Guides / Life Events
Your Credit Card Rights: What to Do If You Have a Problem
Federal law gives you real, enforceable rights when something goes wrong with a card transaction. Knowing them turns a stressful dispute into a straightforward process.
In this guide
Prompt credit for payment
A card issuer must credit your account the day it receives your payment, provided you followed the issuer's stated payment instructions. Sending payment to the wrong address can delay your credit by up to five days, so always use the payment address listed on your statement.
Back to topRefunds of credit balances
If you overpay or return merchandise and end up with a credit balance over $1.00, you can request a refund in writing. The issuer must send it within seven business days of receiving your request.
Back to topResolution of billing errors
The Fair Credit Billing Act covers a specific list of billing errors: charges for something you didn't buy, purchases by someone unauthorized to use your card, incorrect amounts, charges for undelivered or rejected goods, arithmetic errors, and payments that weren't credited. You must notify the issuer in writing within 60 days of the first bill containing the error, including your account number, the disputed amount, and a description of the problem. While the issuer investigates, you're not required to pay the disputed amount.
Back to topRemoval of unauthorized charges
Under the Truth in Lending Act, your liability for unauthorized charges on a lost or stolen card is capped at $50 per card, and if you report the loss before the card is used, you owe nothing at all. Report a lost or stolen card immediately using the toll-free number on your statement.
Back to topResolving disputes with a merchant
If you have a legitimate problem with merchandise or services charged to your card and made a good-faith effort to resolve it with the seller directly, you have the right to withhold payment from the card issuer for that charge. If that still doesn't resolve things, small claims court is an accessible option for many disputes, check your local courthouse for filing details.
Back to topPrompt shipment and refusal rights
Mail and phone orders must ship when promised, or you can cancel for a full refund. If no shipping date was stated, your right to cancel begins 30 days after the seller receives your order and payment (extended to 50 days if the seller is separately processing your credit application). You're entitled to a full refund within seven working days, or one billing cycle, after the seller receives your cancellation request. You may also refuse delivery of anything damaged or spoiled; write "REFUSED" on the package and return it unopened.
Back to topProtection against junk mail and calls
You can remove your name from telemarketing lists through the National Do Not Call Registry (donotcall.gov) and from promotional mail lists through the Data & Marketing Association's DMAChoice service (dmachoice.org). If you receive unordered merchandise in the mail, you're under no obligation to pay for it or return it.
Back to topFrequently asked questions
How much am I liable for if my credit card is stolen and used?
Under the Truth in Lending Act, your liability is capped at $50 per card. If you report the card lost or stolen before it's used, you owe nothing.
How long do I have to dispute a billing error?
You must notify your card issuer in writing within 60 days of the first bill containing the error. You're not required to pay the disputed amount while the issuer investigates.
What can I do if a mail-order purchase never ships?
If no shipping date was promised, your right to cancel and receive a full refund begins 30 days after the seller receives your order and payment.
Want a second opinion on your growth strategy? Legacy CPAs works with small business owners on pricing, marketing budgets, and cash flow decisions every day.
Schedule a ConsultationThis guide is for general informational purposes only and is not tax, legal, financial, or investment advice. Every business situation is different, so consult a licensed professional before making decisions based on this content.