What is a chargeback, and can I get one for a big purchase?
What a chargeback is, when it works for a cancelled flight or an undelivered sofa, how long you have and where to go when it fails.
AI-assisted research and reviewed for accuracy. Something out of date? Let us know.
A chargeback is when your card issuer reverses a credit or debit card payment, and you can ask for one when you paid for goods or services that were never supplied or not as described. Time limits run from 45 to 120 days from the transaction date. If your bank refuses, you can complain to the Australian Financial Complaints Authority (AFCA), and your claim against the business still stands.
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What is a chargeback, and does it work for a big purchase?
A chargeback is when your bank or card issuer reverses a payment you made on a credit or debit card. It can work for a big purchase, such as a cancelled flight or furniture that never arrived, but it isn't guaranteed and the window to ask is short.
A chargeback isn't a right under the Australian Consumer Law (ACL). The NSW Government says chargeback terms are set by the card scheme (such as Visa, Mastercard or American Express) and also depend on your card's terms and the reason you give. Consumer Affairs Victoria explains that it happens between your bank and the business's bank: the business's bank may agree to pay the money back.
Time limits on chargebacks vary from 45 to 120 days from the transaction date. That's the range Consumer Affairs Victoria and the NSW Government give. Your card issuer sets which applies to you, so ask it early.
Official guidance lists the most common reasons you can ask for one:
- the goods or services were not supplied, or not within the agreed time
- they were not as described
- the business stopped operating and you didn't get what you paid for
- the payment was duplicated, fraudulent or made without your permission.
For big purchases, the first and third reasons cover a flight the airline cancelled without a refund, a sofa or fridge that never turned up or a business that collapsed after taking a deposit. A faulty appliance is less clear-cut. "Not as described" is on the official list, and Westpac says it accepts disputes about faulty goods, but each bank decides under its own card rules.
| How you paid | Can you ask for a chargeback? | What the official guidance says |
|---|---|---|
| Credit card | Yes, through your card issuer | Ask within 45 to 120 days of the transaction |
| Debit card | Yes, through your bank | The same reasons and time limits apply |
| PayPal with a linked credit card | Sometimes | Only once a PayPal dispute has failed, says the NSW Government |
| Cash, bank transfer, cheque, direct debit or BPAY | No | Your claim is with the business itself |
A chargeback is also unavailable if you can claim on insurance or you've already been compensated. The NSW Government lists both.
A chargeback deals with the payment, not with what the business owes you. Under the ACL, the ACCC says a major problem with a product gives you the choice of a refund or replacement, and a major problem with a service lets you cancel and get a refund. The ACCC says refunds should be in the same form as the original payment, unless you and the business agree otherwise.
What should you do before asking your bank?
Ask the business in writing first, even if you've already asked by phone. The NSW Government says card issuers may ask for proof that you tried to sort it out with the business, and without it the chargeback can take longer.
Step 1: Keep your evidence
Keep the receipt or booking confirmation, the card statement showing the payment, the item description or terms and every message with the business. Note the date you paid, because the chargeback clock starts there.
Step 2: Ask the business in writing
Ajust's recommended channel is whichever one gives you a written record and a reference number, usually the web form or a complaints email.
Subject: Refund request for [what you bought]
Hello,
On [date] I paid $[amount] by card for [what you bought]. [It has not been delivered / The service was cancelled and not provided / It is not as described].
I raised this on [date] and have not received a refund.
I am asking for a full refund of $[amount] to the card I paid with.
Please confirm in writing within 14 days that you will refund me, and when.
Regards,
[Your name]
Step 3: Hold them to a date, then go to your bank
If the date passes with no refund, lodge the chargeback with your bank straight away and attach the letter and the reply. Count back from your payment date: if the window is closing, lodge with the bank before your 14 days are up.
Already done all this and still no refund, or your bank said no? Here's what happens next.
What if the chargeback fails or the business still won't pay?
There are two separate tracks: the bank's handling of your chargeback, and your claim against the business. Each route below helps with one of them, and each has limits.
| Where | What it does | Where it stops |
|---|---|---|
| Your bank's disputes team (the chargeback) | Asks the business's bank to reverse the payment under the card scheme's rules | The NSW Government says there is no guarantee you will get one. Westpac says a dispute may be unsuccessful if the business successfully challenges it. Requests outside the 45 to 120 day window may be rejected |
| Your bank's complaints process | Reviews the bank's decision. ASIC says the bank must give you its final decision and tell you about AFCA | It's still the bank reviewing its own decision |
| AFCA | An independent scheme that hears complaints about financial firms for free. ASIC says for most complaints its decision binds the bank if you accept it | You must complain to the bank first. It handles complaints about financial firms such as your bank, not about the business that took your money |
| State consumer agency (NSW Fair Trading, Consumer Affairs Victoria) | Contacts the business to try to resolve your claim | Consumer Affairs Victoria takes on card payment cases once a chargeback has failed. It says it cannot make anyone speak to it and cannot enforce an outcome |
| Tribunal (for example NCAT in NSW) | Hears your claim against the business and makes an order it must follow | You run the case yourself and pay an application fee. NCAT hears consumer claims up to $100,000, lodged within 3 years |
MoneySmart says you may be able to get free legal advice from a community legal centre, and NCAT says you can run your own case without a lawyer.
Can someone take this on for you?
Yes, for your claim against the business. Only you can ask your bank for a chargeback, and Ajust doesn't take on disputes with the bank itself.
Our team takes over your refund claim with the airline, store or furniture company. We go past the call centre to the complaints team or managers who can approve a refund and hold them to a date. In NSW, Victoria, Queensland, SA and WA we can also lodge it with Fair Trading or Consumer Affairs for you if they still refuse.
No win, no fee. We'll tell you straight if we don't think we can win it.
What doesn't work
- Waiting on the business past the window. The time limit runs from the day you paid, not the day they stopped replying. Lodge with your bank before it closes.
- Going to the bank with nothing in writing. Banks may ask for proof you tried the business first, and a phone call leaves none.
- Paying a deposit by bank transfer. Bank transfer, BPAY and direct debit can't be charged back, so your only route is the business.
- Accepting a part refund or voucher as settlement. A chargeback isn't available once you've already been compensated.
- Giving up when the bank says no. The bank's refusal ends the chargeback, not your claim against the business.
Common questions
Can the business dispute my chargeback?
Yes. The business gets a chance to respond to your dispute, and Westpac says your dispute may be unsuccessful if the merchant successfully challenges it. Send your bank everything you have, including your written request and any reply, so it can answer the challenge.
My bank refused my chargeback. What can I do now?
Make a formal complaint to the bank in writing, with the word complaint in the subject line. If you're still unhappy with its final decision, AFCA hears complaints about banks for free. Separately, your claim against the business still stands, and Consumer Affairs Victoria takes on card payment cases once a chargeback has failed.
Do I have to contact the business before asking my bank?
It's strongly advised. The NSW Government says to contact the business first, and that card issuers may ask for proof you tried. Without it, the chargeback can be delayed. One written request with a deadline gives your bank the proof it may ask for.
I paid through PayPal. Can I still get a chargeback?
Sometimes. The NSW Government says you may be able to get one if a credit card is linked to your PayPal account and you've already been unsuccessful in PayPal's own dispute process. Start with PayPal, then go to your card issuer, and watch the time limit while you do.
I paid by bank transfer. Is there anything like a chargeback?
No. Chargebacks only apply to card payments, and the NSW Government says they aren't available for money transfers, cheques, direct debits or BPAY. Your claim is against the business. Ask in writing for a refund, then go to your state consumer agency or a tribunal if it refuses.
- NSW Government: Disputing credit and debit card transactions
- Consumer Affairs Victoria: Chargeback
- Consumer Affairs Victoria: Resolve your problem
- Moneysmart: How to complain
- ASIC: Disputes with financial firms (INFO 174)
- ACCC: Repair, replace, refund, cancel
- NCAT: Consumer claims
- Westpac: Disputing a transaction
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