mischarge

Mischarge is the incorrect application of a charge on a bill, invoice, or account. It occurs when a customer is billed for more or less than the correct amount, or charged for goods or services not provided. Mischarges are common in retail, utilities, hospitality, and e-commerce. In legal contexts, mischarge can also refer to charging a person with the wrong offense, but this article focuses on billing errors.

Common causes include data entry mistakes, outdated price data, duplicate charges, non-reflective discounts, incorrect tax or fee calculations, currency conversion errors, prorated bills, and software glitches.

Impacts include financial loss for the customer, disputes and frustration, and costs for the merchant from refunds and chargebacks, as well as potential reputational damage.

Resolution often involves verifying the erroneous charge, determining the correct amount, and issuing a refund or credit. Customers may need to file a dispute with a merchant, card issuer, or network, and merchants typically review transactions to prevent recurrence and adjust accounts accordingly.

Prevention relies on controls such as real-time price verification, validated discounts, accurate tax computation, duplicate-charge detection, regular reconciliation, and clear audit trails in billing systems. Regular audits and testings of billing processes can help catch systemic issues before they affect customers.

See also: billing error, chargeback, dispute resolution, consumer protection, revenue assurance.