A dispute is a formal complaint you file with your bank when you see a transaction you didn't make or don't recognize
When you dispute a transaction, you are telling your bank: "I did not authorize this charge, or something about it is wrong." Your bank then investigates whether the transaction was legitimate. During the investigation, the bank may return your money temporarily while they look into it. A dispute is not the same as asking your bank nicely to reverse a charge — it is an official process with specific steps and timelines.
The word "dispute" in banking straightforward means you are formally challenging a transaction. It is the tool you use when someone else used your card or account number without permission, when a merchant charged you twice by mistake, or when a charge appeared that you genuinely do not recognize. The bank takes disputes seriously because federal law requires them to investigate and respond within a set number of days.
Key Takeaways
- A dispute is a formal written complaint to your bank that a specific transaction was unauthorized or incorrect, not just a phone call asking for a refund.
- You must report a dispute within 60 days of the transaction appearing on your statement, or you lose the right to file one.
- Your bank must acknowledge your dispute within 30 days and complete their investigation within 45 days, though some cases take longer.
- During the investigation, your bank may return the disputed amount to your account temporarily while they gather evidence from the merchant.
- If the bank finds the transaction was unauthorized, you get the money back permanently; if they find it was authorized, the charge stays and you owe it.
How a dispute works step by step
The first step is to contact your bank and report the transaction. You can do this by phone, in person at a branch, or through your online banking portal — most banks now have a "report a problem" or "dispute this transaction" button. Tell them the transaction date, the amount, and the merchant name. Explain why you believe it is unauthorized or wrong. The bank will create a dispute case and give you a case number.
Once you file, your bank sends a request to the merchant's bank asking for proof that you authorized the charge. The merchant's bank has a important date — usually 10 days — to respond with documentation. Meanwhile, your bank may provisionally credit your account with the disputed amount. This is not a final decision; it is temporary protection while the investigation happens.
The merchant then has the chance to defend the charge by sending receipts, signed agreements, or other proof that you authorized it. Your bank reviews everything both sides submit. If the merchant cannot prove you authorized it, you keep the money. If they can prove you did authorize it, the charge goes back on your account and you owe it.
The difference between a dispute and a chargeback
A dispute is what you file with your bank. A chargeback is what happens if your bank rules in your favor — they charge the merchant's bank back for the amount, and the merchant loses the money. You do not file a chargeback yourself; your bank files it on your behalf after they investigate your dispute and decide you are right.
Some people use the words interchangeably, but they are not the same thing. The dispute is the complaint. The chargeback is the consequence if your complaint is upheld. Understanding this matters because it helps you know what to expect: you file a dispute, your bank investigates, and if they side with you, a chargeback happens automatically.
What you need to file a dispute
Have your bank statement in front of you with the transaction clearly marked. You will need the transaction date, the exact amount, and the merchant name as it appears on your statement. If you have any documentation — an email confirmation, a receipt, a screenshot — gather it. You do not have to have proof that you did not authorize it; your bank's job is to investigate, not to make you prove a negative.
If the transaction was made in person with a stolen card, note the date and location if you remember it. If it was online, note the website or app name. If it was a recurring charge you forgot to cancel, say so — that is still a valid dispute reason, though the outcome may be different than if someone stole your card number. Be specific about what makes the transaction wrong, but do not overthink it. Your bank will ask follow-up questions if they need more detail.
Timeline: how long a dispute takes
Your bank must acknowledge your dispute within 30 days of receiving it. This means they send you a letter or email confirming they received it and assigned it a case number. They do not have to have finished investigating yet — just acknowledged it.
The full investigation must be complete within 45 days. In some cases, the bank can extend this to 90 days if the merchant's bank is slow to respond or if the dispute is complex. During this time, your bank may keep the provisional credit in your account, or they may remove it if they need more information from you. They will tell you what to expect.
Once the investigation closes, your bank sends you a final letter explaining their decision. If you won, the money stays in your account. If you lost, the charge goes back and you owe it. Either way, you have the right to see the evidence the merchant submitted and to dispute the bank's decision if you believe they made a mistake.
When you cannot file a dispute
You have 60 days from the date the transaction appears on your statement to file a dispute. After 60 days, most banks will not accept one. This is a federal rule, not something individual banks decide. If you discover an unauthorized charge three months after it happened, you have missed the window. This is why checking your statements regularly matters — catching problems early keeps your options open.
You also cannot dispute a transaction you authorized, even if you later regret it or the merchant treated you badly. If you ordered something online and received it, but you changed your mind about the purchase, that is not a dispute — that is a return or refund issue between you and the merchant. A dispute is only for transactions you did not authorize or that are factually wrong (like being charged twice for one purchase).
What happens to your money during a dispute
Your bank may put the disputed amount back into your account while they investigate. This is called a provisional credit. It is not a final decision — it is the bank saying, "We are investigating, and in the meantime, we are giving you access to this money." You can spend it, but understand that if the bank later decides the charge was authorized, they will remove it again and you will owe it back.
Some banks do not issue a provisional credit. They investigate first and only return money if they find in your favor. Ask your bank what their practice is when you file. Either way, do not assume the money is permanently yours until the investigation closes and the bank sends you a final decision letter.
Frequently Asked Questions
What if the merchant says I authorized the charge but I know I didn't?
Tell your bank that in writing when you file the dispute. Your bank will ask the merchant for proof — a signed receipt, an email confirmation you sent, a recorded phone call where you gave permission. If the merchant cannot produce that proof, you win the dispute even if they claim you authorized it. The burden is on them to prove authorization, not on you to prove you didn't give it.
Can I dispute a charge if I used my debit card in person?
Yes. If someone stole your card and used it at a store, or if a cashier charged you twice, you can dispute it the same way. Debit card disputes follow the same 60-day rule and investigation process as credit card disputes. Report it to your bank as soon as you notice it.
What if my bank decides against me — can I dispute their decision?
Yes. If you disagree with the bank's final decision, you can ask them to reconsider. Send a letter explaining why you believe they made a mistake, with any new evidence you have found. The bank will review it, but they are not required to change their decision. If you remain unsatisfied, you can file a complaint with the Consumer Financial Protection Bureau, which oversees bank dispute handling.
Do I have to pay the disputed charge while the investigation is happening?
No. If your bank issued a provisional credit, the money is in your account and you do not owe it during the investigation. If they did not issue a provisional credit, you are not required to pay it while they investigate — but check your bank's specific policy, as some banks may still report it as a late payment if you do not pay.
What if the same merchant keeps charging me without authorization?
File a separate dispute for each unauthorized charge. After you win the first dispute, contact the merchant and ask them to stop charging you. If they continue, file disputes for the new charges and tell your bank about the pattern. You may also ask your bank to block future charges from that merchant, though not all banks offer this option.