Ever noticed an unexpected charge on your credit card statement or realised that a refund hasn't been processed? It can be quite frustrating, especially if it pushes you over your credit limit.
Understanding how credit card disputes work can help you navigate these situations smoothly.
Credit card disputes happen when there is a disagreement between what you believe you should be charged and what appears on your statement. This could be due to a double charge, an incorrect amount, or a transaction you don't recognise.
To dispute a credit card charge, you need to get in contact with your card provider and explain why you think it’s incorrect.
You usually have 120 days from the date of the transaction (or when you first noticed the issue) to dispute a payment through chargeback. This applies to both credit and debit cards under Visa, Mastercard, and American Express.
If you’re using Section 75 protection (which covers credit card purchases over £100 and up to £30,000), there’s no strict deadline. However, it’s best to raise the issue as soon as possible. In most cases, you have up to six years (or five in Scotland) to make a claim under the Limitation Act 1980.
Before reaching out to your credit card company, it's a good idea to double-check your receipts and consult anyone else who has access to your account. They might be able to clarify the situation. If this doesn't resolve the issue, it's time to contact your provider.
When you contact your credit card provider, they will need detailed information about the transaction in question. Be prepared to provide:
Your card provider will use this information to look into the claim and determine if a refund is warranted.
Credit card disputes can take anywhere from a few days to several months, depending on the type of claim and your provider’s process.
For a chargeback, most banks aim to resolve cases within 30 to 45 days, but complex cases can take longer. Some card networks, like Visa and Mastercard, allow the retailer to challenge the claim, which can extend the process.
For Section 75 claims, there’s no fixed timeline, but providers must handle complaints within eight weeks under Financial Conduct Authority (FCA) rules. If it takes longer or you’re unhappy with the outcome, you can escalate it to the Financial Ombudsman Service (FOS).
If you disagree with your lender's decision, you can escalate the matter by submitting a written complaint. Make sure to include all relevant evidence, such as receipts and correspondence, to support your case.
Scammers are constantly finding new ways to steal personal and financial information. If your card is lost or stolen, a thief can make transactions using contactless payments until the card is reported and blocked. To protect yourself:
Regularly check your statements for any suspicious transactions and report them to your lender immediately.
A mistake on your credit card statement can affect your credit history, especially if it leads to missed payments or exceeding your credit limit.
Once the dispute is resolved, contact credit reference agencies like Equifax, Experian, and TransUnion to correct any errors on your credit report. You will likely need to provide them with evidence from your credit card provider that the dispute has been settled.
Regularly monitoring your statements and spending can help you catch potential disputes early, spot fraudulent activity, and ensure you're making more than just the minimum payment on your account.
By understanding how credit card disputes work, you can handle any issues that arise with confidence and ensure your financial health remains intact.
For more tips and information on managing your credit cards, keep an eye on our blog.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
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