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With credit card spends in India surging 14.5% year-on-year to ₹1.89 trillion in May 2025 (RBI data), spotting an unfamiliar charge on your statement has become more critical than ever. You might wonder if your card details were stolen or if a merchant simply made an error. Understanding the dispute process ensures you avoid paying for unauthorised purchases.
A chargeback acts as a consumer protection mechanism. It allows you to reverse a transaction when there is a valid reason, such as fraud or a merchant error. When you initiate a dispute, the bank temporarily reverses the transaction while they investigate the claim. This process ensures you are not liable for invalid charges during the resolution period.
Banks and card networks like Visa or Mastercard facilitate these credit card chargebacks. The concept exists to keep the payment ecosystem fair. If you pay for a service that was never delivered, you should not have to bear the cost. However, this is not a refund request you make to a store. It is a formal banking process where your issuer retrieves funds from the merchant's bank. You should only use credit card chargebacks for legitimate issues, as false claims can lead to penalties or account closure.
If you see a wrong or unauthorised charge, act quickly. Follow these steps to dispute a credit card transaction correctly.
Check your statement and SMS alerts for the exact date, amount, and merchant name of the disputed transaction.
Try contacting the merchant first if the issue is about delivery, quality, or cancellation. Many problems get fixed this way.
If the merchant does not respond or the charge is clearly unauthorised, contact your bank immediately.
Raise the dispute through the bank’s mobile app, net banking portal, or customer care number.
Fill in the Transaction Dispute Form (TDF) with all transaction details and the reason for the dispute.
Attach supporting documents like receipts, order confirmation, cancellation emails, or chat screenshots.
Note down the Service Request (SR) number given by the bank. Use this to track the status of your chargeback dispute.
Do not pay the disputed amount until the bank confirms the final decision. The bank will usually give an interim chargeback credit.
Not all disputes are the same. The bank handles fraudulent and non‑fraudulent charges differently.
Fraudulent charges: This is when someone else uses your card without your permission. This includes lost/stolen cards, phishing, or card cloning. For fraudulent chargebacks, report the issue within 3 days of noticing it. RBI rules limit your liability if you act fast.
Non‑fraudulent disputes: This is if you authorised the transaction but there is a problem. Examples include wrong amount, duplicate billing, or service not delivered. These are also called billing errors or service disputes. You must prove that the merchant failed to deliver as promised. The card dispute process for non‑fraudulent cases needs more evidence, like order details, delivery proof, or cancellation requests. Banks treat fraudulent chargebacks more seriously. Non‑fraudulent disputes depend on the merchant’s response and the evidence you provide.
Here is a quick comparison for you to understand the difference at a glance:
| Aspect | Fraudulent Charges | Non-Fraudulent Charges |
|---|---|---|
Definition |
Unauthorised use (e.g., stolen card) |
Authorised but problematic (e.g., undelivered service) |
Reporting Timeline |
Within 3 days for limited liability |
Up to 120 days per RBI guidelines |
Evidence Needed |
Proof of non-involvement (e.g., police report) |
Merchant failure proof (e.g., emails, receipts) |
Bank Handling |
Faster provisional credit; zero liability if reported promptly |
More investigation; depends on merchant response |
You might face various scenarios that warrant a dispute. Recognising these common reasons helps you identify valid claims quickly.
Duplicate Billing: This happens when a merchant swipes your card once, but the system processes the payment twice. You will see two identical charges on your statement.
Incorrect Amount: You signed a slip for ₹2,000, but the message on your phone shows a debit of ₹20,000. This is a "wrong amount" dispute.
Services Not Received: You paid for a flight that was cancelled without a refund, or ordered goods that never arrived. You can initiate a chargeback from credit card issuers in these cases.
Recurring Transaction Errors: You cancelled a monthly subscription, but the merchant continues to bill you. If you have proof of cancellation, you can dispute the subsequent charges
When you raise a dispute, you do not want to pay interest on that amount while the bank investigates. To prevent this, banks often provide a temporary credit.
This is known as an interim chargeback credit. It essentially removes the disputed amount from your outstanding balance for the time being. You will see this credit reflected in your statement, neutralising the disputed charge. It ensures your total due is accurate and you do not face late fees on the contested amount.
However, this credit is not final. If the bank determines the charge was valid—for instance, if the merchant proves you made the purchase—the bank will reverse this credit. You would then be liable to pay the original amount plus any applicable interest. Therefore, you should only spend or rely on this credit once the dispute is permanently resolved in your favour.
The credit card dispute process is not instant. Know what to expect at each stage.
After you file the dispute, the bank acknowledges it and starts an investigation. This usually takes 3–7 days.
The bank may give an interim chargeback credit. This removes the disputed amount from your current bill temporarily.
The bank contacts the merchant’s bank and shares your evidence. The merchant then has time to respond with their proof.
The full credit card dispute process typically takes 45 to 90 days. Under RBI norms, banks aim to resolve complaints faster.
During this time, do not assume the charge is cancelled. The interim chargeback credit is provisional.
If the bank decides in your favour, the interim credit becomes permanent. If the merchant wins, the bank will re‑debit the amount.
You will receive a final decision via email, SMS, or letter. This explains whether the chargeback from the credit card is accepted or rejected.
Prevention reduces the need to file credit card chargebacks later.
Check your transaction SMS alerts daily and review your monthly statement carefully. Spot errors early.
Never share your card number, CVV, OTP, or PIN with anyone. No bank or merchant will ask for these details over a call.
Use strong, unique passwords for net banking and payment apps. Change them regularly.
For online shopping, stick to trusted websites with secure payment gateways (look for “https” and a padlock symbol).
Cancel free trials and subscriptions before the billing date if you do not want to continue.
Keep receipts, order confirmations, and cancellation emails for at least 3 months. These help if a dispute is needed.
Report lost or stolen cards immediately. Block the card through the bank’s app or customer care to stop fraudulent chargebacks.
Contact your bank through their app, net banking, or customer care. Fill in the dispute form and attach supporting documents like receipts or emails. The bank will investigate and respond within 30 days.
The credit card dispute process involves reporting a wrong charge to your bank. The bank investigates and may give an interim chargeback credit. The final decision takes 45 to 90 days.
A chargeback is a reversal of a transaction when you spot an error or fraud. The bank retrieves the amount from the merchant and gives you a temporary credit during the investigation.
Log in to your bank’s app or website. Find the disputed transaction and select the dispute option. Fill in the details and upload proof. Keep your SR number for tracking.
Disputing a charge protects you from paying for unauthorised or incorrect transactions. It ensures you do not lose money due to fraud or merchant errors.
An interim chargeback is a temporary credit given by the bank while your dispute is under review. It reduces your bill, but the amount may be reversed if the bank’s decision is not in your favour.
A credit card dispute usually takes 45 to 90 days to resolve. The bank must acknowledge your claim within 30 days and complete the process within three months.
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Posted on 04 Dec
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