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

How to Dispute
Where is the charge?

What Is a Chargeback and How Does It Work?

A chargeback reverses a card payment through your bank. See how it differs from a refund and what Regulation E and Regulation Z do for you.
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You paid with a card, and something went wrong. The company will not fix it. A chargeback is one way to get your money back. Here is what the word means, and how the process works for you as the cardholder or account holder. If you are getting ready to file, start with what to do before you dispute a charge.

What is a chargeback?

A chargeback reverses a card payment. You ask your bank or card issuer to take the money back from the company and return it to you. The company does not agree to it first. Your bank decides, using the rules that cover your account.

The word comes from the card industry. You may see it on a statement or in an app. Your bank may just call it a dispute. The idea is the same either way.

Chargeback vs. refund vs. dispute

A refund comes from the company. The company agrees to give your money back, and it sends the payment back the way it came. You deal with the seller, and no bank is involved.

A chargeback comes from your bank. You ask the bank to pull the money back from the company. The company can fight it, and your bank weighs both sides.

A dispute is the broader word. It covers the whole claim you file with your bank. A chargeback is often what the bank does with that claim once it agrees with you. In practice, people use the two words for the same thing. If you want to know which problems count, read valid reasons to dispute a charge.

Try the company first when you can. A refund can be faster than a chargeback. But do not let that stop you from filing if a deadline is close.

How the chargeback process works

The process starts when you tell your bank about the problem. You say which charge, and why you think it is wrong. Your bank may ask for receipts, messages, or other proof.

The bank then checks your claim. It may ask the company for its side. In the end, the bank either reverses the charge or tells you no. If it says no, it has to explain why in writing.

The exact steps depend on which rule covers your account. Debit cards and bank accounts follow one federal rule. Credit cards follow another.

Your rights under Regulation E (debit cards)

Debit cards and bank accounts fall under Regulation E. It sets the steps your bank must follow when you report an error.

Regulation E says a transfer you did not allow counts as an error. So does a wrong transfer to or from your account, or a transfer left off your statement. Getting the wrong amount of cash from a machine counts too.

Regulation E says your bank must get your error notice within 60 days after it sends the statement showing the error. Your notice must let the bank find your name and account, and say why you think there is an error.

After that, 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. That is money back in your account while the bank looks. You can read more in what is provisional credit.

Regulation E says your bank may not charge you for any part of the error process if an error happened. If it finds no error, it must explain why in writing.

Your rights under Regulation Z / Fair Credit Billing Act (credit cards)

Credit cards fall under Regulation Z and the Fair Credit Billing Act. Regulation Z says a charge not made by the cardholder or someone allowed to use the card is a billing error. A charge for the wrong amount counts. So does a charge for goods or services not accepted or not delivered as agreed.

Regulation Z gives the cardholder 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 notice must reach the address the card issuer gives for billing errors.

Regulation Z gives the card issuer 30 days after it receives the notice to confirm it in writing. It then has 2 complete billing cycles to resolve the error, and never more than 90 days.

While the bank looks, Regulation Z says the cardholder need not pay the disputed amount or its related charges. The card issuer cannot report you as late for holding back that amount. It also cannot close or limit your account because you used these rights in good faith.

If you need help filing, see how to dispute a credit card charge.

Key deadlines and what to expect

The deadlines differ by card type, so keep them straight.

For a debit card or bank account, Regulation E gives you 60 days after the statement showing the error. The bank then has 10 business days to decide, or up to 45 with provisional credit.

For a credit card, Regulation Z gives you 60 days from the statement showing the error, and your notice must be in writing. The card issuer then has up to 90 days to resolve the error.

Do not count on winning. A chargeback is a claim, and your bank weighs both sides. Never dispute a charge you made and received, and never say anything untrue in a dispute.

Once you file, the bank checks your claim and tells you its answer. To see what happens step by step, read what happens after you dispute a charge.

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