Refunds and chargebacks: when you can dispute an online purchase in Australia

When an online purchase goes wrong, Australians often wonder whether to ask for a refund or contact their bank for a chargeback.

Although the two processes are related, they are not the same. Understanding the difference — and knowing what evidence is required — can save time and frustration.

This guide explains when refunds and chargebacks apply, how card disputes usually work, and what to prepare before contacting your card issuer.

Refund vs chargeback: what’s the difference?

A refund is processed by the seller. It usually applies when:

• You return an item under the store’s policy
• An order is cancelled
• The seller agrees the product or service was not provided as promised

A chargeback is initiated through your card provider (bank or card issuer). It may be considered when:

• The seller does not respond or refuses to resolve the issue
• You were charged incorrectly or more than once
• Goods were not received or were significantly not as described
• There are signs of fraud or unauthorised use

Most card providers expect you to try resolving the issue with the seller first.

When chargebacks are commonly accepted

While rules vary by card network and bank, chargebacks are often considered in situations such as:

• Non-delivery of goods after reasonable time
• Items that are significantly different from their description
• Cancelled services that were still charged
• Unauthorised or fraudulent transactions

Change-of-mind purchases are generally not chargeback grounds unless consumer law applies.

Time limits matter

Chargebacks usually have strict timeframes. Many card issuers require disputes to be raised within a set period from:

• The transaction date, or
• The expected delivery or service date

Waiting too long can reduce the chance of a successful outcome.

Chargeback evidence checklist

Preparing evidence upfront can make the process smoother.

• Order confirmation or receipt
• Proof of payment (card statement screenshot)
• Delivery tracking showing non-delivery or delays
• Photos of faulty or incorrect items
• Copies of emails or messages sent to the seller
• The seller’s refund or return policy

Keep all documents until the dispute is fully resolved.

What happens after you lodge a dispute

Once a chargeback is lodged:

• Your bank reviews the evidence
• The merchant may be asked to respond
• The process can take weeks, sometimes longer

Some disputes are resolved quickly, while others take time depending on complexity.

Common mistakes to avoid

• Skipping contact with the seller before disputing
• Missing dispute deadlines
• Providing incomplete or unclear evidence
• Assuming chargebacks are instant refunds

Quick Q&A

• Q: Is a chargeback guaranteed if I’m unhappy?
  A: No. Outcomes depend on card rules, evidence and the specific situation.
• Q: Can a chargeback be reversed?
  A: Yes. If the merchant successfully challenges it, the charge may be reapplied.

Disclaimer: This article is for general information only and is not legal or financial advice. Chargeback rules vary by card issuer and circumstances. Check your bank’s official guidance before lodging a dispute.