Speaking of Credit

Business charged you via card number on file? Dispute it


Just because they sold you something once, they can’t run your card number on file again without your permission

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we may receive compensation when you click on links to products from our partners. Learn more about our advertising policy.

The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Please see the bank’s website for the most current version of card offers; and please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.


Dear Speaking of Credit,
Can a company that has my card number from a prior transaction charge my Visa for a disputed service (16 months after the disputed service)? – Frank


Dear Frank,
Not without your permission they can’t. But are you sure you didn’t give the service provider your consent to charge the card, by way of the fine print in the purchase agreement for this disputed service or the prior transaction that was charged to your Visa card?

According to Jonathan G. Stein, consumer law attorney, there are at least a couple of scenarios where the company may have been legally allowed to charge your card:

  • “First, if you buy something online, there is generally really fine print that says \u2018By placing this purchase, you agree to us charging your credit card’ or something to that extent.
  • “Second, if there were prior dealings, and it sounds like there were, there may be language in a contract, agreement or purchase order, that allows them to do this.”

Yet, whether or not the service provider truly had permission to charge your card, by doing so they may have actually helped you with your dispute via a consumer protection law called the Fair Credit Billing Act.

Passed in 1974 as an amendment to the Truth In Lending Act, the Fair Credit Billing Act (FCBA), gives consumers the right to take legal actions against the card issuer when having a problem with goods or services paid for with a credit card. For you, this means you may now be able to resolve the issue by filing a dispute with the card company, as long as:

  • The charge was for more than $50 and was made in your home state or within 100 miles of your card account billing address, and
  • You first made a good-faith effort to resolve the problem with the service provider.

To dispute this charge, the FCBA requires that, within 60 days after the charge first appears on your bill, you notify the card company by sending a letter (certified, with return receipt requested, is best), call their dispute resolution department or provide the information online. Whichever way you submit it, you’ll want to provide a clear explanation of the problem along

with any documentation that can help support your claim.

Once they receive your dispute, the card issuer will notify the merchant (service provider) of your complaint and give them the opportunity to reply. At this time the card company may initially remove the charge from your account and withdraw the disputed funds from the service provider’s merchant account in the form of a “chargeback.”

Then, if the issue remains unresolved, the card company will decide which party – you or the merchant – acted most responsibly in this situation. If they find in your favor, the disputed amount will be permanently removed from your account and charged to the merchant. Otherwise, you’ll be required to pay it by your card’s next due date.

Another feature of the FCBA allows you to withhold payment to the card company in the amount of the disputed charge from the time the card company acknowledges your dispute until its resolution. During this time the card company cannot consider the disputed amount  as delinquent, assess interest or a late fee, or report it to the credit bureaus as past due.

When a dispute is pending, expect your credit report to show the account as being in dispute, though such notations carry no negative credit scoring impact.

What often makes this FCBA dispute mechanism work in a consumer’s favor is that both parties want you to be satisfied and

continue to do business with them. They also have a financial incentive to minimize their time spent wading through this process. In fact, card companies have been known to penalize merchants who generate too many disputes.

If all else fails and the dispute does not go in your favor, you may have the option to take the service provider to small claims court, as long as the disputed amount falls within your state’s dollar amount threshold for small claims suits – typically between $2,500 and $10,000. The filing fees are minimal and you don’t have to be represented by a lawyer, which keeps the legal costs down.

There’s a huge potential downside to going the small claims route, however. If the decision doesn’t go in your favor, a credit score-damaging court judgment can be filed against you and remain on your credit report for seven years. And to add insult to injury, you will not be able to appeal the decision.

See related:Your rights under the Fair Credit Billing Act


What’s up next?

In Speaking of Credit

Removing yourself as an authorized user

Ending the ‘piggyback’ ride from a person with great credit can impact score

Published: September 1, 2016

See more stories
Credit Card Rate Report Updated: May 20th, 2019
Cash Back

Questions or comments?

Contact us

Editorial corrections policies

Learn more

Join the Discussion

We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

The editorial content on is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company’s business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.