Dispute a Credit Card Charge in Australia When Your Bank Says No | BankCert

Your bank said no — now what?

When you dispute a credit card charge in Australia and your bank rejects the claim, most people give up. That’s exactly what the banks are counting on. The truth is, a bank’s initial “no” is often not the end of the road — it’s just the beginning of a process most consumers don’t know exists.

The short answer: if your bank refuses your credit card dispute, you can escalate to the Australian Financial Complaints Authority (AFCA), which is a free, independent service that has the legal power to compel banks to pay up. In 2023–24, AFCA received 102,861 complaints and secured over $280 million in compensation for consumers. That’s not a small operation. That’s a functioning alternative to litigation, and it’s there specifically for situations like yours.

But before you fire off a complaint to AFCA, there’s a proper sequence to follow — and skipping steps will cost you time and credibility.

Why banks reject disputes (and when they’re wrong to)

Banks decline disputes for a handful of reasons, some legitimate, some not. Understanding which category your rejection falls into tells you how hard to push.

• You disputed too late. Under the ePayments Code — the industry standard most Australian banks subscribe to — you typically have 30 days to report an unauthorised transaction, though some card networks allow longer windows.
• The bank decided you authorised the transaction. This is the most common rejection reason, and often the most contestable, especially with subscription traps or free-trial-to-paid conversions.
• The merchant provided “evidence” of delivery. Banks frequently take a merchant’s tracking number at face value, even when the item never arrived or was the wrong product entirely.
• The dispute was framed incorrectly. There’s a difference between a fraud claim and a *Section 75-style* chargeback claim — and while Australia doesn’t have an exact equivalent of Section 75, Visa and Mastercard chargeback rules do vary by dispute reason code. Using the wrong reason code is a surprisingly common reason claims fail.
• The bank simply made an error. It happens more than banks will admit.

How to escalate a credit card dispute in Australia — step by step

This is the process, in order. Don’t jump ahead.

1. Request the bank’s specific reason in writing. Don’t accept a verbal rejection. Call or use secure messaging, and ask them to confirm in writing exactly why the dispute was declined and under which policy or code provision. This becomes evidence later.
2. Gather your own evidence. Screenshots of the merchant’s description at the time of purchase, email correspondence, delivery tracking showing non-arrival, bank statements showing duplicate charges — all of it. The more specific, the better.
3. Submit a formal internal complaint. Most people dispute through the app or phone. A formal complaint — addressed to the bank’s complaints team or Internal Dispute Resolution (IDR) process — triggers a legally required 30-day response window under ASIC’s Regulatory Guide 271.
4. If IDR fails, go to AFCA. Once you’ve received the bank’s final response (or 30 days have passed without one), you can lodge with AFCA. Do it at afca.org.au — it’s free, and you can claim up to $1 million for certain disputes (though most credit card disputes are far smaller).
5. For fraud specifically, also report to Scamwatch. The Australian Competition and Consumer Commission (ACCC)‘s Scamwatch service collects reports that feed into regulatory action. It won’t directly recover your money, but it creates a paper trail that supports your AFCA case.

What AFCA actually looks at when it reviews your case

AFCA doesn’t simply rubber-stamp bank decisions. It reviews the dispute afresh, applying the ePayments Code, Visa and Mastercard’s own operating regulations, and general principles of fairness. According to AFCA’s 2023–24 Annual Review, banking and finance accounted for 53% of all complaints received, with credit disputes among the top categories.

“AFCA’s role is to resolve disputes between consumers and financial firms in a way that is fair, efficient, timely and independent. We are not an advocate for either party.”

— David Locke, Chief Ombudsman and CEO, Australian Financial Complaints Authority, AFCA About Our Approach

The key thing AFCA assesses in credit card disputes is whether the bank followed its own obligations under the ePayments Code, and whether the card scheme’s chargeback process was properly applied. Banks must demonstrate they investigated — not just that they made a decision.

Which types of credit card disputes have the strongest grounds for escalation?

Not every rejected dispute is worth taking further. Here’s where the odds tend to favour you, based on how AFCA and card schemes actually rule:

1. Goods or services not received — One of the most successful dispute categories, especially when you have written confirmation of an order and evidence of non-delivery.
2. Subscription charges you didn’t knowingly authorise — The rise of BNPL and app-based recurring billing has made this increasingly common. AFCA has consistently found in consumers’ favour when merchants buried recurring terms in fine print.
3. Counterfeit or significantly not-as-described goods — Particularly relevant for purchases from overseas sellers. If what arrived was materially different from what was advertised, that’s a strong chargeback basis under Visa and Mastercard’s rules.
4. Duplicate transactions — Technical errors happen. These are rarely contested once you supply bank statement evidence of two identical charges.
5. Merchant went into administration — If you paid for something and the business folded before delivering it, a chargeback may be your only route to recovery.
6. Unauthorised transactions where you reported promptly — Under the ePayments Code, if you didn’t contribute to the loss (e.g., you didn’t share your PIN), liability typically sits with the bank or merchant.

A case worth knowing about: the subscription trap

A friend of mine — a graphic designer in Melbourne — signed up for a free trial of a design software platform in late 2023. The trial ended, she forgot to cancel, and three months of charges at $89/month appeared on her Visa card. Her bank initially rejected the dispute on the grounds that she had “authorised the original subscription.”

She went back with a screenshot of the original sign-up page, which described the trial as “cancel anytime with no charge.” That wording, the bank’s complaints team eventually agreed, was misleading enough to constitute a services-not-as-described claim. She got all three months refunded — $267 — through the internal complaints process, without ever reaching AFCA.

The lesson: framing matters enormously. “I didn’t want to pay” loses. “The service was materially different from what was described at the point of sale” wins.

How Australian chargeback outcomes compare by dispute type

What if your dispute involves a business account?

The rules shift when you’re disputing charges on a business credit card rather than a personal one. The ePayments Code primarily protects consumers — business accounts may have different (and sometimes weaker) protections depending on how the bank has structured the account agreement. If you’ve gone through the process of getting your business bank account properly certified and set up, your account documentation will make it much easier to establish what terms apply to your dispute. Either way, AFCA can still hear complaints about business banking, though the thresholds and rules differ.

Quick comparison: your escalation options at a glance

Definition: what is a chargeback?

Chargeback: A chargeback is a forced reversal of a credit card transaction, initiated by the cardholder’s bank, that returns funds to the cardholder when a dispute is upheld. It is distinct from a refund — which comes from the merchant voluntarily — and is governed by the rules of the card network (Visa, Mastercard, or Amex) rather than by consumer law alone.

Frequently asked questions

Q: How long do I have to dispute a credit card charge in Australia?
A: Under the ePayments Code, you generally have 30 days to report an unauthorised transaction, but Visa and Mastercard chargeback windows can extend to 120 days from the transaction date or the date you expected to receive goods or services. Always check your bank’s specific terms — and don’t wait.

Q: Can I dispute a credit card charge if I authorised the payment but didn’t get what I paid for?
A: Yes. Authorising a payment doesn’t mean you’ve waived your chargeback rights. If goods weren’t delivered, were significantly not as described, or a service was misrepresented, you have grounds to dispute under Visa and Mastercard’s “services not rendered” or “not as described” reason codes — even if you clicked “pay.”

Q: What evidence do I need to win a credit card dispute in Australia?
A: Bank statements showing the charge, your original order confirmation, any communication with the merchant, screenshots of the product listing or subscription terms at the time of purchase, and delivery tracking information (or evidence it failed). The more contemporaneous the evidence, the stronger your case.

Q: Is AFCA really free, and can it actually force the bank to pay me?
A: Yes on both counts. AFCA is funded by the financial industry, not by complainants. And its determinations are legally binding on financial firms — if AFCA rules in your favour, your bank must pay. In 2023–24, AFCA resolved 100,861 complaints, with a significant proportion resulting in compensation.

Q: Does disputing a credit card charge affect my credit score in Australia?
A: No. Lodging a dispute with your bank or a complaint with AFCA does not appear on your credit file and does not affect your credit score. Your credit record reflects payment behaviour, not dispute activity.