There can be many benefits to your business when you accept payments by card. The payment process is faster, it is convenient for your customers, and you spend less time and expense counting, sorting and transporting cash.

If you already accept card payment transactions, we understand there is one area that can sometimes cause our customers confusion – chargebacks.

A chargeback occurs when the cardholder (or their bank/financial institution) raises a dispute in connection with a card transaction. From time to time, you may receive notifications of a chargeback request.

The below information will help you understand more about chargebacks and how disputes are resolved, as well as what you can do to reduce chargebacks.


What is a chargeback?

If a cardholder sees a transaction on their credit card that they don’t believe they have made, or if the customer was charged the incorrect amount, they can dispute that transaction with their bank or financial institution.

How the chargeback process works:

  1. A dispute is raised by the cardholder or the cardholder’s bank against a NAB merchant
  2. NAB receives the chargeback notification, and notifies you, the merchant, via email, letter or secure channel
  3. If you, the merchant, disagree with the dispute claim, you can respond to NAB
  4. If you, the merchant, are found to be liable for the dispute, then the transaction amount will be debited from your settlement account and a chargeback fee will apply

What does ‘chargeback liability’ mean?

Visa and MasterCard rules request that a PIN or ‘signature’ (signed card imprint) be obtained during a transaction, except for some transactions performed by tapping a card near a contactless card reader.

For eCommerce transactions, standard security measures in identifying cardholders (such as chip cards) are not available and therefore not as secure. The liability of accepting these transactions rests with the merchant.

Common chargeback reasons and how long merchants have to respond

You will always be provided with the opportunity to respond to a dispute that has been raised against your business.

Chargeback type What this means When will this happen What you need to know
Fraud or Authorisation related chargebacks     The cardholder has denied authorising the transaction. It may be ‘Card Not Present’ or unverified online You will receive a letter/notification from NAB advising that you will be debited in seven days.

If you disagree with this dispute, you must be able to provide sufficient documentation.

The documents required may vary depending on the dispute reason.

Customer Disputes or Non-Fraud related chargebacks
  • Duplicate charges
  • Non-receipt of goods or services
  • Cancelled recurring payment
  • Goods or services not as described

You will receive a Request for Information letter or a notification from NAB advising you to respond within ten calendar days

If no response is received, NAB will issue chargeback letter/notification on the fifteenth day advising you will be debited in seven days

Once you receive a letter/notification from NAB, you can provide any information so we can refute the dispute on your behalf.

The documents required may vary depending on the dispute reason.

What information do you, the merchant, need to provide to NAB if you receive a chargeback notification?

If you disagree with a chargeback, you can provide all details relevant to the transaction and any verification of the cardholder. The information and documents that may be required will depend on the dispute reason, and may include but is not limited to:

  • a signed copy of the transaction voucher or receipt; and/or
  • a copy of the order or invoice; and/or
  • a copy of any correspondence received by you from the cardholder.

We ask that you keep a copy of all documentation you send to NAB.


If you are an eCommerce merchant, check out our page which helps you protect your business online.

For further information regarding different fraud types and scam scenarios that could affect your business, please visit or


Refunding a customer

  • Following the correct procedure helps to avoid chargeback requests and ensures you, the merchant, has proof of the transaction.
  • Remember – a credit card transaction can only be refunded to the same card – this avoids any fraudulent or money laundering activities. If the purchase has been made via a card, do not refund via cash or cheque.
  • It’s good to have a fair policy for the return or exchange of merchandise.

Need help?

The merchant chargebacks team is there to help you through the chargeback process. You can email the team at

We’re ready to help your business

Have us call you
Call 1300 369 852

Terminal support, 24/7
Transact support, Mon–Fri 8am to 8pm (AEST/AEDT)