One of the biggest benefits of credit cards is the fact that you can dispute purchases — something you cannot do easily with cash transactions. In the past, we talked about how to dispute credit card transactions with your credit card company. But when is that the appropriate course of action?

Let’s look at two situations when you might want to consider disputing a credit card transaction.

Fraudulent Transactions

The most obvious situation when it’s appropriate to file a credit card dispute is when you’re a victim of credit card fraud. You might have been a victim of phishing, where your credit card information was stolen without the thief physically taking your card. Or your actual card may have been lost or stolen and used without your consent.

Either way review your credit card statements regularly. If you notice any unauthorised transactions, immediately dispute them with the credit card company and report the potential fraud.

When Retailers Won’t Work With You

Sometimes you’ll also want to dispute credit card transactions that were made legitimately — or at least transactions that started out that way.

For example, an item you purchased from a retailer may have been faulty and it broke shortly after your purchase. You first tried to return the item and get a refund from the retailer, but they would not work with you. In that case, you might be able to file a transaction dispute with your credit card company to get your refund even if the retailer won’t issue one.

Another situation is when a retailer bills your credit card for a different amount than you were expecting. It might have been a one-time billing error where you were billed twice, or a company may have continued billing your account even after you cancelled a service.

Again, give the retailer or service provider a chance to fix the situation first. If they are unable or unwilling to work with you, file a dispute with your credit card company instead.

Are there any other situations when you had to file a credit card transaction dispute? Tell us about it, how you tried to fix the situation with the retailer first, and what the process of filing your dispute was like for you.