Ever noticed a strange transaction on your bank statement and wondered what to do next? In Australia, the chargeback process is a critical line of defence for consumers disputing unauthorised or unsatisfactory card payments. As digital payments become the norm, and with new rules rolling out in 2025, understanding chargebacks is more important than ever for both consumers and businesses.
What Is a Chargeback and When Can You Request One?
A chargeback is a reversal of a credit or debit card transaction, initiated by your bank (the card issuer) after you dispute a payment. 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 incorrect amounts)
For example, if you ordered a laptop online in 2025 and it never arrived, you could contact your bank and ask them to reverse the payment. If the merchant can’t provide proof that the goods were delivered as promised, the bank may approve your chargeback.
2025 Policy Changes: What’s New for Australian Chargebacks?
This year, the Reserve Bank of Australia (RBA) and the Australian Payments Network have updated several rules around chargebacks to increase consumer protection and clarify merchant responsibilities:
- Shorter timeframes: From July 2025, consumers must raise most chargeback requests within 60 days of the transaction date, down from the previous 120 days. This aligns with global trends and is designed to speed up dispute resolution.
- Mandatory merchant response: Merchants now have 14 days to respond to a chargeback claim. Failure to respond results in an automatic reversal of funds.
- Stronger fraud protection: Banks are required to offer more proactive alerts for suspicious activity, making it easier for consumers to spot unauthorised charges quickly.
- Expanded eligibility: Digital goods and subscriptions, which were previously a grey area, are now explicitly covered under chargeback rights.
These changes reflect the rapid growth of online shopping and subscription services in Australia. According to the Australian Payments Network, e-commerce fraud rates rose by 11% in 2024, prompting a stronger focus on chargeback accessibility and education.
How to File a Chargeback: Step-by-Step for 2025
Getting your money back via chargeback isn’t automatic—there’s a process to follow. Here’s a 2025-ready guide to making a successful claim:
- Contact the merchant first: Most banks require you to attempt to resolve the issue directly with the business. Keep records of emails or chats.
- Gather evidence: Collect receipts, order confirmations, delivery tracking, photos of faulty goods, and correspondence.
- Contact your bank: Use your bank’s app or call their disputes team. Clearly state why you’re disputing the charge and provide your evidence.
- Complete the paperwork: Some banks may require a formal dispute form or statutory declaration.
- Wait for review: Your bank will investigate and may temporarily credit your account while they contact the merchant.
- Receive the outcome: If approved, the transaction is reversed. If denied, you can escalate to the Australian Financial Complaints Authority (AFCA).
Real-world example: Jenny, a Sydney resident, subscribed to a streaming service that continued billing her after cancellation. After unsuccessful attempts to resolve it with the provider, she filed a chargeback through her bank, providing screenshots of cancellation emails. Her bank reversed three months’ worth of charges under the new digital subscription rules.
Tips to Avoid Chargeback Hassles and Protect Yourself
- Regularly review your statements and set up transaction alerts.
- Use secure payment methods and buy from reputable merchants.
- Respond quickly to suspicious transactions—don’t wait until the deadline.
- Keep detailed records of online purchases and communications.
- Know your rights: Review your card provider’s chargeback policy (they may differ slightly between banks and schemes like Visa or Mastercard).
For merchants, preventing chargebacks means clear refund policies, fast customer service, and accurate product descriptions. With the new rules, ignoring dispute notifications can quickly become costly.
Conclusion: Stay Informed, Stay Protected
Chargebacks are a powerful consumer tool in Australia’s digital economy, and the new 2025 regulations offer even stronger protections. Whether you’re a buyer or a business owner, knowing how the process works—and acting quickly when something goes wrong—can save you time and money. Stay alert, keep good records, and don’t hesitate to use your rights if you spot a suspicious or unfair transaction.