Disputing credit and debit card transactions
You may be able to reverse a transaction on your card if something is wrong with the product, service or payment. Here’s what you need to know.
Reversing transactions
A chargeback is like a refund. It’s when a credit or debit card issuer reverses a transaction.
You may want a chargeback when:
- you dispute a transaction on your credit card
- goods or services you bought were not as described
- goods or services you bought were not supplied
- a transaction is duplicated or fraudulent
- charges are made without your permission
- the trader you purchased goods or services from stops operation and you did not get what you paid for.
Time limits apply to chargeback claims. They can vary from 45 to 120 days from the transaction date so check with your card issuer and submit your claim as soon as possible.
When you can get a chargeback
Chargebacks can only happen in certain circumstances and there is no guarantee you will get one.
Before requesting a chargeback, contact the merchant directly and attempt to resolve the issue this way.
Resolving the issue directly with the merchant can be quicker and easier than the chargeback process.
During the chargeback process, credit and debit card issuers (for example, banks and credit unions), may ask for proof that you have attempted to resolve the issue with the merchant directly. If you have not done this, the chargeback process can be impacted and extended.
Asking for a chargeback
The terms and conditions for chargebacks are set by the operator of the card scheme and form part of the agreement with the merchant.
It will depend on the:
- reasons you give for wanting the charge back
- terms and conditions of your card or bank account
- rules of the credit or debit scheme (such as Visa, MasterCard or American Express)
- merchant agreement which sets out when a transaction is invalid or unacceptable.
If you wish to begin the chargeback process, contact your bank or credit union.
The chargeback process is separate from other dispute resolution services, like those available through eBay or PayPal.
You may have a right to a chargeback for PayPal purchases if:
- your credit card is linked to your PayPal account, and
- you’ve been unsuccessful in a dispute resolution process with Paypal.
When you cannot get a chargeback
Chargeback is not available when you:
- pay with cash, money transfer, cheque, direct debit or BPAY
- are eligible to lodge an insurance claim
- have already been compensated.
Making a complaint
If you’re unsatisfied with your card issuer’s decision, contact the Australian Financial Complaints Authority.
When making a complaint, you should include:
- details of the issues you are experiencing
- copies of any correspondence that shows how you have tried to resolve the matter.
How Fair Trading will handle your complaint
Your complaint will be reviewed to determine the most appropriate resolution. This may include:
- providing you with information to help resolve your complaint
- recording the complaint issues to assist in future compliance programs, or
- contacting the other party to try and resolve the dispute.
You can lodge a complaint:
Online
If you cannot resolve your matter, submit your complaint by using our form.
By mail
Post your complaint form and documentation to:
NSW Fair Trading
PO Box 972
Parramatta NSW 2124
Ask a question
If you are unable to find the information you need, you can call us between 8:30am to 5pm on Monday to Friday. You can also use our form to make an enquiry.