How to cancel or reverse a credit card payment

How do I cancel a credit card payment?

You have a few ways you can cancel or reverse a credit card payment, depending on how and when the payment is made.

1. Cancelling payments that are scheduled for a future date. If you have a scheduled or recurring payment, you can usually cancel it by logging into your account and updating your payment details – or cancelling the service.
2. Cancelling credit card payments for items or services you haven't received yet. If you want to cancel something like a travel booking or an online shopping order that hasn't been sent yet, contact the business directly. Depending on the cancellation policy, you may be offered a refund, store credit or another solution.
3. Cancelling credit card payments for retail items. If you've already received the items, you can contact the business to ask for a refund, exchange or store credit. Note that you usually need to return an item unused to get a full refund, unless it was damaged or defective when you got it.

Disputing a transaction and getting a chargeback

You can also request a chargeback from your bank or credit card company. This is a way of reversing a payment made with a credit or debit card.

You can request a chargeback by disputing a transaction because:

• It's a transaction you didn't make (a fraudulent transaction).
• You didn't receive the product or service you paid for, or you didn't receive them as described.
• The business is no longer operating and cannot provide the product or service.

You can't request a chargeback for something if you paid with cash, direct debit, BPAY or a money transfer.

How to lodge a dispute and reverse a transaction

The process for lodging a dispute varies by bank. Most banks ask you to dispute a transaction using their banking app or via an online dispute form.

Some will let you provide the necessary information online, while you may need to call others.

What should I check before I dispute a transaction?

Firstly, make sure there is actually an error by going through these steps:

1. Check all your receipts and transaction records for the period in question, and pay close attention to listings for the same retailer or financial institution. Keep in mind that some transactions may not be processed on the same day.
2. See if you can match the charge to something you bought around the same time, because some merchants have different billing names and trading names. Tip: You can search the Australian Business Register for more information about the merchant using the billing name on your statement.
3. If you have an additional cardholder, check to make sure the purchase wasn't theirs.
4. If you recognise the biller but the amount does not match what you bought, check your receipt to see if currency conversion rates or other fees were applied.
5. If the transaction was for an automatic payment or direct debit that you recently cancelled, contact the business to ask about the charge. Some contracts specify cut-off dates for cancelling regular payments and sometimes there are processing errors if the cancellation happens after the date a payment is usually deducted – but the business can help you figure out what has happened.

What transactions can I dispute?

It is your right as a consumer and account holder to dispute a variety of credit card errors that include:

• Unauthorised transactions. Any transactions that were not made or authorised by you or an additional cardholder.
• Fraudulent transactions. A transaction that you believe was made fraudulently.
• Inconsistencies. Items on your statement that do not match the item amounts on your receipt.
• Mistakes. Transactions that were mistakenly charged to your account more than once.
• Refunds. Refunds or credits that have not been processed, or that were wrongly processed as debits.
• Cancellations. Charges for a reservation you made but cancelled within the cancellation period.
• Cancelled auto-payments. A cancelled automatic payment that is still being deducted.
• Faulty or defective goods. Goods that you paid for but have not received, have been delivered but are not as they were described to be or that arrived to you faulty or defective.
• Unfulfilled services. Services that have not been rendered or orders that were never delivered.
• ATM errors. An ATM withdrawal that dispensed the incorrect amount of money.

What happens after my dispute is lodged?

You will receive confirmation from the bank once they have received your request for a dispute resolution. At this point it may be necessary for you to sign a form authorising their investigation which you will need to return to the bank in a specified time frame.

Once you have lodged your credit card dispute with your bank, you can expect it to go through these three stages:

1. Dispute Item Raised. The transaction in question is being reviewed.
2. Dispute Resolution Credit. Your account is credited with the correct amount of money.
3. Dispute Item Resolved. The bank is no longer reviewing the transaction.

Frequently asked questions

• How long does it take to resolve a dispute?

  It will depend on the bank and the circumstances, but the bank should be keeping you informed of their progress during the process. Expect it to take no less than a month, and in many cases even longer, for the charge to be removed from your account.

• When should I lodge the dispute?

  After checking over your own records to make sure that there is indeed an error, you should lodge the dispute immediately. This should be no more than 30 days after the date of the statement on which the error appears.

• Can I cancel or dispute a pending transaction?

  You can't typically cancel or dispute a transaction while the payment is still pending. According to Westpac, "A dispute can only be lodged once the transaction has been fully processed."

• Should I still make payments towards my credit card while a dispute is under investigation?

  Yes, you should continue with your payments as normal in order to avoid late fees or added interest.

• What do I do if the dispute is not resolved in my favour?

  Documentation from the merchant will be presented to your bank and then forwarded to you if they feel your dispute has no merit. You can either accept this and pay the charge, or opt to continue to dispute the transaction by providing evidence which negates theirs.

Written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 687 Finder guides across topics including:

• Home loans
• Credit cards
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