Also called: FCBA
What the Fair Credit Billing Act is
The Fair Credit Billing Act (FCBA) is a federal law that amended the Truth in Lending Act in 1974. It sets procedures for consumers to challenge billing errors on open-end credit accounts, such as credit cards and revolving charge accounts. It does not cover loans repaid on a fixed schedule.
A billing error includes an unauthorized charge, the wrong amount or date, a payment or refund that was not credited, a math mistake, or a charge for goods or services not delivered as agreed. Consumers can also request an explanation or written proof of a charge. A product-quality complaint is not automatically a billing error.
The FCBA does not set your card fees, but a customer billing dispute can still become a costly chargeback.
How a consumer dispute works
For a billing-error claim, the consumer generally must send written notice to the creditor’s billing-inquiries address within 60 days after the first statement containing the error was mailed. The creditor must acknowledge the complaint within 30 days, unless it has already resolved it, and complete its investigation within two billing cycles, no later than 90 days.
During the investigation, the consumer can withhold the disputed amount and related charges, but must pay the undisputed part of the bill. The creditor cannot collect the disputed amount or report it as delinquent while the investigation is open. If the creditor finds an error, it must correct the account and remove related charges.
What it means for your business
The FCBA does not set interchange, processor markup, or a fee charged to you. It does not create a dedicated line on your merchant statement. Its practical effect is that a customer can raise a billing complaint with their card issuer, which can lead to a separate card-network dispute and require you to submit transaction records.
Keep the receipt, order details, delivery confirmation, customer messages, and refund records together. A clear receipt and accurate billing descriptor help the customer recognize the purchase. If the issuer starts a card-network dispute, your response deadline comes from your processor and is often 20 to 30 days. The FCBA’s 60-day consumer deadline is not your response window.
Where the cost risk comes from
The law itself does not charge your business, and it does not guarantee that a customer complaint becomes a chargeback. A chargeback can still reverse the sale and create separate dispute work or fees under your processing arrangement. As of 2026, Visa and Mastercard rules generally allow cardholders 120 days to dispute a transaction, with longer limits for some delayed-delivery cases. Those network rules are separate from the FCBA’s billing-error process.
A different FCBA protection applies when a customer disputes the quality of goods or services with the card issuer. For qualifying purchases over $50 made in the customer’s home state or within 100 miles of their billing address, the customer must first make a good-faith effort to resolve the issue with you. That rule gives you a reason to document your response and any remedy offered.
What you can actually change
- Keep sale records. Save receipts, proof of delivery, service records, customer messages, and refund confirmations. These details help you answer a card-network dispute.
- Make billing clear. Use a recognizable billing descriptor and provide an itemized receipt. Clear purchase details reduce confusion about the amount, date, and seller.
- Track dispute deadlines. Use the response deadline shown in the dispute notice or your processor portal. Do not treat the FCBA’s 60-day consumer window as extra time for your response.
Frequently asked questions
Does the Fair Credit Billing Act apply to merchants?
The FCBA primarily sets consumer protections and creditor duties for billing errors on open-end credit accounts. It does not set merchant processing fees, but a customer’s complaint can lead to a separate card-network dispute that requires your response.
Can a customer dispute a credit card charge after 60 days?
The FCBA’s 60-day period applies to written notice of a billing error to the creditor. Separately, as of 2026, Visa and Mastercard rules generally allow 120 days for a cardholder to dispute a transaction, with longer limits for some delayed-delivery cases.
Does the FCBA cover a complaint about poor service?
A quality complaint is not automatically a billing error. For certain purchases over $50 made in the customer’s home state or within 100 miles of their billing address, the customer can raise a claim or defense with the card issuer after first making a good-faith effort to resolve it with you.