Disputing a card transaction

HOW TO DISPUTE A CARD TRANSACTION

> You must attempt to resolve the dispute with the merchant before you as your card issuer to stop the charge.
> The purchase must be for more than $50 and have taken place in your home state or within 100 miles of your home address. Not all cards enforce this, but the law allows them to.

Some cards will issue a temporary credit when a transaction is under dispute, particularly if you have been a good customer and if the purchase is not a for an expensive item or service.

1. Contact the merchant directly and be courteous and keep track of your conversations. If you can, take the goods back to the store. 
2. If the merchant won't settle the dispute to your satisfaction complain in writing and keep copies. Send the letter by certified mail.
3. Contact your credit card company and explain the situation. To be protected under the Fair Credit Billing Act you'll need to do this in writing and within 60 days after the bill with the disputed charge was sent to you. Include the following in your letter: your card account number, the date of the charge, a description of the disputed item and why you're disputing it. Enclose a copy of your complaint letter to the merchant and any other documentation you may have supporting your position. Send this letter by certified mail.

A credit card company cannot charge you finance charges on a disputed charge. But you will still be charged interest on any other purchases you may have made. Be sure to include a payment for the other purchases. Under the Fair Credit Billing Act, an issuer can take as many as five days to credit a payment not sent to the payment address.

Your issuer will then contact the merchant and attempt to resolve the issue. This is called a chargeback. If the chargeback is resolved in your favor, you do not have to pay anything, otherwise you'll be responsible for payment on the disputed item plus finance charges.