Incorrect credit card charge? Follow THESE 6 steps to resolve it quickly

With the rapid digitisation of human civilization, credit cards are already seen as essentials of life. However, they come with certain risks. Your statement may show multiple charges; transactions may not be authorised, or there may be problems in billing. In such cases, the cardholder must be aware of how to dispute them quickly and efficiently.

So let us take you through the formal & clear way of disputing a credit card and protecting your money.

Steps to follow

1. Identify the problem clearly

Prior to disputing a transaction, ascertain that the transaction in question is, in fact, a disputable one. A charge may be wrong for one of the following reasons:

• An identical transaction.
• An unauthorised transaction.
• An inaccuracy in the billing by the merchant.
• A subscription that you cancelled.
• An incorrect value charged for the transaction.

Cardholders may often be left confused since merchants use different billing descriptions. So, check emails, app history, or receipts, and make sure to confirm before escalating.

2. Make a note of everything

Take detailed notes of the following:

• Transaction ID.
• Transaction date.
• Charged amount Merchant name.
• Details about your transaction, either actual or anticipated.
• Any correspondence with the vendor.

Usefulness of Email threads, bank statements, screenshots as proof, in case further investigation is needed.

3. Contact the merchant first

In many instances, a fast resolution can be had by contacting the merchant directly. The merchant may be willing to reverse charges without contacting the bank if they were duplicates or erroneous. But after the initial phone discussion, be sure to follow up in an email to that person, asserting your awareness of the conversation and requesting confirmation of the agreed resolution.

4. Report the dispute to credit card issuer

The moment you perceive unreasonableness or lack of commitment from a merchant, it's good to involve your card issuer. Most banks have at least three ways through which a customer can send a dispute:

• Mobile app or internet banking
• Customer service telephone number; or
• Email to the credit card complaints team.

You must submit your dispute before the bank, not sooner than 30 days and not later than 60 days after the date of the transaction, depending on which one it is. Any delays may result in the weakening of your case.

5. Fill the complaint form

A number of banks require an official dispute resolution form with which to initiate the investigation. This may be:

• The nature of the grievance.
• Details of the transaction.
• Further information.
• Statement of non-authorisation.
• Sign the form either physically or electronically and keep a copy for your records.

6. Follow up and track progress

Normally disputes are cleared by banks in about 7 to 30 business days. On such a temporary frame, the banks might not charge the customer on the transaction or credit the account provisionally. Formal communication will be made via letter emailing or SMS. If the outcome is favouring you, then the amount will be reversed to the concerned account.

Understand your cardholder rights

According to industry standards and RBI guidelines:

1. Not liable to a charge of any fraudulent charges once reported without delay.
2. You are entitled to a dispute on the non-existent transactions against your credit card.
3. The unsolved issues can be referred to the banking ombudsman.

In conclusion, you will have protection for your finances and keep your credit history intact if you spot a mistake, do your duty, and follow the process. A dispute is about exercising your rights as a conscientious shopper, not simply fixing a mistake.

Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.