An Australian Chargeback Request Letter is a formal written request from a cardholder to their bank or financial institution, asking the bank to initiate a chargeback — a reversal of a disputed card transaction — under the rules of the applicable card network (Visa, Mastercard, American Express, or eftpos) and the protections of the ePayments Code. It creates a formal, written record of the dispute and provides the bank with the information and evidence it needs to process the chargeback efficiently.

A chargeback is a consumer protection mechanism built into the card payment system that allows a cardholder's bank to reverse a transaction when the cardholder has a legitimate dispute with the merchant. The chargeback process works by the cardholder's bank (the 'issuer') contacting the merchant's bank (the 'acquirer') under the card network's dispute resolution rules, which then notifies the merchant and gives them an opportunity to contest the chargeback. If the merchant does not contest the chargeback or the bank determines the cardholder's claim is valid, the funds are reversed to the cardholder's account.

In Australia, electronic payment disputes — including chargeback requests — are primarily governed by the ePayments Code, a voluntary industry code published by ASIC that applies to the majority of Australian banks and financial institutions. The ePayments Code provides important protections for consumers in relation to unauthorised transactions: if a transaction was not authorised by the account holder and the account holder did not contribute to the loss, the bank must reimburse the account holder. The Code was revised in 2022 with strengthened scam protections and clearer investigation timeframes.

Chargeback rights also derive from the rules of the card networks: the Visa Dispute Resolution Rules, the Mastercard Chargeback Guide, and the American Express dispute procedures. These rules set out the categories of disputes that may be raised as chargebacks, the timeframes (generally up to 120 days from the transaction date for Visa and Mastercard), and the procedures for investigation and resolution. Australian banks that subscribe to the ePayments Code and participate in card networks are bound by both sets of rules.

If a bank refuses a chargeback request or fails to investigate and resolve the dispute within the required timeframe, the cardholder has access to the bank's internal dispute resolution (IDR) process and, if not satisfied, to the Australian Financial Complaints Authority (AFCA) — the free, independent external dispute resolution scheme for financial services complaints in Australia.

A formal chargeback request letter is needed whenever an Australian cardholder has a legitimate dispute with a merchant that cannot be resolved directly, and wishes to formally assert their chargeback rights with their bank. It is used in a wide range of situations involving credit card, debit card, and other electronic payment disputes.

The most urgent scenario is an unauthorised transaction — a charge on your card that you did not make or authorise. This may result from card fraud (where a criminal has obtained your card details through skimming, phishing, or a data breach), identity theft, or an error by the merchant in processing the wrong card. Under the ePayments Code, Australian banks must reimburse account holders for losses from unauthorised transactions where the account holder did not contribute to the loss by negligently disclosing their PIN or account details. A formal chargeback request letter sent to the bank immediately after discovering the unauthorised transaction creates a formal record and triggers the bank's investigation obligations.

Non-delivery of goods or services is another common chargeback scenario. Where a merchant has charged your card for goods that were never delivered, or for services that were never performed — including online purchases that were never dispatched, event tickets for events that were cancelled without refund, travel bookings cancelled due to insolvency, and subscription services not rendered — a chargeback request is the appropriate mechanism to seek recovery.

Goods not as described — where the goods received are materially different from what was ordered (a different colour, size, model, or quality) and the merchant refuses to accept a return — is another recognised chargeback category under Visa and Mastercard rules. The cardholder must generally first attempt to resolve the dispute with the merchant, and the formal chargeback request letter documents that attempt and its failure.

Merchant insolvency is an increasingly important scenario. When an Australian business enters voluntary administration or liquidation, customers who paid by card for goods or services that have not yet been delivered may be able to recover their money through a chargeback rather than waiting (often fruitlessly) as an unsecured creditor in the insolvency. Card network chargeback rules generally allow chargebacks where a merchant becomes insolvent after receiving payment but before delivering the goods or services.

Recurring charges after cancellation — where a merchant continues to debit a subscription fee or instalment payment after the customer has validly cancelled — are also a recognised chargeback category. A formal chargeback request letter that documents the cancellation and the unauthorised continuing charges is essential in these cases.

An effective Australian chargeback request letter must contain several key elements to enable the bank to identify the transaction, assess the dispute, and initiate the chargeback process efficiently.

The letter must clearly identify the cardholder with their full legal name (exactly as on the card), address, phone number, and email address. The bank should be addressed to the Disputes Team or Chargeback Processing Team at the specific address designated for disputes — this is usually found on the bank's website or on the back of monthly statements. Only the last 4 digits of the card number should be included in the letter for security purposes.

The card network — Visa, Mastercard, American Express, or eftpos — must be identified because each network has its own chargeback rules, categories, and timeframes. Identifying the card network helps the bank apply the correct procedure and chargeback category to the dispute.

The transaction must be described precisely: the merchant name exactly as it appears on the bank statement, the transaction date, the transaction amount, and any transaction reference or order number. Precise identification of the transaction is essential because banks process thousands of transactions daily and must be able to match the letter to the specific disputed transaction without ambiguity.

The reason for the chargeback must be identified from the standard card network chargeback categories: unauthorised transaction, goods or services not received, goods or services not as described, duplicate charge, incorrect amount, refund not processed, or merchant insolvency. The reason determines which chargeback code the bank will use when filing the dispute with the card network, and must be supported by the evidence provided.

The full factual description of the dispute — chronological, specific, and evidenced — is the most important element of the letter. It should explain what was ordered, what was received (or not received), when and how the cardholder contacted the merchant, and what the merchant's response was. Where the merchant was contacted and refused to resolve the dispute, this is critical to demonstrate that the cardholder made a good faith attempt before initiating the chargeback.

A comprehensive evidence list must be attached: the bank statement showing the disputed transaction, the receipt or order confirmation, correspondence with the merchant, evidence of non-delivery or defective goods, and any other relevant documents. The more complete the evidence package, the faster the bank can assess and process the chargeback. Including an AFCA warning in the letter signals awareness of escalation rights if the bank fails to handle the request properly.