What a Disputed Transaction Is Under Federal Law

A disputed transaction is a charge you tell your bank or card issuer you did not authorize or that is wrong. Federal rules set how it works.

Written: October 5, 2026

You see a charge on your account that looks wrong. When you tell your bank or card issuer about it, that charge becomes a disputed transaction. The meaning is simple. It is any transaction you have asked your bank to check because you believe it is an error. Once you report it, federal rules tell your bank what it must do next.

What is a disputed transaction?

A disputed transaction is a charge or transfer you flag as wrong. It can be a charge you never made. It can be a charge for the wrong amount. It can be a charge for something you ordered but never got. The dispute starts when you tell your bank or card issuer there is a problem. Your report is called an error notice.

Not every question about your account is a dispute. Regulation E says a balance question or a request for tax copies is not an error. But asking your bank to explain a transfer counts as an error notice. So does reporting a lost card, if you say someone may have used it.

The rules also protect you after you close the account. Regulation E says your bank must follow the error steps even if the account is closed.

What counts as a disputable error under federal law

Two federal rules govern disputes. Regulation E covers debit cards, bank accounts and other electronic transfers. Regulation Z and the Fair Credit Billing Act cover credit card billing errors.

For a debit card or bank account, Regulation E says these count as errors:

a transfer you did not allow
a wrong transfer to or from your account
a transfer left off your statement, or a math mistake by your bank
getting the wrong amount of cash from a machine

For a credit card, Regulation Z and the Fair Credit Billing Act list similar errors:

a charge not made by you or someone allowed to use the card
a charge for the wrong amount
a charge for goods or services not accepted or not delivered as agreed
a payment or credit the statement fails to show properly
a math error the card issuer made

One thing does not count. Regulation Z does not treat a complaint about the quality of something you accepted as a billing error. The Consumer Financial Protection Bureau says defective goods or services may need a different dispute process. For more on what counts, read valid reasons to dispute a charge.

Debit card disputes vs. credit card disputes

The two rules give you different protections.

With a credit card, Regulation Z says the cardholder need not pay the disputed amount or its related charges during the dispute. The card issuer cannot try to collect it or report you as late for withholding it.

With a debit card, the money is already gone from your account. Regulation E says your bank may give you a provisional credit while it investigates. That credit gives you full use of the money, but it is not final. The bank can take it back if it finds no error.

The clocks differ too. Regulation E says your bank must decide if there was an error within 10 business days of getting your notice. It may take up to 45 days if it gives provisional credit within 10 business days. Regulation Z gives the card issuer 2 complete billing cycles, and never more than 90 days, to resolve the error.

The 60-day window

For a credit card, Regulation Z gives you 60 days to get a written notice to the card issuer. The clock starts when the card issuer sends the first statement that shows the error. The Fair Credit Billing Act counts the sixty days the same way.

For a debit card or bank account, Regulation E says your bank must get your error notice within 60 days after it sends the statement showing the error. If your bank never sends a statement, you have 60 days from when it should have.

Your notice does not need to be perfect. Regulation E says a notice without your account number still counts if your bank can find the account. But it must let your bank find your name and account and say why you think there is an error. It should give the type, date and amount of the error if you can.

Do not wait. Regulation E says your bank need not follow the error steps for a notice it gets more than 60 days after the statement. If you need help getting ready first, see what to do before you dispute a charge.

What happens after you file

Your bank must look into your claim. Regulation Z says a card issuer must do a reasonable investigation before it finds there was no error. It cannot deny your claim only because you did not sign a sworn statement or file a police report.

If the bank finds an error, it must fix it. Regulation E says your bank must fix an error within one business day after it finds one. A card issuer that finds the error must credit the account and send a correction notice.

If the bank finds no error, it must tell you why in writing. You can ask for copies of the papers it used, and it must send them promptly. Regulation Z says a card issuer that never explains in writing why there was no error generally must credit the disputed amount.

For a deeper look at the next steps, read what happens after you dispute a charge. If the bank takes money back after giving you a credit, learn about reverse provisional credit.