Banking processes may be confusing and daunting to many, especially if you are unsure of your rights or the steps to take. If you lack experience, you might even feel tempted to give up at the very start. Even though disputing a transaction can be a frustrating, confusing, and time-consuming process, it is important to protect your financial interests and ensure that no one is taking advantage of you. 

It is essential to understand that you have the right to dispute any transaction that you feel was unauthorized or faulty and that there are steps you can take to protect yourself and your financial interests. If you believe a transaction on your bank or credit card statement is incorrect, you can dispute the charge with the merchant or financial institution that processed the transaction. Take a look at some steps to follow if you need to dispute a transaction.

When to dispute a transaction?

There are several reasons you may feel the need to dispute a transaction. Some of the most common ones are fraudulent charges, billing errors, and unsatisfactory service or service not rendered. Depending on the issue at hand, there are a few different steps you need to take:

• Fraudulent or unauthorized charges—Charges made to your card that you know did not come from your end and seem suspicious. The card issuer will typically resolve this issue if you contact them. They will most likely cancel your credit or debit card and issue a new one
• Billing errors—These can include the bill showing an incorrect amount, being charged several times, being charged for something you canceled, etc. The procedure is similar, but here you will want to contact the merchant first to try and resolve the error. If that does not resolve it, contact the financial institution
• Unsatisfactory service or service not rendered—You may have paid for a service, like ordering something online, and did not receive the item, received the wrong item, or it arrived broken. This gives you cause to dispute a transaction

Start with a review and gather documentation

Before disputing your transaction, you want to make sure that there was, in fact, foul play and that you have all the documents needed to verify that. Start by going over your statement or account history to identify the transaction in question. Keep in mind that you will need to provide evidence of what happened. This may include receipts, emails, or other documentation that can prove that you did not authorize the transaction or that there was an error made. In addition to that, make sure you have all the relevant information, including the date of the transaction, the amount, and the merchant or financial institution involved.

Contact the merchant

You might believe the transaction was a mistake or unauthorized. If you are disputing a charge from a specific merchant, your first step should be to contact them directly. Explain the situation and see if they can resolve the issue for you.

For example, you may have been involved in a relocation but have noticed an error of some kind in the final payment. Experienced movers at Heart Moving Manhattan, NYC, suggest you contact the company as soon as possible. The first step in disputing your moving transaction is to reach out to the moving company and explain your issue. Be specific about what happened and how you were wrongfully charged or treated. It is vital to remain calm and professional during this conversation. The company may be more willing to work with you if you are respectful.

Turn to the Better Business Bureau and file a complaint

If you are unable to resolve the issue with the merchant, you can file a complaint with the Better Business Bureau (BBB). The BBB is a non-profit organization that mediates disputes between consumers and businesses. They can help you resolve your issue with the company and provide a resolution that is fair to both parties.

Contact the financial institution

Perhaps the merchant is unable or unwilling to resolve the issue. You may have been unable to reach them. You can contact your financial institution (such as your bank or credit card company) to dispute a transaction. They will typically have a process in place for disputing transactions. This way, they will be able to assist you in recovering any funds that were taken from your account in error. You will need to provide them with the same information you provided to the merchant and any documentation you have.

If your bank or credit card company requires it, you may need to submit a written dispute detailing the circumstances of the transaction. Make sure to include any documentation you have gathered, as well as a clear explanation of what happened.

Request a refund or reversal of the charge

Depending on the nature of the dispute, you may be able to request a full or partial refund. In addition, you may request that the charge be reversed entirely to get your money back. To initiate a chargeback, you will need to provide your financial institution with documentation of the transaction. You should also include any communication you have had with the merchant. Consider the following:

• The transaction was made with a credit card: You can usually dispute the charge through your credit card issuer’s online portal or by calling their customer service number
• The transaction was made with a debit card or bank account: You can dispute the charge through your bank’s online portal or their customer service 

Follow up with the financial institution

Once you have reported the issue to your financial institution, your dispute can take some time to resolve. It is important to be patient and keep track of the progress. If you don’t receive a response or resolution to your dispute within a reasonable amount of time, you may need to follow up with your bank or credit card company. It is important to do so in order to ensure that the bank is handling your dispute properly. You should also keep track of any communication or documentation related to your dispute.

Consider legal action

You may have tried to dispute a transaction, but the merchant or the financial institution did not resolve it to your satisfaction. It is possible that they are unable or unwilling to resolve the issue. In that case, you may need to consider legal action. This could include filing a complaint with a government agency, such as the Consumer Financial Protection Bureau, or hiring a lawyer to represent you. This is typically a last resort, as it can be costly and time-consuming, but it may be necessary if you feel you have been wronged.

The takeaway

Trying to dispute a transaction can be daunting. However, it is crucial to protect your financial interests and ensure that no one is taking advantage of you. Keep in mind that disputing a transaction can be time-consuming, and it may take several weeks or months to resolve the issue. 

It’s also important to note that if you dispute a transaction, it does not guarantee that you will be able to reverse the charges or that you will receive a refund. The merchant or financial institution may decide to uphold the charge after reviewing your dispute. If you are not satisfied with the outcome of your dispute, you may use additional options. These may include filing a complaint with a consumer protection agency or seeking legal assistance.