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What is a chargeback?

A chargeback is a reversal of a charge on a credit card, or debit card (when 'credit' is selected). It is similar to a refund.

The chargeback process is separate from other dispute resolution services, such as those through eBay or PayPal. For more information on these processes, view our Resolve your problem or complaint section.

When consumers can request a chargeback

Consumers can request a chargeback from their card provider for a number of reasons, most commonly when:

  • they pay for products or services with a credit card, or select 'credit' on a debit card, and:
    • the products or services received are not as described
    • they do not receive the products or services at all or within the agreed timeframe.
  • there are duplicate or fraudulent transactions
  • charges are made without permission
  • unrecognised transactions appear
  • the business they purchased products or services from stops operating and they did not get what they paid for.

When consumers cannot request a chargeback

There are some circumstances when a chargeback may not be available. For example, if the consumer:

  • selected 'cheque' or 'savings' as the account type on a debit or EFTPOS card
  • paid with cash, money transfer, cheque, direct debit or BPAY
  • are eligible to lodge an insurance claim
  • have already been compensated.

Chargeback time limits

Consumers should contact the bank or credit card provider straight away, as there are time limits on making a chargeback claim.

Chargeback requests made outside the time limits may be rejected. If a consumer believes their bank or credit card provider has incorrectly rejected a chargeback request, they can dispute this decision through the Australian Financial Complaints Authority (AFCA). AFCA is an independent service that can help resolve disputes between consumers and member financial services, such as banks and credit card providers. For more information, visit the Australian Financial Complaints Authority website.

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