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 have the right to dispute it. 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.
This guide walks you through every stage of the dispute process — from contacting the merchant, to filing the dispute, to escalating to the Financial Consumer Agency of Canada (FCAC) if your card issuer refuses to help.
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, Mastercard, or Amex) can make a binding 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 most issuers require evidence that you contacted the merchant directly 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 reverse the charges, cancel the compromised card, and issue a replacement. You are not liable for fraudulent charges you report promptly.
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, most require proof that you made a genuine attempt to resolve the issue directly with the merchant. 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. Avoid vague language. “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
Most Canadian card issuers will issue a provisional credit (also called a conditional credit) within 5 to 10 business days of receiving your dispute. 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 20 to 45 days to respond with their evidence — delivery confirmation, signed receipts, your agreement to the terms, or a refund they already issued. The full investigation can take 30 to 90 days. You should receive a letter or notification in online banking when a decision is reached.
Step 7: Review the outcome
If the dispute is resolved in your favour, the provisional credit becomes permanent. If the dispute is denied, the charge is reinstated to your account and your issuer will send you a written explanation. 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 Contact Major Canadian Card Issuers
| Issuer | How to Dispute | Dispute Phone Number |
|---|---|---|
| TD | EasyWeb online banking or phone | 1-800-983-8472 |
| RBC | RBC Online Banking or phone | 1-800-769-2512 |
| CIBC | CIBC Online Banking or phone | 1-800-465-4653 |
| BMO | BMO Online Banking or phone | 1-800-263-2263 |
| Scotiabank | Scotia Online or phone | 1-800-472-6842 |
| Amex Canada | Amex App, online, or phone | 1-800-869-3016 |
| National Bank | Online banking or phone | 1-888-835-6281 |
| Capital One | Online banking or phone | 1-800-481-3239 |
All major Canadian banks also allow disputes to be initiated through their mobile apps. This is often faster and automatically attaches your account records to the dispute file.
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.
File a complaint with the FCAC. The Financial Consumer Agency of Canada oversees federally regulated banks and credit card issuers. If you believe your card issuer did not follow proper dispute procedures, you can file a complaint at fcac-acfc.gc.ca. The FCAC does not have the power to force a specific chargeback outcome, but it can investigate whether your issuer followed required procedures.
File a complaint with OBSI. The Ombudsman for Banking Services and Investments (OBSI) can review your complaint after you exhaust your bank’s internal complaint process and recommend a resolution. Their service is free to consumers.
Small claims court. For significant amounts where both your issuer and the FCAC have not resolved the issue, you can sue the merchant directly. Small claims limits in Canada vary by province: $35,000 in British Columbia, $50,000 in Alberta, $35,000 in Ontario (from 2025), and $15,000 in Quebec. 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 | Within 30 days of your statement (120 days max from transaction date) |
| Provisional credit issued | Within 5–10 business days |
| Merchant response window | 20–45 days |
| Full investigation | 30–90 days |
| Final decision communicated | Within 90 days of filing |
| Appeal or second review | Usually 10–30 days after decision |
5 Tips for a Successful Dispute
1. Always 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 — typically $15 to $100 per transaction — 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. The 120-day window sounds generous, but investigations take time and provisional credits rely on the issuer having room to act. Filing within 30 days of your statement is best practice.
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. Every major Canadian bank lets you turn on push notifications for each credit card transaction. This is the fastest way to catch unauthorized charges — often within minutes. You can enable alerts in your bank’s mobile app at no cost.
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 transactions in Canada have far weaker dispute rights. When you pay with Interac Debit (Chip & PIN), you are not covered by Visa or Mastercard chargeback rules — disputes are handled case by case at the bank’s discretion. 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?
You typically have 30 to 120 days from the transaction date, depending on your card issuer and the nature of the dispute. Visa and Mastercard network rules set the hard maximum at 120 days from the original transaction date. Most issuers recommend acting within 30 days of receiving your statement. 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 20 to 45 days 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 escalate to the FCAC.
What happens if my credit card dispute is denied?
If your dispute is denied, you can request a second review with additional evidence, file a complaint with the Financial Consumer Agency of Canada (FCAC), escalate to the Ombudsman for Banking Services and Investments (OBSI), or pursue the merchant directly in small claims court.
Do I have to pay the disputed charge while it is being investigated?
No. Most Canadian issuers apply a provisional credit that removes the disputed charge from your balance within 5 to 10 business days of filing. 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. Most legitimate disputes are resolved in the cardholder’s favour within 90 days. And if your issuer does not cooperate, the FCAC and OBSI exist specifically to hold them accountable.