Fair Credit Billing Act (FCBA) vs Australian Credit Card Protections: What to Know in 2026

The Fair Credit Billing Act is a US federal law introduced in the 1970s to protect credit card users from unfair billing practices. The FCBA gives American cardholders the right to dispute certain charges, such as:

• Billing errors
• Charges for goods or services not received
• Unauthorised transactions

Under the FCBA, US cardholders can withhold payment on disputed amounts while the issue is investigated, and card issuers must respond within set timeframes. Over the years, the FCBA has been updated to address new challenges, including digital fraud and online transactions. It remains a reference point for consumer credit protections globally.

Australia does not have a single law that mirrors the FCBA, but several regulations and industry codes provide similar protections for credit card users. The most important are:

• National Consumer Credit Protection Act 2009: Sets out broad consumer rights for credit products.
• ePayments Code: Overseen by the Australian Securities and Investments Commission (ASIC), this code covers electronic payments, including credit and debit card transactions.

Key protections for Australians include:

Chargeback Rights

Australian credit cards generally offer chargeback, which allows you to dispute transactions that are unauthorised, fraudulent, or for goods and services not received as promised. Chargeback is a process where your bank seeks to reverse the transaction on your behalf.

Zero Liability Policies

Most Australian banks have policies that mean you are not held responsible for unauthorised transactions if you have taken reasonable care, such as protecting your PIN and reporting lost or stolen cards promptly.

Dispute Resolution Timelines

Banks typically require you to report disputed transactions within a set period—often between 30 and 60 days from the statement date. Once a dispute is lodged, banks are expected to investigate and resolve it within a reasonable timeframe, often within 45 days, in line with the ePayments Code.

Ongoing Reforms

As of 2026, Australian regulators are reviewing updates to the ePayments Code to further strengthen protections, especially in response to the rise in digital payments and online scams. These updates may clarify liability for unauthorised transfers and scams, and could introduce new obligations for banks and payment providers.

While the details differ between the US and Australia, the principles of protecting yourself from billing errors and fraud are similar. Here are practical steps Australians can take:

1. Review Your Statements Regularly

Check your credit card statements each month for any unfamiliar or suspicious transactions. Early detection is crucial, as banks may not accept disputes lodged after their set timeframes.

2. Act Quickly on Errors or Unauthorised Charges

If you spot a transaction you don’t recognise or believe is incorrect, contact your bank as soon as possible. Most banks allow you to lodge disputes online, by phone, or in writing. Acting quickly improves your chances of a successful resolution.

3. Understand Your Rights

Familiarise yourself with your bank’s dispute process and the protections offered under the ePayments Code. This is especially important if you shop online or travel overseas, as different rules may apply to international transactions. For more details, see finance.

4. Use Chargeback for Problem Transactions

If a retailer does not deliver goods or services as promised, or if you are unable to resolve an issue directly with the merchant, you can request a chargeback through your bank. This process is your safety net for disputes that cannot be resolved with the retailer.

5. Stay Informed About Regulatory Changes

In 2026, there are ongoing discussions about further reforms to consumer protections, particularly around scam losses and digital payment security. Keep an eye on updates from your bank and regulators to ensure you understand your rights as they evolve.

While both the US and Australia prioritise consumer protection, there are some important differences in how disputes are handled:

Dispute Amounts

The FCBA specifies a minimum amount for disputes in the US, but in Australia, you can dispute transactions of any value. This means you are not limited by a minimum threshold when raising concerns with your bank.

Formal Processes and Timeframes

US law requires written acknowledgment of disputes and sets strict timeframes for responses. Australian banks have similar obligations, but the processes and deadlines may vary between institutions. It’s important to check your bank’s specific requirements.

Focus on Digital Fraud

Both countries are updating their regulations to address the growth in digital payments and online scams. In Australia, the ePayments Code is under review, and future changes may further strengthen protections for consumers using digital wallets and online banking.

As digital payments become the norm, Australians should pay attention to:

• Proposed reforms that may increase banks’ responsibility for scam losses
• Updates to the ePayments Code that clarify liability for unauthorised transactions
• New protections for consumers using emerging payment technologies

Staying informed will help you take advantage of new protections as they are introduced.

While Australia does not have a direct equivalent to the US Fair Credit Billing Act, local laws and codes provide strong protections for credit card users. By understanding your rights, monitoring your statements, and acting quickly on any issues, you can minimise the risk of loss from billing errors or fraud. As regulations continue to evolve in 2026, staying informed will help you make the most of your credit card protections and use digital payments with confidence.