How to dispute a credit card charge in Canada (chargebacks explained)

If a charge on your credit card is fraudulent, wrong, or for something you never received, you can dispute it and often get your money back. The order matters: for fraud you call your card issuer right away, and for a problem with a purchase you usually try the merchant first, then ask your issuer for a chargeback. This guide walks the exact steps, the time limits, and the zero-liability rules that protect you in Canada.

Nothing here is financial advice. Confirm the deadlines and process on your own cardholder agreement and your issuer's official page before acting.

Fraud vs a merchant dispute: know which one you have

These are two different problems with two different paths, so name yours first.

• Unauthorized transaction (fraud). A charge you never made or approved, such as a skimmed or stolen card number, or a charge after you reported the card lost. This is a fraud claim, and it goes straight to your issuer.
• Merchant dispute. A charge you did authorize, but something went wrong: the item never arrived, it was defective, you were billed twice, a free trial turned into a recurring charge, or the amount is wrong. This usually starts with the merchant before it becomes a chargeback.

Getting this right speeds everything up, because the two claims have different evidence and different deadlines.

Zero liability: what you actually owe for fraud

For unauthorized use of a credit card, your maximum liability by law cannot be more than $50, and you are not responsible at all if you acted with reasonable care. On top of that, Visa, Mastercard, American Express and Interac have publicly committed to zero-liability protection, so in practice you typically pay nothing for confirmed unauthorized transactions.

There are conditions. Mastercard's Canadian zero-liability policy, for example, requires that you used reasonable care to safeguard your card and any PIN or password, did not contribute to the unauthorized use, and reported a lost or stolen card immediately. Protection can be lost if you were grossly negligent, and it generally does not extend to commercial cards or unregistered prepaid and gift cards. Report fast and you stay covered.

The step order: how to dispute a charge

Follow these steps in order. Skipping straight to your issuer on a merchant problem can get the claim bounced back, because most issuers want proof you tried the merchant first.

1. Confirm it is not yours by mistake. Check the merchant name, free-trial conversions, and other cardholders on the account. Many "mystery" charges are recurring subscriptions or a different trading name for a store you used.
2. If it is fraud, call your issuer immediately. Use the number on the back of your card, report the unauthorized transaction, and ask them to freeze or replace the card. Do not contact the merchant for fraud; your issuer handles it.
3. If it is a merchant problem, contact the merchant first. Ask for a refund or correction. Use email or chat so you have a written record of the date, who you spoke to, and what was promised.
4. Gather your evidence. Save receipts, order confirmations, delivery tracking, screenshots, cancellation emails, and your messages with the merchant. The more complete your file, the stronger the dispute.
5. File the dispute with your issuer. If the merchant will not fix it, call your issuer and request a dispute or chargeback. Have the transaction date, amount, merchant name, and your evidence ready.
6. Follow up in writing and track the deadline. Confirm what the issuer needs and by when. A provisional credit may appear while they investigate, and it can be reversed if the dispute fails.
7. Escalate if you are refused. Use the bank's formal complaint process, then external escalation (see below).

What a chargeback is and the network's role

A chargeback is the reversal of all or part of a transaction by your card issuer back to the merchant's bank (the acquirer). You do not move the money yourself: you raise it with your issuer, and the issuer pulls the value back through the card network's dispute rules.

Visa describes a dispute as the reversal of a transaction's value by the card issuer to the acquirer, with the network setting the rules that govern how disputes are handled. The merchant's bank then asks the merchant for proof, such as a transaction record, and the merchant can accept the chargeback or fight it with evidence. Mastercard runs a parallel formal process between issuers and merchants. The key takeaway: the network is the rulebook and referee, your issuer is your point of contact, and you almost never deal with the merchant's bank directly.

Time limits: do not wait

Dispute windows are set by the card network and your cardholder agreement, and are commonly in the range of 30 to 120 days from the statement date. Because the exact deadline varies by issuer and dispute type, treat any wrong or suspicious charge as urgent and report it as soon as you notice it. Waiting past the window can permanently forfeit your right to a chargeback.

For fraud specifically, prompt reporting is also a condition of keeping your zero-liability protection, so there is no upside to delay.

If your issuer says no: escalating a complaint

A chargeback can be declined, for example if the issuer decides the merchant delivered what was promised. If you disagree, you have a defined escalation path for federally regulated banks:

• Step 1: File a complaint through your bank's internal complaint process. The bank has a maximum of 56 days to deal with it and must give you a written response when it considers the complaint closed.
• Step 2: If you are not satisfied, escalate to the Ombudsman for Banking Services and Investments (OBSI), the external complaints body, once the bank has had its 56 days.
• FCAC's role: The Financial Consumer Agency of Canada cannot order a refund or resolve your individual complaint, but it can explain your bank's complaint process and your rights, and it supervises whether institutions follow the rules. You can also file a complaint with the payment card network operator about market-conduct issues.

Protect yourself going forward

The best dispute is the one you never have to file. Watch your statements every cycle, turn on transaction alerts, and read the disclosure box so you know your card's terms before a problem starts. Some cards also bundle purchase protection and extended warranty coverage that can help when a merchant will not, which we cover in our card insurance perks guide. When you are ready to compare options, browse our full card list.