Help & support
If the chargeback is contested and resolved in your favour, the disputed transaction amount will be returned.
We’ll notify you of a chargeback by email or letter, which will include the reason and transaction details. You have 14 days to respond.
To accept a chargeback
If you're notified about a chargeback and do nothing within the 14-day timeframe, you’ll automatically accept it. The disputed amount will be debited from your account and a chargeback fee may apply.
To challenge a chargeback
Check whether you can challenge your chargeback or not. You can challenge chargebacks related to processing errors and consumer disputes but some chargebacks are automated and can't be challenged.
Email supporting documents by the date given in your email or letter. You may be asked to provide documents such as:
Only submit documents relevant to the chargeback reason.
The chargeback will continue through the review process in line with card scheme rules, and the information you’ve provided will be considered as part of the assessment.
Possible outcomes
In some cases, disputes may be escalated to the card scheme for a formal review called arbitration.
Chargebacks are managed in line with card scheme rules, which set out how different types of disputes are handled.
Some chargebacks are processed automatically and can’t be challenged through CommBank. This includes certain fraud and authorisation-related chargebacks.
Other chargebacks, such as processing errors and customer disputes, may be eligible to challenge if you can provide supporting documents. Your chargeback notification will indicate whether the chargeback can be challenged and what information is required.
For more information, refer to the relevant card scheme guidelines:
If a chargeback case has been raised against your business, do not process a refund for the customer.
You need to wait for the case to be resolved. If a refund is required, it will be processed through the chargeback process. If you process a refund during this time, you may still be liable for the chargeback refund.
When you’re processing refunds in future, always use the same card the customer used for the original payment. Using any other refund method – such as bank transfer, cheque, Western Union money transfer, or a different card – leaves you at risk of chargebacks on the original transaction.
To avoid chargebacks from customer disputes, keep detailed records of your transactions. Make sure you have proof that customers got what they paid for. This may include:
Fraud-related disputes are usually raised within 120 days of the transaction date. Customer (non-fraud) disputes, such as when a customer claims they didn’t receive goods or services, can be raised up to 540 days after the transaction or delivery date, depending on card scheme rules (Visa and Mastercard).
To help you dispute a chargeback, make sure your invoices, contracts and promotional materials include:
Yes. Mail Order/Telephone Order (MOTO) transactions generally carry a higher risk of fraud and related chargebacks because the card is not physically present at the time of purchase.
When a customer places an order over the phone and card details are entered manually, there’s a higher risk of unauthorised use compared to a card-present transaction. Taking steps to reduce fraud risk can help lower the likelihood of these chargebacks.
We’ll notify you by email or letter when a chargeback is raised. The notification will include the transaction details, reason for the chargeback and date your response is due.
For certain automated fraud and authorisation-related chargebacks, the transaction amount may be debited when the chargeback is raised. If the chargeback is later resolved in your favour, the disputed transaction amount will be returned to your account.
Yes. The disputed transaction amount may be deducted from your account when a chargeback is raised. A chargeback fee applies for processing the dispute.
If the chargeback is challenged and is resolved in your favour, the disputed transaction amount will be returned.
A chargeback can be reversed in some situations, depending on where the dispute is up to.
If the merchant provides evidence that successfully challenges the chargeback, or if the dispute is withdrawn early, the issuing bank may reverse the chargeback.
If the dispute reaches arbitration and the card scheme makes a final decision, that outcome is usually final and can’t be reversed.
A refund and a chargeback both return money to a customer, but they are initiated differently:
Chargebacks involve a formal dispute process and may result in additional fees for the merchant. Refunds are usually quicker and resolved directly between the customer and the merchant.
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As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances. Please view our Merchant Agreement, Financial Services Guide and Operator and User Guides at our Merchant Help Centre.
