Dispute bad credit card charges on your trip

While traveling, the last thing anyone wants to think about is being overcharged on a credit card transaction. Worse still, no one wants to entertain the idea of having their credit card number stolen in a foreign country. Using credit cards during your trip can be an easy and convenient way to pay, but it can also present several risks.

International regulations have been created for those choosing plastic over paper at the point of sale around the world. These safeguards are in place for good reason. According to the Department of Justice, 7% of people over the age of 16 were victims of identity theft in 2012. Most cases involved the use of credit or bank accounts established to accumulate charges against the victim.

That’s not the only problem travelers face when using their cards. In other cases, credit card users may be charged for merchandise that was never received, or their card may have been wrongly charged by their merchant. In all of these cases, disputing a credit card charge can save you from getting an important bill that you didn’t want to accumulate.

The Fair Credit Billing Act and you

In the United States, the Fair Credit Billing Act (FCBA) sets regulations for credit card billing practices and dispute charges on your credit card. Through these regulations, there are several situations in which you may not be responsible for incorrect charges to your credit card. These situations include:

• Unauthorized or fraudulent charges
• Charges indicating the wrong date or amount
• Charges for goods or services never delivered or received

If you discover that your credit card is wrongly charged, or your credit card number is stolen and used, you have the right to dispute the charges with your credit card provider.

How to know if your card is abused while traveling.

When you travel, studying your credit card statement may not be your top priority. With modern technology, you may not have to double check each charge at the end of the day. There are two simple ways each traveler can keep track of their credit card usage while traveling:

1. Understand your credit card travel policy.
   1. Many credit cards, regardless of whether they are used for travel or not, require advanced notification when you anticipate using them outside of your home country. By sending your card a bank notification of your travel plans (when necessary), you can help ensure that your card is only used in the country you are in.
2. Use smartphone apps and set up expense alerts.
   1. Many credit card issuers offer apps that will not only allow you to check your spending anywhere in the world, but you will also receive alerts for irregular or unusual expenses. If you know your spending will be below a certain limit while traveling, download your credit card app and set up spending alerts. This can help you identify a discrepancy before it becomes a major problem. Keep in mind that these apps can still use data while abroad, resulting in potentially high phone charges for international data roaming.

Despite your best planning, you can still find yourself caught with a discrepancy in charges or fraudulent charges against your account. In the event that this occurs, it is time to file a credit card billing dispute.

What to do if you notice a discrepancy.

The sooner you notice a discrepancy on your credit card bill, the sooner you can file a billing dispute with your credit card company. The Consumer Financial Protection Bureau reported that this is the most common complaint: 15% of all complaints filed between July 2011 and March 2013 were billing disputes. Here’s how to get started filing a billing dispute report:

1. Report the unauthorized charge
   1. As soon as you notice an unauthorized charge on your credit card, immediately begin the billing dispute process with your credit card issuer. This can most often be done with a phone call and, in some cases, can be initiated by email. By starting the process early, you can be closer to correcting the problem or eliminating the charge entirely.
2. Follow up with a letter of complaint
   1. Under the FCBA, you have up to 60 days to file a formal billing dispute with your credit card issuing bank. If your dispute is not resolved within a month, follow up immediately with a letter to your bank explaining your billing dispute and why you are contesting it. During this time, you may not be forced to pay the disputed amount, but you will have to pay all other normal and ongoing charges on your card.

1. File a complaint with the Consumer Financial Protection Office
   1. In the event that your billing dispute is not resolved in a reasonable amount of time, consider filing a complaint with the Office of Consumer Finance Protection. This government watchdog agency was created in the wake of the recession, to help consumers in situations like these. The CFPB can help you resolve your situation if all other options fail.

By getting ahead of your credit card charges, understanding your rights when it comes to spending while traveling, and protecting yourself from the wrong charges, you can ensure your trip to paradise is not spoiled. With these tips, you can stay vigilant and protected wherever you go.