Use Other People’s Money for Free
Protection for Purchases
Protection for Losses
Travel Advantages
Car Rental Savings
General Tips

Smart Strategy:
Use your credit card for big-ticket items, online or mail order purchases, or for any other charge where there could be a potential problem with the merchandise or service. Then, check your credit card statement carefully and dispute any errors in writing immediately.

Use your credit card for purchases and you’ll have additional protection you just don’t get when you pay by cash or check. You can dispute a charge if merchandise you order is not delivered as agreed (in the wrong quantity, the wrong color, or on the wrong date, for example). You have up to 60 days from the date the card issuer mailed the statement showing the disputed charge to complain.

You can call the card issuer to dispute a charge, but we don’t recommend it. You only protect your rights under The Fair Credit Billing Act if you put your complaint in writing to the card issuer at the address listed on the statement for billing errors. We recommend you send your letter by certified mail, return receipt requested. Keep in mind that the law doesn’t cover changing your mind — for that you’ll have to deal with the merchant directly.

You may also be able to dispute a charge when there is a problem with the quality of the goods or services you bought. This is a little trickier, so follow the rules carefully. Here are the basic requirements:

• The charge must be for $50 or more.
• You must have bought the merchandise in your home state or within 100 miles of your billing address.
• You must have made a good faith effort to resolve the problem with the merchant.

You can’t dispute the charge and withhold payment if you’ve already paid off the charge, so act quickly if you think there is a problem. Again, we recommend you write a letter to the card issuer disputing the charge and send it by certified mail, return receipt requested.

Whether or not you can successfully dispute a charge because of a problem with the quality of the merchandise you bought depends on what rights your state laws give you against the seller of the goods. If, under your state law, you can withhold payment to a seller of defective merchandise, you may be able to withhold payment to your credit card issuer.