Know Your Rights: How to Dispute credit cards Charge – Credit Sesame

Not all charge card charges are set in stone. Whether a charge may be the consequence of fraud, bad business or human error, oftentimes it’s not just easy to have the charge removed, the process can in fact be rather easy. In fact, the initial action is usually in favor of the consumer – the charge card issuer reverses the charge leaving it towards the merchant to prove that it’s valid.

Valid Reasons to Dispute credit cards Charge

Legitimate reasons to dispute credit cards charge include being charged twice for the similar transaction, charged for something you returned or something like that that was never received. Sometimes the credit card issuer fails to credit a payment. In other cases an unauthorized person constitutes a charge.

The Fair Credit Billing Act (FCBA) protects consumers against billing errors. Under qualifying circumstances, liability is limited to $50 (and most major credit card issuers waive that liability). Qualifying errors include:

• Charges with wrong date or dollar amount
• Math errors (for example an incorrect total after adding a tip)
• Failure to post payments or credits
• Failure to deliver the bill for your current address (assuming you provided it 20 days before the billing cycle closing date)
• Charges that you ask for proof or clarification

And two most typical reasons for a reversal request:

Unauthorized charges. This category includes, obviously, fraudulent charges made by a thief that has obtained your credit card number. It includes charges made by a legitimate merchant but that you simply never authorized.

Charges for items or services you never accepted or that were not delivered as agreed. Some deceptive recurring billing practices fall into this category. Many consumers provide a credit card number for a free trial offer or perhaps a one-time purchase simply to pay with an ongoing basis. This is known as an adverse option and it’s legal – the merchant can continue to charge the customer unless and before the consumer says to prevent. Some consumers don’t realize the costs are ongoing, forget to cancel, or just find the opt-out process confusing or difficult. When the charges are discovered, the customer asks for them to be turned around because they never wanted or intended to sign up for the service.

While any of the above characteristics are cause for requesting a reversal of the credit card charge, regret, dissatisfaction and alterations in financial circumstances are not, unfortunately, billing errors. They might, however, be protected under other consumer laws.

How to Dispute credit cards Charge

Check your statement regularly. The earlier you catch an erroneous charge, the better.

Choose your battles. If you become known as a person who often “never receives” things you were charged for, you can lose the charge card account altogether. Resist any temptation to dispute the best charge, even if you were dissatisfied with the purchase. Returns are a separate issue, and you cannot circumvent the returns process by simply asking the charge be taken off your bill.

Put in your polite hat. Even when you’re in the right, inappropriate behavior will, at the minimum, delay your resolution while all parties set up defenses and dig set for a battle. It’s alright to be firm, but be courteous, speak clearly and offer up all relevant details. Don't engage in name-calling or accusations even though you feel justified. Don’t use profanity, verbally or perhaps in writing.

Contact the merchant. Oftentimes, especially those involving human error (bad math or double-charging, for example), the merchant is usually a quick first and last stay in the procedure. Legitimate businesses will happily correct a mistake when evidence of the error is presented. Merchants are charged a charge when the credit card issuer needs to investigate a dispute, so it’s within their best interests to resolve the dispute informally whenever possible. A high number of disputes could lead to the merchant losing charge card privileges altogether. Give them one chance to resolve the situation amicably.

Collect your ideas and gather your evidence. Don’t be intimidated or bullied into giving up on a valid dispute. The New York Times reported that some merchants present customers with “chargeback abuse policies” to the tune of, “you agree to not file a – chargeback with regard to any purchase.” Brazen! And illegal! If you encounter this type of statement, or one that threatens to “report you” to some chargeback abuser database that will make it “more difficult or even impossible” for you to use your credit card later on, stand your ground. Identify the reason you believe the charge should be reversed, and when there's any documentation to support your situation, have it together.

Log onto your account online or call the telephone number on the back of the charge card. For major credit card issuers the internet dispute process is equally as efficient as calling to speak to a live representative. In most cases, the charge card issuer will contact you for more details if required. The charge card issuer can give the merchant a chance to prove that the charge is valid after which notify you from the results of your research.

Document how you behave. Get the exact information on the dispute, the names of any people you speak with during the resolution process, the times and dates of any telephone calls, and also the outcome of any conversation.

Write a letter. Many disputes are resolved without resorting to formal written communication. But in some cases the merchant will not agree to the chargeback. To formally pursue a credit according to your rights under the FCBA, your request ought to be submitted to the charge card issuer on paper and within 60 days from the date the balance with the disputed charge was sent to you. The letter will include all relevant details: your company name, hair straightners themselves, the account number, the facts from the charge (merchant, date, amount), the statement closing date and the reason you are disputing the charge. You should also list all of the steps you'll have taken so far to resolve the dispute , and include copies associated with a letters, receipts or other documents. Send everything (keep a copy) with a method that provides proof of delivery (certified, return receipt requested or overnight mail) towards the billing office (not the payment address) of the charge card issuer.

Pay your bill. Don’t end payment your credit card bill unless the only real charge outstanding may be the one out of dispute. Failure to pay for another servings of your bill can result in additional fees and negative reporting towards the credit agencies. You don't have to pay for the disputed charge (or related charges) even though it is under investigation, and also the credit card issuer cannot attempt to collect the debt, report you as delinquent or close your bank account. It may, however, report your challenge. And if the dispute is not resolved in your favor, you’ll be liable for any interest charges that accrue along the way.

Review the FCBA for those eligibility details before initiating a dispute. In any case, act fast and keep records.