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Credit and Debit card transactions are not immune to billing errors. Purchase or sales receipts should be kept at least until the billing statement covering the pertinent transaction is covered. That way the cardholder can check if the items on the card statement is accurate or not. There is a federal law called the Fair Credit Billing Act which aims to protect consumers against billing errors. Some of these billing errors include: Unauthorized purchase or a charge for something you didn’t buy A charge for an amount different from the actual amount as reflected on your sales receipt A charge for merchandise that never got delivered to your address on file. The address should match the record of the card company. Mathematical errors, though this is quite rare as automated billing statements are computer-generated.
A charge for returned merchandise or when you have refused acceptance of delivered merchandise due to defects.
Payments that fail to revolve back to your credit limit or not credited to your account Unauthorized purchase made by someone who did not get permission to your use your card.
If the cardholder notices any of the above in his card statement, the following steps are recommended: Bring the error to the credit card company in writing within 60 days from statement date. Using the company address indicated on the billing statement, specify the following: Cardholder name as it appears on the card and account/card number,
The billing period, statement date and the specific billing error and the reason or circumstance behind why the error should be taken out of your bill and the account corrected; and
The date of transaction and disputed amount of the error
You will have to pay all the other items that are correct on the billing statement.
Should the investigation reveal no error in the billing statement, the credit card company must respond with the proper explanation and a statement of the amount you owe that includes any finance charge that accumulated while the bill is under dispute.
What if the item purchased is damaged or returned? The Fair Credit Billing Act allows the cardholder to withhold payment on any damaged or poor-quality goods or services purchased with a credit card, received or not, provided an honest effort is made to settle merchandise returns and non-delivered items with the merchant. In addition, the sale must have been for more than $50 and made within 100 miles of your home address. Same as above notify the card company of any dispute and payment can be withheld pending investigation of the dispute. It is interesting to note that if a payment has been made on your credit card bill before the dispute is resolved, the right to a claim is forfeited.
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