You check your statement and there it is: a charge you don’t recognize. US federal law gives you strong, specific protections, and if you act within the deadlines, you’ll very likely owe nothing. The catch is a firm 60-day clock, and the rules are very different for credit cards than for debit cards. This guide walks you through exactly what to do, gives you a copy-ready dispute letter, and shows how to escalate if your card company doesn’t fix it.
This is general educational information about US consumer protection law, not legal advice. For your specific situation, consider consulting an attorney.
First: what kind of charge is it?
Work out which of three things you’re looking at, because the path differs:
- Fraud (unauthorized use): someone used your card without permission. This category has the strongest protection.
- A billing error: a real transaction that went wrong. You were charged twice, charged the wrong amount, never received the goods, or never got credit for a return.
- A charge you made but don’t recognize: a free trial that converted, a subscription that renewed, or a merchant billing under a different name. This is very common.
Before you dispute, do two quick checks: search the merchant name online (many businesses bill under a different trading name), and ask anyone else who has a card on your account. Disputing a charge you really made can get your account closed.
Your rights under US law
Credit cards are covered by the Fair Credit Billing Act (FCBA), part of the Truth in Lending Act:
- Your liability for unauthorized charges is capped at $50, and you owe nothing for charges made after you report the card lost or stolen.
- In practice, you’ll often owe $0. Visa’s and Mastercard’s zero-liability policies say you won’t be held responsible for unauthorized charges, as long as you took reasonable care of your card and reported the problem promptly. These policies don’t cover certain business cards or anonymous prepaid cards. Other networks have their own policies, so check your card’s terms. The $50 federal cap is your legal backstop.
- You have 60 days from the date the card company sent the statement showing the charge to dispute it in writing.
- While it investigates, the card company can’t collect the disputed amount or charge interest on it, and can’t report you as late to the credit bureaus.
The 60-day deadline is firm. Miss it and the card company has no legal duty to investigate.
Step by step: what to do
- Call your card company immediately. Use the number on the back of your card. Report the charge, and ask them to block and replace the card if your details may have been stolen.
- Follow up in writing. This is the step people skip, and it’s the one that triggers your full FCBA rights. Send the letter below, or use your card company’s online dispute form and keep a copy, within 60 days of the statement date.
- Keep records: copies of your letter, the date and time of every call, who you spoke to, and any reference numbers.
- For a billing error, contact the merchant too, but contact your card company first so you don’t miss the deadline.
- If it looks like identity theft: report it at IdentityTheft.gov (the FTC’s official site), check all three credit reports, and consider a fraud alert or credit freeze.
A copy-ready dispute letter
Send it to the “billing inquiries” or “disputes” address on your statement, not the address where you send payments. Use certified mail with a return receipt so you have proof it arrived, and enclose copies, never originals.
(Date)
(Your name)
(Your address)(Card company name)
Attn: Billing Inquiries
(Billing inquiries address from your statement)Re: Account number ending in (last 4 digits)
Dear Sir or Madam:
I am writing to dispute a charge of $(amount) on my (card name) account, dated (date of charge), from (merchant name as shown on the statement). It appears on the statement dated (statement date).
This charge is in error because (choose one):
- I did not make or authorize this purchase, and my card was in my possession / was reported lost or stolen on (date).
- I was charged (twice / the wrong amount). The correct amount is $(amount).
- I did not receive the goods or services, which were promised by (date).
- I returned the item on (date) and have not received a credit.
I am disputing this charge under the Fair Credit Billing Act. Please correct the error, credit any interest and fees related to the disputed amount, and send me an accurate statement. I understand that while you investigate, I am not required to pay the disputed amount, and you may not report it as delinquent.
I first reported this by phone on (date of call) and spoke with (representative’s name, if known). Enclosed are copies of (receipts, return confirmation, delivery records, emails) supporting my position.
Sincerely,
(Signature)
(Printed name)Enclosures: (list the copies you’re including)
Tip: keep the letter short and factual. You don’t need to prove fraud, only explain why the charge is wrong.
The timeline your card company must follow
| Stage | Deadline |
|---|---|
| You send your written dispute | Within 60 days of the statement date |
| Card company acknowledges it in writing | Within 30 days of receiving it |
| Card company resolves the investigation | Within two billing cycles, and no more than 90 days |
If the card company doesn’t follow these rules, it can’t collect the disputed amount and related interest, up to $50, even if the charge turns out to be valid. That applies, for example, if it acknowledges your letter too late, takes longer than two billing cycles, or threatens to report you as late during the dispute. For a credit card, you can also sue for twice the interest charge involved, with a minimum of $500 and a maximum of $5,000 (more if the company has a pattern of violations), plus legal costs.
Credit card vs. debit card: a crucial difference
The FCBA does not cover debit cards. Debit transactions fall under the Electronic Fund Transfer Act (EFTA) and Regulation E, and your liability grows the longer you wait after losing your card:
| When you report a lost or stolen debit card | Your maximum liability |
|---|---|
| Before any unauthorized charges | $0 |
| Within 2 business days of learning of the loss or theft | $50 (or less, if less was taken) |
| After 2 business days, but within 60 days of the statement | Up to $500 |
| More than 60 days after the statement | All unauthorized charges made after the 60-day window that reporting in time would have prevented, which can include money in linked accounts |
If only your card number was used (you still have the card), you owe nothing as long as you report it within 60 days of the statement showing the charge.
There’s also a timing difference. With a credit card, the disputed money is the card company’s while it investigates. With a debit card, the money is already gone from your checking account. Your bank has 10 business days to investigate. If it needs longer, it must give you provisional credit within those 10 days (it may hold back up to $50) and then has up to 45 days. The bank can take up to 90 days for in-store debit purchases, transfers that started outside the US, and transfers within 30 days after an account’s first deposit. For those new accounts, the first deadline is 20 business days instead of 10.
The takeaway: for online purchases, travel and unfamiliar merchants, use a credit card. See how credit cards work.
If your card company denies the dispute
- Ask for the denial in writing, with the reason and the evidence used.
- Appeal with more documents: receipts, emails, delivery records, screenshots.
- File a complaint with the CFPB at consumerfinance.gov/complaint or (855) 411-CFPB (2372) (TTY (855) 729-2372), Monday–Friday, 9 a.m.–6 p.m. ET. The CFPB sends complaints to the company for a response, and it’s free. Its funding is being challenged in court, so if you can’t get through, use the options below.
- Report fraud to the FTC at ReportFraud.ftc.gov.
- Consider legal advice if the amount is large and the card company didn’t follow the FCBA’s procedures.
North Carolina: where to get help
- The NC Attorney General’s Consumer Protection Division takes complaints online at ncdoj.gov/file-a-complaint/consumer-complaint/ or by phone at 1-877-5-NO-SCAM (1-877-566-7226), which is toll-free within North Carolina. From outside NC, call (919) 716-6000.
- For identity theft, file at IdentityTheft.gov and consider freezing your credit; see protect your credit report.
How to reduce the risk
- Review your statement every month. The 60-day clock starts on the statement date.
- Turn on transaction alerts in your card’s app.
- Use a credit card, not debit, online and when traveling.
- Note free-trial end dates in your calendar.
- Check your credit reports for free at AnnualCreditReport.com.
Frequently asked questions
How long do I have to dispute a charge? 60 days from the date the statement showing it was sent. Act as soon as you spot it.
Will I have to pay an unauthorized charge? Federal law caps it at $50 on a credit card, and Visa’s and Mastercard’s zero-liability policies often bring it to $0 if you took reasonable care and reported it promptly.
Does this apply to my debit card? No. Debit cards follow Regulation E: $50 if you report a lost card within 2 business days, up to $500 after that, and charges after 60 days from the statement may not be covered. If only your card number was used, report it within 60 days and you owe nothing.
Do I have to send a letter, or is a phone call enough? Put it in writing, either by letter or with the card company’s online dispute form, and keep a copy. The FCBA’s protections depend on written notice.
Can the card company charge me interest on the disputed amount? No, not while the dispute is being investigated.
What if my card company ignores my dispute? File a complaint with the CFPB, the FTC or, in North Carolina, the Attorney General’s office. A company that breaks the FCBA’s rules can’t collect the disputed amount (up to $50) and may owe damages.
The bottom line
The law is firmly on your side if you act within 60 days. Call your card company, follow up in writing with the letter above, keep records, and remember that your liability on a credit card is capped at $50, and often $0. Debit cards have weaker protection, and the money leaves your account while you wait. If your card company stalls, escalate to the CFPB, the FTC or the NC Attorney General’s office.
Sources
- FTC, “Using Credit Cards and Disputing Charges” (updated April 2024); FTC, “Sample Letter for Disputing Credit or Debit Card Charges”; FTC, “Lost or Stolen Credit, ATM, and Debit Cards” (updated December 2025)
- 15 U.S.C. §1666 (2024 edition, GovInfo) and §1640; FDIC Consumer Compliance Examination Manual, Truth in Lending Act
- CFPB, Regulation E §1005.6 and §1005.11; CFPB, “How do I get my money back after I discover an unauthorized transaction?” (reviewed August 2026)
- Federal Reserve, Consumer Compliance Outlook, Regulation E error resolution (April 2026)
- Visa, Zero Liability Policy; Mastercard, Zero Liability Protection
- CFPB, Submit a complaint (November 2026)
- NC Department of Justice, Consumer Protection; NC Utilities Commission Public Staff, Consumer Services Division
