Disputing a credit card transaction

November 15, 2006

If you buy something with your credit card and it goes wrong, or you find something on your statement that you know is wrong, then you might need to dispute the payment with your credit card issuer. However, many people tackle their disputes the wrong way, and they often don’t get the decision they want. If you need to dispute a credit card transaction, then here is some advice on the right way to go about it.

Know the law

The first thing you need to do before disputing any transaction is to know the law regarding transaction disputes, and the policies of your card company for dealing with such problems. If you know that you are in the right and that there has been a mistake, then you will be able to solve the problem far more quickly.

Contact the merchant first

If you have bought something that is faulty, then before contacting your card issuer you should speak to the merchant that sold you the item. The merchant might be able to give you a refund or replace the goods, which is much quicker than disputing the payment. However, if the merchant refuses to help you, then it is time to get your card company involved.

Contact your card issuer

The next step to take is to contact your card issuer to sort out the problem. A phone call is usually a good first step, and most simple disputes can be solved in a matter of minutes over the phone. If it is simply a case of being charged twice or a payment that you didn’t make, then there should be no problems. However, if the situation is more complex then a query in writing to your card issuer might be required.

Waiting for a decision

After you have disputed the transaction with the card company, then you will need to wait for them to make a decision. Usually, the card company will contact the merchant in question and find out what the situation is. If they agree with your side of the argument, then the money will be refunded. If not, then you will get no money back and will probably have to pay the interest and other charges as well. Items that can be tricky to get refunded on are very expensive items, or items that you bought overseas. However, if you are in the right then it is highly likely the money will be refunded.

Be patient

Even if the decision takes a while, or the decision does not go your way, you need to remain calm and be patient. Getting angry with your card issuer will not solve the problem, and may tarnish any future relationship between you are your lender. You are entitled to withhold payment on any amount in dispute, but you must keep up with the undisputed payments or your risk hurting your credit rating. If you are patient and follow these simple steps then disputing a transaction will not become a nightmare.