What counts as a billing error on a credit card?

Under the Fair Credit Billing Act, errors include unauthorized charges, charges for goods/services not received as agreed, math/statement errors, payments or credits not posted, unclear descriptions that need clarification, statements not received at your correct address (if you updated it), and other accounting mistakes.

How long do I have to report a billing error?

You must send a written notice within 60 days of the date the first statement containing the error was sent.

Where do I send a billing error notice?

Use the creditor’s designated billing inquiry address listed on your statement (not the payment remit address). Include your name, account number, the amount/date in dispute, and why it’s an error.

What happens after I send a dispute letter?

The creditor must acknowledge your letter within 30 days (unless they resolve it sooner) and investigate. They must resolve the dispute within two billing cycles but no more than 90 days total.

Do I have to pay the disputed amount during the investigation?

No. You don’t have to pay the disputed amount or related finance charges/fees while the investigation is pending. You must pay any undisputed portion of your bill.

Can my credit be harmed while a billing error is under review?

The creditor can’t threaten your credit rating or attempt to collect the disputed amount while investigating. If they report the account, they must mark it as “in dispute.”

What if the issuer finds an error?

They must correct your account, remove related charges, and send you a written notice of the correction.

What if the issuer says there’s no error?

They must explain in writing and provide documentation upon request. If you still disagree, you can continue to dispute; however, you may be required to pay the amount if the creditor followed proper procedures.

Are unauthorized charges my responsibility?

Under federal law your liability for unauthorized credit card use is capped at $50, and many issuers offer $0 liability policies. Report suspected fraud immediately.

Do different rules apply to debit cards or prepaid accounts?

Yes. Electronic fund transfers and many prepaid accounts are covered by the Electronic Fund Transfer Act, which has different timing and liability rules.

Fair Credit Billing Act (FCBA)

Understanding Billing Errors: What They Are and How to Resolve Them

Billing mistakes happen. Learn what legally counts as a billing error, how to send a proper 60-day dispute letter, and what protections you have while your card issuer investigates and resolves the issue.

John Constantine

11 Oct 2025 • 2 min read

A billing error can be a stressful and confusing experience, but knowing your rights and the proper steps to take can make the process much smoother. This article explains what counts as a billing error, how to report one, and what to expect from your credit card company during the resolution process.

What Is a Billing Error?

A billing error is any mistake or issue found on your credit card or open-end credit account statement. According to federal law, billing errors include:

Charges you didn’t make or authorize.

Charges for goods or services you didn’t accept or that weren’t delivered as agreed.

Mathematical or accounting errors in your statement.

Payments or credits you made that were not properly applied to your account.

Charges that need further clarification or proof.

Not receiving your billing statement at your correct address (if you updated it on time).

Transactions not properly described on your statement.

How to Report a Billing Error

If you spot a billing error, you must notify your creditor in writing. Here’s how to do it:

Act Quickly: Send your written notice within 60 days after the creditor sent the first statement with the error.

Include Key Details: Your notice should include your name, account number, the amount and date of the error, and a clear explanation of why you believe there’s a mistake.

Send It to the Right Address: Use the address provided by your creditor for billing inquiries (usually found on your statement).

What Happens After You Report a Billing Error

Once your creditor receives your written notice, they must:

Acknowledge Your Complaint: They must confirm in writing within 30 days that they received your notice, unless they resolve the issue first.

Investigate the Error: The creditor must resolve the issue within two billing cycles (but no more than 90 days).

Protect Your Rights During Investigation:

You don’t have to pay the disputed amount or related charges while the investigation is ongoing.

The creditor cannot threaten your credit rating or try to collect the disputed amount.

They can still collect on any undisputed part of your bill.

How Billing Errors Are Resolved

If an Error Is Found: The creditor must correct the mistake and remove any related charges. You’ll receive a written notice of the correction.

If No Error Is Found: The creditor must explain in writing why they believe there was no error and provide documentation if you request it. If you still disagree, you can continue to dispute the charge, but you’ll need to pay the amount if the creditor follows all proper procedures.

Your Rights After the Investigation

If you still believe a billing error exists after the investigation, you can send another written notice. The creditor must report the account as “in dispute” if they report it to credit agencies, and update the record if the dispute is later resolved.

Special Cases

If your billing error involves electronic fund transfers or prepaid accounts, different rules may apply under the Electronic Fund Transfer Act.

By understanding what counts as a billing error and following the correct steps, you can protect your finances and credit. Always keep copies of all correspondence and act promptly when you notice a problem.