Many people use credit cards as part of their daily financial habits. However, problems can arise when repaying credit card dues.
Unauthorized charges, incorrect billing calculations, and non-delivery of promised services can lead to issues, making consumers impatient. If the payer questions the credit institution about this, it can result in credit card disputes.
According to relevant sources, online spending through credit cards reached Rs. 1 lakh crore by April 2024. Additionally, there has been a 20 percent increase in credit card disputes from 2022.
Experts say that disputes are inevitable as credit card use increases, but they can be managed. When credit card disputes arise, consumers contact the card issuing company and state their problems.
The credit card company will investigate the customer’s claim and request additional information if necessary. If the customer’s claim is genuine, the amount will be credited to their account.
Here is when and how credit card disputes can be raised:
Unauthorized Charges: Inform the credit institution immediately if any unauthorized charges are detected while paying the credit card dues.
Billing Errors: Question the credit institution immediately if you find duplicate charges or incorrect amounts on your statements.
Goods and Services Disputes: Challenge charges for services that are not as the credit card company promised.
Fraud: Contact the card issuing company immediately if you identify identity theft and phishing scams.
The procedure for raising credit card disputes is as follows:
Contact the Credit Card Issuing Company: Provide the credit card issuing company with all the details of your transactions, including the date, amount, and merchant.
Fill out a Dispute Form: Ensure all details are included when submitting the form to communicate the claim details to the credit institution.
Investigation Process: The respective credit institution will investigate the consumer’s claims, and the disputed amount in the statement will be temporarily deleted.
Solution: After the investigation, the card issuing company will inform you about the purchase details. The disputed amount will be credited to your bank account if they agree with your claim.
Consumers can identify problems in credit card payments, charges, etc., and raise a dispute within 180 days from the transaction date. Experts say that these disputes are usually resolved within 45 to 60 days.