A chargeback is a reversal of a credit or debit card transaction that your bank pushes through on your behalf, pulling the disputed funds back from the merchant and returning them to your account without the merchant’s consent. 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 for a billing error. The protections are not identical for credit and debit cards, and missing the deadline can cost you the right to dispute at all.
Chargeback vs. Refund
A refund is voluntary. You contact the merchant, the merchant agrees something went wrong, and the money comes back. A chargeback goes around the merchant entirely: you ask your bank to reverse the charge, and the bank takes the funds from the merchant’s account. Because a chargeback overrides the original transaction, it triggers formal investigation requirements, legal deadlines, and consequences for both sides. Try the merchant first. Turn to a chargeback when that fails, or when fraud is involved and going to the merchant makes no sense.
When You Can File a Chargeback
Federal law and card network rules recognize a handful of valid grounds. Most disputes fall into three buckets.
Unauthorized Charges
If someone used your card without permission through identity theft, a stolen card, or a compromised account number, you have the strongest basis for a chargeback. For credit cards, 15 U.S.C. § 1643 caps your liability at $50, provided the card issuer met certain disclosure requirements.1GovInfo. 15 USC 1643 – Liability of Holder of Credit Card For debit cards, your liability depends on how fast you report it (see the deadlines below).
Billing Errors
Being charged the wrong amount, billed twice for the same purchase, or not credited for a return all qualify as billing errors under the Fair Credit Billing Act at 15 U.S.C. § 1666.2Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors A $100 charge that hits your account twice is a textbook example.
Goods Not Delivered or Not as Described
The billing-error statute also covers goods or services that were never delivered, or that arrived significantly different from what you agreed to buy.2Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors Ordering a new laptop and receiving a used tablet fits squarely inside this ground.
Deadlines and How Much You Could Owe
The window to act depends on your card type, and so does the money at stake.
Credit Cards
To preserve your rights under the Fair Credit Billing Act, send written notice to your card issuer within 60 days of the date the statement containing the error was sent. Your notice needs your name and account number, the charge you believe is wrong, and a brief explanation of why.2Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors Most issuers accept disputes through their app or website, but the address that carries statutory protection is the billing inquiries address on your statement, not the general payment address. Your maximum liability for unauthorized charges is $50, no matter how long it takes you to notice.1GovInfo. 15 USC 1643 – Liability of Holder of Credit Card
Debit Cards
Debit disputes fall under the Electronic Fund Transfer Act and Regulation E (12 CFR Part 1005). Your liability rises the longer you wait:
- Report within 2 business days of learning about the loss or theft, and your liability is capped at the lesser of $50 or the amount of unauthorized transfers made before you notified the bank.3eCFR. 12 CFR 1005.6 – Liability of Consumer for Unauthorized Transfers
- Report after 2 business days but within 60 days of your statement, and your liability can rise to $500.3eCFR. 12 CFR 1005.6 – Liability of Consumer for Unauthorized Transfers
- Wait more than 60 days after your statement is sent, and you could be liable for the full amount of any unauthorized transfers that occur after the 60-day window closes, with no cap.3eCFR. 12 CFR 1005.6 – Liability of Consumer for Unauthorized Transfers
The gap between credit and debit is real. A credit card holds your exposure at $50 whenever you notice. A debit card can leave you responsible for every dollar stolen after the reporting window closes.
Extra Rules for Quality-of-Goods Disputes
If your complaint is not fraud or a billing error but dissatisfaction with what you received, a different provision applies. Under 15 U.S.C. § 1666i, you can assert claims against your credit card issuer for a problem with a purchase, but three conditions must be met:
- You made a good-faith attempt to resolve the problem directly with the merchant.
- The initial purchase was more than $50.
- The transaction occurred in your home state, or within 100 miles of your billing address.
The geographic and dollar-amount 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 complicate the analysis, so ask your card issuer how it applies to your situation.
How to File
A well-supported claim moves faster and wins more often. Before you contact your bank, pull together:
- Transaction details: the date the charge appeared, the merchant’s name as listed on your statement, the exact dollar amount including taxes or fees, and any transaction or reference number.
- Receipts, order confirmations, and shipping tracking, especially tracking that shows a package was never delivered.
- Records of your attempts to resolve the issue with the merchant: emails, chat transcripts, call logs.
- A clear, short written explanation of why the charge is wrong or fraudulent.
Most banks offer a dispute form in their online portal or mobile app; customer service can send one if you can’t find it. For credit card billing errors, remember that the written notice belongs at the billing inquiries address on your statement.2Office of the Law Revision Counsel. 15 USC 1666 – Correction of Billing Errors
How Long the Bank Takes
The clock the bank runs against also depends on card type.
Credit Card Disputes
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.2Office 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 Disputes
Your bank must investigate and decide whether an error occurred within 10 business days. It can extend that to 45 days, but only if it provisionally credits your account for the disputed amount within the original 10 business days.5CFPB. 12 CFR 1005.11 – Procedures for Resolving Errors During the investigation you get full use of the provisional funds.6Office of the Law Revision Counsel. 15 USC 1693f – Error Resolution If the bank concludes the charge was legitimate, it reverses the provisional credit and must explain its findings within three business days. If it finds an error, it must correct it within one business day.
The Merchant Can Fight Back
A chargeback is not automatically final. When the bank reverses a charge, the merchant’s bank notifies the merchant and gives them a chance to contest the reversal 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 evidence they submit has to match the specific reason code assigned to your dispute: a merchant answering a non-delivery claim needs shipping proof, not just proof the card was authorized.8Mastercard. How Can Merchants Dispute Credit Card Chargebacks Strong merchant evidence can flip the bank’s initial decision and remove the provisional credit from your account. Weak evidence, or none at all, makes the reversal permanent.
If the Bank Rules Against You
When the investigation concludes against you, any provisional credit is pulled back and you owe the original charge. The bank must tell you what it decided and why. If you believe the merchant genuinely wronged you and the bank’s process missed it, you can file a complaint with the Consumer Financial Protection Bureau, which oversees both the Fair Credit Billing Act and Regulation E, or pursue the matter in small claims court.
Don’t File a Chargeback You Can’t Support
Disputing a charge for something you actually received and were happy with, sometimes called “friendly fraud,” carries real risk. Merchants who can prove delivery and your agreement to the terms will typically win representment, and you’ll be responsible for the charge and any fees. A pattern of questionable disputes can also lead your bank to close your account, since banks watch dispute activity for signs of fraud. Merchants can sue in civil court, and large-dollar false disputes can expose you to criminal liability for wire fraud or bank fraud.