If a charge appears on your credit card statement that you did not authorize, never received, or that does not match what you paid for, you can dispute it with your card issuer. The formal process for reversing a credit card transaction is called a chargeback, and it is one of the most important consumer protections available to Canadians who pay by credit card. Unlike debit purchases, credit card transactions can be reversed by your card issuer when a merchant fails to deliver what was promised.
Disputes are one part of our credit card basics guides; refunds and cancelling a pending charge have their own pages.
This guide walks you through every stage of the dispute process, from contacting the merchant, to filing the dispute, to escalating to the Ombudsman for Banking Services and Investments (OBSI) if your card issuer’s own complaint process doesn’t resolve it.
Chargeback vs. Dispute: Understanding the Difference
These two terms are often used interchangeably but refer to different parts of the same process. When you notice a problem with a charge and contact your card issuer, you are filing a dispute. If the card issuer investigates and rules in your favour, the transaction is reversed, that reversal is called a chargeback. If the merchant disagrees and appeals the chargeback, the card network (Visa or Mastercard) can make the final decision through a process called arbitration.
Understanding this sequence matters because your card issuer cannot initiate a chargeback without you first filing a dispute, and many issuers require you to try the merchant first for a merchant dispute before they will get involved.
What Qualifies for a Credit Card Chargeback in Canada?
The chargeback system exists to protect cardholders from fraud, merchant errors, and failures to deliver. It is not a substitute for a return policy or a way to avoid paying for something you simply changed your mind about.
Valid reasons to dispute a charge
Unauthorized or fraudulent transactions are the clearest case. If someone used your card number without your permission, whether through a data breach, card skimming, or theft, your issuer will investigate, usually reimburses you in full when you took reasonable care, and will normally cancel the compromised card and issue a replacement. FCAC says that if a bank issued your credit card, you owe at most $50 for unauthorized use unless you showed gross negligence in protecting your card or PIN, and the card networks say they usually reimburse you in full if you took reasonable care and told your issuer without delay.
Items not received cover situations where you paid for something that was never delivered. Online shopping is the most common scenario: the merchant took your money but never shipped the order, or a courier lost the package and the retailer refuses to replace it. Provide order confirmations and any shipping tracking information when you file.
Items significantly not as described apply when what arrived is materially different from what was advertised, a different model, wrong size, counterfeit goods, or something broken that cannot be returned. “Significantly not as described” is a higher bar than minor differences, so document the discrepancy clearly with photos.
Duplicate charges are straightforward: you were billed twice for the same transaction. This can happen at a terminal, through a glitch in an online checkout, or when a merchant processes a transaction that was initially declined.
Wrong amount charged covers situations where the merchant charged more than the agreed price, an error at the till, a tip amount changed after the fact, or a quoted price not honoured.
Recurring charges after cancellation are a common frustration. If you cancelled a subscription, gym membership, or any recurring service and the merchant continued to charge you, save your cancellation confirmation email. That document is strong evidence.
Services not provided include situations like a cancelled flight with no refund issued, a contractor who took a deposit and did not complete the work, or a hotel that charged you for a stay that did not happen.
Situations that do NOT qualify for a chargeback
| Situation | Why It Fails | What to Do Instead |
|---|---|---|
| Buyer’s remorse | Product arrived as described; you changed your mind | Request a return under the merchant’s return policy |
| Authorized family purchase | Not fraud if you gave someone permission to use your card | Discuss with the person who made the purchase |
| Forgotten subscription | You signed up and forgot about it | Cancel the subscription, then ask the merchant for a courtesy refund |
| Subjective quality dispute | Food was mediocre, service was poor | Leave a review; contact the merchant for a partial refund |
| Goods you kept | You filed a dispute but did not return the merchandise | Return the item first; dispute only after a refund is refused |
How to Dispute a Credit Card Charge: Step by Step
Step 1: Contact the merchant first
Before your card issuer will process a chargeback, many require you to have tried to resolve a merchant dispute directly with the merchant first, so keep a record of your attempt. Email is better than phone because it creates a written record you can submit as evidence. State the date, order number, what the problem is, and what resolution you are requesting. Give the merchant 7 to 14 days to respond. If they ignore you or refuse to help, that non-response becomes part of your dispute evidence.
If the charge is clearly fraudulent, someone stole your card details, skip this step and call your issuer immediately to report the fraud.
Step 2: Gather your documentation
Strong disputes are supported by evidence. Before you contact your card issuer, collect:
- The credit card statement showing the transaction date and amount
- Order confirmation or receipt from the merchant
- Any email correspondence with the merchant
- Tracking information or proof of non-delivery
- Photos of defective or incorrect items
- Your cancellation confirmation (for subscription disputes)
- Screenshots of the merchant’s website showing what was advertised
The more specific your evidence, the faster and more likely a successful resolution.
Step 3: Contact your card issuer
Call the dispute line on the back of your credit card, or log in to your bank’s app or online banking portal. Most major Canadian banks now allow you to initiate a dispute digitally, which creates an automatic paper trail. When you speak with an agent, have the following ready:
- Transaction date and amount
- Merchant name
- The reason for your dispute
- What steps you already took to resolve it with the merchant
Step 4: File the formal dispute
Your issuer will provide a dispute form, either online or mailed, where you formally describe the problem. Be precise: state exactly what you ordered, what you received (or did not receive), the dollar amount in question, and attach copies of your evidence. Vague descriptions slow the review. “Item not received, order placed April 5 for $89.99, tracking shows shipment never left the warehouse, merchant did not respond to two emails sent April 20 and April 27” is far stronger than “I never got my package.”
Step 5: Receive a provisional credit
Some Canadian card issuers apply a provisional credit (also called a temporary or conditional credit) after you file a dispute, and the timing varies by issuer. This temporarily removes the charge from your balance so you are not paying interest on it while the investigation is ongoing. Keep in mind that if the dispute is ultimately resolved in the merchant’s favour, that provisional credit will be reversed.
Step 6: Wait for the investigation
Once you file, your issuer contacts the merchant’s acquiring bank, which notifies the merchant. The merchant has a limited time, set by the card network, to respond with their evidence, delivery confirmation, signed receipts, your agreement to the terms, or a refund they already issued. The full investigation time varies by issuer and case, and some issuers say a decision can take up to 60 days. The issuer sends a letter or an online banking notification when a decision is reached.
Step 7: Review the outcome
If the dispute is resolved in your favour, the credit isn’t reversed; one major issuer, for example, treats a temporary credit as permanent if you hear nothing from it within 60 days. If the dispute is denied, any temporary credit is reversed so the charge returns to your balance, and your issuer will tell you the decision. You can provide additional evidence and request a second review, or escalate to external bodies if needed (see below).
Sample Dispute Letter for Your Card Issuer
Most disputes are handled by phone or online, but some situations, especially written formal disputes or second reviews, benefit from a clear written letter. Use this template as a starting point:
[Your Name] [Address] [City, Province, Postal Code] [Date]
[Card Issuer Name], Credit Card Disputes [Issuer’s Mailing Address]
Re: Credit Card Dispute, Account ending [XXXX], Transaction dated [DATE], $[AMOUNT]
Dear Sir or Madam,
I am writing to formally dispute a charge of $[amount] made on [transaction date] by [merchant name] to my credit card account ending in [last four digits].
Reason for dispute: [Select one: I did not authorize this transaction / The item I ordered was never delivered / The item received was significantly different from what was advertised / I was charged the incorrect amount / I was charged after cancelling my subscription on [date].]
Steps taken to resolve directly with the merchant: I contacted [merchant name] by [phone/email] on [date] and requested [a refund/replacement/correction]. [They did not respond / They refused my request / They confirmed a refund that has not appeared.] I have attached copies of [my order confirmation / email correspondence / cancellation confirmation / photos of the item].
I am requesting that this charge be reversed and a permanent credit of $[amount] be applied to my account.
Please confirm receipt of this dispute and advise me of your timeline for investigation. I can be reached at [phone number] or [email address].
Sincerely,
[Your Name]
Keep a copy of this letter and note the date and method you used to send it.
How to reach your card issuer
The dispute line is the customer service number on the back of your card, and most issuers also let you start a dispute in their app or online banking, which attaches your account records to the file. Contact details for each bank are in our bank support guides.
What to Do If Your Dispute Is Denied
A denied dispute is not necessarily the end. You have several options:
Request a second review. If new evidence has emerged, for example, the merchant finally admitted the package was lost, or you found the cancellation confirmation email, submit it and ask for reconsideration. Issuers can reopen disputes when new facts come to light.
Use the issuer’s complaint process. A dispute decision you disagree with can become a formal complaint to the issuer. The Financial Consumer Agency of Canada (FCAC) says “Your bank must provide you with a detailed written response within 56 calendar days from when you first made the complaint.”
Take it to OBSI. If the bank’s response doesn’t resolve it, the Ombudsman for Banking Services and Investments (OBSI) reviews complaints about banks for free. OBSI says: “You have 180 calendar days to bring your complaint to us once you have received your final response in writing.” FCAC oversees how banks handle complaints, but “The Financial Consumer Agency of Canada (FCAC) does not resolve individual complaints.” How to make a complaint about your bank covers each step.
Small claims court. You can also sue the merchant directly. Each province sets its own small claims limit and process, so the provincial court’s website is the place to check. This route is separate from the chargeback process and targets the merchant rather than your card issuer.
Key Dispute Timelines at a Glance
| Stage | Typical Timeframe |
|---|---|
| Contact merchant first | Give 7–14 days for a response |
| File dispute with card issuer | Often within 30 days of your statement (your card agreement sets it; the card networks’ usual limit is 120 days from the transaction) |
| Provisional credit issued | Varies by issuer; not every issuer applies one |
| Merchant response window | Set by the card network and processor |
| Full investigation | Varies by issuer; some say up to 60 days |
| Final decision communicated | Varies by issuer and case |
| Appeal or second review | Varies by issuer |
5 Tips for a Successful Dispute
1. Try the merchant first. Not only do most issuers require it, but merchants often resolve legitimate complaints quickly to avoid a chargeback. Merchants pay a fee for every chargeback they lose, for example $25 on one Canadian payment processor’s published fee list, so a direct refund costs them less.
2. Email, do not phone. A written record of your attempt to reach the merchant is evidence. A phone call you cannot prove happened is not.
3. Dispute promptly. Some issuers expect a report within 30 days of your statement, and even the usual 120-day network limit leaves less time than it seems, since investigations take time and provisional credits rely on the issuer having room to act. Filing within a few weeks of the statement leaves the issuer time to act.
4. Be specific and factual. Emotional language does not help. “The merchant scammed me” is weaker than “Order #12345 placed March 5 was never shipped; the tracking number provided by the merchant shows the label was created but the package was never picked up by the courier.”
5. Enable real-time transaction alerts. Major Canadian banks let you set up alerts for credit card activity by push notification, text or email, and the options differ by bank. This is the fastest way to catch unauthorized charges, often within minutes. Alerts are free at some banks, though your mobile carrier may charge for text messages.
Credit Card vs. Debit Card: Why Disputes Are Stronger With Credit
One of the most compelling reasons to use a credit card for significant purchases is the protection the chargeback system provides. Debit card disputes follow different rules from credit card disputes, and unauthorized debit transactions are covered by zero-liability protections. When you pay with Interac Debit (Chip & PIN), you are not covered by Visa or Mastercard chargeback rules, Interac’s Zero Liability Policy reimburses unauthorized fraud transactions beyond your control, and other disputes depend on your bank’s terms. If you pay by credit card and a merchant does not deliver, you have a clear, codified mechanism to recover your money. For more on this comparison, see our guide to credit cards vs. debit cards in Canada.
For situations where you want to stop a credit card transaction before it fully processes, such as catching a double-charge within hours, see our guide on how to cancel a credit card transaction in Canada.
Frequently Asked Questions
How long do I have to dispute a credit card charge in Canada?
Many issuers ask you to report within 30 days of your statement date, and Visa’s dispute rules generally allow up to 120 days from the transaction date, so your deadline depends on your card agreement and the type of dispute. Card network rules, including Visa’s, generally set the limit at 120 days from the transaction date, with longer limits in some cases, such as goods or services not delivered. Some issuers require you to report an error within 30 days of the statement date; one large bank’s cardholder terms say so. The sooner you act, the better your chances of success.
What qualifies for a credit card chargeback in Canada?
The main valid reasons are: unauthorized or fraudulent charges, items not received, items significantly not as described, duplicate charges, incorrect amounts charged, recurring charges after cancellation, and services not provided. Buyer’s remorse, changing your mind about a purchase that arrived as advertised, is not valid grounds for a chargeback.
Can a merchant fight a credit card chargeback?
Yes. When your card issuer initiates a chargeback, the merchant’s acquiring bank notifies the merchant, who has a limited time, set by the card network and its processor, to respond with evidence. If the merchant demonstrates that the transaction was valid, for example, by providing delivery confirmation with your signature, the card issuer may deny the chargeback. You can then request a second review or make a complaint through the issuer’s process and, after that, to OBSI.
What happens if my credit card dispute is denied?
If your dispute is denied, you can request a second review with additional evidence, make a formal complaint through the issuer’s complaint process, take the complaint to the Ombudsman for Banking Services and Investments (OBSI) if it isn’t resolved, or pursue the merchant directly in small claims court.
Do I have to pay the disputed charge while it is being investigated?
Not always. Some Canadian issuers apply a temporary credit that removes the disputed charge from your balance while the dispute is reviewed, and the timing varies by issuer. Keep making at least the minimum payment on the rest of your balance. You do not pay interest on the disputed amount during the investigation. If the dispute is ultimately denied, the charge is reinstated.
Can I dispute a credit card charge for a cancelled subscription?
Yes. Recurring charges after a cancellation are a valid chargeback reason. You will need to show proof of cancellation, a cancellation confirmation email is ideal, and evidence that the merchant continued to charge you after that date.
Is there a fee for disputing a credit card charge in Canada?
No. Canadian credit card issuers do not charge cardholders a fee for filing a dispute. Chargeback fees are paid by merchants when they lose a dispute, not by the cardholder.
The Bottom Line
The right to dispute a credit card charge is one of the strongest consumer protections available in Canada, and a compelling reason to pay by credit card rather than debit for significant purchases. If you are charged for something you did not authorize, did not receive, or that was not what was advertised, act quickly: contact the merchant first, document everything, then file a dispute with your card issuer within 30 days of your statement. If the issuer’s answer doesn’t resolve it, its complaint process and then OBSI are the next steps.