Rules for Credit Card Disputes

At some point in a consumer's life there is that credit card charge on his bill he does not recognize or a charge to a merchant that he would like to reverse. According to CreditCards.com, using a credit card to purchase goods and services does offer an additional layer of protection against fraud. If you know how to use the rules for credit card disputes then you can protect yourself and your credit score.

Preliminary Work

According to MSN Money, before you can contact your credit card company to reverse or stop a charge, you first need to try to work with the merchant. Be sure to make notes on exactly who you talked to, the date and time you spoke and what you talked about. If you reach an agreement with a merchant, send a certified letter that requires a signature for delivery to confirm the arrangements. Request that the merchant send you the resolution in writing as well. If the merchant does not respond to your requests, or if the resolution is not to your satisfaction, then you can contact your credit card company. Keep in mind that there is a federal guideline in place that states that the purchase must be for more than $50 and within 100 miles of your home address in order to qualify for a dispute resolution. However, credit card companies do have the option of ignoring those guidelines when reviewing each dispute. According to CreditCards.com, many credit card companies have officially waived these restrictions for disputes.

Time Table

According to online financial resource Bankrate, there is a very definite time table for disputing a charge on your credit card bill. Under federal law, you must send written notice of your dispute to the credit card company's dispute center within 60 days of receiving the bill. The credit card company then has 30 days to respond back, in writing, that they received your complaint and will investigate. The credit card company then has either two billing cycles or 90 days, whichever comes first, to settle the dispute. Make sure you make notes on any conversations you have with the credit card company and get the final resolution in writing.

Push Back

A consumer who convinces her credit card company to charge-back a charge as the result of a dispute is not done with the dispute process. A charge-back is when the consumer's credit card company charges back the cost of the item to the merchant's credit card company. If the charge-back is deemed to be justified then the vendor also is subject to fees for the charge-back from his credit card company. However, getting the consumer's credit company to issue the charge-back is only part of the process. The merchant then has the chance to defend himself in saying that the purchase was legitimate and the charge-back is not warranted. Credit card companies have an arbitration process that determines the validity of charge-backs. If the charge-back is declined through arbitration, then the only recourse the consumer has is to sue in a court.