How to reverse a credit card transaction | finder.com
Reverse a credit card transaction

How do you reverse a credit card transaction?

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money.

Do you need an incorrect credit card charge reversed? Learn how to dispute transactions with your bank.

Mistakes on your credit card statement are forgivable, as long as they are rectified. It may be a transaction you don’t recognise or an instance where the merchant’s charged you twice. Whatever the case, you should always immediately bring any inconsistencies in your statement to the bank’s attention, where you’ll be given the opportunity to dispute and reverse incorrect charges. This is especially urgent if you suspect your card has been stolen or breached, since you’d want the account instantly frozen to prevent more fraudulent transaction.
Compare credit card options to find the right deal for you

What transactions can I dispute?

It is your right as a consumer and account holder to dispute a variety of credit card errors that include:

  • Unauthorised transactions. Any transactions that were not made or authorised by you or an additional cardholder.
  • Fraudulent transactions. A transaction that you believe was made fraudulently.
  • Inconsistencies. Items on your statement that do not match the item amounts on your receipt.
  • Mistakes. Transactions that were mistakenly charged to your account more than once.
  • Refunds. Refunds or credits that have not been processed, or that were wrongly processed as debits.
  • Cancellations. Charges for a reservation you made but cancelled within the cancellation period.
  • Cancelled auto-payments. A cancelled automatic payment that is still being deducted.
  • Faulty or defective goods. Goods that you paid for but have not received, have been delivered but are not as they were described to be or that arrived to you faulty or defective.
  • Unfulfilled services. Services that have not been rendered.
  • ATM errors. An ATM withdrawal that dispensed the incorrect amount of money.

What should I check before I dispute a transaction?

Firstly, please ensure that the charge in question is indeed an error by following these steps:

  1. Check all your receipts and transaction records for the period in question, paying close attention to items from the same retailer or financial institution. Try reconciling total amounts over the period, bearing in mind that some transactions may not be processed on the same day.
  2. See if you can relate the purchase to something else you bought in the same period, given that some merchants may have different billing names to their trading names.
  3. If you have an additional cardholder, check to make sure the purchase wasn’t theirs.
  4. If it is the amount that does not match, check if an exchange rate, international transaction fee or other surcharge was applied by the merchant.
  5. If the transaction was for an automatic payment or direct debit that you believe has been cancelled, contact the retailer for clarification. Some contracts specify cut-off dates for cancelling regular payments, which makes the charge legitimate if your notice of cancellation was given after that date.

If you are still unable to resolve the issue after doing all of the above, contact your bank immediately to initiate an investigation.

Back to top

How do I lodge a dispute?

The process for lodging a dispute will vary by bank. Some will let you provide the necessary information online, while you may need to call others.

BankHow to lodge a dispute
Citi

Please sign on and locate the credit card charge you wish to dispute in your transaction list on the Account Details Page. Click on the arrow/link next to the transaction Description and then select the “Dispute this Charge” link. Pending charges cannot be disputed until they have posted to your account.

Please note: Currently, debit card disputes are unavailable online. If you have an unauthorized charge on your debit card, please call 1-800-374-9700 (TTY: 1-877-693-0372).

What happens after my dispute is lodged?

You will receive confirmation from the bank once they have received your request for a dispute resolution. At this point it may be necessary for you to sign a form authorising their investigation which you will need to return to the bank in a specified time frame. They will also likely ask that you send them certain documentation in order for them to properly investigate the dispute. If you fail to provide them with all necessary information your dispute will likely not be successful.

Once you have lodged your credit card dispute with your bank, you can expect it to go through these three stages:

Dispute Item RaisedDispute Resolution CreditDispute Item Resolved
The transaction in question is being reviewed.Your account is credited with the correct amount of money.The bank is no longer reviewing the transaction.

What’s the difference between a chargeback and a disputed transaction?

There is a distinct difference between a charge back to your account and a transaction that needs to be disputed by the bank:

Chargeback

A chargeback refers to purchases made using a debit directly from your bank account. If such an error is made, you should first try and resolve it yourself directly with the retailer. If not, your bank will dispute the claim with the retailer’s bank but only if you ask within 30 days of the transaction. Make sure that you are prepared to provide the bank with all of the information you have about the transaction and be aware that you might be charged a fee for this service.

Disputed transaction

This term is used for credit purchases where a charge appears on your statement that you believe was made in error, is in the wrong amount, or is for goods that you ordered but were unable to use.

What should I be wary of?

American consumers have the right to not be charged for goods or services they did not receive. However, you should follow certain steps when using your credit card to protect yourself and your credit rating:

  • Shopping online. When shopping online, only make purchases with established merchants that have been in business for an extended period of time. Websites can be set up from anywhere in the world, making it difficult to track down an individual who makes a charge to your account for goods, and then closes the site. In this case you may have to pursue a chargeback instead of reversing the credit card transaction.
  • Print your online receipts. When completing a check-out online, make sure that you print or email yourself a copy of the receipt. This will help you in lodging a dispute if the goods are never received.
  • Save credit card receipts. When using your credit card in a store, you should always check the receipt before signing it. Also, save all receipts until the next billing cycle to ensure that it is accurate.
  • Sign your credit card. If a merchant has a signed receipt from your account, it will have to match the signature shown on the back of your credit card.
  • Contact the bank ASAP. Do not wait if you notice a charge to your credit card that should not be there. The bank is only an intermediary between you and the credit card companies, which all have different criteria and time frames that have to be met for resolving disputes.
Back to top

Compare top credit cards

Credit cards are great tools because they can help protect you from fraud and other incorrect charges. Most credit cards offer protections against unauthorized charges, which make them more advantageous than cash. Check out these credit cards that might complement the card you already have in your wallet.

Updated August 20th, 2018
Name Product APR for Purchases (Purchase Rate) Intro APR for Balance Transfer Annual Fee
14.74%, 18.74% or 24.74% variable
0% for the first 15 months (then 14.74%, 18.74% or 24.74% variable)
$0
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees
12.74%, 16.74% or 20.74% variable
0% for the first 18 months from account opening (then 12.74%, 16.74% or 20.74% variable)
$0
An 18-month 0% Intro APR period on both purchases and balance transfers, plus zero foreign transaction fees, makes this is a strong well-rounded card. See Rates and Fees
16.74% variable
0% for the first 15 billing cycles (then 16.74% variable)
$495
Mastercard Black Card members receive an annual $100 air travel credit toward flight-related purchases including airline tickets, baggage fees, upgrades and more.
16.74% variable
0% for the first 15 billing cycles (then 16.74% variable)
$195
Enjoy unique excursions, privileged access to exclusive events and insider opportunities.
16.74% variable
0% for the first 15 billing cycles (then 16.74% variable)
$995
Earn points every time you spend. Luxury Card enhances your purchasing power by providing you with one (1) point for every one dollar ($1) you spend. Every purchase gets you closer to the rewards you want.
24.74% variable
$39
Designed to help build credit history with no deposit required and access to benefits.
23.9% variable
$75 annual fee for the first year ($99 thereafter)
With this card you get a 23.9% Variable APR.
19.74% to 25.74% variable
$0 to $99
Get 1% cash back rewards on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV, terms apply.
14.74% to 25.74% variable
0% for the first 15 months (then 14.74% to 25.74% variable)
$0
Earn 10,000 Membership Rewards® Points after you use your new Card to make $1,000 in purchases in your first 3 months.
14.99% to 24.99% variable
0% for the first 12 statement closing dates (then 14.99% to 24.99% variable)
$0
Earn more cash back for the things you buy most.
14.74% to 25.74% variable
0% for the first 15 months (then 14.74% to 25.74% variable)
$0
Earn $200 back after you spend $1,000 in purchases on your new Card in your first 3 months. You will receive the $200 back in the form of a statement credit.
17.74% to 24.74% variable
$0 annual fee for the first year ($95 thereafter)
Earn 50,000 points when you spend $4,000 on purchases within the first 3 months of your account opening, and an additional 30,000 points when you spend a total of $30,000 on purchases within the first year of your account opening.
17.74% to 24.74% variable
$450
Earn 50,000 BONUS POINTS after spending $4,000 on purchases in the first 3 months from account opening* — that's $750 toward travel when you redeem through Chase Ultimate Rewards®.
14.74% to 24.74% variable
0% for the first 12 months (then 14.74% to 24.74% variable)
$95
15,000 Membership Rewards points after you spend $1,000 in the first 3 months of opening your account
16.74% to 25.49% variable
0% for the first 15 months (then 16.74% to 25.49% variable)
$0
Earn unlimited 1.5% cash back on every purchase - it's automatic. No minimum to redeem for cash back.
17.74% to 24.74% variable
$95
Earn unlimited 2 points for every $1 spent on travel and dining purchases and 1.5 points for every $1 spent on all other purchases.
14.74%, 20.74% or 24.74% variable
0% for the first 15 months (then 14.74%, 20.74% or 24.74% variable)
$0
Earn unlimited 1.5% cash back on every purchase, every day
16.74% to 25.49% variable
0% for the first 15 months (then 16.74% to 25.49% variable)
$0
Earn 5% Cash back in bonus categories up to $1,500 every quarter. Earn 1% Cash back on all other purchases.
16.74% to 24.74% variable
$0
20,000 online bonus points offer. Ditch the restrictions of typical airline rewards cards. Any airline, any hotel, anytime. No blackout dates.
16.74% to 25.49% variable
0% for the first 15 months (then 16.74% to 25.49% variable)
$0
Jumpstart your financial fitness! 60 day introductory balance transfer offer, save on interest, and get your free monthly credit score.
14.74%, 21.24% or 24.74% variable
$0 annual fee for the first year ($95 thereafter)
Earn 50,000 bonus miles after spending $3,000 on purchases within the first 3 months from account opening.

Compare up to 4 providers

Frequently asked questions

      Back to top

      Adrienne Fuller

      Adrienne Fuller leads the publishing team at finder.com. She has one goal: to deliver the accurate and transparent information she wishes she had when she made some of life's important financial decisions. When she's not helping folks save money, she's hiking with her two Catahoulas around her home in San Diego.

      Was this content helpful to you? No  Yes

      Ask an Expert

      You are about to post a question on finder.com:

      • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
      • finder.com is a financial comparison and information service, not a bank or product provider
      • We cannot provide you with personal advice or recommendations
      • Your answer might already be waiting – check previous questions below to see if yours has already been asked

      Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our and .

      6 Responses

      1. Default Gravatar
        JadeJanuary 5, 2018

        How do i reverse a balance transfer error I made from 1 credit card to another?

        • finder Customer Care
          JhezelynJanuary 5, 2018Staff

          Hi Jade,

          Thank you for your comments.

          Tips on how to reverse a credit card transactions are found above. After you gather necessary details to file for a dispute, you may lodge the dispute online or contact the banks involved.

          Regards,
          Jhezelyn

      2. Default Gravatar
        AmandaNovember 29, 2017

        I have invested money to a company and payed R4200 but they failed to deliver the service i rendered to them and when i call the representative, she doesnt give me a straight when i say i want a refund.She just said i might be to late since 7 days has passed.What should i do?

        • finder Customer Care
          MayNovember 29, 2017Staff

          Hi Amanda,

          Thanks for your comment.

          I’m sorry to hear that. It must be frustrating on your part not able to get a refund. I’d suggest that you get back to the company again and speak to the manager if you can regarding the transaction. Did you use your credit card for this transaction? Best to check as well the company’s policies about getting a refund and if see if you are eligible. Typically, the process for lodging a dispute will vary by company. You can either do it online, by phone or visit their office/branch. While we can only give you general advice, it would still be best to get this resolved with the company directly.

          Cheers,
          May

      3. Default Gravatar
        RaviSeptember 23, 2017

        Hi
        I raise a dispute of amount of 69000 thousands, company have promised to give service of 300 days but company have run away within 1 month,now Citi bank customer care saying that you have to pay this amount, but most of the my friend got permanent dispute for the same.now I am not able to pay this huge amount what should I do

        • finder Customer Care
          AnndySeptember 24, 2017Staff

          Hi Ravi,

          Thanks for your question.

          You may want to contact Citi directly to raise this concern about a disputed transaction. We have listed their contact details above.

          After submitting your dispute, documentation from the merchant will be presented to your bank and then forwarded to you if they feel your dispute has no merit. You can either accept this and pay the charge, or opt to continue to dispute the transaction by providing evidence which negates theirs.

          Cheers,
          Anndy

      US Credit Card Offers

      Important Information*
      Deserve® Classic Card
      Deserve® Classic Card

      APR

      24.49
      variable

      Annual fee

      0 For the first year
      More info
      Luxury Card Mastercard® Gold Card™
      Luxury Card Mastercard® Gold Card™

      APR

      16.74
      variable

      Annual fee

      995 For the first year
      More info
      First Access Visa Card®
      First Access Visa Card®

      APR

      29.99
      variable

      Annual fee

      75 For the first year
      More info
      Indigo® Platinum Mastercard® Credit Card
      Indigo® Platinum Mastercard® Credit Card

      APR

      23.9
      variable

      Annual fee

      75 For the first year
      More info
      Go to site