How to Dispute a Credit Card Purchase

Suppose you buy a product, using your credit card, and find it is faulty, but the merchant refuses to take it back, replace it, or issue a refund. Now what?  Here's what the federal Fair Credit Billing Act (FCBA) says:

Don't Pay

Once you have paid for the merchandise by paying your credit card bill, you lose your right to dispute the charge. But whatever you do, don’t just refuse to pay the credit card bill. If you do, you may be surprised to learn how fast your credit score can plummet from good to questionable. Plus, you’ll be dealing with a bill collector instead of your credit card issuer. It may not seem like it, but your credit card company wants to keep your business and will most likely help you resolve a dispute. 

Do it Right 

If your bill goes to collection, not only will your credit score probably drop, but bill collectors are subject to a different set of rules than your credit card company. Credit card purchases fall under the rules of the FCBA.  If you have a legitimate dispute, these rules can work in your favor. 

Here’s an Outline of the Steps You Must Take: 

Determine if your purchase qualifies

According to the FCBA, the purchase must be for more than $50 and must have been made within your home state or within 100 miles of your address. Those are the rules, but many credit card issuers will help you with purchases made over the Internet, or that don’t otherwise fit the parameters. They do this to keep you happy, but they are entitled to refuse to help with claims outside these parameters if they choose. 

Contact the merchant

First you must make a good faith attempt to work it out with the merchant. If you can, take the merchandise back to the store. Otherwise, call and talk to the manager. 




Every step of the way, record dates, names, and notes on the conversation.