How to Dispute a Visa Charge: 10 Steps (with Pictures) (2024)

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Written byJennifer Mueller, JD

Last Updated: October 11, 2022References

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   Confirm the problematic charge. Before you contact either the merchant or your Visa card issuer, review your receipts and records and make sure you're not mistaken.

   • If the charge is for a subscription or other recurring charge, check your records or even email to see whether you subscribed for something and forgot about it.
2. See Also

   Dispute Letter Sample for Credit Card: Free & Effective - RequestLettersSample Letter for Disputing Credit and Debit Card ChargesSample Letter for Disputing Credit & Debit Card ChargesHow to Write a Credit Card Dispute Letter (with Pictures)

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   Cancel your card, if necessary. If the charge is unauthorized, or if the charge is for a subscription or some other recurring service, cancel your card to mitigate further damages.

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   Contact the merchant. If you approach the merchant politely and explain your problem, they usually will give you the benefit of the doubt and remove the charge.^[2]

   • The Fair Credit Billing Act also allows you to withhold payment if you are unsatisfied with the purchase in some way. For example, suppose you used your Visa to buy a power tool for $100, and when you got it home and plugged it in, it wouldn't work. While under ordinary circ*mstances you probably could simply exchange your tool for another that did work, the Fair Credit Billing Act protects you in situations where you can't, such as if returns are not allowed, or the store charges a restocking fee for returned open-box items.^[3]
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   Check your credit card agreement. Although the Fair Credit Billing Act only allows a chargeback for charges over $50, many Visa issuers allow chargebacks for purchases of any amount.

   • Technically, federal law also limits chargebacks to purchases that occurred in your home state or within 100 miles of your billing address, which would mean online purchases aren't covered by this protection. However, most card issuers ignore these limits.^[4]
   • If you have any doubts, your credit card agreement should explain in full detail what charges qualify for chargebacks.
   • Your card issuer considers itself to be in your corner, because it wants to keep you as a customer, so your agreement should explain the dispute process in clear and simple terms.^[5]
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   Send a formal complaint to the merchant. If you're unable to get anywhere with the merchant, draft a complaint letter describing the problem.

   • Make a few copies of your letter and then send it to the merchant certified mail so you have proof of its receipt.
   • This letter provides formal notice that you intend to assert your rights under the Fair Credit Billing Act.^[6]
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   Report the problematic charge to your card issuer. After you've sent a complaint letter to the merchant, draft a letter to your Visa issuer about the disputed transaction amount.

   • The Fair Credit Billing Act only gives you 60 days to dispute the transaction with your credit card company, so send this letter as quickly as possible after it's clear you won't be able to resolve anything with the merchant yourself.
   • Your letter should include your account number, the closing date of the bill on which the disputed charge appears, a description of the purchase or transaction, and the reason you're withholding payment.
   • Along with your letter, include any documentation that supports your position, and the complaint letter you sent to the merchant. For example, if you're disputing the transaction because the set of plates you purchased was broken, you might include pictures of the broken dishes as you received them.^[7]
   • Send your letter to the address listed under "billing inquiries" on the company's website or on your credit card agreement. Don't send it to the address you use for payments, as these probably are two separate departments.^[8]
   • Your issuer is required by law to send you a written acknowledgement of your dispute within 30 days of receipt.^[9]

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   Complete and return any forms from your Visa issuer. When it receives your dispute, your card issuer may send you back its own dispute forms or ask for other information.

   • When you receive the forms, complete them as soon as possible, making copies before mailing. Include any requested information or documentation and mail via certified mail.^[10]
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   Continue to make payments on your card. During the dispute process, you still must make regularly scheduled payments or you'll accrue interest along with potential late fees and penalties.^[11]

   • Keep in mind that your Visa issuer can continue to apply the disputed amount against your credit limit. For example, if you disputed a purchase for $500 on a card with a $10,000 limit and had no other outstanding purchases, you would have $9,500 worth of available credit while the dispute was being resolved.^[12]
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   See Also

   How to Write a Credit Card Authorization Letter (With Sample)

   Wait for a response from the merchant. Once your Visa issuer initiates a chargeback, the merchant must prove that you were rightfully charged. Visa has developed an efficient dispute resolution process for all chargebacks.^[13]

   • Some bigger card issuers may automatically issue you a credit on the charge, giving you the benefit of the doubt, but this isn't required by federal law.^[14]
   • Initially, your card issuer will request a copy of the receipt for the charge from your merchant's bank if necessary.^[15] Otherwise, your card issuer sends a chargeback to the merchant's bank.^[16]
   • A chargeback reverses the dollar value of a particular transaction by your Visa issuer to the merchant's bank. Typically, the merchant's bank will then send a chargeback to the merchant itself.^[17]
   • When the card issuer initiates a chargeback, a reason code is included that corresponds to one of Visa's allowed reasons for a chargeback. For example, if you are disputing the transaction because the merchant charged you twice, the reason code would be 82, duplicate processing.
   • The merchant's bank will contact the merchant for any information indicating that you participated or benefited from the transaction and the amount was rightfully charged. Visa requires this information to be "compelling." Examples would include correspondence between you and the merchant in which you admit the validity of the transaction, or evidence of your signature on a receipt for the purchase.^[18]
   • The merchant's bank makes its decision and notifies your Visa issuer. If your issuer is not satisfied with the outcome, it may submit the dispute to Visa for arbitration and a financial liability decision.^[19]
   • In most cases, Visa's decision during arbitration is final. Visa reviews the information and documentation submitted by both you and the merchant and determines who has final liability for payment of the transaction.
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   Follow up with your card issuer. Typically your Visa issuer will notify you when the dispute is resolved, but you should follow up if you don't hear anything within a billing cycle.

   • You get a full refund of the charge if your card issuer sides with you. However, if your card issuer decides the merchant was correct, you'll be on the hook for the charge itself plus any additional fees or interest that accrued while the dispute was being resolved.^[20]

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