What is a credit card chargeback?

A chargeback is a forced reversal of a credit card transaction — initiated by the cardholder through their issuer — that returns the funds to the cardholder when a purchase is disputed as unauthorized, fraudulent, or not delivered as promised. It's a federal consumer protection backed by the Fair Credit Billing Act.

A chargeback is your legal right to contest a charge on your credit card bill and have the disputed amount temporarily reversed to your account while your issuer investigates. The process is governed by the Fair Credit Billing Act (FCBA) and implemented through your issuer's internal dispute resolution process and the card network's chargeback rules.

When you can file a chargeback

Unauthorized transaction — you did not make or authorize the purchase (fraud).
Goods not received — you paid but the item or service was never delivered.
Item significantly not as described — the product was materially different from what was advertised.
Duplicate charge — you were billed twice for the same transaction.
Credit not processed — the merchant agreed to a refund but it never posted.

How to file a chargeback

Contact your card issuer — by phone, in the app, or in writing. The CFPB recommends first trying to resolve the dispute directly with the merchant before filing a chargeback, as this is faster and preserves the chargeback process as a backstop. Once you file, the issuer typically issues a provisional credit to your account while investigating.

FCBA deadlines and rules

The FCBA requires you to notify your issuer in writing within 60 days of the date the statement containing the error was mailed to you. The issuer has 30 days to acknowledge your dispute and 90 days (or two billing cycles) to resolve it. During the investigation, you are not required to pay the disputed amount, and your issuer cannot report it as delinquent.

Chargeback vs. refund

A refund is voluntary — the merchant chooses to return your money. A chargeback is compelled through your issuer and the card network; the merchant can dispute it, but you don't need the merchant's cooperation. Chargebacks have costs for merchants (fees, penalties) and should be used when a refund is unavailable or refused — not as a way to bypass a legitimate merchant's return policy.

What the law says

The Fair Credit Billing Act (FCBA) gives consumers the right to dispute billing errors, including unauthorized charges, and requires issuers to investigate and resolve disputes within 90 days. — CFPB — Fair Credit Billing Act
Under the FCBA, you must notify your card issuer in writing within 60 days of receiving the statement that contains the disputed charge. — Federal Trade Commission — Fair Credit Billing
While the dispute is being investigated, the issuer cannot report the disputed amount as delinquent or take collection action on it. — CFPB — How to Dispute a Charge

Key takeaways

A chargeback is a forced reversal through your issuer — backed by the Fair Credit Billing Act (FCBA).
You can dispute unauthorized charges, undelivered goods, misdescribed items, duplicate billings, and unprocessed credits.
File within 60 days of the statement date; your issuer has 90 days to resolve the dispute.
The disputed amount cannot be reported as delinquent during the investigation.
Try to resolve with the merchant first — chargebacks are the backstop, not the first step.

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