A dispute is a formal claim you file with your bank when a transaction on your account doesn't match what you authorized or received.

When you dispute a charge, you're telling your bank: "I did not make this transaction, or I made it but the merchant didn't deliver what I paid for, or the amount is wrong." Your bank then investigates by contacting the merchant, reviewing the transaction record, and deciding whether to return the money to you. The process typically takes 10 business days to two months, depending on the type of dispute and your bank's procedures.

A dispute is different from a chargeback. A chargeback is what happens if your bank sides with you and forces the merchant's bank to reverse the payment. You file the dispute; the bank decides whether to issue a chargeback. Not every dispute results in a chargeback — some are resolved when the merchant refunds you directly during the investigation.

Key Takeaways

  • You must file a dispute within 60 days of the transaction date for credit cards and debit cards, though some banks allow longer windows for certain situations.
  • Your bank will contact the merchant and ask them to prove the transaction was legitimate; if the merchant can't respond or their proof is weak, your bank typically refunds you.
  • During the investigation, your bank may temporarily credit your account while they gather evidence, but you could lose that credit if the merchant provides proof you authorized the charge.
  • Disputes work differently depending on whether you used a credit card, debit card, or bank transfer, and the merchant's response time affects how long the process takes.
  • Filing a dispute does not may provide a refund, and merchants can challenge your dispute with their own evidence.

When you can file a dispute

You can file a dispute for an unauthorized transaction — one you did not make or authorize — or for a transaction where the merchant failed to deliver what you paid for. Common reasons include a charge from a merchant you don't recognize, a duplicate charge, a charge for an amount different from what you agreed to, or a purchase that never arrived.

You cannot dispute a transaction simply because you changed your mind about a purchase, even if you never opened the package. You also cannot dispute a transaction if you authorized it and received what you paid for, even if you're unhappy with the quality or the merchant's service. Those situations require you to contact the merchant directly and request a refund or return.

The clock starts on the transaction date. For credit cards and most debit cards, federal law gives you 60 days to file. Some banks extend this window to 90 or 120 days, but do not wait — the sooner you file, the more time your bank has to investigate before the deadline passes.

How the investigation works

Once you file a dispute, your bank assigns it a case number and sends a notice to the merchant's bank. The merchant then has a set window — usually 10 to 20 business days — to respond with evidence that the transaction was legitimate. This evidence typically includes a copy of the authorization you provided, a delivery confirmation, or a record showing you accessed the service.

Your bank reviews both your account of what happened and the merchant's response. If the merchant doesn't respond in time, your bank usually refunds you by default. If the merchant does respond but their evidence is weak or doesn't match your dispute, your bank may still refund you. If the merchant provides strong proof — for example, a signature on a receipt, a tracking number showing delivery, or a log showing you logged into an account — your bank may deny the dispute and you lose the refund.

Many banks will place a temporary credit in your account within a few days of filing, even while the investigation is ongoing. This is not a final decision. If the merchant successfully challenges your dispute, your bank will remove that credit and you'll owe the money again.

Disputes on credit cards versus debit cards

Credit card disputes are generally easier to win because federal law (Regulation Z) puts the burden on the merchant to prove the transaction was authorized. Your bank must refund you while they investigate, and you're not responsible for the charge during that time. The merchant has to provide solid proof to overturn your dispute.

Debit card disputes are harder. Federal law (Regulation E) gives you some protection, but the burden is more balanced. Your bank may not credit your account immediately, and you may have to wait for the full investigation before you see your money. If the merchant provides proof of authorization, you lose the dispute even if you believe you were defrauded. Debit card fraud also carries a higher liability cap — if you report it after 60 days, you could lose up to $500 of your own money.

Bank transfers and wire transfers have almost no dispute protection. Once the money leaves your account, it's extremely difficult to recover it. These are considered final transactions, and your bank has limited power to reverse them even if you were scammed.

What happens to the merchant during a dispute

When your bank opens a dispute, the merchant receives a chargeback notice. This is a formal accusation that they either didn't deliver the goods or services, or that the transaction was unauthorized. The merchant can respond by providing evidence, but they also face a fee from their bank — typically $15 to $100 per chargeback — just for having to defend themselves.

If a merchant receives too many chargebacks relative to their sales volume, their bank may penalize them with higher processing fees, require them to hold reserves, or even close their account. This is why merchants take disputes seriously and often respond quickly with proof.

Some merchants will refund you directly once they see a dispute has been filed, rather than fight it. Others will provide documentation and challenge your dispute. A few will ignore the notice entirely, which usually results in your bank refunding you by default.

Timeline and what to expect

The dispute process typically follows this order: you file the dispute (day 1), your bank sends notice to the merchant (days 1–3), the merchant has 10 to 20 business days to respond, your bank reviews the evidence (5 to 10 business days), and your bank notifies you of the outcome. Total time is usually 30 to 60 days, though complex cases can take up to 90 days.

Your bank will send you written notice of the outcome, explaining whether they refunded you, denied the dispute, or need more information from you. If they refund you, the money goes back into your account. If they deny it, you can sometimes file a second dispute if you have new evidence, but most banks limit you to one dispute per transaction.

During the investigation, you may see temporary credits and debits as your bank updates the status. Don't assume the temporary credit is final — it can be reversed if the merchant wins the dispute.

How to file a dispute

Contact your bank as soon as you notice the unauthorized or incorrect charge. You can call the customer service number on the back of your card, visit a branch, or log into your online banking portal and look for a "dispute" or "report a problem" option. Some banks allow you to file disputes through their mobile app.

Have the following information ready: the transaction date, the merchant name, the amount, and a clear explanation of why you're disputing it. If it's an unauthorized transaction, state that clearly. If it's a delivery issue, describe what you ordered and what you received (or didn't receive). If it's a duplicate charge, explain that the same charge appeared twice.

Your bank will ask you to sign a dispute form or confirm the dispute electronically. This is a legal statement that you're disputing the transaction in good faith. Filing a false dispute is fraud and can result in criminal charges, so be honest about what happened.

Frequently Asked Questions

Can I dispute a transaction if I authorized it but the merchant scammed me?

Yes. Authorization means you told the merchant to charge your card, not that you agreed to be defrauded. If you paid for something that never arrived, or if the merchant charged you more than the agreed price, you can dispute it. You'll need to show that the merchant failed to deliver or misrepresented the transaction.

What if the merchant says I authorized the charge and I say I didn't?

Your bank will look at the evidence. If you used a credit card, your bank must refund you unless the merchant provides strong proof of authorization — like a signed receipt or a log showing you logged into an account. If you used a debit card, the burden is more balanced and you may lose if the merchant has any reasonable proof.

How many times can I dispute the same transaction?

You can file one dispute per transaction. If your bank denies it, you can sometimes file a second dispute if you have new evidence the merchant didn't provide the first time, but most banks limit this. Filing multiple disputes for the same charge without new evidence can be treated as fraud.

Will disputing a charge hurt my credit score?

No. Disputes do not appear on your credit report and do not affect your credit score. Your bank's investigation is internal and does not involve credit bureaus. However, if your bank denies the dispute and you owe the money, unpaid debt could eventually hurt your score.

What if my bank sides with the merchant and I disagree?

You can ask your bank to review the decision, but they are not required to reopen the case. If you believe your bank made an error, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state's banking regulator. These agencies can investigate whether your bank followed the law, but they cannot force a refund.