According to the Fair Credit Bill Act, every customer has the right to contest every action taken in relation to their account (FCBA).
But attempting to use this method to defraud a specific merchant is against the law, will get you in trouble with the law, cost you money in court costs and fines, and is also a breach of trust between the cardholder and the card issuer.
Because you might not be able to avoid the consequences, you must always act honestly. You must never intend to falsely dispute a credit card charge.
Every customer has the ability to fully control how their money is being spent, understand how it is being used, and request a refund if necessary through the phenomenon of disputing a charge.
Disputing a Charge extends further than that; you may find yourself questioning a charge for a specific product that you ordered but wasn’t delivered.
So, if you’re about to try to understand what happens when you try to falsely dispute a charge, you’ve come to the right article.
What Happens If a Credit Card Charge Is Falsely Disputed
When you dispute a credit charge, you are basically asking your bank or the other financial institution that gave you your card to give you a specific amount of money back.
False credit card disputes carry a number of legal repercussions, including paying a fine, appearing in court, and, most seriously, serving time in jail for a number of years.
If it is discovered that the complaint filed is false and untrue, businesses do have the legal right to sue the customer in court.
In order to avoid disputing a charge for the wrong person, it is your responsibility as a customer to keep track of all transactions you make and to understand who the transaction was intended for.
It’s a good idea to always get in touch with the seller whenever you learn about any fees associated with buying a product from that seller.
CAN LIARRY IN A CREDIT DISPUTE GET YOU IN TROUBLE?
You can get into serious trouble for lying during a credit card dispute, and it’s a big one at that.
One of the most frequent penalties for lying in a credit dispute is an immediate account closure, which is typically handled by the card issuer.
Additionally, you are probably going to end up with a low credit score, which will have a significant impact on your ability to get a job and other future credit applications.
I willingly made a credit card charge; can I dispute it?
Why would you have to question a credit charge that you knowingly authorised? The answer is yes, but only occasionally.
If there is no problem and you make a purchase after having a clear understanding of a merchant’s terms and conditions with the sole intention of disputing the payment, you are allowed to do so.
The majority of con artists attempt to use this technique to steal money by alleging that their personal information was stolen and subsequently disputing charges on payments that have already been made.
UNAUTHORIZED CREDIT CARD CHARGES: WHAT TO DO
The best course of action right now is to ask your bank—or most likely the bank that issued your credit card—to process a chargeback whenever you discover an unauthorised credit charge.
You must first provide specific information that will help your bank conduct an investigation before you can file a dispute with your card issuer.
Depending on the credit card company you are working with, the process of receiving money back can take a few days.
A charge can be disputed through your bank’s platform or by getting in touch with its customer support team.
REASONS PEOPLE DISAGREE WITH A CHARGE
There are a number of reasons you might want to challenge a charge, including an online purchase charge and possibly an unauthorised debit from your credit or debit card.
The following are some justifications for questioning a charge:
1. Placing an order with a business and not receiving the item.
2. Transaction Error, which resulted in a double debit from a merchant payment system due to a network issue or another factor.
3. Card fraud occurs when you recognise a payment that was not authenticated by you and are as a result an identity fraud victim.