Credit Card Disputes: Get Inaccurate Charges Off Your Card

A recent survey showed that nearly 200 million Americans have at least one credit card. And like any form of digital payment, there’s potential for things to go awry.

Credit card fraud, despite some guardrails in place, continues to be a prominent issue. But if you discover an inaccurate charge on your account, are you stuck paying for it? The short answer is no. The long answer is you have to take several steps in order to have it removed. You may also face disputes with a vendor if you don’t get something you ordered or it’s vastly different than described. These, too, can be disputed, but there are different steps to take.

Let’s take a look at the different types of inaccurate charges and how, according to credit card processors, to handle disputes.

What Are the Different Types of Inaccurate Charges?

The most common is a fraudulent charge, which happens when someone uses your credit card info to buy something without your permission. These are often the most easy to dispute as well. It could happen if someone steals your card information or the actual card itself.

Other inaccurate charges may occur if you cancel a subscription and the company still bills you or if you order something online and don’t get the product or the product ends up being grossly misrepresented.

How Does Your Credit Card Information Fall into the Wrong Hands?

Many times, it’s carelessness and complacency that lands our credit card numbers in the wrong hands. For example, perhaps you store your credit card in a digital wallet for easy payment online. That’s a serious safety hazard, regardless of how safe the apps purport it to be.

There have also been reports of scammers installing skimmers at gas pumps, retail payment terminals, and ATMs to collect card information. Then, sometimes people fall victim to phishing scams online.

Time Is of the Essence

From the time your statement is available, you have just 60 days to dispute any charges. After that, you’re out of luck and responsible for the transactions.

The time constraint is why it’s so important to regularly review your statements, especially if you have a card with a larger credit line and little ones can slip through the cracks. Additionally, signing up for purchase alerts can help you fight fraudulent charges with notifications you can view and/or dispute in real-time. You can dispute the charge via phone or online, though you might have to call to freeze your card.

Don’t Jump the Gun

It can be very disconcerting to find a charge you don’t recognize on your statement but it’s important not to jump the gun. Review all of your purchases to ensure that it’s not a valid transaction.

Some companies use different names, though they are required to disclose this during the purchase process. If you’re in doubt, look up the company name and cross-check it with your purchase records to see if it’s truly a fraudulent charge or one you overlooked.

Work With the Retailer on Product Issues

Before you file a chargeback with your credit card company, try to work with the retailer to resolve the issue. Many are willing to offer a solution to avoid the expense.

You can open yourself up to legal action if you forego the retailer and open a chargeback without attempting to at least resolve the situation.

Keep All Your Records

This is important, especially if you are filing a chargeback. Whether it’s a receipt or purchase order, keep those documents handy until the situation is resolved.

Additionally, if the product is grossly different than what you ordered, take pictures to document your case. If it’s a math error and your card was overcharged, a receipt will suffice.

Be Patient

It takes time to resolve these disputes. Many times, a credit card company will refund you quickly, especially if you have a long history with them and a history of little or no disputes. Your issuer must acknowledge your claim and provide written notice within 30 days.

However, it can take up to 90 days to resolve the claim and a few billing cycles to see the refund on your account. This is normal, and it’s okay to follow up after this point.

Know Your Rights

As a consumer, you have rights. The Federal Trade Commission outlines these rights on its website along with the steps you must take to get a favorable outcome.

Read up on your rights and understand that there are options if you feel like you’re a victim of fraud or unscrupulous practices. You can also report the issuer and the retailer to the commission.