First, don't panic. Cross-check the transaction in question against receipts, order confirmations, and any email or messages from the merchant. Sometimes, a payment shows up under a different merchant name, or currency conversion makes the amount look wrong. Note the exact date, amount, and reference number; these details will be crucial when you raise the dispute.
Contact the merchant next
If the charge is obviously wrong-charging for the same item multiple times, charging for an order that was cancelled, or neglecting to issue a refund, for example-contact the merchant directly. Many disputes are often resolved this way. Record your phone call or online chat, and request a written confirmation (e-mail or chat transcript) of their billing error reversal or refund. This documentation helps your case with the card issuer.
Submit a formal dispute to your card issuer
If the merchant is unable or unwilling to assist you, file a dispute with your bank or card issuer immediately. Go through the official channel: netbanking, the issuer's app, or customer care number. Describe the transaction details, explain why the transaction is wrong, and attach proof like receipts or screenshots. Note the dispute reference number given to you by the bank for further follow-up.
Request provisional credit and check timelines
Most banks offer provisional credit during an investigation, but rules differ depending on the bank. Ask if a provisional credit will be issued, how long it takes, and when you can expect follow-through. Standard investigation time frames can range from a couple of weeks to 45 days, based on complexity and merchant response. Keep these timelines handy.
Document everything and follow up regularly
Keep a folder with all communications: digital or physical. Screenshot everything and keep all documents and reference numbers handy. Allow the promised time to elapse, then follow up. Polite but persistent reminders via secure bank messaging or email often speed things up. Delays in responses or unclear responses are situations that call for escalation by seeking a supervisor.
Escalate externally if needed
If the card issuer does not resolve the dispute, you can escalate the matter. In the case of banks, use the nodal officer or grievance redressal channels. If that also does not work, you can approach the Banking Ombudsman or Consumer Forums. In the case of non-bank card issuers, check the regulator or industry grievance mechanism that applies.
Protect your credit record and future disputes
While the dispute is open, make sure you are making minimum payment requirements on your account to avoid any late fees or damage to your credit rating. When it's all settled, make sure the refunds or charge reversals show up on your next statement and balance your account. You will find that learning to act quickly and in a methodical way makes future disputes much easier to deal with.
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