How to Dispute a Debit Card Charge: It’s Harder Than you Think

If you use a debit card, the money comes right out of your checking account. But what happens if the charge is fraudulent or you never received the item you paid for?

Unfortunately, debit cards don’t have the same protections credit cards do, but most banks will stand by their customers and investigate the issue to see if they can return their funds. The key is acting fast and providing as much information as possible to win the dispute.

Can you dispute a debit card charge?

If you’re like me, you’d rather use a debit card than a credit card because you don’t have to worry about debt. The downside is you don’t have the same protection you do with a credit card. However, it is possible to dispute a debit card charge. It’s just not as simple as it is when disputing credit card transactions, mostly because debit card purchases come directly from your checking account, whereas credit card charges get deducted from your credit line.

Most banks suggest that you try to work the issue out with the merchant first, as that’s the easiest route. If not, you can contact your debit card issuer, but each card issuer’s guidelines are different.

Reasons to request a chargeback

There are many reasons you may initiate a chargeback. Some common reasons include:

• Never receiving goods or services that you ordered
• An unauthorized person uses your debit card
• The items purchased with the debit card were defective
• Clerical or billing errors for a charge you didn’t make

How to dispute a debit card charge

Each card issuer has different requirements for debit card charge disputes, but overall, here’s what to expect:

1. Contact the merchant: If you’re disputing a charge before it is posted, contact the merchant first. You’re more likely to get immediate help from the place where you spent the money, which wants to keep its customers happy. Besides, your bank cannot help you until the transaction is posted. Even if it did post, consider contacting the merchant to see if you can work it out without involving the bank.
2. Contact the bank: If the merchant won’t help you or you suspect fraudulent charges on your account, contact your bank immediately. Some banks have a 60-day time limit, and if you go beyond it, you could be responsible for the charge even if it’s fraudulent.
3. Provide relevant information: Be prepared to give the bank as much relevant information about the charge as possible, such as the date and the amount of the charge, the reason for the dispute, and the merchant's name and location.
4. Follow up in writing: Follow up your phone call with a written letter to the bank with the date, amount, and merchant for the charge. Also include any proof you have, such as a receipt, pictures, or other evidence to support your claim. You can use the FTC sample as a guide.
5. Fill out dispute forms: Your bank may require you to fill out a dispute form or provide a written statement describing the issue.

How long do debit card disputes take?

According to the Consumer Financial Protection Bureau, banks have ten business days to investigate a dispute (20 days if you’ve had the account less than 30 days). If they discover an issue, they have one business day to resolve it and three business days to notify you.

If your bank cannot resolve the dispute within ten business days, they may be required to give you a temporary credit for the amount of the dispute minus $50. Keep in mind that if they don’t find in your favor, though, they will reverse the credit which could cause you to overdraft if you aren’t careful.

What if my debit card dispute is denied?

There’s no guarantee that your dispute will be approved, but that doesn’t mean you’re stuck with the charge. If you don’t agree with the bank’s decision, you have ten days to appeal the decision. Ask your bank about their appeal process and follow it carefully.

If you feel the decision was unfair, you can also report the incident to the Consumer Financial Protection Bureau (CFPB) or Federal Trade Commission (FTC). There’s no guarantee this will result in a reversal of the charge, but it’s one step you can take in an effort to get your money back if you feel you have been wronged.

How to avoid incorrect or fraudulent transactions on your debit card

While incorrect or fraudulent transactions can leave you in a difficult position, here are some ways I keep my bank account safe:

• Regularly monitor your account: Check your bank transactions regularly and report any signs of fraud immediately.
• Set up transaction alerts: Most banks allow you to set up custom alerts for deposits and withdrawals for specific thresholds. I set my threshold low so I always get alerts when there’s a transaction.
• Keep your card secure: Use caution when sharing your card details, and share them only with trusted merchants. Never leave your debit card unattended and don’t write down information like your PIN; memorize it instead if possible.
• Use secure ATMs and card readers: Watch for signs of tampering when using ATMs and card readers. I always look for loose parts, unusual devices attached to the card slot, or hidden cameras before inserting my card.
• Exercise caution when making online purchases: Only make online purchases from reputable websites. Look for “https” in your address bar to ensure you are using a secure connection when making a purchase online. Also, avoid entering your card details when on an unsecured public Wi-Fi network.
• Use extra security measures: If possible, use additional security measures like two-factor authentication (2FA) or biometric authentication to give your account an extra layer of security.
• Regularly update passwords and PINs: Change your online banking passwords and PINs every couple of months. Use strong, unique passwords that are difficult to guess and don’t contain common combinations of letters or numbers.
• Be wary of scams: Criminals use many scams to gain access to victims’ accounts. Avoid clicking on suspicious links or providing sensitive information in response to unsolicited requests.
• Report suspicious activity: If you notice any unauthorized charges or notice anything suspicious related to your checking account, report it to your bank immediately. It can help by blocking your card, investigating the issue, and issuing a new card if necessary.

FAQs

Bottom line

If you have an issue with a debit card transaction, contact your bank immediately and provide as much detail as possible, including supporting documents. Your bank will then investigate the charge and may reverse it if the bank deems your claim valid. However, you should also be proactive with your bank account. Regularly monitor your statements, update passwords, use 2FA, and be wary of phishing attempts. By following these steps, you can help prevent issues before they start.