What to Do When Your Bank Rejects Your Credit Card Dispute

Receiving a denial on your credit card dispute is frustrating, but it is not the end of the road. Canadian consumers have several options to appeal or escalate a rejected chargeback. This guide explains why disputes get denied, how to strengthen your case, and where to turn next.

Common Reasons Your Dispute Was Denied

Understanding why your dispute was rejected is the first step to fixing it. The most common reasons include:

  • Filed too late. You exceeded the chargeback deadline for your card network. Visa and Mastercard allow 120 days; American Express allows 60 days.
  • Insufficient evidence. Your bank could not verify your claim based on the documentation you provided.
  • Merchant provided counter-evidence. The merchant submitted delivery confirmations, signed receipts, or communication records that contradicted your claim.
  • Wrong dispute category. The reason code used did not match your actual situation, weakening your case.
  • Transaction was authorized. You agreed to the charge, even if you later regretted the purchase. Buyer's remorse is generally not a valid chargeback reason.
  • Services were rendered. The merchant can prove they delivered what was promised, even if you were dissatisfied with the quality.

Step 1: Request a Written Explanation

Contact your bank and ask for the specific reason your dispute was denied, in writing. You are entitled to a clear explanation. Note the reason code and any details they provide. This information will be essential for your next steps.

Step 2: Gather Additional Evidence

If insufficient evidence was the reason, strengthen your case with:

  • Additional email or chat correspondence with the merchant
  • Photos or videos of defective goods
  • Independent assessments or expert opinions (if applicable)
  • Tracking information showing non-delivery
  • Screenshots of product listings showing false advertising
  • Proof of cancellation requests

Step 3: Request Reconsideration

Submit a written request to your bank asking them to reconsider the dispute. Include all new evidence and address the specific reason for the denial. Reference your original dispute number and explain why the new evidence changes the outcome. You can use our dispute letter generator to create a professional reconsideration letter.

Step 4: Escalate to Your Bank's Ombudsman

Every major Canadian bank has an internal ombudsman or customer complaints department. This is a separate team from the disputes department and can review your case independently. Submit your complaint in writing, including your dispute history, the denial reason, and your new evidence. Banks are required to acknowledge your complaint within a set timeframe.

Step 5: File with an External Dispute Resolution Body

If the internal process does not resolve your issue, you can escalate to an external body. Most Canadian banks participate in one of two organisations:

  • OBSI (Ombudsman for Banking Services and Investments) — An independent body that investigates complaints against banks, credit unions, and investment firms. File at obsi.ca. Free for consumers.
  • ADRBO (ADR Chambers Banking Ombuds Office) — An alternative dispute resolution service used by some banks (including TD and Royal Bank). File at bankingombuds.ca. Also free.

Check your bank's website to confirm which external body they use. You must exhaust the internal complaint process before filing externally.

Step 6: File a Complaint with the FCAC

The Financial Consumer Agency of Canada (FCAC) oversees consumer protection in banking. While they do not resolve individual disputes, they investigate whether your bank followed its regulatory obligations. Filing an FCAC complaint can prompt your bank to re-examine your case. File at canada.ca/fcac.

Step 7: Consider Small Claims Court

As a last resort, you can pursue the matter in provincial small claims court. This is best for clear-cut cases with strong documentation where the amount justifies the time investment. Monetary limits vary by province (Ontario: $35,000; BC: $5,000; Alberta: $50,000; Quebec: $15,000). You do not need a lawyer for small claims court.

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Frequently Asked Questions

Common reasons include filing after the deadline, insufficient evidence, compelling counter-evidence from the merchant, the wrong dispute category, or the transaction being authorized by you.

In some cases, yes. If you have new evidence that was not included in the original dispute, you can ask your bank to reconsider. Submit a written request with the additional documentation attached.

OBSI (Ombudsman for Banking Services and Investments) is an independent body that resolves banking disputes in Canada. File a complaint at obsi.ca after exhausting your bank's internal complaint process. The service is free.

Yes. If all other avenues fail, you can file a claim in small claims court. The monetary limit varies by province. You will need to present your evidence and show that the bank did not handle your dispute properly.

Most external dispute resolution bodies expect you to escalate within 6 months of the bank's final response. Small claims court has its own limitation periods that vary by province. Act promptly to preserve your options.

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Disclaimer: This page is for informational purposes only. It is not legal advice.