Merchants may assist with handling credit card disputes

“Individuals have rights when using a credit card and they should know what they are, especially when a dispute arises with a merchant,” said Linda Echard, president of ICBA Bancard, an ICBA subsidiary, in a news release. “If cardholders understand their rights, their chances of resolving the problem in their favor are better. It’s also important to understand the merchant’s return policy.”

Consumer rights

Consumers who are dissatisfied with a credit card purchase or find a possible error on the billing statement have the right to file a dispute. Disputes can be initiated by telephone, but legally, everything must be in writing, and resolving a dispute does take time.

While the ICBA said the first step in solving a dispute should be contacting the merchant – which may save time and money and expedite a resolution – if the dispute cannot be resolved with the merchant, the next step is to contact the issuer of the credit card.

Sometimes, the issuer can intercede with the merchant and will usually remove, at least temporarily, the transaction from the account while the dispute is being handled.

Card holders may be required to issue a written statement to the company, and if so, it should include the cardholder’s name as it appears on the card, the account number, the amount of the disputed charge, an explanation of the problem and a request for relief.

Be sure to note the date, time and details of any discussions and keep a copy of the written notification.

Under the Fair Credit Billing Act, errors must be reported to card issuers in writing within 60 days of receiving the first bill with the disputed charge. The card issuer has 30 days to reply and must correct or explain the error in writing within two billing cycles. During the investigation, the cardholder is not required to pay the disputed amount.

Finding information

Most credit card issuers print a statement of cardholder rights on the back of statements, but additional information is available at http://www.icba.practicalmoneyskills.com.