Chargebacks in Australia 2026: What Consumers Need to Know

A chargeback is when your bank reverses a credit or debit card transaction after you dispute a payment. This process is designed to protect consumers from unauthorised charges, fraud, or problems with purchases. Common reasons for requesting a chargeback include:

• Unauthorised or fraudulent transactions
• Goods or services not received
• Items received but not as described or defective
• Duplicate charges
• Merchant errors (such as being charged the wrong amount)

For example, if you order a product online and it never arrives, you can ask your bank to reverse the payment. If the merchant can’t show that the goods were delivered as promised, the bank may approve your chargeback request.

In 2026, several updates are being introduced to the chargeback process in Australia. These changes aim to strengthen consumer protection and clarify how disputes are handled. Some of the key updates include:

Shorter Timeframes for Claims

From July 2026, most chargeback requests must be lodged within 60 days of the transaction date. This is a reduction from previous timeframes and is intended to encourage faster dispute resolution. Acting quickly is now more important than ever.

Faster Merchant Response

Merchants are now required to respond to chargeback claims within 14 days. If they do not respond in time, the funds may be automatically reversed in favour of the consumer. This change is designed to streamline the process and reduce delays.

Enhanced Fraud Protection

Banks are expected to provide more proactive alerts for suspicious activity, making it easier for consumers to spot and address unauthorised transactions early.

Expanded Coverage

Chargeback rights now more clearly cover digital goods and subscriptions, which were previously less defined. This means consumers have clearer avenues for disputing issues with online services and digital purchases.

These updates reflect the ongoing growth of online shopping and digital services in Australia, and the need for clear, accessible dispute processes.

Getting a chargeback is not automatic; you’ll need to follow a set process. Here’s a step-by-step guide for Australian consumers in 2026:

1. Contact the Merchant First

Most banks require you to try resolving the issue directly with the business before starting a chargeback. Keep records of your communication, such as emails or chat transcripts.

2. Gather Your Evidence

Collect all relevant documents, including receipts, order confirmations, delivery tracking details, photos of faulty goods, and any correspondence with the merchant. The more evidence you have, the stronger your case.

3. Contact Your Bank

Reach out to your bank’s disputes team, either through their app, website, or by phone. Clearly explain why you’re disputing the charge and provide your supporting evidence.

4. Complete Any Required Forms

Some banks may ask you to fill out a dispute form or make a formal declaration. Make sure you provide all requested information to avoid delays.

5. Wait for the Bank’s Review

Your bank will investigate the claim and may temporarily credit your account while they contact the merchant. The merchant will have a set period to respond.

6. Receive the Outcome

If your claim is approved, the transaction will be reversed. If it’s denied, you can escalate the matter to the Australian Financial Complaints Authority (AFCA) for further review.

Suppose you subscribe to a digital service and cancel your subscription, but the provider continues to bill you. If your attempts to resolve the issue with the provider are unsuccessful, you can file a chargeback with your bank. Providing evidence such as cancellation emails and billing statements can help support your claim, especially now that digital subscriptions are explicitly covered.

• Regularly check your bank statements for unfamiliar transactions.
• Set up transaction alerts through your banking app.
• Use secure payment methods and buy from reputable merchants.
• Respond quickly if you notice a suspicious transaction—don’t wait until the deadline.
• Keep detailed records of your online purchases and communications.
• Review your card provider’s chargeback policy, as details can vary between banks and card schemes.
• If you’re unsure about a transaction, contact your bank for advice.

For more on protecting your finances, see our finance resources.

If you run a business, preventing chargebacks is important for maintaining trust and avoiding unnecessary costs. Some practical steps include:

• Providing clear product descriptions and accurate information.
• Offering prompt and helpful customer service.
• Having a transparent refund and returns policy.
• Responding quickly to dispute notifications from banks.
• Keeping thorough records of transactions and communications.

With the new rules, failing to respond to a chargeback claim within the required timeframe can result in an automatic loss of funds.

Chargebacks remain a vital tool for Australian consumers to resolve payment disputes and protect against fraud. The updated 2026 rules bring shorter timeframes and clearer protections, especially for digital purchases. Whether you’re a consumer or a business, staying informed about the chargeback process—and acting quickly when issues arise—can help you avoid unnecessary stress and financial loss. Keep good records, know your rights, and don’t hesitate to take action if you spot a problem.