Chargeback Rights
Written in plain language for general understanding. This is educational content, not legal advice. Based on federal statutes and official sources.
What is this right?
If you paid for something with a credit card and the product was defective, never delivered, or the charge was unauthorized, you have the right to dispute the charge with your credit card company. This process is called a "chargeback."
The Fair Credit Billing Act (FCBA) protects you from unfair billing practices on credit cards. Your maximum liability for unauthorized charges is $50 — and most major card networks (Visa, Mastercard, American Express) offer zero-liability policies, meaning you pay nothing for fraudulent charges. You generally have 60 days from the date of the billing statement to dispute a charge.
When does it apply?
This right applies when:
- You see an unauthorized charge on your credit card statement (someone used your card without permission)
- You paid for goods or services that were never delivered
- You received a product that was significantly different from what was described or was defective
- You were charged the wrong amount or charged more than once for the same purchase
Common misconceptions:
- "Chargebacks work the same for debit cards and credit cards" — No. Credit cards have stronger protections under the FCBA ($50 max liability). Debit cards are covered by the EFTA, which gives you less time and potentially more liability (up to $500 if you wait more than 2 business days to report).
- "I can dispute any charge I regret" — No. Chargebacks are for billing errors and unauthorized charges, not buyer's remorse. Disputing a legitimate charge can result in your claim being denied and could be considered fraud.
- "The merchant always loses a chargeback" — Merchants can fight chargebacks by providing evidence the transaction was legitimate. The card issuer reviews both sides before deciding.
What should you do?
Step 1: Contact the merchant first. Many disputes can be resolved directly — ask for a refund, exchange, or credit. Keep records of your communication attempts.
Step 2: If the merchant will not help, contact your credit card issuer. Call the number on the back of your card or log into your online account. Most issuers let you dispute charges online, by phone, or by mail.
Step 3: Send a written dispute to your card issuer within 60 days of the billing statement date. Include your name, account number, the dollar amount, and an explanation of why the charge is wrong. Send by certified mail to the "billing inquiries" address (not the payment address).
Step 4: The card issuer must acknowledge your dispute within 30 days and resolve it within two billing cycles (no more than 90 days). While investigating, they cannot try to collect the disputed amount or report it as delinquent.
Step 5: If the issuer rules in your favor, the charge is removed. If they rule against you, they must explain why in writing and you can request the documents they used to make their decision.
What should you NOT do?
Don't wait too long. You have 60 days from the billing statement date to dispute a charge under the FCBA. After that, you lose your federal dispute rights (though your card issuer may still help voluntarily).
Don't dispute legitimate charges. Filing a chargeback on a purchase you actually made and received is called "friendly fraud." Merchants can fight back, and repeated false disputes can result in your account being closed.
Don't throw away documentation. Keep receipts, order confirmations, emails with the merchant, photos of defective products, and tracking information. This evidence supports your dispute.
Don't use a debit card for large purchases when possible. Credit cards offer much stronger dispute protections than debit cards. With a debit card, the money leaves your account immediately, and getting it back takes longer.
How California differs from federal law
California supplements federal credit card protections with strong state consumer laws:
- Song-Beverly Credit Card Act (Cal. Civ. Code § 1747 et seq.): Prohibits merchants from requiring personal information (such as address or phone number) as a condition of accepting a credit card payment. Violations can result in penalties of up to $1,000 per violation.
- California Consumer Legal Remedies Act (Cal. Civ. Code § 1750 et seq.): Provides additional protections against deceptive business practices. If you were misled about a product or service, you may have state-law claims in addition to your federal chargeback rights.
- Stronger refund rules: Under Cal. Civ. Code § 1723, retailers must clearly display their refund policy. If no policy is posted, customers are entitled to a full refund within 30 days of purchase.
- DFPI oversight: The California Department of Financial Protection and Innovation regulates credit card issuers operating in California and can investigate consumer complaints.
Additional Steps in California
File complaints with the California DFPI at dfpi.ca.gov or the California Attorney General at oag.ca.gov. For disputes with merchants, you can also file with the local District Attorney's Consumer Protection Division.
Relevant Law: California Civil Code § 1747 et seq. (Song-Beverly Credit Card Act), Cal. Civ. Code § 1750 et seq. (Consumer Legal Remedies Act), Cal. Civ. Code § 1723 (refund policies)
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