Credit Card Authorization

  Credit Card Authorization  - How to dispute a faulty credit card bill and claim a chargeback  - Jun 18, 2007  

Credit cards are increasingly being used for offline and online shopping. With this rapidly growing phenomenon there are reports of credit card misuse and shopping fraud which might require disputing a particular credit card bill.

A person can dispute his credit card bill in two ways. First, when he hasn't bought anything and the actual purchase or billing on the credit card was done by someone else fraudulently or it simply got there by mistake. In second case the credit card holder purchases something (usually online) and when he receives the product he finds it substandard, defective, or simply a wrong shipment. In both the cases credit card holders can get their amount back because they were duped in one way or another.

The process of disputing a fraudulent or unworthy credit card bill is pretty simple. A very basic thing such as keeping record of every transaction that you make until things get satisfactory or they show correctly on your billing statements, helps tremendously in this process.

In the first case where you find that someone has fraudulently billed your credit card, contact the credit card company as soon as you receive any such communication. Talk to the credit card company representative, keep a record of the communication. Tell them that you didn't purchase that thing, and it is a faulty statement. Most of the credit card companies will simply revert the process. Because the credit card fraud liability in US is $50, that's all you owe, and if you have a good relationship with the credit card company this fee is also waived.

In second case when you get a damaged, incorrect or substandard product. Contact the merchant and tell him about the problem, keep a record of every complaint and conversation. If possible interact with the merchant in writing. If the response is positive and the merchant agrees to replace back the product, things are settled. Otherwise contact the credit card company and tell them about your problem. Enclose the copies of complaint and details of defective product. Ask them for a chargeback. All the big credit card companies favour the customer whenever there is a complaint. So, in most of the cases you will get a chargeback.

Being cautious while using credit card and not allowing them to fall into wrong hands will help you avoid any credit card faulty billings. Reading your credit card monthly statements carefully, and checking them against actual purchases will help you find out the wrong statements and dispute them instantly.