Dispute (credit card)

In a credit card or debit card account, a dispute is a situation in which a customer questions the validity of a transaction that was registered to the account.

Customers dispute charges for a variety of reasons, including unauthorized charges, excessive charges, failure by the merchant to deliver merchandise, defective merchandise, dissatisfaction with the product(s) or service(s) received, or billing errors.^[1] Chargeback fraud, also known as friendly fraud, could occur when the cardholder identifies a purchase on their transaction statement as fraudulent and disputes it. A 2022 study by Ethoca and PYMNTS.com found that 71% of ecommerce transaction disputes were due to service errors.^[2]

In the United States, in the event of fraud, the cardholder is liable for a maximum of $50 worth of fraudulent charges.^[3] Many card issuers will waive this fee.^[4]

References

^ PayCEC. "What are Chargebacks? Chargeback types, examples, processes". PayCEC. Retrieved 2024-08-22.
^ "What is Friendly Fraud". Ethoca. December 15, 2020.
^ 15 U.S.C. § 1643
^ "Tips to help consumers with disputes on credit card charges - USATODAY.com". USA Today.

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[1] PayCEC. "What are Chargebacks? Chargeback types, examples, processes". PayCEC. Retrieved 2024-08-22.

[2] "What is Friendly Fraud". Ethoca. December 15, 2020.

[3] 15 U.S.C. § 1643

[4] "Tips to help consumers with disputes on credit card charges - USATODAY.com". USA Today.

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