific rights while your dispute is being investigated. Understanding these protections ensures you're not unfairly penalized during the process:
Withhold payment of disputed amount
You're not required to pay while it's being investigated
Continue using your card normally
The dispute doesn't freeze your account or affect credit limit (except for disputed amount)
Request merchant's evidence
You have the right to see what the merchant submitted to fight your chargeback
Submit additional evidence
If merchant makes new claims, you can respond with counter-evidence
Make minimum payments on other charges
Just exclude the disputed amount from your payment calculation
Skip payments on undisputed charges
The rest of your balance is still due—only disputed amount is on hold
Ignore issuer requests for info
If they ask for additional evidence or clarification, respond promptly or risk losing
Use the item while disputing it
Continued use of a "defective" product undermines your claim
File duplicate disputes
One dispute per charge—filing multiple times flags you as abusive
While your chargeback is under investigation:
Important: If you lose the dispute, the issuer can add the charge back to your account and apply interest from the original transaction date. However, you still have options to challenge this (see FAQ: "What if my chargeback is denied?").
For unauthorized charges specifically, the FCBA limits your liability to $50—but card network policies make it $0 in practice:
FCBA Law:
Card Network Policies (Better):
Key takeaway: For fraud/unauthorized charges, you'll almost certainly pay $0. For other disputes (billing errors, non-delivery, etc.), you're fighting to remove the entire charge, not just limit liability.
Estimate your chances of winning a chargeback based on your dispute type, evidence, and whether you're within the 60-day deadline.
Get an estimate of your potential compensation
If you're past the 60-day deadline from your statement date, you cannot file a chargeback under the FCBA. The calculator will show alternative options, but your primary legal remedy is lost. Always review statements immediately when received.
96% of consumers win their chargebacks. The FCBA gives you powerful rights—but the 60-day deadline is absolute. Act now to protect your money.