Plain steps from the federal rules and your bank's own pages. Not legal advice.

How to Dispute
Where is the charge?

Is It Bad to Dispute a Credit Card Charge?

Disputing a charge with a real reason is not bad. False or careless disputes can cost you, though.
Written

No, it is not bad to dispute a credit card charge when you have a real reason. But a dispute filed without a good reason, or one that is not true, can cost you money and time. Here is how to tell the difference before you file.

What does it mean to dispute a credit card charge?

A dispute tells your card issuer that a charge on your bill is wrong. You are asking it to look into the charge and take it off if it agrees.

The Fair Credit Billing Act is the federal law on correcting billing errors. It sets the rules your card issuer must follow when you dispute a charge. To learn more about what a dispute is, read about what a disputed transaction means.

When disputing a charge is a good thing

Some charges should be disputed. Regulation Z says a charge not made by the cardholder or someone allowed to use the card is a billing error. If someone used your card without permission, that is a billing error.

The Fair Credit Billing Act says a charge for the wrong amount is a billing error too.

Regulation Z says a charge for goods or services not accepted or not delivered is also a billing error. If you paid for a table that never arrived, that counts.

For a fuller list, see valid reasons to dispute a charge.

When disputing a charge can backfire

Not every complaint fits. Regulation Z does not treat a complaint about the quality of something you accepted as a billing error. If you bought a shirt, got the shirt, and just do not like it, that is not a billing error.

A purchase you made and received but no longer want is not a billing error either. Disputing it anyway is a bad idea. The card issuer can deny the claim, and you still owe the money.

The Consumer Financial Protection Bureau says defective goods or services may need a different dispute process. If your problem is quality, not billing, ask the seller for a refund first.

A false dispute is worse. Saying a charge is fraud when you made it yourself is lying to your bank. Never say anything in a dispute that is not true.

What happens if you lose a dispute?

Your card issuer must look into your claim before it says no. Regulation Z says a card issuer must do a reasonable investigation before it finds there was no error.

If it finds no error, the charge goes back on your bill. Chase's guide says that if the dispute finds you responsible for the charge, you have to pay it. You may also lose any temporary credit you were given.

There are limits on how your issuer can judge you. Regulation Z bars denying a claim only because you did not sign a sworn statement or file a police report. The Fair Credit Billing Act says a card issuer cannot deny a claim of goods not delivered unless it finds they were sent.

For more, read what happens if you dispute a charge and lose.

Does disputing a charge affect your credit score?

Regulation Z bars the card issuer from reporting the cardholder as late for not paying the disputed amount.

What can hurt is the bill. Regulation Z gives a cardholder who still owes at least 10 days to pay before a bad credit report. Pay the rest of your bill on time while the dispute runs.

Regulation Z bars a card issuer from closing or limiting an account because the cardholder used these rights in good faith.

How to avoid accidentally disputing a legitimate charge

Many disputes turn out to be simple mix-ups. Bank of America says many disputed charges are real charges that people do not recognize or remember. A strange name on your bill may be a parent company, not a thief.

Before you dispute a charge you do not recognize, ask any authorized users on your account if they made it. Check your receipts and email for the amount and date. Ask the seller what the charge is for.

If it turns out to be yours, do not dispute it. If it is not yours, file a dispute. When you are ready, follow the steps in how to dispute a credit card charge.

The bottom line

Disputing a charge is not bad. Use it when you have a real billing error, and skip it when the problem is quality or regret. File honest claims, pay the rest of your bill, and let the process work.

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