The difference that decides which process you're in
Refund —the merchant gives your money back directly. It's initiated by them, and it's usually the faster path.
Chargeback —a forced money pull-request that your bank sends to the merchant. It's an escalation, used only once everything else has failed.
Fraud, scam, authorised, unauthorised — one decision, not four words
Don't recognise a transaction? Check first before assuming fraud — it could be a subscription you forgot about, or a purchase made by someone you share access with (a partner, your kids, or an AI agent you gave instructions to). Once you've ruled that out:
That's fraud and you should contact your bank straight away and have your card blocked and replaced.
When you raise your dispute with the bank tell them exactly what happened and that it might have been a scam. They'll investigate further. Additionally report it to Scamwatch so that others can be protected.
Message the seller first. Most things get fixed directly, faster than any bank process.
Not about a purchase at all? Invoice, romance or investment scams usually skip this whole process — they rarely go through a chargeback. Go straight to your bank, as early as you can. There is no shame about scams. A scam caught and reported early helps your chances to get your money back and can protecrt others from scammers.
Common reasons people raise a dispute
Whatever's gone wrong, it almost certainly falls into one of these — and nearly all of them start with contacting the merchant, not the bank.
Fraud
I don't recognise a charge on my card. There might have been fraud.
Fraud — before you lodge
- Check the business name in your banking app or transaction summary.
- Look up the displayed merchant name online.
- Scan past transactions for the same business name.
- Search email and junk folders for orders or receipts.
- Ask household members or kids whether they made the payment.
- Check linked merchant accounts such as Apple or Google.
Evidence required: None
Never received
Goods or services were paid for but never delivered.
Never received — before you lodge
- Always contact the business first to resolve the matter and give the business time to help find a resolution.
- Wait a few days after the expected delivery date, to allow for any delay in postal services.
- Check tracking details found in your order confirmation from the business to try to locate your item.
- If there isn't an expected delivery date in your order confirmation, you'll need to wait at least 15 days from the time of transaction before raising a dispute.
- If available, raise a dispute directly through the business.
Evidence required:
- As much detail of the purchase as possible, including good/service type, sizing, brand, colour and specifications. This will help us resolve your dispute faster. If the charge included multiple items, confirm which item/part wasn't provided.
- Any shipping links/IDs you have received. If it was multiple shipments to one order, share those too.
- All communication with the business showing how you tried to resolve the matter.
- If available: a detailed invoice with expected delivery date noted.
- If applicable: confirmation from the business that they'll not deliver your goods or service.
Not as described
What arrived doesn't match what was advertised or promised.
Not as described — before you lodge
- A business might have lied to you — and they might even be a scam.
- This could be a counterfeit item; an item advertised as 100% cotton but the delivered item's composition is far from it; a service promising a certain outcome that it could never fulfil; or an inclusion that was promised but not available.
- Review the detailed description on the business's website, your email confirmation, travel voucher, etc. to confirm what you were meant to receive. Were there any limitations or restrictions — for example, certain inclusions only available for a limited time or subject to availability?
- If you believe you've been subjected to a scam, tell the bank. They'll investigate further, which can help protect others from the same scammer — note they might need to replace your card, since you effectively gave your card details to a criminal and could otherwise be at risk of further financial crime.
Evidence required:
- As much detail of the purchase as possible, including good/service type, sizing, brand, colour and specifications. This will help to resolve your dispute faster.
- A detailed explanation of how the goods/service misrepresented the facts. Photos may also be provided to assist.
- All communication with the business showing how you tried to resolve the matter.
- If applicable: a letter from a specialist in the relevant field explaining how the goods/service is not as it was described — e.g. to prove the authenticity of an artwork.
Faulty or defective goods
The product doesn't work, or breaks down well before it reasonably should.
Faulty or defective goods — before you lodge
- Review the detailed description on the business's website to confirm what you were meant to receive. Was it perhaps advertised as a second or damaged item? Was the item advertised as used?
Evidence required:
- As much detail of the purchase as possible, including good/service type, sizing, brand, colour and specifications. This will help to resolve your dispute faster.
- A detailed explanation of how the goods/service is faulty or defective from what was originally purchased. Photos may also be provided to assist.
- All communication with the business showing how you tried to resolve the matter.
- If applicable: a letter from a specialist in the relevant field explaining how the goods/service is not as described/defective (e.g. a registered mechanic validating your claim against a car having defective parts).
Misrepresentation
The merchant misled you about what you were buying — its condition, features, or origin.
Misrepresentation — before you lodge
- A business might have lied to you — and they might even be a scam.
- This could be a counterfeit item; an item advertised as 100% cotton but the delivered item's composition is far from it; a service promising a certain outcome that it could never fulfil; or an inclusion that was promised but not available.
- Review the detailed description on the business's website, your email confirmation, travel voucher, etc. to confirm what you were meant to receive. Were there any limitations or restrictions — for example, certain inclusions only available for a limited time or subject to availability?
- If you believe you've been subjected to a scam, tell the bank. They'll investigate further, which can help protect others from the same scammer — note they might need to replace your card, since you effectively gave your card details to a criminal and could otherwise be at risk of further financial crime.
Evidence required:
- As much detail of the purchase as possible, including good/service type, sizing, brand, colour and specifications. This will help to resolve your dispute faster.
- A detailed explanation of how the goods/service misrepresented the facts. Photos may also be provided to assist.
- All communication with the business showing how you tried to resolve the matter.
- If applicable: a letter from a specialist in the relevant field explaining how the goods/service is not as it was described — e.g. to prove the authenticity of an artwork.
Double charge
You were charged twice for what should have been a single transaction.
Double charge — before you lodge
- It can be more than one payment method used (for example, paid by card but there was an error on the terminal so you then paid cash) or two charges on the same card.
- If the transaction is ‘pending’, wait 3–10 days for it to process before raising a dispute. Most duplicate transactions that appear as ‘pending’ usually drop off and never debit your account.
- If the duplicated transactions are processed and debited from your account, contact the business first to resolve the matter and give the business time to help find a resolution.
Evidence required:
- All communication with the business showing how you tried to resolve the matter.
- Proof of the other payment method (e.g. cash receipt, other bank statement) to show that you paid for the goods/service more than once.
Wrong amount charged
The amount taken is different to what you agreed to pay — an overcharge.
Wrong amount charged — before you lodge
- Confirm if the original transaction was in AUD or in a foreign currency. We won't be able to help with your dispute if you weren't aware it was in a foreign currency at the time of purchase.
- Sometimes the advertised price isn't the final price — tax, duties or surcharges are sometimes only added during the payment process.
- The amount for a pending transaction can sometimes change once it gets processed, so it's best to wait for the transaction to process before raising a dispute.
- Once the transaction is no longer ‘pending’ and still appears as the incorrect amount, contact the business first to resolve the matter and give the business time to help find a resolution.
- If available, raise a dispute directly through the business.
Evidence required:
- All communication with the business showing how you tried to resolve the matter.
- A detailed invoice or receipt with the correct amount you were meant to be charged.
A promised refund never arrived
The merchant agreed to refund you, but the money never showed up.
A promised refund never arrived — before you lodge
- Most refunds take 5–7 business days to be credited. It's best to wait at least 2 weeks to receive the refund into your bank account or card from the business.
- Contact the business first to resolve the matter and give the business time to help find a resolution.
- If available, raise a dispute directly through the business.
Evidence required:
- All communication with the business, including confirmation that the business agreed to provide a refund, and any communication showing how you tried to resolve the matter.
- An invoice of the refund processed by the business.
- The business's cancellation or return policy.
- If applicable: the terms and conditions stating the free cancellation.
A cancelled subscription keeps charging you
Subscription cancellations can be genuinely messy — some merchants make it hard to even find the cancellation option, let alone confirm it went through. Contact the merchant first; as a service provider, they have the right to make good. If you do end up needing a chargeback, scheme rules put a limit on how far back you can claim, so you may not get every past payment back — only those within that window.
A cancelled subscription keeps charging you — before you lodge
- Read the business's cancellation terms and conditions to understand any notice period required. Check if you truly cancelled — some businesses show special offers during the cancellation process, and you might have needed to additionally confirm that you really want to cancel.
- Always contact the business first to resolve the matter and give the business time to help find a resolution.
- Disputing a subscription payment will not block future charges — you'll need to contact the business to cancel the recurring payment arrangement.
Evidence required:
- The date and method you used to cancel the subscription/recurring payment.
- All communication with the business, including proof that you cancelled or tried to cancel the subscription/recurring payment.
- Terms and conditions of the business to confirm whether notice is required.
The business became insolvent
You paid, but the merchant went into administration or liquidation before delivering the goods or services. There's often no one left to contact directly, which is one of the few cases where going straight to your bank makes sense.
The business became insolvent — before you lodge
- A chargeback is likely the best option to get your money back when you paid in advance for goods/services to be provided and the business stopped trading.
- Before you lodge, check whether the business has notified you and provided any remediation options.
Evidence required:
- As much detail of the purchase as possible, including good/service type, pre-order/back-order dates, or — if applicable — dates of events/tickets. Dates and sequence of events matter and will be validated.
- Any information you have about the business ceasing to trade.
Why it's worth trying the merchant before the bank
The chargeback rules actually state that you must frist attempt to resolve an issue with the merchant before initiating a chargeback, however research shows that many consumers are missing this crucial step. Generally a merchant wants you to reach out to them and want to help you. In most cases, a merchant has a legal obligation to fix a problem before you ever need your bank involved. Even if that fails, it builds important evidence for your chargeback and increases the likelihood you'll win it.
Depending on where you live, merchants are often legally required to repair, replace or refund a faulty product or service. The ACCC's guide to your consumer rights sets out exactly what you're entitled to. Many merchants will also offer a goodwill gesture — a partial refund, credit, or replacement — beyond what their stated return policy requires, especially if you raise the issue directly and calmly.
A chargeback can take weeks or months. Refunds are commonly resolved within a few days — sometimes instantly. Some banks credit you straight away, others only after 45 days of silence from the merchant — and even a credit isn't final if the merchant pushes back.
A refund costs a merchant some admin time and processing fees. A chargeback costs far more — card networks charge hefty fees on top, and small businesses have told PDI a single chargeback can wipe out a week's revenue. Get too many, and the merchant's account can be flagged, fined, or shut down by the card networks that monitor this. It's a real cost to a real business, not just a line item — see, for example, ABC News's reporting on small businesses under this pressure.
Your card's own protections might be the better tool
Many credit cards, and some debit cards, include this as a built-in benefit. It can cover things a chargeback simply doesn't — like a product breaking down within the first few months of ordinary use, or the item being stolen.
Some cards bundle complimentary travel insurance, which can be more useful than a chargeback for cancelled trips, delays, or lost luggage.
Check the fine print before you rely on either. Interchange — the fee a bank earns from a merchant each time you tap your card — has been squeezed in Australia recently, and some card issuers have wound these benefits back in response or added additional requirements in the terms & conditions. Even if you used, i.e. their travel insurance before, better check as things might have changed.
A chargeback isn't consequence-free — even for you
In Australia, the Banking Code of Practice requires banks to pursue a chargeback wherever chargeback rights exist, and to offer that process without charging you for it. What it doesn't do is protect you from what happens afterwards: if the claim turns out to be wrong, the consequences can land on you even if the merchant never formally contests it through the chargeback process — they may still recharge you, invoice you directly, or refer the matter to debt collectors. Your bank has no visibility into most of this, so it can't warn you in advance.
Your account can be suspended
Some merchants and apps close accounts of customers who raise disputes against them.
Buy-now-pay-later can bite back
An extra instalment, late fees, and possibly a mark on your credit file — if the dispute involves a BNPL purchase.
Debt collectors can get involved
Especially if you kept goods or services you didn't return.
In some industries, it can go criminal
A small number of sectors treat an illegitimate chargeback as a criminal matter, not just a civil one.
You could be flagged as a scammer yourself
Under Australia's new Scam Prevention Framework, raising an illegitimate chargeback against a small business can have its own consequences for you. Be sure before you dispute — this isn't a process to test out "just in case."
Key takeaways
- Reaching out to a merchant and trying to resolve a matter in good faith costs you nothing and protects you from unintended consequences.
- You making up a chargeback on fraudulent grounds can cause you trouble. Even if a half-baked case got you your money back previously, the frameworks are tightening and you don't want to be declared a scammer.
- If you paid via a BNPL service, Google account, Apple account or PayPal, use their resolution services as a chargeback can cause consequences.
- Attempt to return goods even if you won a chargeback. The greatest likelihood of debt collectors is for high-value items that you kept and kept the money for.
- The chargeback process was genuinely created to help consumers and if you really need a pathway to escalate to recover funds from fraud it's an important tool!
How a chargeback actually plays out
You report it
In-app, in chat, or by form. Expect questions like whether you contacted the merchant, when you first noticed the charge, or whether you attempted to return the goods — among others.
Usually within 120 days of the purchase, or the merchant's last promised delivery date. Genuine fraud can still be reported later, though your chances may differ.
The bank asks questions
Basic intake, plus possibly follow-up requests for evidence — more than once.
Right away to several weeks — we've seen cases take up to 8 weeks.
A credit may land
Some banks credit you straight away. Others wait — sometimes up to 45 days — if they don't hear back from the merchant.
Right away after lodgement, up to 45 days from when the bank lodged the case or had enough information to pursue it.
The merchant can contest it
If they do, any credit you were given is taken back out of your account automatically.
Within that same 45-day window from step 3 — not an additional 45 days.
The bank can escalate
If the bank disagrees with the merchant's response, they may keep pushing for a resolution with the merchant, and may involve the card networks (Visa, Mastercard, eftpos, or another scheme).
Several weeks to months.
A final outcome is set
This is the point the money is actually, finally, yours to keep.
45 days at the very fastest — realistically, often months.
A provisional credit is not a win. Until the merchant's contest window has closed, the money can still be pulled back out of your account. The overall process can easily take several weeks — sometimes months.
If your bank got the process wrong — not just the outcome
The Australian Financial Complaints Authority (AFCA) steps in when your bank's process failed you — for example, more than three weeks of silence, or your dispute logged under the wrong reason so it was never going to succeed.
AFCA isn't there because you're unhappy with how your chargeback turned out. It checks whether the process was followed properly — not whether the result feels fair.
Two things set that standard: the Banking Code of Practice, which banks sign up to, and the ePayments Code, which sets the rules for things like unauthorised transactions. If you believe your bank didn't follow either one, that's a process failure — and exactly the kind of thing AFCA can look into.