Contract Guides

Unperformed Services Chargeback: Notice and Evidence

By Anirudh Menon, Viaclause editor

Dispute services not delivered as agreed. Get a sample billing-error letter, notice deadline, evidence worksheet and card-dispute route.

Updated October 14, 2026

Photo: Antoni Shkraba / Pexels. AI-assisted tonal treatment, crop and background extension. Illustrative stock photo; depicts no party to a dispute.

Yes, services not delivered as agreed can be a billing error on a covered consumer-credit account. Send the issuer a written billing-error notice at the address in your billing-rights statement, so it is received no later than 60 days after the first statement showing the error; an electronic notice counts only if the issuer's statement accepts it. In some cases, the issuer can reverse the charge.

Billing-error notice	Received within 60 days of first erroneous statement transmission

Sample billing-error letter

Sample billing-error wording to adapt to your records

To [issuer’s billing-error address]: I dispute [amount] on account [identifier], shown on the statement transmitted on [date]. The charge concerns [merchant and service]. The agreement promised [deliverables]. I received [delivered items], but [missing services] were not delivered as agreed. The attached agreement and correspondence explain the discrepancy. The merchant cites [refund term]; my objection concerns the missing services described above. Please investigate this billing error and provide the written result. [Name, contact information].

Which dispute fits what actually happened?

Start with the missing promise, rather than the phrase “no refunds.” The federal billing-error definition includes services not delivered as agreed. It also covers a different service or the wrong quantity. It excludes a quality dispute about services you accepted.

A quick decision aid for US cardholders
Your situation	First classification	What to prepare
Promised sessions or deliverables are missing	Potential nondelivery billing error on a covered consumer-credit account	List each promised service and what you received
You received and accepted the work but dislike its quality	Not this nondelivery billing-error category	Identify the defect and ask about other dispute routes
You used a business-purpose card	Federal section 1026.13 protection does not apply	Ask the issuer for its contractual dispute process
You paid by debit card	Protections differ; voluntary issuer assistance may be available	Contact your bank promptly and request its requirements

Separate a refund policy from the missing service

An issuer can reverse a charge in some cases, but a dispute is not a promise that you will recover your payment. A no-refund term is part of the documents to submit. Describe exactly what the merchant promised and why the delivery record does not match it. Avoid claiming the term is automatically illegal or that every cancellation deserves reimbursement.

For the federal nondelivery procedure, the relevant question is whether services were delivered as agreed. Whether you accepted them depends on state or other applicable law. The separate claims-and-defenses rule does not decide which claims are valid against a merchant; that depends on state or other applicable law. Ask a lawyer licensed in the relevant state to assess disputed acceptance, cancellation obligations or the enforceability of a fee.

For a missed service milestone, use the agreed scope rather than a general complaint such as “the package was disappointing.” Our material breach guide provides a framework for organizing a separate performance question. Keep your card-dispute submission focused on its own facts.

A partial-service example

Illustrative scenario: your package promises a consultation, a written plan and a follow-up. You attended the consultation, but the other deliverables are missing. Make separate rows for each item and acknowledge the consultation. Then explain the missing plan and follow-up using the contract and correspondence. Different services or the wrong quantity can fit the federal nondelivery category, subject to the account and notice requirements.

Do not invent a proportional refund if the agreement prices only the whole package. State the amount you dispute and explain your calculation. If pricing is unresolved, identify that uncertainty rather than presenting your estimate as an agreed allocation.

Build a promised-versus-delivered worksheet

Use this practical worksheet before contacting the issuer. It is an organizational aid, not a recovery formula. Save the contract version you agreed to, the invoice, card statement and communications together. Highlight both the service promise and the no-refund wording so the reviewer can assess the complete record.

A billing-error notice should identify your account and, to the extent possible, the error’s type, date, amount and reasons. Keep a dated copy of the submission and delivery record. Describe an authorized purchase with missing services truthfully; do not relabel it unauthorized merely because the merchant refused a refund.

Field	What to enter
Service promised	Copy the deliverable, session or milestone wording
Delivery due	Enter the agreed date and any later change
Actual delivery	Describe what arrived, occurred or remains missing
Evidence	Name the relevant agreement, message or record
Amount disputed	Explain the amount and any allocation uncertainty
Merchant response	Record any refund, denial or performance explanation

Send the billing-error notice without missing its deadline

Under Regulation Z section 1026.13, the creditor must receive your written notice at its disclosed billing-error address no later than 60 days after transmitting the first statement reflecting the alleged error. This clock is tied to the statement, not a universal period measured from the scheduled service date.

You do not have to contact the merchant first before sending a covered nondelivery billing-error notice. Trying the merchant can still be useful: the CFPB refund guidance suggests asking the seller to fix the problem or undo the charge. Do not let that discussion delay the formal notice.

An electronic notice can satisfy the written requirement when the creditor’s billing-rights statement accepts electronic notices and specifies how to send them. Do not assume any app message, general support chat or phone call is the designated written-notice channel.

Find the billing-error address or expressly accepted electronic method in your account documents.
Identify yourself and the account, then explain the error’s type, date, amount and reasons.
Include the promised-versus-delivered worksheet and copies of supporting documents.
Arrange for receipt within the statement-based deadline and retain proof.

What happens during the issuer’s investigation?

For a qualifying notice, the creditor must send written acknowledgment within 30 days unless it completes the applicable resolution procedures in that period. It must resolve the matter within two complete billing cycles, in no event later than 90 days after receiving the notice. These are federal billing-error response limits, not a guaranteed date for a merchant’s voluntary refund.

During the resolution period, you need not pay the disputed portion and related charges covered by the rule. Undisputed amounts remain collectible, so keep paying those according to your account terms. Ask the issuer to clarify how the dispute is reflected on the next statement.

A temporary account credit does not excuse the issuer from completing the remaining resolution procedures. Keep reviewing correspondence even after you see a credit. Store the acknowledgment, requests for information and final explanation alongside your original notice.

If the issuer denies nondelivery, the official interpretation requires a reasonable investigation and a determination that the property or services were delivered, mailed or sent as agreed. Request the written reasons and documentary evidence of the alleged debt. Compare those records with each missing deliverable rather than simply repeating the original complaint.

Check the separate protections before withholding payment

The claims-and-defenses rule is independent of billing-error resolution. It generally requires a good-faith attempt to resolve the dispute with the merchant. Its general conditions include credit extended exceeding $50 and a transaction in the same state as your current designated address, or within 100 miles of that address. Do not import those conditions into the separate nondelivery notice rule.

The claims-and-defenses amount is limited to credit outstanding for the disputed transaction at first notification. The rule has exceptions to its amount and geographic conditions. Ask the issuer or a licensed lawyer to review the full provision for your transaction instead of treating this summary as an eligibility ruling.

For business owners, account type is a particularly useful check. The official commentary on business-purpose credit excludes business-purpose cards from the federal billing-error provisions even for occasional personal purchases. Conversely, those provisions apply to occasional business purchases on a consumer-purpose card. Ask the issuer which kind of account it issued.

For debit payments, the FTC guidance warns that nondelivery refunds may be unavailable, although some issuers voluntarily offer protection. Request the bank’s actual dispute requirements promptly. Do not substitute a credit-card deadline for a debit-card process.

If the merchant or issuer refuses, organize the next request

A refusal does not remove the need to read the explanation. Separate a disagreement about the service from a complaint about how the issuer handled your notice. The CFPB accepts complaints about trouble with a credit card. Prepare the notice, delivery proof, supporting records and issuer responses before submitting one.

Use this final checklist: identify the account type; identify the missing service; check the statement date and notice method; explain the amount; record partial delivery; save the issuer’s acknowledgment and final reasons; request supporting debt documents where needed.

For a separate contract claim, our breach versus tort guide helps frame the question to take to a lawyer. For the notice itself, keep the contract review checklist nearby while locating the service scope, cancellation wording and designated contact.

Sources checked October 13, 2026.

Frequently asked questions

Can I dispute an authorized charge when services were not provided?

Yes. Services not delivered as agreed can be a covered billing error; the purchase need not have been unauthorized. Follow the account’s applicable notice requirements.

Does a no-refund policy guarantee that I lose?

The quoted billing-error rule covers services not delivered as agreed and does not list a refund policy as a condition. In some cases, the credit-card company can reverse the charge.

Must I try the merchant before the credit-card dispute?

Not as a prerequisite to the covered nondelivery billing-error notice. The separate claims-and-defenses route generally requires a good-faith merchant-resolution attempt.

Can merchants win a dispute?

An issuer may determine that no billing error occurred after investigation, but must provide the required explanation. Ask for documentary evidence of the debt and compare it with your service record.

How long does the merchant have to refund me?

The federal billing-error rule sets issuer investigation deadlines, not a universal merchant-refund period: two complete billing cycles, capped at 90 days after receiving the notice. Ask the merchant for its proposed refund date without treating that promise as an extension of your notice deadline.

What if the merchant provided only part of the package?

Identify what was delivered and what was missing. The official nondelivery examples include a different service or wrong quantity. A dispute about the quality of accepted services is excluded from that category.

Does a business credit card have the same billing-error rights?

No. The official commentary excludes business-purpose cards from section 1026.13, even for occasional personal purchases. Occasional business purchases on a consumer-purpose card remain covered by the regulation.