Chargeback Rights in New York
About this article
Reviewed by the Commoner Law Editorial Team. Sourced from primary statutes (U.S. Code, CFR, state compiled statutes) and official government agency guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
How New York differs from federal law
New York provides additional consumer protections that supplement federal chargeback rights:
- NY General Business Law § 349: Prohibits deceptive business practices. If a merchant sold you a product through false advertising or misrepresentation, you may have a state-law claim in addition to your chargeback rights, including the right to recover attorney's fees.
- Refund policy requirements: Under NY Gen. Bus. Law § 218-a, merchants must clearly post their refund and exchange policies. If no policy is posted, customers are entitled to a cash refund within 30 days.
- Gift card protections: NY prohibits expiration dates and inactivity fees on gift cards (NY Gen. Bus. Law § 396-i). If charged for a gift card that lost value due to fees, you may have a chargeback claim.
- Internet purchases: NY AG has active enforcement against online fraud and deceptive merchant practices. The AG's office can intervene in disputes involving NY consumers.
Additional Steps in New York
File complaints with the New York Attorney General at ag.ny.gov or call (800) 771-7755. In NYC, contact the NYC Department of Consumer and Worker Protection (DCWP) at nyc.gov/consumers.
Relevant Law: NY General Business Law § 349 (deceptive practices), NY Gen. Bus. Law § 218-a (refund policies), NY Gen. Bus. Law § 396-i (gift cards)
Federal baseline: Chargeback Rights nationwide
What is this right?
If you paid by credit card and the product was defective, never delivered, or the charge was unauthorized, the Fair Credit Billing Act (1974) gives you the right to dispute it through your card issuer. The process is called a chargeback, and it's one of the strongest consumer protections in American law.
Federal law caps your liability for unauthorized credit card charges at $50, and Visa, Mastercard, and Amex all wave that ceiling away with their own zero-liability policies. The deadline that matters: you generally have 60 days from the date of the billing statement showing the charge to put your dispute in writing. Miss that window and you're relying on the issuer's voluntary cooperation, which they don't owe you.
When does it apply?
You can dispute when:
- You see a charge you didn't make — someone used your card without permission.
- You paid for goods or services that never showed up.
- The product is materially different from what was described, or arrived defective.
- You were charged the wrong amount, or double-billed for the same purchase.
A few things to know going in:
- Credit and debit are not the same. Credit cards run under the FCBA — $50 cap, 60 days to dispute. Debit cards run under the Electronic Fund Transfer Act, where your liability climbs from $50 to $500 if you wait more than two business days, and goes uncapped after 60 days from your statement. Big purchases on a debit card are a needless risk.
- Chargebacks aren't for buyer's remorse. Filing one on a purchase you made and received is called "friendly fraud." Merchants can and do contest, and a pattern of bogus disputes will get your account closed.
- The merchant gets to fight back. The issuer reviews evidence from both sides — receipts, shipping confirmations, prior emails — before deciding. Documenting your case matters.
What to Do If You Were Charged for Something You Didn't Buy or Receive
Step 1: Try the merchant first. Most legitimate disputes — defective goods, missed delivery, wrong size — are easier to resolve directly. Email is best; it leaves a paper trail.
Step 2: Open the dispute with your issuer. Number on the back of the card, or the dispute form inside your online account. Most major issuers will provisionally credit you within a few business days.
Step 3: Put it in writing within 60 days. Verbal disputes don't fully trigger your FCBA rights. Send a written notice — name, account number, the disputed amount, the reason — by certified mail to the billing inquiries address on your statement (not the payment address).
Step 4: Wait out the clock. The issuer has 30 days to acknowledge and up to two billing cycles (90 days max) to resolve. While they're investigating, they can't try to collect the disputed amount or report it as delinquent to the credit bureaus.
Step 5: If you lose, push back. They have to explain in writing and provide the documents they relied on. You can re-dispute with new evidence, escalate to the CFPB, or — if the issuer mishandled your dispute — sue under the FCBA.
What should you NOT do?
Don't blow the 60-day deadline. The clock runs from the statement date, not the charge date. Past 60 days, your federal rights are gone and you're hoping for goodwill.
Don't fake-fight legitimate charges. Friendly fraud is one of the fastest ways to get your card account closed. Merchants now share data with each other, and serial disputers get blacklisted.
Don't trash the documentation. Order confirmations, shipping tracking, photos of broken products, full email threads with the merchant. The case is won on evidence, not adjectives.
Don't use debit for anything you might need to dispute. Hotel deposits, online orders from unfamiliar sellers, anything pre-pay. Debit means the money leaves your account first and you fight to get it back. Credit reverses that.
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