Fair Credit Billing Act (FCBA)
A US federal law that gives consumers the right to dispute billing errors and fraudulent charges on credit card accounts.
Also known as: FCBA
Last reviewed: 10 June 2026
The Fair Credit Billing Act, enacted in 1974 as an amendment to the Truth in Lending Act, establishes procedures for resolving credit card billing disputes. Consumers have 60 days from the statement date on which the disputed charge appeared to file a written dispute with the card issuer. The issuer must acknowledge the dispute within 30 days and resolve it within two billing cycles (no more than 90 days).
For fraud victims, the FCBA's most important provision is that the card issuer cannot take adverse credit action (such as reporting a delinquency) against the consumer during an open dispute. The maximum liability for unauthorised credit card charges is $50 under the FCBA, though most major card networks voluntarily offer zero liability.
The FCBA also covers billing errors such as charges for undelivered goods, duplicate charges, and charges for a different amount than agreed. It should not be confused with Regulation E (which covers debit card and electronic fund transfers). For chargebacks on credit cards, the FCBA provides the statutory underpinning, while card-network rules (Visa, Mastercard) set the detailed procedures and timelines.
Examples
- A fraudster makes a $1,200 credit card purchase with stolen card details; the victim disputes it under the FCBA and liability is capped at $50.
- A consumer never receives goods paid by credit card and disputes the charge as a billing error under the FCBA.