A chargeback is the reversal of a disputed transaction back to the credit or debit card account.
Chargebacks are available:
- for purchases on credit cards
- if the buyer uses the ‘credit’ option on a debit or travel card
- if they select the ‘cheque’ or ‘savings’ option when paying by debit card. or
- for multi-network credit cards where ‘cheque’ or ‘savings’ is available and has been selected at the point of sale.
It is not available when they pay by cash, BPAY, direct debit, money transfer or cheque.
Consumers may be able to seek a chargeback from their card provider when they have a problem with a purchase.
Common situations include:
- when goods or services delivered are not as described
- when goods or services have not been supplied within the agreed timeframe
- for duplicated or fraudulent transactions
- when charges are made without your agreement
- insolvency.
Consumers will not be able to claim a chargeback if they simply ordered the wrong thing or changed their mind.
It is a good idea to regularly check credit card statements for any unexpected charges.
If a business has wrongly made charges, try to resolve the issue with them first.
Visit our Complaints page to resolve your complaint
Remember to keep emails or notes on all attempts to contact the business and resolve the issues.
Make a chargeback claim
To make a chargeback claim, consumers should contact the credit card provider right away (for example Visa, Mastercard, American Express, Diners Card) as they must operate within the time frames set by the card scheme.
Consumers will probably have to submit a chargeback dispute form to their credit card provider.
Keep a copy of any forms, emails, documents, or webpages you have filled out, read, or received. They will help support the claim.
A term or condition in a contract that seeks to limit or remove the consumer’s credit card chargeback rights is also likely to be an unfair contract term.
Gift card scams
Please be aware, if a scammer has persuaded you to buy gift cards as a form of payment, you may not be eligible for a chargeback.
This is because the scammer, not the business that you bought the gift cards from, is the perpetrator of the scam.