How to use a credit card chargeback

How to use a credit card chargeback

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Key takeaways:

A chargeback, or a reversal of a charge because of a dispute, can protect consumers not only from errors and fraud, but also from poor quality products and services.

Chargebacks are easy to initiate and are often successful, but they don’t cover all scenarios.

Chargebacks are designed as a last resort; the first step should generally be to try to resolve the issue with the merchant directly.

Credit card users who feel helpless when dealing with merchants that provide shoddy goods and services should know they have a powerful tool available to them: chargebacks.

A chargeback occurs when a credit card holder disputes a charge and the transaction is reversed. People tend to think of chargebacks as remedies for billing errors or fraudulent purchases . But consumers can also dispute a charge if they’re dissatisfied with the quality of merchandise, service or delivery and the merchant refuses to make things right, according to the federal Fair Credit Billing Act .

Experts say that although the law hasn’t changed, the power of chargebacks has surged, to the point that banks and credit card processors typically side with consumers. Disputing a charge allows consumers to at least temporarily avoid paying without risking damage to their credit. They can also dispute paid charges from previous billing cycles. And the process has become as simple as making a few clicks from an online bank statement or taps in a bank smartphone app.

“It’s really easy to do,” says Kevin Brasler, executive director of Consumers’ Checkbook, a nonprofit rater of local service vendors. The organization has called the chargeback “a consumer superweapon.”

A tool to be used judiciously

But with the great power of a chargeback comes great responsibility.

Chargebacks are costly to retailers. Not only do they lose money from disputed sales, but they also incur chargeback fees and potentially higher processing rates. Credit card processors may even drop retailers that have too many chargebacks.

Merchants would prefer consumers dispute charges as a last resort, as the law intended. But because the process has become so easy, retailers say some customers use a chargeback instead of returning an unwanted item for a refund or getting in touch to work out a solution. Consumers might even dispute charges in an attempt to get their money back and keep the merchandise, a behavior sometimes dubbed “friendly fraud.”

“One of the rules is, you have to try to work it out with the merchant first,” Brasler says. “That’s only fair.”

And as merchants incur the costs of chargebacks, they pass them along to consumers in the form of higher prices, says Craig Shearman, spokesman for the National Retail Federation.

“Most retailers are very glad to work with their customers. They want to resolve the dispute and have a happy customer come back,” Shearman says.

Why chargebacks are increasing

Retailers reported a surge in chargebacks following a 2015 behind-the-scenes change related to the new security chips in credit cards that shifted liability for in-person fraudulent purchases from banks to retailers if the disputed charge came from a credit card equipped with an anti-fraud microchip, but the retailer’s card reader didn’t accept chip cards.

Some retailers who usually saw a few hundred dollars’ worth of chargebacks per year were suddenly seeing thousands’ worth, Shearman says. Much of that was due to fraud, but consumer disputes were also being automatically charged to retailers who didn’t yet have chip-card readers, he adds. Some consumers, he says, took advantage of the situation.

Brasler says merchants’ fear of chargebacks has given consumers new power that they should use sparingly. “Don’t be shy about saying, ‘I have this option, and I’ll use it if I have to,’” he says.

This article was first published by The Associated Press .

The secret to getting your cash back when purchases go wrong.

Bought something online that never turned up? Or the item delivered is nothing like what was advertised? If the trader won’t refund you, a chargeback could the easiest way to get your money back.

If you haven’t heard about chargebacks, you’re not alone. Many consumers aren’t aware they’re an option and, as a result, could be missing out on refunds.

You can apply for a chargeback if you paid for a good or service by credit or debit card.

Our survey found nearly half (47 percent) of Kiwis didn’t know about chargebacks. One in four of those with a credit or debit card said they’d been in situations where they would have applied for a chargeback if they’d known it was an option.

Chargebacks can come in handy when you’ve bought goods from an overseas retailer and can’t rely on the Consumer Guarantees Act (CGA). The act only applies to traders operating in our market.

Here’s what you need to know about chargebacks and how they work.

What’s a chargeback?

In simple terms, a chargeback is where money paid to a retailer for an item is reversed out of its account and refunded to yours.

Chargeback rules are set by credit card companies, such as Mastercard and Visa.

All credit or debit card purchases, including contactless transactions, should be protected by the companies’ chargeback policies. Chargeback rights don’t apply if you paid by eftpos.

When can I apply for a chargeback?

Common situations where you can apply for a chargeback include:

  • You paid for goods or services that weren’t provided
  • The product turned up but wasn’t as described or was faulty
  • Your account was fraudulently or mistakenly debited
  • A promised refund wasn’t credited to your account
  • You cancelled a direct debit but the retailer kept taking money from your account.

How do I apply for a chargeback?

Your first step in any dispute with a trader is giving it the opportunity to put things right – a good retailer should do this straight away. If that doesn’t happen, then contact your bank or the card issuer (if it’s not your bank) and apply for a chargeback.

You generally have 120 days from the date of the transaction to apply for a chargeback, though time frames vary depending on the nature of the dispute. We recommend taking action as soon as you’re aware of the problem.

You’ll need to provide your bank with details of the dispute, such as the date and amount of purchase, a description of the goods or services ordered, and evidence of your efforts to resolve the matter with the retailer.

Keep a record of emails and any other correspondence with the retailer, setting out what the problem is and making your request for a refund clear. Having a paper trail will make it easier to argue your case.

If you received an incorrect item and returned it, but have yet to get your money back, provide proof of return. Track the returned item so you can see it’s been delivered to the retailer.

When you apply for a chargeback, the bank will investigate. The retailer will be asked for its side of the story. It may try to dispute your application but will need to provide evidence to support its case. If it doesn’t respond within the required time frame or doesn’t raise valid grounds for dispute, you’ll be refunded.

Will a chargeback cost me anything?

You may be charged if your chargeback application is unsuccessful. Check with your bank about its policy.

What if the bank says “no”?

If your bank declines your application and you think it’s acted unfairly, take your case to the Banking Ombudsman.

The ombudsman will look at whether:

  • you were given good information about how to dispute a transaction
  • your bank processed the chargeback request appropriately
  • your bank correctly assessed the retailer’s response to the chargeback
  • the credit card company’s time frames for chargebacks were followed.

Most complaints to the Banking Ombudsman are from consumers disputing payments when they think they’ve been misled by the retailer or discovered the service was a scam.

If your complaint is upheld, the ombudsman may award compensation. Your bank may also be told to process your chargeback application if it hasn’t done so.

Chargeback questions

I ordered one brand of TV but was delivered another. The company won’t refund my money. Would I qualify for a chargeback?

Yes. When goods aren’t as described, and the supplier refuses to put things right, that’s grounds for a chargeback. The bank is likely to require evidence of what was ordered and what was delivered, and proof it was returned or that the seller has refused to accept the return.

I paid a deposit for a lounge suite but the business went bankrupt before it was delivered. Can I get a chargeback?

Yes. If a trader goes bust before you get your goods, you can apply for your bank for a chargeback.

The same applies if you’ve paid for a service, such as a plane ticket or holiday package, and the company goes under.

When STA Travel went into liquidation, customers who paid for tickets with a credit or debit card were able to apply to their bank for a chargeback.

What if the store’s account doesn’t contain enough money to cover the chargeback?

The bank should still refund you and pass the charge on to the retailer’s bank, which then has to try to retrieve it from the retailer.

I bought a study course with an unconditional 30-day money-back guarantee. I sent the goods back within 30 days but never received the refund. Is a chargeback available?

Yes. If the retailer has failed to provide the refund promised, you can apply for a chargeback.

When you return goods, keep evidence you’ve sent them back and that the retailer has received them.

I bought a computer from a store the other day but have now found a better deal elsewhere. Can I reverse the purchase?

No. You can’t get a chargeback simply because you found a better offer elsewhere or just changed your mind. The only exception would be if the store promised to refund the difference if you found a better price at another store. If it failed to provide the promised refund, you can apply for a chargeback.

You may want to dispute a card transaction if:

  • The transaction was not authorised by you, or was put through more than once
  • The supplier did not deliver the goods or services you paid for

You should contact the supplier first and ask for a refund. If the supplier will not refund your money and you paid using a credit or debit card, your card provider – usually your bank – may agree to reverse the transaction. This is called a chargeback .

In order to start a chargeback, you should contact your bank or credit card provider immediately. Give them details of the disputed transaction and request that they follow it up.

Depending on the debit or credit card scheme – i.e. Visa or MasterCard – there are different terms and conditions in relation to chargebacks. Most schemes offer full chargeback rights but there can be specific timeframes for requesting a chargeback, such as 120 or 180 days after the transaction takes place or the agreed date of delivery. These timeframes vary depending on the card scheme, i.e. Visa or MasterCard.

If there is a transaction on your bank account or credit card statement that you do not recognise, contact your bank or credit card company straight away as it could be a fraudulent transaction.

If you request a chargeback and you are not happy with the response from your bank or card provider, you can make a complaint.

What is the chargeback process?

If a cardholder sees a transaction on their credit card that they have not made, or if they were charged an incorrect amount, they can dispute that transaction with their bank or financial institution. If the cardholder’s bank feels the dispute is valid, the transaction in dispute is reversed from your merchant account and refunded to the cardholder. This process, and ultimately the reversal of the payment is called a chargeback.

How does the chargeback process work?

  • Step 1
  • Step 2
  • Step 3
  • Step 4
  • Step 5

Step 1. A dispute is raised by a cardholder.

A cardholder may see a transaction on their statement that they do not recognise and raise a dispute with their bank.

Step 2. Their bank will issue a chargeback.

The cardholders’s bank will lodge a dispute through the card scheme, typically Mastercard, Visa or eftpos and this will raise a chargeback with Westpac.

Step 3. We’ll contact you and ask for some information.

We will send you a notification via letter and/or email*, to let you know that one of your transactions has been disputed. In the notification we’ll request some documentation like the:

  • terms and conditions of the initial sale
  • order form, invoice or other sales record
  • signed delivery receipt or other confirmation of delivery
  • correspondence (if any) from the cardholder.

We may also request additional supporting documentation. Please reply promptly within the timeframes specified in your chargeback notification.

Step 4. The dispute will be assessed.

Once we have all the documentation we’ll assess whether we have enough evidence to challenge the chargeback. We will lodge all relevant information provided by the merchant with the card schemes (Visa, Mastercard or eftpos). The final decision will be made by the card schemes.

If you disagree with the assessment or outcome of the chargeback, contact our Merchant Chargebacks team on 1800 029 749 (8am to 4:30pm AEST) or by email at [email protected] You will need to provide further evidence to support your dispute, like the information we ask for in step 3.

Step 5. An outcome will be reached.

There are two possible outcomes from the assessment:

  1. The chargeback is ruled in favour of the customer – if the request is determined as being valid, the transaction amount will be debited from your settlement account and a chargeback fee may be applied to your merchant account.
  2. The chargeback ruled in your favour – If the card schemes determine the chargeback is not valid, there will be no debit passed onto you and no chargeback fee will be applied to your merchant account.

What about chargebacks related to fraud?

A cardholder’s bank can make a fraud chargeback on a transaction if, for example the:

  • transaction is illegal or prohibited
  • customer did not authorise the transaction
  • customer says they are not liable for the transaction
  • authorisation for the transaction is declined.

The process for fraud related chargebacks is slightly different to the typical chargeback process.

Step 1. A fraud chargeback is automatically debited from your account.

Step 2. You will receive a notification (via letter and/or email*) that your account has been debited.

Step 3. You’ll have a chance to dispute the fraudulent chargeback by following the process outlined in the notification.

Why do chargebacks occur?

Here are some of the common reasons for chargebacks.

  • A customer doesn’t recognise the transaction
  • A transaction was fraudulent
  • A transaction was processed more than once
  • The incorrect amount was charged
  • The goods or services have not been received
  • A credit or refund was not processed
  • A sales receipt was changed without the customer’s authorisation
  • Transaction amount was above your floor limit, but no authorisation was obtained.

How can I prevent chargebacks from occurring?

There are a few things you can do to help reduce the risk of chargeback requests:

  • Follow the rules. Always follow the terms of your merchant agreement for processing transactions and retain proof for all transactions.
  • Keep detailed records. Keep detailed records showing that your customer has received the goods and services they paid for.
  • Get a delivery receipt. Always deliver goods or services as advertised and get a confirmation that goods were received by the actual cardholder.
  • Reduce refund fraud. Only refund to the same card that was used to make the purchase. Do not refund with cash or cheque if a purchase was made on a card.
  • Use a familiar name. Use a business or company name that is recognised by your customers – and matches the name on your transaction receipts.
  • Promptly resolve disputes. Be proactive and communicate clearly with your customers when there is an issue.

Chargeback FAQs

If a chargeback case has been raised against your business, do not process a refund to your customer. If you process a refund during the time a chargeback case is open, you may still be liable for the chargeback. After the case is reviewed, if a refund is required, it will be processed through the chargeback process.

A credit card is issued by a cardholder’s bank or credit union, but the credit card schemes like Visa, Mastercard and eftpos set the rules around chargebacks. The card schemes issue chargeback rules for merchants, cardholders, and banks to ensure that chargeback processes are applied consistently. The schemes outline the chargebacks that are automatic and the ones you can dispute.

Some chargebacks can be challenged. It’s important to familiarise yourself with the chargeback guidelines set out by the schemes. If you are unable to provide satisfactory evidence to challenge the chargeback, the dispute may become an automatic chargeback and your merchant bank account may be automatically debited.

If you would like to challenge a chargeback, please contact our Merchant Chargebacks team on 1800 029 749 (8am to 4:30pm AEST) or by email at [email protected]

We understand it can be frustrating to be debited before a case is decided, we need to ensure that funds are available for the cardholder if the chargeback is decided in their favour. Should the case be resolved in your favour, the funds will be returned to your settlement account as per the original transaction.

You should be careful when processing manually keyed transactions for online and mail or telephone orders (also known as MOTO) as these carry a higher chargeback risk. Be fraud aware. A common technique used by fraudsters is to present a stolen card or stolen card numbers and claim the original card is ‘damaged’. Learn more about how to avoid and respond to fraud and scams.

We will send you a letter and/or email* to notify you of a chargeback. We need to be able to contact you during the process, so please make sure all your contact details, including your email address, are up to date.

The card schemes like Visa and Mastercard recommend that you keep your receipts for up to 540 days (about 18 months) from the date of purchase.

There are two ways you can dispute a transaction on your credit card, to try to claim back what you were charged: Section 75 and Chargeback. Have a look through the information below to see if the transaction you want to dispute would be covered by either of these.

If you want to report a fraudulent transaction, have a look at our fraud information.

Section 75 of the Consumer Credit Act 1974

What is this?

When you buy something using your TSB credit card you may be covered if the supplier breaches their contract with you (for example if the goods or services aren’t provided, or the goods are faulty) or if they give you misleading information about the product or services you’re buying from them. If this happens, you may be able to claim a refund from TSB.

What does Section 75 cover? Press to expand/collapse

Section 75 may apply where:

  • The goods or services cost between £100 and £30,000
  • You paid at least part of the price with your TSB credit card. You don’t need to have paid the full amount: Section 75 still applies if you pay a deposit with your card.
  • The goods or services must be faulty, not delivered, or the information you got before your purchase was misleading. Section 75 still applies even if the company you purchased from goes out of business.
  • The purchase was made by the main cardholder.
  • You bought the goods or services less than six years ago. This might be longer if for example a guarantee was included as part of your purchase and it continues for longer than six years.

There are some purchases where Section 75 won’t apply, for example:

  • If you bought them with a TSB debit card. We might still be able to help through the debit card chargeback scheme
  • If you bought them through a third party, for example a travel agent, or Paypal or Amazon Marketplace. However they may have their own refund schemes to help you.
  • If the purchase was made by an additional cardholder, unless the purchase was made on behalf of the main cardholder.
  • If you choose not to use a service, for example if you don’t take a flight or holiday you’ve paid for.
  • If you make a cash withdrawal then buy something using the money Section 75 won’t apply.

There may be cases where your purchase is not covered by Section 75 but is covered by credit card chargeback.

What if my flight or holiday is cancelled? Press to expand/collapse

If you bought your flight or holiday direct and the travel provider cancels it you may be able to claim the cost back from us. You need to check the terms and conditions and the company’s cancelation policy to find out what you’re entitled to. For example, in some circumstances the company might only need to give you a voucher rather than a refund.

When you raise a Section 75 claim with us you’ll need to give us a copy of the terms and conditions and tell us which part the company has broken. If they’re complying with the terms and conditions it’s unlikely we’ll be able to accept your claim.

If your travel date is in the future you’ll need to wait until either the company cancels it, or the date for travel has passed.

How do I make a claim? Press to expand/collapse

Please try to contact the company in the first instance to discuss your claim. That’s because your supplier might offer you a refund or alternative solution that you’re happy with. This may resolve your issue more quickly. Please give them enough time to respond to your claim because they’re likely to be very busy at the minute. Some travel providers may be dealing with claims in order of the date of travel so you might need to wait a bit longer if your travel date is in the future.

If you’re claiming because of travel disruption and have travel insurance, please also contact your insurer to see if you’re able to claim under your policy.

Please be aware that Adobe are a separate data controller from TSB,
and any personal data you provide will be sent to Adobe and processed
in agreement with their terms and conditions of service.

You may wish to read their Adobe Terms of Use and Consumer Disclosure before using the following link(s).

If you’ve done that and you still want to raise a Section 75 claim with us you can do that by filling in the relevant form.

You’ll need to send us:

  • A copy of the terms and conditions for your purchase (including refund policy), telling us which condition the company has broken
  • A copy of all the correspondence you have had with the company
  • If you’re claiming for travel disruption, either confirmation you had no travel insurance, or a copy of the correspondence you’ve had with your insurer

It will take us longer to process your claim if we need further information about the company’s position and their terms and conditions, so please give us as much information as you can.

Before initiating a claim, consider calling the merchant first, as they may resolve your claim faster (we may also require information from the merchant to process a claim, so contacting them directly may save you time). Additionally, please note that only posted transactions can be disputed (pending charges are temporary and may change), so if you have any immediate concerns about a pending charge, you may want to contact the merchant. You can typically find the merchant’s contact information on your receipt or billing statement.

Online Banking customers can submit most credit card disputes directly from the transaction detail found in the Activity tab on your credit card account page, or from the Dispute a transaction link on the Information & Services tab.

To access the credit card dispute process, log in to Online Banking.

Not an Online Banking customer? Enroll in Online Banking today

How to use a credit card chargeback

Timely notification is important. Most transactions must be disputed within 60 days of the date of your statement on which the error appeared. If you did not provide your account information to the merchant in question and suspect that your information was stolen, please contact us immediately.

While our online dispute process is the easiest and fastest way for you to submit a claim, you may also write or call us. Please visit our credit card customer service page for additional information.

If you believe that a credit card transaction has been posted to your account in error, you may submit a credit card dispute within 60 days of the date that appears on the transaction statement or receipt. We will research the transaction with the merchant and their bank and contact you with the results. No fees or interest will be incurred on the disputed charge during the dispute process. If the transaction was posted in error, we will correct your account. If the transaction was not posted in error, we will inform you of any interest or fees incurred during the dispute process.

Many times disputed charges are legitimate charges that customers may not recognize or remember (you can log in to Online Banking and view details of your specific credit card transactions on the Activity tab of your account).

Before disputing a charge, we recommend you attempt to resolve the dispute with the merchant. Often the merchant can answer your questions and easily resolve your dispute. The merchant’s phone number may be located on your receipt or billing statement.

If you believe there has been unauthorized use of your account, please contact us immediately by calling 800.432.1000.

After you submit your dispute of a credit card transaction, we may recalculate your minimum payment based on the total balance minus any balance in dispute (along with any fraudulent transactions and/or payment misposts to be researched). If the transaction was posted in error, we’ll correct your account. If the transaction was not posted in error, you won’t be charged any interest or fees associated with the dispute.

If you’re set up for AutoPay or have a scheduled payment in 3 or more days, we’ll review whether the scheduled amount needs to be adjusted in light of the dispute. If so, we’ll reduce the scheduled payment amount to prevent you from paying into the disputed amount.

We take your business seriously and will do everything we can to help resolve a dispute in a timely and thorough manner. Our dispute department will research the transaction with the merchant and its bank and contact you with the results. We process disputes according to billing error procedures that are governed by federal law and outlined in your credit card agreement.

We’ll keep you up to date on the status of your dispute by phone, written correspondence through mail and/or your Online Banking Message Center. If we need additional information to process your dispute, you may reply directly to our Message Center request (please note that your response needs to take place within 12 business days.)

You can track the status of your dispute in your Online Banking Messaging Center. The Claims Message Center allows you to track individual disputes as well as receive and reply to requests for additional information.

A customer can request a refund for all or part of a previously remitted credit card receipt directly with the credit card issuer.

Under this procedure, the credit card issuer credits the customer account for the disputed amount, deducts the amount from your merchant bank account, and notifies you that a credit card chargeback took place.

You record the credit card chargeback as a negative miscellaneous receipt. Because the customer has already received the refund directly from the credit card issuer, this negative miscellaneous receipt is used only to ensure accurate accounting and reconciliation.

To record a credit card chargeback:

Ensure that you have defined a receivables activity of type Credit Card Chargeback.

In the Manage Receipts page, open the credit card receipt with the chargeback request.

Unapply the credit card receipt:

If you’re unapplying the full amount, use the Unapply Application button to unapply the credit card receipt application from the transaction.

If you’re only unapplying a partial amount, enter the new amount to apply to the transaction in the related Applied Amount field.

Create the credit card chargeback. Select Create Credit Card Chargeback from the Actions menu to open the Create Credit Card Chargeback window:

Enter the Credit Card Chargeback activity in the Receivables Activity field.

Enter the amount of the chargeback request in the Amount field.

Enter the date to use for this transaction in the Application Date field.

Optionally enter details of this transaction in the Reason field.

The credit card chargeback application and corresponding negative miscellaneous receipt record the event and correct the accounting. Because there are no funds to transfer, you don’t have to remit the negative miscellaneous receipt.

For Customers Impacted by the Coronavirus (COVID‑19) Situation

We recognize how difficult and frustrating it is to have your plans impacted by the coronavirus (COVID-19) situation. We hope you’re staying safe and are here to help if you’re facing challenges.

Start With the Merchant First

Working directly with the merchant is often the fastest way to get your money back. It can take Capital One more than 50 days to resolve a dispute with the merchant.

Many companies are changing their policies to be more flexible due to recent restrictions, with some allowing you to change or cancel plans at no fee and/or to receive credits for future services. We recommend you visit their websites to see what’s available for your situation.

Contacting Capital One

We understand the urgency of changing your plans and the frustration of paying for a trip or event that has been rescheduled or canceled.

If you want to speak to Capital One about a purchase you made, please know that we’re experiencing longer than normal call wait times. If you don’t want to wait on the phone:

  • You can reach out to the merchant – working directly with them is often the fastest way to resolve your dispute.
  • You can call Capital One later – you can dispute a charge even after the planned service date.

Helpful Resources

  • Travel & disputes FAQs for the coronavirus (COVID-19) situation
  • Assistance for customers impacted by the coronavirus (COVID-19) situation

What Is a Dispute?

If you believe there is an error with a charge on your credit card account, the information on this page will give you some options to investigate and try to resolve it.

A credit card dispute is a process in which you contest that there is a billing error on your account or that a merchant did not honor their terms and conditions.

  • A dispute is not the same as requesting a refund from the merchant, which you should do in many situations where you want your money back. For example, when you’re dissatisfied with the merchant’s policies or service, or when you need to cancel plans. Capital One can’t issue a refund on behalf of a merchant.

If you file a dispute, Capital One asks the merchant to review the disputed charge and its associated terms and conditions. These are usually the same terms and conditions you agreed to when you made the purchase.

What Happens When You File a Dispute Through Capital One

It can take more than 50 days for Capital One to resolve a dispute with the merchant.

When you file a dispute, we place a temporary credit to your credit card account for the disputed amount, as well as a credit line hold of the same amount. We might remove the hold before review of the dispute is finished, but you may still be responsible for the disputed amount and have the credit removed in the future.

Here’s an overview of what happens after you file a dispute:

  • We may request additional documentation from you related to the dispute.
  • We send information about the purchase and why you’re disputing it to the merchant via Visa or Mastercard and the merchant’s bank.
  • The merchant accepts or rejects the dispute.
  • If the merchant rejects the dispute, responsibility for the disputed amount is based primarily on the merchant’s policies and terms concerning refunds or cancellations.
  • If you are responsible, we will remove the temporary credit, and the original charge will be re-applied to your account. If the merchant is found responsible, we will not remove the temporary credit.

At any point in this process, you can reach out to the merchant directly to try to resolve your dispute.

What to Do if the Disputed Charge is Reapplied to Your Account

We understand that having a disputed charge reapplied to your account isn’t the outcome you were hoping for. Capital One provides you a temporary credit for the original charge while we investigate your dispute. If the merchant provides information demonstrating that the original charge is valid—or that they gave you a credit for it—we add it back to your account and end our investigation. The charge will appear on your account and statement as a “transaction rebill.” You’ll receive a letter, either online or in the mail, that provides more details, including the evidence that the merchant provided.

If, after reviewing the evidence from the merchant, you’re still unsatisfied, look to the letter for information on whether steps to continue your dispute with us are available to you. If so, the letter will list the additional documentation you’ll need to provide to continue your dispute and how to submit that documentation to us via fax, mail, or a secure link. While you wait for the letter, we encourage you to gather documentation that will be helpful, such as receipts, return evidence or any communication from the merchant promising a refund.

And remember: you can always try to resolve your dispute and get your money back by working with the merchant directly.

How to File a Dispute

Double-Check Charges

Filing a dispute may not always be the best option. Before you dispute a charge, do a quick double-check:

  • Make sure the charge has posted to your credit card account. Capital One can’t help you dispute a charge until it has posted. The easiest way to check this is on our website or mobile app. If you don’t have online access, you can easily enroll on our Online Banking page.
  • Check with other people authorized to use the credit card account to make sure they didn’t make the charge. For example, an authorized user or someone else you have given access might have made the charge.
  • Check your paper and digital receipts—it’s easy to confuse similar charges or forget about tips.

Start With the Merchant First

Working directly with the merchant is often the fastest way to resolve your dispute. We will usually ask you if you have already done this when you contact Capital One to file a dispute.

If you’re contacting the merchant, you could use a message like this:

Hi [name of company],

I purchased [item or service] for [price] on [date].

I would like a refund of [full $ amount or partial $ amount] because [description of problem]. [Optional: I would also like to cancel any future services related to this purchase].

Attached are copies of [description of information you are including] that document this problem.

Please investigate this and let me know if you need any additional information to process this request.

Filing a Dispute Through Capital One

You can file a dispute by phone by contacting us at the number on the back of your card or by calling:

  • From the U.S. or Canada: 1-800-227-4825
  • Internationally: 1-804-934-2001

You can also file a dispute by mail. You can mail us this form, or follow the instructions here.

A chargeback is the reversal of a prior credit or debit card sale transaction. A credit card chargeback occurs when a cardholder or the issuer (VISA, Mastercard, Discover or American Express) disputes a transaction charged to an account, and the resolution process results in a favorable decision to the cardholder.

The most common reasons for a chargeback include:
Cardholder does not recognize the transaction.

  • Cardholder did not authorize the charge (may be fraudulent).
  • Processing errors were made during the transaction (e.g., duplicate Processing).
  • The product or service was not received, or the quality was not as expected.

Retrieval Request

If the cardholder questions a transaction on the billing statement, they will contact the issuer to request the documentation of the original transaction. The issuer will send the retrieval request to the acquirer, and the acquirer forwards it to the merchant. The merchant should respond to the retrieval request within the designated time frame to minimize the potential chargeback by providing the following:

  • A transaction sales slip
  • An invoice
  • Proof of delivery of goods and services

Chargeback Notification

Once a chargeback is filed by the cardholder or the issuer, a debit to return the funds is issued to the university’s bank account for the chargeback amount. Upon receiving the alert from the acquirer, Merchant Services will forward the email notification to the impacted merchant(s) and ask for immediate action. The debit is held by the issuer until the outcome of the merchant’s or cardholder’s response to the chargeback has been determined.

Accept Chargeback

If the chargeback is valid, and the cardholder is entitled to the credit, the merchant shall respond to the chargeback by accepting it within the designated time frame provided in the notification (15 days for Visa/Mastercard/Discover; 20 days for AMEX). The disputed amount will be permanently debited to the merchant’s revenue PTA.

Dispute Chargeback

If the original transaction is valid, the merchant can dispute a chargeback within the designated time frame by submitting a response to substantiate the charge along with the appropriate documentation, such as:

  • Original sales slip
  • Invoice
  • Proof of delivery of goods or services
  • A copy of the refund policy for nonrefundable fee
  • Indication of whether the item was an in-person, telephone or internet transaction
  • Proof of refund issued to the card
  • Name and address match (for internet transactions)

The merchant will receive a chargeback reversal notification that restores the funds being held back to the merchant after successfully disputing the chargeback. However, if the dispute was ruled in favor of the customer, there will be reversal rejection and the chargeback amount will be permanently debited to the merchant’s revenue PTA.

Impact of No Action

If the merchant fails to respond to a chargeback (either to accept or reject) within the mandated time frame, then the disputed amount will be permanently debited to the merchant’s PTA, along with an additional non-refundable processing fee of $10 per chargeback. To avoid this financial impact, all merchants should submit a support request to Merchant Services to sign up for Wells Fargo Business Track and/or American Express online portals to manage their chargebacks in a timely manner.

There can be many benefits to your business when you accept payments by card. The payment process is faster, it is convenient for your customers, and you spend less time and expense counting, sorting and transporting cash.

If you already accept card payment transactions, we understand there is one area that can sometimes cause our customers confusion – chargebacks.

A chargeback occurs when the cardholder (or their bank/financial institution) raises a dispute in connection with a card transaction. From time to time, you may receive notifications of a chargeback request.

The below information will help you understand more about chargebacks and how disputes are resolved, as well as what you can do to reduce chargebacks.

WHAT YOU NEED TO KNOW ABOUT CHARGEBACKS

What is a chargeback?

If a cardholder sees a transaction on their credit card that they don’t believe they have made, or if the customer was charged the incorrect amount, they can dispute that transaction with their bank or financial institution.

How the chargeback process works:

  1. A dispute is raised by the cardholder or the cardholder’s bank against a NAB merchant
  2. NAB receives the chargeback notification, and notifies you, the merchant, via email, letter or secure channel
  3. If you, the merchant, disagree with the dispute claim, you can respond to NAB
  4. If you, the merchant, are found to be liable for the dispute, then the transaction amount will be debited from your settlement account and a chargeback fee will apply

What does ‘chargeback liability’ mean?

Visa and MasterCard rules request that a PIN or ‘signature’ (signed card imprint) be obtained during a transaction, except for some transactions performed by tapping a card near a contactless card reader.

For eCommerce transactions, standard security measures in identifying cardholders (such as chip cards) are not available and therefore not as secure. The liability of accepting these transactions rests with the merchant.

Common chargeback reasons and how long merchants have to respond

You will always be provided with the opportunity to respond to a dispute that has been raised against your business.

If you disagree with this dispute, you must be able to provide sufficient documentation.

The documents required may vary depending on the dispute reason.

You will receive a Request for Information letter or a notification from NAB advising you to respond within ten calendar days

If no response is received, NAB will issue chargeback letter/notification on the fifteenth day advising you will be debited in seven days

Once you receive a letter/notification from NAB, you can provide any information so we can refute the dispute on your behalf.

The documents required may vary depending on the dispute reason.

What information do you, the merchant, need to provide to NAB if you receive a chargeback notification?

If you disagree with a chargeback, you can provide all details relevant to the transaction and any verification of the cardholder. The information and documents that may be required will depend on the dispute reason, and may include but is not limited to:

  • a signed copy of the transaction voucher or receipt; and/or
  • a copy of the order or invoice; and/or
  • a copy of any correspondence received by you from the cardholder.

We ask that you keep a copy of all documentation you send to NAB.

HOW CAN I PREVENT CHARGEBACKS AND CARD FRAUD?

If you are an eCommerce merchant, check out our page which helps you protect your business online.

A chargeback is a transaction where funds are transferred by an issuing bank from the merchant’s account to the customer’s account. A chargeback is initiated when a customer escalates a dispute against the merchant. Chargebacks are often encountered by e-commerce merchants, who should be aware of the different types of chargebacks and how to prevent them from negatively impacting their business.

How to use a credit card chargeback

Before diving into the different types of situations that can lead to chargebacks and the methods to prevent them, let’s read about the different types of chargebacks.

Card-present transactions

These are transactions where the customer is physically present during the credit/debit card payment. These are the everyday transactions where you walk into your local grocery store and pay for your items with your card.

Card-not-present transactions

These are transactions where the payment is made via card, but the cardholder is not physically present to provide the card for the merchant’s reference at the time of ordering. This makes it harder for the merchant to verify if the transaction is authorised by the cardholder. Most online payment, mail-order, telephone-order and fax-order transactions come under this category. Though CNP transactions are the most convenient for both customers and merchants, the possibility of fraud is higher than with card-present transactions.

Common reasons why customers file debit and credit card chargebacks

Customers are likely to file chargebacks in the following cases:

Shipping, quality, and refund issues

Customers are likely to file chargebacks if they’re unhappy with the product or service (for example, if the goods shipped by the merchant are defective) or if the customer fails to receive the product or service. Chargebacks are also filed when the customer initiates a refund after returning the product, but fails to receive the refund amount.

Credit card issues

Unauthorized credit card transactions are the most common cause for chargebacks. These chargebacks are often initiated when a credit card is used without proper authorisation.

Technical errors

Duplicate billing and incorrect billing can both lead to chargebacks. Duplicate billing occurs when a customer is charged twice for a single transaction by the merchant, or when the customer presses the PAY AMOUNT/PAY button multiple times. Chargebacks can also be filed if an error in the transaction processing causes a transaction to be declined by the issuing bank but the customer’s account is still charged.

How chargebacks affect merchants

If you have an increase in chargebacks, the reputation of your firm might suffer. Chargebacks are expensive for merchants, who pay a heavy penalty for them in addition to losing out on the income from the transaction.

How the chargeback process works

It’s important to be aware of the chargeback process and the steps you’ll need to take if a chargeback is filed by one of your customers.

When a chargeback is filed, the issuing bank first checks the authenticity of the complaint and either dismisses it or initiates the chargeback. The merchant has the opportunity to dispute the chargeback and provide proof of the transaction’s validity. Ultimately, if the chargeback is upheld as valid, the disputed amount will be deducted from the merchant’s account and credited to the buyer’s account.

Let’s take the example of Alex, who recently purchased goods worth Rs. 10,000 from an e-commerce merchant named Clark. Alex files a complaint with his bank, stating that he never received the goods.

The issuing bank checks the authenticity of the complaint and decides that not receiving goods is a valid reason for a chargeback. They initiate the chargeback process and notify Clark, who decides to dispute the complaint. Clark states that Alex did receive the goods, and he provides a packing slip for the shipment as proof.

Unfortunately for Clark, the packing slip is deemed unsatisfactory proof (a delivery receipt would have been much better) and the chargeback process continues. The issuing bank deducts the Rs. 10,000 from Clark’s account and credits it to Alex.

The chargeback process is tedious and often lasts for weeks. This is why it’s advisable to prevent chargebacks in the first place. Here are a few ways you can keep chargebacks in check.

How to prevent and manage chargebacks

For starters, it helps to be an honest merchant who sells good quality goods on time and provides proper customer support. Here are a few other tips to prevent chargebacks:

Provide detailed information to your customers

If you’re selling your merchandise online, make sure you provide exact images and descriptions for the products you’ve listed. Including your contact information, and your return and shipping policy, will help your customers contact you in case of any complaint instead of raising a chargeback request. Customers are likely to request chargebacks when they fail to recognize the charge on their credit card statement. So make sure that you list your firm’s name and an accurate description of the transaction to prevent any customer confusion.

Email your customers for confirmation

When you’re sending confirmation emails to your customers, make sure you include the invoice and shipping details of the order to avoid . In case the shipping address and the billing address are different, verify the card and customer details before initiating the sale.

Watch out for possible red flags

Keep an eye out for transactions involving multiple orders for expensive products, unusual bulk orders, or multiple orders placed within a short span of time. These are often warning signs of fraudulent card use. Multiple orders placed through different cards but delivered to the same address can also be a red flag.

First, reach out to the company that sold the product or service to you. Explain the issue. Maybe the product you received was defective or you didn’t receive what you ordered. Ask the company if it will reverse the charge.

If you’re not satisfied with the merchant’s response, you may be able to dispute the charge with your credit card company and have the charge reversed. This is sometimes called a chargeback. Contact your credit card company to see whether you can dispute a charge.

Note: You may be able to assert a billing error to the credit card company, for example, if you did not receive what you ordered.

Regardless of whether you can assert a billing error, you also may have other rights against the card issuer, for example, if the goods or services you accepted turn out to be defective. If you’ve only paid part of a bill for a service or product purchased with the card, you may have the right not to pay the remaining amount that is due. To be considered for this, all of the following generally must be true:

  • You must have first tried in good faith to resolve the issue with the merchant who sold you the product or service.
  • You must have made your purchase in your home state or within 100 miles of your home address.
  • The price of the service or product must have been more than $50.
  • You must have used your credit card to pay for the purchase.
  • You must not yet have fully paid for the product or service.

If you’re having trouble with a credit card, you can submit a complaint to the CFPB online or by calling (855) 411-CFPB (2372).

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What is it?

A Chargeback is the reversal of a prior credit card sale transaction. A credit card chargeback occurs when a cardholder or card issuer (VISA, Mastercard, Discover, or American Express) disputes a transaction charged to their account and the resolution process results in a favorable decision to the cardholder. Customers dispute charges to their credit card usually when goods or services are not delivered within the specified time frame, goods received are damaged, or the purchase was not authorized by the credit card holder.

Why is this important?

A customer has approximately eleven months to dispute a charge, and there is a notification and retrieval process which is time-sensitive. The Cash Office unit within Financial Services’ Business Operations responds to all chargeback notifications with assistance from the applicable department. If the department chooses to challenge/ dispute the chargeback, it is critical to respond to the Cash Office within the designated timeframe by submitting a response to substantiate the charge along with the appropriate backup-up documentation. Examples of backup documentation include:

  • original sales slip with signature
  • invoice (reason for payment)
  • proof of delivery of goods/ services
  • non-refundable fees – a copy of the University Policy detailing the terms and obligation for the particular charge
  • copy of the cashed refund check (front & back)

How to use a credit card chargeback

How to use a credit card chargeback

What Is a Chargeback?

A chargeback is a charge that is returned to a payment card after a customer successfully disputes an item on their account statement or transactions report. A chargeback may occur on debit cards (and the underlying bank account) or on credit cards. Chargebacks can be granted to a cardholder for a variety of reasons.

In the U.S. chargeback reversals for debit cards are governed by Regulation E of the Electronic Fund Transfer Act. Chargeback reversal for credit cards are governed by Regulation Z of the Truth in Lending Act.

key takeaways

  • A chargeback is the payment amount that is returned to a debit or credit card, after a customer disputes the transaction or simply returns the purchased item.
  • The chargeback process can be initiated by either the merchant or the cardholder’s issuing bank.
  • Merchants typically incur a fee from the card issuer when a chargeback occurs.

Chargebacks Explained

A chargeback can be considered a refund since it returns specified funds taken from an account through a prior purchase. In this sense, it differs from a voided charge, which is never fully authorized for settlement. Focused on charges that have been fully processed and settled, chargebacks can often take several days for full settlement as they must be reversed through an electronic process involving multiple entities.

Charges can be disputed for many reasons. A cardholder may have been charged by a merchant for items they never received, a merchant could have duplicated a charge by mistake, a technical issue may have caused a mistaken charge, or a cardholder’s card information may have been compromised.

Typically, credit cardholders have a timeframe in which they can dispute a charge, known as the chargeback period.

Disputing a potential chargeback can be challenging for a cardholder as it requires time to dispute the charge with a customer service representative and may also require a receipt or proof of transaction. Still, in the case of a fraudulent charge, banks are usually highly supportive
in researching and issuing chargebacks in a situation where a card number has been compromised.

The most common chargebacks occur, however, simply when a cardholder chooses to return an item. If it is within the merchant’s allowable timeframe, the merchant can initiate a chargeback as a refund. If it’s not, the merchant might issue the customer a store credit, as a courtesy. Other chargebacks may be more complicated.

Chargeback Processing

The chargeback process can be initiated by either the merchant or the cardholder’s issuing bank. If initiated with a merchant the process is similar to a standard transaction; however, the funds are taken from a merchant’s account and deposited with the cardholder’s issuing bank.

For example, a chargeback initiated by a merchant would begin with a request sent to the merchant’s acquiring bank from the merchant. The acquiring bank would then contact the card’s processing network to send payment from the merchant’s account at the merchant bank to the cardholder’s account at the issuing bank.

If a chargeback is initiated by the issuing bank, then the issuing bank facilitates the chargeback through communication on their processing network. The merchant bank then receives the signal and authorizes the funds’ transfer with the confirmation of the merchant. In some cases, such as with fraudulent charges, the issuing bank may grant the cardholder with a chargeback while also sending the claim to a collection department. In this case, a bank takes on the liability and expenses the chargeback through reserve funds while researching and resolving the claim.

Merchant acquiring banks will generally charge a fee to merchants for chargeback transactions. These fees are detailed in a merchant account agreement. Fees are typically charged per transaction to cover the costs by the processing network. Additional penalties for chargebacks may also apply.

How to use a credit card chargeback Ryan Haar

Ryan Haar is a former personal finance reporter for NextAdvisor. She previously wrote for Bloomberg News, The…

How to use a credit card chargeback

Getty Images / Adobe Stock

One of the most powerful defenses consumers have against fraud and unauthorized transactions is a chargeback, a reversed payment through your credit card company.

And data shows people are increasingly using this defense, as the number of chargebacks has increased since the start of the pandemic. Maybe you had to cancel a nonrefundable trip early last year, or disputed charges related to concert tickets for a show that was canceled or postponed indefinitely. Similarly, maybe you disputed the cost of an online order you never received due to supply chain issues or ongoing USPS delays.

While you may be more likely to receive a refund or chargeback in some of these cases over others, disputing a credit card transaction with your issuer is a useful protection against fraud and payment mishaps. But it’s important to understand the right time to make a claim, and how the process works before you initiate the chargeback process. Here’s what you need to know:

What Are Chargebacks?

A chargeback is money returned to you after you dispute a charge. They’re most commonly associated with credit card transactions, but can also be issued for debit card transactions.

Here are some situations in which you may dispute a charge and should initiate a chargeback:

  • Unauthorized charges on your account
  • Duplicate charges
  • Charges that are larger than the cost of what you bought
  • Charges for items or services you never received
  • Charges for damaged or defective items

A chargeback comes from your card issuer. If you dispute a charge with the merchant and get the funds back that way, that’s technically a refund.

On either end, the process to receive any funds back must be initiated by you reporting the mischarge. That’s why it’s important to regularly check your debit and credit card statements to make sure nothing is awry. A mischarge could include things like charges from retailers you never shopped at; extra, duplicate, or too-large charges from retailers that you have shopped with; or a charge for an item that you never received.

How to Request a Chargeback

In most cases, you should begin the resolution process with the merchant first, unless you think your account may have been exposed to fraud and you want to notify your issuer. Look into the business’ return policy to see if you’re eligible for a refund. You may need to revisit the merchant in-store with a receipt or reach out to a customer service representative online.

If the merchant won’t issue you a refund, you can initiate a dispute with your card issuer. Call your issuer and speak with a representative. You may also be able to initiate the chargeback through your online account or within your issuer’s mobile app.

Pro Tip

Request your chargeback within 60 days of the first bill error. Your creditor must resolve the dispute within two billing cycles of receiving your request, according to the Fair Credit Billing Act.

If you’re disputing a duplicate or too-large charge, then you may need to provide proof of what you actually did purchase, like a receipt.

It takes time to resolve a dispute and get a chargeback in your account once settled. Depending on your issuer and situation, you might need to file forms, submit documentation, or go through other processes.

When Can Consumers Legally Use Chargebacks?

Consumers have the right to dispute any of the following billing errors, according to the Federal Trade Commission:

  • Unauthorized charges — federal law limits your responsibility for unauthorized charges to $50
  • Charges that list the wrong date or amount
  • Charges for goods and services you didn’t accept or that weren’t delivered as agreed
  • Math errors
  • Failure to post payments and other credits, like returns
  • Failure to send bills to your current address — assuming the creditor has your change of address, in writing, at least 20 days before the billing period ends
  • Charges for which you request an explanation or written proof of purchase, along with a claimed error or request for clarification

The FTC recommends filing your request for a chargeback within 60 days after the first bill error. After that, it can take up to two billing cycles or 90 days to resolve.

If you’ve already paid the statement balance on which the disputed charge appears, you can still receive the chargeback, according to the Consumer Financial Protection Bureau. But instead of a quick return, you may have to wait until the dispute is resolved and your issuer decides you’re owed the money before you receive it.

Potential Consequences of Chargebacks

It’s best practice to request a refund with the merchant before disputing a purchase with your card issuer.

Businesses can dispute a chargeback request if they feel a customer should not be refunded. If the merchant disputes your claim, you could still be liable for the charge. And initiating a chargeback for your own mistakes — such as misunderstanding a merchant’s return policy or regretting a purchase — is its own form of fraud, known as “friendly fraud.”

Most often, the consequences of chargebacks fall on the seller. If your chargeback is approved, the amount is recovered from the business’s account once the claims are settled. Chargebacks are costly for businesses; beyond the charge itself, disputes take time and money to resolve, and they may take on chargeback fees and lose inventory. But they can also cost businesses their reputation. If a merchant refuses to work with you to resolve an issue, you may be less likely to shop with them again in the future.

Don’t recognise or notice a suspicious payment?

We’re here to help. There can be a number of explanations for a transaction that you might not immediately recognise and we’ve added the most common ones here, please check these before reporting it as fraud.

Want to dispute a transaction?

If something’s not quite right with a purchase you recently made with your debit card, we may be able to help you get your money back.

We’ve create a simple online form to make raising a dispute as smooth as possible.

Before you begin

Have you checked with the retailer first?

Is the transaction pending?

How long ago was the transaction?

Did you use your debit card?

Getting started with your claim

Fraudulent claims

Before you start, please make sure you have first spoken to the merchant about your transaction problem. In order to help you avoid submitting a fraudulent claim, please do not use this form if:

  • You have changed your mind after you’ve used your card
  • You forgot to cancel a subscription after a ‘free trial’ ended (e.g. Amazon Prime)

If you have contacted the retailer and they were unable to assist, we can raise a dispute for you.

Here’s what we’ll need:

  • The retailer name
  • The transaction amount and the date
  • Please remember to ensure the transaction is not pending and has debited your account
  • Your account details

It is important that you provide accurate information to us about your disputed transaction. If false or inaccurate information is provided and/or fraud is identified or suspected, details will be passed to fraud prevention agencies. Law enforcement agencies and other organisations may access and use this information. We may access and use information from fraud prevention agencies to prevent fraud and verify the accuracy of your claim. If we, or a fraud prevention agency, determine that you pose a fraud risk, we and others may refuse to provide the services and financing you have requested, to employ you, or we may stop providing existing services to you.

Please ensure you have read the fraud warning before getting started.

What’s a card dispute?

A card dispute is when you’ve used your credit or debit card to buy something but it’s not as you expected, so you want to get your money back.

It’s always better to first contact the company directly to see if you can get things sorted. If you can’t, we may be able to raise a dispute on your behalf to try and get your money back. It’s also a good idea to keep a record of any contact you make with them, which you can later use to support your claim.

If you raised a card dispute, with the exception of Section 75, you’re not making a claim against Santander. We may be able to raise a dispute on your behalf to try and claim your money back from the company you’ve paid.

We can’t raise a card dispute if:

  • the goods or services are still within delivery timescales
  • the transaction(s) are pending and aren’t showing on your statement yet
  • the transaction(s) weren’t made on a credit or debit card
  • you have a dispute with a Santander ATM but haven’t used a Santander card.

How to support your dispute

So that we can help you properly, we may ask you for the following information.

  • Details of goods or services you purchased.
  • The date you received or expected to receive your goods or services.
  • Description of what was damaged and/or faulty about the goods.
  • Information about what you didn’t receive.
  • Description or evidence of how your goods or services didn’t match the description.
  • Proof that the damaged and/or faulty goods have been, or attempted to be, returned.
  • When you cancelled or attempted to cancel a service.
  • Documents to support your dispute such as a receipt or bank statement.
  • How and when you contacted the company in an attempt to resolve the issue.

If the company is no longer trading, we may ask you to provide evidence of this as well.

When sending evidence, please only send copies and keep original documents for your own records.

If you buy something from a company and don’t receive it, you can raise a dispute.

When can I raise a dispute?
Before raising a dispute with us, first check that the goods or services aren’t still within any delivery timescales, then contact the company directly and attempt to sort things out.

If that doesn’t work, you can raise a claim with us. We’ll need to see your supporting evidence within 120 days of the date you expected your goods or services to arrive. Please make sure that this date doesn’t exceed 540 days from the date you bought them.

If the company didn’t give you a delivery date, please allow 15 days from the date of purchase.

How can I raise a dispute?
You can easily raise a claim using our online claim form.

  • Log on to Online Banking
  • Click ‘Account services’ tab.
  • Choose ‘Other services’ in the left-hand side menu.
  • Scroll down to ‘Debit card services’ or ‘Credit card services’.
  • Click ‘Make a claim’ and start filling in the form.

If you don’t have access to Online Banking, please contact us

A non-dispense ATM dispute is what you raise when you’ve used your debit or credit card to withdraw money but the cash machine doesn’t give you any, whereas a partial dispense is when the cash machine only gives you a portion of the money you requested.

When can I raise a dispute?
It’s best to get in touch with us as soon as possible so we can find out what happened.

  • If the cash machine you used was in the UK, we have 180 days from the date of the withdrawal in question to raise a claim for you.
  • If the cash machine you used was outside of the UK, we have 120 days from the date of the withdrawal in question to raise a claim for you.

How can I raise a dispute?
To raise a cash machine dispute, please contact us

Under Section 75 of the Consumer Credit Act 1974, you may be protected if you suffer a breach of contract or misrepresentation by the company you purchased goods or services from using your Santander credit card.

Section 75 doesn’t apply to our debit cards.

When can I raise a Section 75 claim?
Before you attempt to raise a claim with us, you should try to resolve your dispute with the company first. Section 75 may be able to offer protection if:

  • you used your Santander Credit Card for a full or partial payment
  • the cash price of the item(s) is more than £100 and less than £30,000
  • there was a breach of contract or misrepresentation by the company you made a purchase from.

The following may also affect a Section 75 claim.

  • The date of the transaction(s) being disputed must be within the last 6 years.
  • If a payment has been made through a 3rd party and not directly with the company or supplier.
  • Purchases must be in the name of the primary credit card holder or they must benefit from the transaction. For example, gifts for other people aren’t covered but a family holiday might be.

Under Section 75, for qualifying transactions, you may have a like-for-like claim against us as your credit provider as you would have against the company.

How do I raise one?
To raise a Section 75 claim, please contact us

If you dispute something you bought on your Santander credit card, we may be able to process your claim quicker by raising a chargeback. By doing this, your rights under Section 75 of the Consumer Credit Act 1974 would not be affected. Contact us to find out more.

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Although chargebacks cannot be completely avoided, there are steps you can take to help prevent them. The more you know about processing procedures, the less likely you might be to do, or fail to do, something that could result in a chargeback. Refer to the Operating Rules (PDF) for more in depth information regarding chargebacks.

What is a chargeback?

A chargeback occurs when the amount of the original charge that was credited to your business checking account is reversed. The issuing bank charges all or part of the transaction amount back to your acquirer/processor because the issuer believes the transaction violated a Payment Card Networks rule or regulation.

Common reasons for chargebacks

  • The card was deemed to be fraudulent.
  • Cardholder disputes the quality or receipt of merchandise.
  • The product or service was not received.
  • Processing errors were made during the transaction.

Procedures for all businesses

Here are a few tips to help you avoid chargebacks:

  • Make sure that the business name you provided to us that will appear on the cardholder’s statement is a name that your customers will recognize. Many chargebacks start when a customer does not recognize a charge on their statement even though it may be a legitimate one.
  • Respond promptly to retrieval requests and dispute notifications. Both customers and card issuing banks may request copies of sales and credit drafts. Once a request is initiated you need to respond by the date provided on the notification.
  • Sales drafts should be accessible to authorized employees for 180 days after the initial transaction date and should be stored long-term in a safe and secure location.
  • Always get an authorization.

Procedures for retail businesses

Make sure you fully comply with the transaction requirements issued annually by Visa ® , Mastercard ® and Discover ® , and American Express ® . Most importantly:

  • Have proof the card was present by making sure you dip EMV cards and swipe all magstripe cards through your terminal.
  • If a chip on a card can’t be read by your card reader, swipe the card instead to read the magstripe. If the chip card transaction is read, but declined, it must not be processed.
  • If the credit card is declined when it’s swiped through the card reader, do not continue to try and get an authorization. Instead you should request a new form of payment from the cardholder.
  • Get an imprint or validate the CID whenever a card has to be manually keyed into a terminal. Be sure that all of the transaction information shows up on the imprinted copy including the amount, business name and location, and the cardholder’s signature.
  • Verify that the number on the screen matches the embossed number on the credit card.
  • Obtain an authorization number for the full amount of the sale — do not break the sale into several smaller amounts.

Procedures for internet and mail order/telephone order (MOTO) businesses

Take the following precautions that are unique to your business:

  • Use the Address Verification System (AVS) to ensure that your customer is providing you with the correct billing address.
  • If you have an internet or phone order, validate the CID.
  • Provide us with a local or 800 number that we can include on your billing statement. Supplying a telephone number for your customer will help prevent a chargeback from occurring. Your customer can contact you directly with questions and you will have a chance to rectify the situation or be able to issue a refund to the customer before they dispute a charge.
  • When sending merchandise to a customer, use a shipper that will be able to provide proof of delivery to the full billing address should there be a dispute. For very expensive items, request a signature for the merchandise to be released to the buyer.
  • Participate in fraud protection programs to improve the security of payment transactions in the electronic commerce environment over open networks. These programs are designed to increase both cardholder and merchant confidence in internet purchases, as well as to reduce dispute and fraudulent activity related to payment cards. Examples of fraud protection programs are listed below:
    • 3D Secure
    • Mastercard SecureCode
    • Discover ProtectBuy
    • American Express SafeKey

Online chargeback management with dispute manager

The Dispute Manager service allows you to process and manage chargebacks and retrieval requests in an automated, online environment. You can also access a guide to responding to chargebacks in Dispute Manager. By adding Dispute Manager to your account, you are able to receive and respond to chargebacks and retrieval requests in a much more efficient manner, eliminating the delays and costs associated with faxed and mailed paper transactions.

There are steps you can take if you bought something by credit card, debit card, charge card or through PayPal. You can ask for a refund if you:

didn’t get what you paid for

got something faulty or broken

got something that’s different to how it was described

It’s usually best to try to contact the trader. If you can’t contact them or they won’t help, ask your card provider or PayPal to help.

Try to contact the trader

If the trader has a complaints procedure, you should follow it when you contact them. You can check if the trader has a complaints procedure on their website

It’s best to email or write to the trader – you can use a template letter. Keep a copy of anything you send, in case you need to check it later.

If you can’t contact the trader or they won’t help, you can then ask your card provider or PayPal.

Check the best way to get your money back

If you paid using money from your PayPal account, you should open a dispute on the PayPal website. You have 180 days from when you paid to open a dispute – this is about 6 months.

If you paid with a credit card, you should ask for your money back using Section 75 of the Consumer Credit Act – as long as you paid more than £100 and no more than £30,000. The limits are for a single item you want to get a refund for, not the whole order. You can’t usually use Section 75 if you didn’t buy directly from the trader – for example if you bought from eBay.

You should ask for your money back using ‘chargeback’ if you:

paid with a debit card or charge card

paid with a credit card and you can’t use Section 75

Example

Olga bought a mobile phone and some headphones using her credit card.

The phone cost £80, the headphones cost £20 and the delivery charge was £5 – so the total cost was £105. None of the items arrived.

She can’t use Section 75. Although she paid £105, no single item cost more than £100. Olga should ask to use chargeback.

If you paid by more than 1 method

If you paid any part of the cost by credit card, you can use Section 75 – as long as the total cost of the item is more than £100 and no more than £30,000.

You can only get a Section 75 refund from one card provider.

If you used a credit card and debit or charge card to split the cost, ask your credit card provider to use Section 75. If you used more than one credit card, choose one credit card provider to ask. It doesn’t matter which one.

Example

Peter bought a faulty oven for £250. He paid £50 deposit by credit card and £200 by cash.

He can use Section 75. He can claim the full £250 cost, not just the £50 he paid by credit card.

If you didn’t buy directly from the trader

You can still ask to use chargeback.

You can’t usually use Section 75 if you bought something through a third party rather than directly from the trader. For example, you might have bought it through:

  • a marketplace like Amazon or eBay, where you use one company’s website to buy from other companies
  • a website like GroupOn, where you buy a voucher to use with other companies
  • wallets like PayPal, where you put money in an account then use that account to buy things
  • a travel agent

You can ask your card provider to use Section 75, but they might say no.

If your card provider won’t let you use Section 75, ask for chargeback instead.

Making a Section 75 claim

Tell your card provider you want to make a Section 75 claim. Your card provider is the company that sends you your statements. You can find their contact details on their website. It’s best to ask in writing.

If you have a joint credit card, the main card holder should contact the card provider.

When you write to them, you should ask for:

the full amount you paid, or the cost of repairing the item if it’s faulty

money to make up for poor quality, or for the trader misleading you

the cost of repairing any damage caused by a faulty item or a service

Example

D’Angelo bought a faulty washing machine and it damaged his floor.

He can get money to repair his floor as well as money to repair or replace the washing machine.

If you’re successful, your card provider will refund the money to your credit card.

Making a chargeback claim

Tell your card provider you want to make a chargeback claim. Your card provider is the company that sends you your statements. You can find their contact details on their website. It’s best to ask in writing.

Your credit provider might call chargeback something else, for example ‘disputed transactions’. If you ask for chargeback they will know what you mean.

When you contact them, you should ask for either:

the amount you paid on this card – you won’t get anything you paid by any other card or payment method

money to make up for the problem – less than the full amount you paid

Example 1

Cassandra bought a dress and a t-shirt using her debit card.

The dress cost £90, the t-shirt cost £30 and the delivery charge was £5 – so the total cost was £125. Cassandra received the dress but didn’t get the t-shirt, and the trader won’t reply to her email.

She can ask to use chargeback to get back the £30 she paid for the t-shirt.

Example 2

Hercules bought a faulty washing machine for £250.

He paid £50 deposit by card and £200 by cash.

He can ask to use chargeback to get back the £50 he paid by card.

If he bought the washing machine with a credit card, he could instead try using Section 75 – he would probably get back more money.

If you’re successful, your card provider will refund the money to either your card or bank account.

The trader can challenge your refund, even if you’ve already had the money back. Your card provider will contact you if there’s a challenge. If you can, it’s a good idea to keep the money for a few weeks just in case their challenge is successful.

If your claim isn’t successful, you can ask your card provider if they used the ‘appeals process’.

If your claim isn’t successful

If you try to use Section 75 and you don’t get your money back, you can ask the Financial Ombudsman Service to look at your case. You still might not get your money back.

If you try to use chargeback and you don’t get your money back, you can ask your card provider why. If they say they’ve appealed to the trader’s bank and the appeal failed, there’s nothing else you can do. If they say they won’t appeal to the trader’s bank, you can complain to the Financial Ombudsman Service.

The Financial Ombudsman Service is independent. They’ll examine your case from both sides to reach a decision they think is fair. You still might not get your money back.

If you don’t agree with the Financial Ombudsman’s decision

You might be able to ask an ‘alternative dispute resolution’ (ADR) scheme to help.

You can check if the trader is a member of an ADR scheme – or you can ask them. If they’re not a member of an ADR scheme, ask if they’re willing to use one.

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What’s the difference between credit card chargebacks and debit card chargebacks? How does each threat impact your business?

We’ve created this simplified guide to help you understand a complex topic.

Credit Cards and Debit Cards Explained

While both credit and debit cards eliminate the need to pay with cash, they are not the same. The primary difference is where the funds come from.

A credit card provides a line of credit to the cardholder. The issuer essentially loans money to the cardholder for every purchase that is made, and the cardholder is expected to repay the issuer at the end of each billing cycle.

When a purchase is made with a debit card, funds are immediately withdrawn from the associated checking or savings account.

Credit card purchases are charged against a line of credit.

Debit card purchases withdraw money directly from a bank account.

It’s important to understand these differences because the source of the funds may determine which law governs the transaction.

Credit and Debit Dispute Rules

Before we outline the different dispute rules, let’s first review where the rules come from.

There are three different sets of regulations that govern transaction disputes.

The Electronic Fund Transfer Act (Regulation E) establishes the rules associated with debiting a bank account.

The Consumer Credit Protection Act (Regulation Z) establishes the rules associated with managing consumer credit.

The card brand regulations establish rules for using brand-endorsed payment cards (Visa ® , Mastercard ® , etc.).

Issuing banks must abide by federal laws, so all Regulation E and Regulation Z requirements should be upheld when transactions are disputed. However, extending additional card brand chargeback rights is optional.

Card brand rules typically offer even greater consumer protections than the legal regulations. Issuers may choose to extend this coverage to their cardholders, but they technically don’t have to.

WHAT THIS MEANS FOR MERCHANTS

The term ‘chargeback’ is often thought to be synonymous with ‘transaction dispute’. Technically, the two aren’t interchangeable.

All chargebacks are transaction disputes, but not all transaction disputes are chargebacks.

Regulations E and Z give cardholders the right to dispute transactions, but only the card brands offer a chargeback process.

Why does that matter?

Think about your dispute management strategy. What does it entail? Are you focused solely on activity facilitated by the card brands — alerts, order validation, and chargebacks? If so, you might not have a complete understanding of the customer experience.

Chargeback data is incredibly valuable. It can help you identify hidden issues and resolve problems at their source. However, there are several reasons why a consumer complaint might not ever make it to a chargeback — an issuer’s choice to limit protections is just one of the reasons. Therefore, chargebacks shouldn’t be the only metric you use to gauge customer satisfaction, the effectiveness of your processes, and the risk of potential revenue loss.

Focus on creating an exemplary customer experience — one that ensures satisfaction and resolves issues without the need of a chargeback.

The following is a high level overview of the dispute rules associated with the three different sets of regulations.

Regulation E
(Debit Cards)

Regulation Z
(Credit Cards)

Card Brand Regulations
(Debit and Credit Cards)

The nuances of these rules mostly impact cardholders. However a cardholder’s actions could, in a roundabout way, potentially impact your business.

WHAT THIS MEANS FOR MERCHANTS

Again, an issuer doesn’t have to offer the extended protections provided by the card brands to the cardholder when disputes arise. If the Regulation E or Z stipulations don’t apply, the issuer may choose to simply close the case.

If that happens, the cardholder may try other methods to recover the money — like reaching out to you, the merchant, directly.

The following is a hypothetical example.

When Carter — Carli’s son — turned 18, she called her issuing bank and gave permission for Carter to use one of her credit cards. But she didn’t do a good job of monitoring the account. Months later, Carli discovered that Carter had made dozens of purchases that she hadn’t anticipated.

Frustrated and reluctant to pay the credit card bill, Carli contacted her issuing bank and tried to claim the transactions were unauthorized. But Carli’s case didn’t fit within the Regulation Z rules for two reasons. First, she attempted to dispute the transactions after the 60 day deadline. Second, her son was technically authorized to use the card.

Since it costs the bank about $30 to process each chargeback and Carli was attempting to dispute nearly a dozen transactions, the bank decided not to advance her case.

Since the bank wouldn’t initiate chargebacks, the only way Carli could get her money back would be to call each individual merchant and request a refund.

This may not be an extremely common situation, but it is possible. Therefore, you’ll want to balance an exceptional customer experience that proactively prevents chargebacks with a revenue-retention strategy that thoughtfully considers all potential outcomes.

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A chargeback is like a refund – it reverses a transaction made on a debit or credit card. Chargeback is a term used by credit and debit card providers.

A chargeback takes place between the cardholder’s and retailer’s banks. When a cardholder asks for a chargeback, the retailer’s bank may agree to pay back funds to the cardholder’s bank.

Chargebacks are not like the dispute resolution services offered by organisations such as eBay or PayPal. For more information on those, view Resolve your problem or complaint.

When you can ask for a chargeback

Consumers request chargebacks for many reasons. The most common are when:

  • they pay for products or services with a debit or credit 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 stops operating and does not supply the purchased product or service.

When you cannot ask for a chargeback

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

  • paid with cash, money transfer, cheque, direct debit or BPAY
  • are eligible to lodge an insurance claim
  • have already been compensated.

Time limits

There are time limits on making a chargeback claim that vary from 45 to 120 days from the transaction date. Check your card provider’s time limit and submit a claim as soon as possible.

Keep all forms, emails, documents or web pages you have filled in, read or received. You may need them to support your claim.

The card operator may reject a chargeback request made outside their time limits.

Rejected chargeback requests

If you believe a bank or card provider has incorrectly rejected a chargeback request, you can dispute the decision. The Australian Financial Complaints Authority (AFCA) can help resolve your dispute. The AFCA is an independent dispute resolution service for consumers and small businesses. For more information, visit Australian Financial Complaints Authority.

What to consider before starting your dispute

  1. The transaction is related to a purchase you made with your TD Credit Card or TD Access Card:
    To submit a dispute, it must be for a purchase made with your TD Credit Card or TD Access Card. If you find a transaction on your statement that’s from a merchant you haven’t transacted with, then the charge could be fraudulent. If you suspect the transaction is fraudulent and it has posted to your account, please contact EasyLine (TD Access Cards or ATM transactions: 1-866-222-3456 1-866-222-3456 / TD Credit Cards: 1-800-983-8472 1-800-983-8472 ) immediately.
  2. You attempt to resolve with the merchant prior to initiating a dispute:
    If you have a dispute with the merchant about a purchase you made, please first attempt resolve the issue directly with the merchant. Once you speak to the merchant, your issue may be resolved, and your money refunded. However, if you are unable to resolve directly with the merchant refer to the next step.
  3. You submit a transaction dispute request within the following timeframe:
    • TD Credit Card: We recommend contacting us within 30 days after the Statement Period End Date of the account statement on which the transaction or suspected error appeared.
      Note: Our ability to file a dispute on your behalf is subject to limitations governed by Visa dispute network rules.
    • TD Access Card: within 30 days of the date you have received notice of the transaction as per your account agreement

How it works for TD Credit Card transaction disputes

Note that an EasyWeb login is required. If you are not currently registered for EasyWeb, register online today.

Business customers must have their personal and business TD Access Card linked and log in to EasyWeb using their personal TD Access Card in order to complete this form.

Editorial Team

How to use a credit card chargeback

In the retail world, chargeback and refund are two terms often used interchangeably to describe situations in which dissatisfied customers want to reverse purchases and get their money back.

As a merchant, you lose the sale either way — which is why these terms are so often confused.

Although chargebacks and refunds share much in common, there are major differences between the two. As a retailer, it’s important that you understand what a chargeback vs. a refund means for you — and what steps you can take to reduce their frequency.

The main difference between a chargeback and a refund is who issues it. In the case of a refund, the merchant gives the customer the money back directly after the return or exchange of a product or report of dissatisfaction with a service. For chargebacks, the consumer receives credit from his or her card issuer. This typically involves some type of dispute or fraudulent action related to the original purchase, and may come with additional fees for the merchant.

How do retail refunds work?

Most of us are familiar with refunds — i.e., returns that are initiated by the customer and agreed to by the merchant.

There are any number of reasons why a customer might request a refund, including:

  • Damaged goods
  • Poor quality
  • Wrong merchandise
  • Late delivery

As the merchant, it’s up to you to decide whether or not to reject the customer’s reason. If you agree, it’s simply a matter of crediting that user’s account or returning the money.

How do retail chargebacks work?

Like refunds, chargebacks are also initiated by the customers. Instead of contacting you directly, customers go through their card-issuing bank to dispute the charges. The bank then credits the users’ accounts before coming back to you — the merchant.

Just as with traditional refunds, there are any number of legitimate reasons for triggering a chargeback — including damaged, late, or poor-quality merchandise. Another common trigger is when customers don’t recognize certain charges on their credit card statements.

For example, the name of your business might be Acme Store. However, the payment descriptor attached to your merchant account could be TAS, Ltd (i.e., The Acme Store, Limited). Any customers who failed to make the connection could end up disputing those particular charges.

Worse still, they could pretend not to recognize the purchase. This happens all the time in what is commonly known as “friendly fraud.”

In fact, 86 percent of all chargebacks are likely cases of “friendly fraud” – customers knowingly buy items with the deliberate intention of disputing these charges after the fact. 1

Unfortunately, consumer protection laws make this easy to do. To initiate a chargeback, customers only need to call their banks or click the “dispute” button associated with their online accounts. This type of fraud is especially common online where eCommerce merchants process card-not-present (CNP) transactions from anonymous shoppers.

Also known as “cyber shoplifting,” chargeback fraud is far more costly than refunds. Not only do you lose the original purchase amount, but you also lose the product sold and any fees or penalties incurred. It’s also a loss of time. You must deal with weeks (if not months) of back-and-forth correspondence with the customer’s card-issuing bank, since the onus is on you to prove that the transaction was legitimate.

Though merchants don’t usually have a good track record with chargeback disputes, there is a possibility of winning; however, when you consider the amount of time invested, the best defense against chargebacks (and refunds) is to prevent them from happening in the first place using a two-pronged approach:

  • One that addresses legitimate returns
  • One that addresses fraudulent cases

How to reduce honest chargebacks and refunds

Below are tips to help reduce the number of legitimate returns within your store:

  • Only sell high-quality products and services. The better your offerings, the fewer unhappy customers you’ll encounter.
  • Provide excellent and easily reachable customer service. Doing so improves your ability to spot potential complaints before they negatively impact your bottom line.
  • Ask your payment processor for a merchant descriptor that accurately reflects your brand. If your business is called “Acme Store,” this is what customers should see on their monthly statements.
  • Invest in a reliable delivery service to ensure shipped items arrive undamaged and on time.

How to reduce fraudulent chargebacks and refunds

Below are several strategies to help reduce the amount of “friendly fraud” that enters your payment environment:

  • Disable guest checkout. Requiring users to log in can help make it easier to trace purchases back to them.
  • Send customers a bonus gift or discount after they’ve made a purchase. Any user who subsequently claims these freebies will have a harder time pretending the original purchase was accidental or unauthorized.
  • Require additional verification details during checkout. In addition to credit card numbers and expiration dates, you should also request the three-digit card verification values (CVVs) from the backs of their cards or 4-digit card identification number (CID) on fronts of cards like American Express. With an address verification system (AVS) in place, you can match the user’s billing address with what the card-issuing bank has on file.
  • Use fraud management filters that automatically flag purchases made with suspicious cards from unverified locations.

One final fraud reduction tip

As long as you’re open for business, there will always be people trying to game the system. The tips listed above might help deter some criminals, but there’s no way to eliminate chargebacks and refunds completely.

That said, there will also be honest people who are either unaware of or unwilling to trigger your store’s refund policy. Given how easy chargebacks are to initiate, you can’t really blame them. Make your refund policy as intuitive and straightforward as possible. The less friction, the better.

Unhappy customers will get their money back no matter what. Therefore, it’s in your best interest to guide them toward your well-publicized and hassle-free refund policy instead of the much more expensive and time-consuming chargeback option.

Interested in learning more?

If you are a merchant and are interested in learning about fraud protection for your business, contact our team of payments experts today.

Unfortunately, there may be times when you make a purchase on either your debit or credit card and something goes wrong. There are two different ways you can claim a refund on a card – using ‘Chargeback’ or via Section 75 of the Consumer Credit Act 1974.

Chargeback

Applies to both debit and credit card transactions.

This is a way we may be able to recover money you’ve paid on a card from a retailer’s bank if:

  • you don’t get what you paid for (including when the company stops trading).
  • what you paid for is faulty, counterfeit or defective.
  • you’ve been charged the wrong amount (or twice by mistake).
  • you’re charged for a repeat payment after cancelling a subscription.

For chargebacks, it’s worth bearing in mind:

  • there’s no minimum or maximum payment amount you can claim.
  • although we’ll always do our best, unfortunately we can’t guarantee a claim will be successful.

What you need to do

You should always contact the retailer first to see if they can help resolve the problem but if they can’t, please contact us as soon as possible. We usually need to start the chargeback process within 120 days of the date of the transaction or when you were due to receive what you paid for.

Section 75 of the Consumer Credit Act 1974

Only applies to credit card transactions.

If you’ve paid by credit card, you may be able to use Section 75 to get a refund for some or all of the purchase price, where a chargeback hasn’t been possible.

Section 75 will apply where:

  • all or part of the payment was made on your credit card.
  • the purchase price of what you bought is between £100 and £30,000.
  • you have a contract with the supplier i.e. you paid them directly with your credit card.

If Section 75 applies, we may be equally responsible for your loss eg if what you paid for:

  • isn’t delivered.
  • is faulty or defective.
  • isn’t as described.
  • has been misrepresented by the supplier.

Section 75 doesn’t apply for:

  • transfers of money made using a credit card.
  • cash withdrawals from a credit card.
  • credit card cheques.
  • goods or services purchased via ‘payment processors’ eg PayPal.
  • where the contract isn’t between you and the supplier.

What you need to do

You should always contact the retailer first to see if they can help resolve the problem but if they can’t, you have up to 6 years from the date of the transaction or when you were due to receive what you paid for to bring a claim under Section 75.

I don’t recognise a transaction

If you’re unsure about one of your transactions, here are some tips to help you work out what it is:

  • other transactions around it from a similar time may help remind you of where you were when the one you don’t recognise was made.
  • if it was made in a foreign currency, exchange rates may mean the final cost is different to the amount you paid at the time.
  • some retailers eg hotels, taxis, airlines, car rentals etc can add additional charges which could make the total amount more than you were expecting.
  • check the retailer’s name eg by entering it in a search engine as they sometimes trade or charge under different names meaning the reference on your statement might not be what you expected.
  • check your receipts to see if you have any from the same day and/or for the same amount but with a different retailer name.
  • check your email inbox as you often get confirmation or receipts this way, which may show a different retailer name.
  • if you share your account, ask the other cardholder if they’ve made the transaction.
  • check if it’s a repeat payment eg a Direct Debit or standing order you might have set up or subscribed to some time ago or is only charged annually.
  • if you’ve signed up for a free trial recently, check the terms and conditions to see if it’s expired and you’ve started paying for it.

If you’ve tried all that and still don’t recognise the transaction, please give us a call on 03 456 100 100 and we’ll do everything we can to help.

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Resolving credit and debit card transactional issues, including your chargeback rights

1. The company name isn’t known, or I don’t recognise this transaction – sometimes:

  • The business or retailer’s trading name may differ from the name recorded on your statement.
  • Where you have an account with the merchant but don’t recognise the transaction, we suggest you contact them in the first instance as they will have more transaction information and should be able to resolve the matter. This will also help ensure your card or account details haven’t been compromised.
  • The additional cardholder or, if it’s a joint account, the other primary cardholder may have made the purchase.
  • You can usually identify the transaction and resolve the issue by comparing the dates and amounts with your receipts, a discussion with your additional cardholder or a quick Internet search to locate more details about the merchant.
  • We also suggest you check your SMS and email (including your junk email folder) as sometimes merchants will provide transaction confirmation this way.

If you have followed the above steps and are unable to verify and believe it relates to an authorised charge please refer to concerned about fraud.

2. You cancelled a regular payment but were still charged – business or retailers usually have contractual terms and conditions that specify cut-off dates for cancelling regular payments. Your notification may have missed this date, in which case, the business or retailers may be within their right to charge you. Check with the business or retailer directly to clarify this.

3. Your goods have not been received – often you can check the tracking number of the goods and this will allow you to see the progress of your order. If you do not have a tracking number or the goods were not received in the agreed timeframe, the first step is to call the business or retailer to discuss the reason for the delay.

4. Duplicated transaction – if a transaction is incorrectly shown twice on your statement, the first step is to call the business or retailer to query the duplicated transaction.

Sometimes issues arise with card transactions. If you recognise the business or retailer, the first step should always be to contact them directly to discuss. The types of transactions to follow up on directly with the business or retailer are:

  • You cancelled a reservation within a business or retailer’s cancellation period, but were still charged.
  • You have an account with the merchant (e.g. your electricity supplier or an online streaming service) set up with your banking account information.
  • You provided your account details to a business or retailer and they have charged your account without your consent.
  • A refund or credit has not been processed, or has been processed as a purchase.
  • The transaction amount differs to what your receipt states.
  • You cancelled a regular payment but were still charged.
  • You were charged multiple times for the same purchase.
  • Goods are not as described or not received.
  • Services have not been rendered.
  • Merchandise is defective.

If the business or retailer is unknown, try doing an online Google search or an ABN search as often the business name is different from the trading name. If this is unsuccessful and you are unable to contact the merchant, or if you cannot come to an agreement within a few days, you should lodge a dispute with us:

  • Lodge via Internet or Mobile Banking:
    • Login to Internet or Mobile Banking
    • Select the account or card used for the transaction
    • Select the transaction
    • Click the link ‘Google for this merchant’ if you need to confirm more about the merchant
    • Select ‘Dispute this transaction’
    • Follow the prompts

    Note: Please keep in mind that the credit or debit card dispute must be within 30 days of the recorded date (statement) of the transaction and can only be lodged if you are the owner or joint owner of an account.

    Over the phone:

      Personal banking customers – Card Disputes:

    – within Australia, 13 22 66
    8am – 8pm Mon – Sat (AEST)
    – International, +61 8 8424 7976

    Business banking customers – Card Disputes:

    – within Australia, 1300 304 040 Option 2
    – International, +61 8 8424 7976

    1. You have lodged a dispute via Internet or Mobile Banking, over the phone or via a Branch.
    2. We’ll confirm receipt of your dispute via email/SMS. Or if you prefer, we can communicate to you via mail.
    3. In this receipt, we’ll provide you with a unique Dispute Reference Number. Have this reference number handy if you need to contact us about your dispute.
    4. We’ll act as a liaison between you and the merchant’s bank. In some instances, we may request information and evidence to progress the dispute resolution. We’ll keep you informed while the investigation is underway.
    5. While the dispute is in progress, we may provide you with a temporary dispute credit. If a temporary dispute credit is applied to your credit card, you must still make at least the minimum repayment amount to avoid charges such as late payment fees and additional interest.
    6. If we receive merchant documentation, and you are registered for Internet or Mobile Banking, we’ll send it to you via your Internet or Mobile Banking Messages for you to review and respond, otherwise we’ll send to you via mail.
    7. On receipt of the documentation, you’ll need to either accept it or further dispute the transaction.
    8. If you accept the transaction, any temporary dispute credit will be reversed.
    9. If you wish to continue the dispute, we’ll require you to provide a written reply (email or mail) to the documentation we sent to you.
    10. Upon receipt of a written reply (email or mail), further investigation will be carried out by us and a decision reached.
    11. If the decision is in your favour, the transaction may be charged back to the merchant’s account and the funds permanently credited to your account.

    Note:
    If we don’t receive a reply to any correspondence sent to you requesting information within 15 days, you may lose your rights to dispute the transaction and any temporary dispute credit will be reversed.