An unfamiliar charge isn't automatically fraud. First identify the payment rail and the kind of error.
With a U.S. consumer credit card, a written billing-error notice must reach the issuer's billing-inquiries address within 60 days after the issuer sent the first periodic statement showing the error. Calling can get the issue moving, but it may not replace the written notice.
These are U.S. rules for consumer credit cards. Debit cards, ACH transfers, prepaid cards, and payment apps use different dispute systems.
The FCBA covers specified billing errors, not every disappointing purchase. Merchant terms, card-network procedures, and an issuer's zero-liability policy may control other disputes.
Identify the kind of charge
Match the problem to the payment rail that actually processed the transaction. Then use the route that fits.
| Problem | First move | Rule or process to check |
|---|---|---|
| Unauthorized credit card transaction | Call the issuer promptly and send written notice | TILA liability rules, the FCBA process, and the issuer's policy |
| Wrong amount, duplicate charge, or payment not credited | Send a written billing-error notice | The FCBA and Regulation Z, if the facts fit a listed error |
| Goods or services never delivered or not accepted as agreed | Contact the merchant and notify the issuer | The FCBA's billing-error rules may apply |
| Defective or unsatisfactory goods | Ask the merchant for a remedy and save its response | Claims-and-defenses rules, contract terms, and network procedures |
| Debit, ACH, prepaid, or payment-app transaction | Use the bank or provider's dispute process | The FCBA doesn't govern those payment rails |
An odd merchant descriptor can have an ordinary explanation. Check receipts, subscriptions, digital-wallet activity, and purchases made by people in your household.
Still unexplained? Report it promptly.
What the FCBA actually covers
Regulation Z's billing-error rule, 12 CFR 1026.13, covers several situations. Fraud is only one of them.
- An extension of credit that you didn't make or authorize.
- A transaction that is not identified properly on the statement.
- Goods or services you didn't accept, or that weren't delivered as agreed.
- A payment or other credit that the issuer failed to apply correctly.
- A computational or similar accounting error.
A wrong amount or duplicate charge still needs a specific explanation. Describe what went wrong rather than assuming that an unusual-looking charge qualifies.
Your notice should identify the account, the transaction, and the exact reason for the dispute. Send it to the billing-inquiries address on the statement. That address may not be the address used for payments.
A phone call starts a conversation. It may not satisfy the written-notice requirement. If the issuer expressly accepts online notices, save the confirmation and case number.
Unauthorized use: the federal cap is not always zero
Federal law and an issuer's promise are separate protections.
Under 15 U.S.C. 1643, liability for unauthorized use is generally capped at no more than $50 in covered circumstances, subject to statutory conditions. That is a ceiling, not a guarantee that every fraudulent charge will cost you nothing.
Many issuers offer broader zero-liability protection. Their policies can include exclusions or reporting requirements. Read the card agreement if the issuer relies on an exception.
Call as soon as you see suspicious activity. Ask the issuer to lock or replace the card, review recent transactions, and check recurring payments.
The FCBA has no general two-business-day reporting deadline for credit card disputes. That short deadline is commonly associated with other electronic-fund-transfer rules.
Deadlines to put on your calendar
Turns out, the federal clock follows the statement, not necessarily the purchase date.
| Event | General FCBA timing |
|---|---|
| Written billing-error notice reaches issuer | No later than 60 days after the issuer sent the first statement showing the error |
| Issuer acknowledges the notice | Within 30 days, unless it corrects the account during that period |
| Issuer completes its investigation | Within two complete billing cycles, and no later than 90 days |
| Network chargeback request | Depends on the dispute reason, issuer, and card-network rules |
Send the notice early. A last-day mailing can create a delivery problem.
Card-network deadlines run separately from the FCBA deadline. They vary by transaction type and reason code, so ask the issuer about them as soon as you spot the problem.
A practical filing workflow
Keep the deadline and the evidence in the same file. Use this sequence:
- Find the first statement. Mark the charge. Record the statement date and, if available, when the issuer sent it.
- Protect the account. If fraud is possible, call the issuer, request a replacement card, and change exposed account credentials. Don't wait for the merchant before reporting unauthorized use.
- Write to the merchant about commercial problems. For non-delivery, a promised refund, or a cancellation issue, ask for a solution and keep the response.
- Draft the notice. Include the transaction date, amount, merchant, account ending, and specific reason for the dispute. Attach copies, not originals.
- Use the correct address. Send the notice to the billing-inquiries address on the statement. Tracked or certified mail can help prove delivery. For an online submission, save the confirmation.
- Pay the undisputed part. Keep watching statements, issuer messages, and the case status until the issuer gives you a result.
A simple timeline helps. The issuer may ask for more information.
Evidence to save
Save records that connect the charge with the underlying purchase or complaint.
| Record | Why it helps |
|---|---|
| Statement page with the charge marked | Shows the amount and the statement on which it appeared |
| Receipt, order confirmation, or contract | Shows what you agreed to buy |
| Delivery record or cancellation confirmation | Supports a non-delivery or cancellation claim |
| Emails, chats, and merchant responses | Shows what you requested and how the merchant responded |
| Refund confirmation | Helps show that a promised or issued credit is missing |
| Issuer case number and call notes | Builds a follow-up timeline |
Keep the original files in one folder. Write down dates as you go. Otherwise the small details, the promised refund date, the call time, the whole sequence, start to blur.
What happens after you file
Once a proper notice arrives, the issuer generally has 30 days to acknowledge it unless it corrects the account during that period. It must then investigate and, within the required time, either correct the error or explain why it believes the account is accurate.
If the issuer confirms an error, it must correct the account and remove related finance or other charges as the rule requires. If it finds no error, read the explanation closely. It should explain why the charge remains due.
While the investigation is pending, you generally don't have to pay the disputed amount or related finance charges. Pay the rest of the bill on time. The issuer generally can't treat the disputed amount as delinquent or report it as delinquent during the protected period, although it may identify the account as disputed.
The FCBA process described here has no 10-business-day temporary-credit step. That timing belongs to some other electronic-fund-transfer disputes. An issuer may provide provisional credit as a policy, then reverse it if the dispute is denied.
Merchant disputes, refunds, and defective goods
A missing delivery and a disappointing product are different disputes.
Goods or services that never arrived, or weren't accepted as agreed, can fit the FCBA's billing-error definition. A product that simply disappoints you is less automatic; a warranty, contract, merchant policy, or separate claims-and-defenses right may control instead.
Under 12 CFR 1026.12, the federal claims-and-defenses rule may apply to certain merchant disputes. The usual conditions include a purchase over $50 made in the cardholder's state or within 100 miles of the billing address, plus a good-faith attempt to resolve the issue with the merchant. Exceptions apply.
If a merchant promises a refund, ask for the amount, method, and expected posting date in writing. If the merchant issues the credit but the issuer doesn't post it, describe the missing credit precisely.
When the merchant never agrees to a refund, explain the original non-delivery, cancellation, or other factual problem. Don't call the transaction fraudulent unless that is what happened.
Chargebacks are a process, not a promise
Most chargebacks begin with the card issuer. The issuer reviews your explanation and may request evidence from the merchant's payment processor.
Thing is, a chargeback isn't an automatic federal refund. Network reason codes, evidence standards, and deadlines vary. The merchant can respond, and a provisional credit can be withdrawn if the issuer or network later rejects the claim.
Keep the FCBA deadline in view even if the issuer calls your request a chargeback. Ask which process it is using, then keep copies of every submission.
If the issuer denies the dispute
Start with the written explanation. Compare it with the statement, receipts, delivery records, and merchant messages. Ask for the documents or evidence the issuer relied on, and ask whether it has an internal reconsideration process.
If the issuer missed an acknowledgment or investigation deadline, failed to address your evidence, or reported the disputed amount as delinquent during the protected period, identify the exact date and requirement. A complaint to the Consumer Financial Protection Bureau may prompt a response, but it doesn't guarantee a refund.
If more than 60 days have passed, report the problem anyway, especially suspected fraud. The issuer may still review it under its own policy or network procedures, but a late notice can make the federal FCBA protections harder to use.
To be honest, evidence and dates matter more than the label. Describe what happened and show when it happened.
A credit card billing dispute letter
Use the sample below as a starting point. Replace the bracketed information and attach copies, not originals.
[Date]
Billing Inquiries
[Issuer name]
[Address printed on the statement]Re: Billing-error notice for account ending in [last four digits]
I dispute the $[amount] charge from [merchant] dated [transaction date]. The charge is [unauthorized / for the wrong amount / duplicated / for goods or services not delivered as agreed / another specific error].
The first statement showing this charge was sent on [statement date]. Please investigate this billing error under the Fair Credit Billing Act and Regulation Z. If the charge is erroneous, please correct my account.
Enclosed are copies of [list the supporting records]. I am paying the portion of the account that I do not dispute. Please send the investigation result and any account adjustment in writing.
Sincerely,
[Name]
[Address]
[Phone or email]
[Account number or last four digits]
Don't include more personal information than the issuer needs. Keep the letter, attachments, and delivery confirmation.
Primary rules to check
The CFPB billing-error rule, the eCFR special credit card provisions, and TILA Section 1643 are the main federal references for the billing-error process, merchant-dispute limits, and unauthorized-use liability discussed here.
Your next move
Pull up the first statement showing the charge. Mark the item, record when the statement was sent if you can, gather the supporting records, and send a focused notice to the billing-inquiries address early enough to arrive before the 60-day deadline.