The current COVID 19 pandemic is causing holidays to be cancelled. Many readers are asking how to get their money back. Our first suggestion is to negotiate directly with the hotel, airline or travel agent, but if all else fails, and you paid with a credit card, you may be able to recoup your money through the disputed transactions process.
In this post:
What is a Disputed Transaction?
The most common example of a disputed transaction is when you have fraud on your account. However, it can also apply when you don’t get the goods or services you expect.
This can happen when you pay for something in advance and it fails to turn up. Or in the case of travel, the cruise/hotel/airline is cancelled.
When you dispute a transaction a message is sent from your credit card provider (i.e. your bank or Amex) to the merchant via their bank. The merchant is then obligated to provide evidence that the service is provided. If they cannot then the purchase amount (in the currency purchased) must be refunded.
This whole process can take six to eight weeks which is why we always say to speak to the merchant first.
A change of mind is not a valid reason to dispute a transaction and it will be declined.
When Should I Dispute A Transaction?
Only dispute a transaction when you have all the evidence to prove that you did not get what you paid for. This can be easy if the airline or hotel cancels a booking but impossible when you choose to cancel. Read our guide on what we learnt from Coronavirus.
I am in the process of disputing transactions via my ANZ Travel Adventures for accomodation paid for in Northern Italy! I can also share my dispute experience via transactions paid for via American Express Ultimate Card app.
How to Dispute a Credit Card Transaction
Most banks and Amex have made it very easy to dispute a transaction online. Below we provide a step by step guide for the big four banks in Australia plus American Express.
Amex Disputed Transactions
We used the Message Us chat function in the Amex App to dispute a recent transaction. It can be found amongst your transaction or on the top right hand side when viewing transactions.
What I liked about this approach is that you deal with a person and have a log of your disputes.
It was also easy to contact Amex once we got a refund. I am not sure if the dispute triggered the refund as it came out of the blue from Qantas.
Westpac Disputed Transactions
Westpac is one of the easiest banks to use to dispute a transaction, particularly within their app. You can scroll through your credit card transaction listing and dispute the transaction directly. Unlike other banks you don’t have to write the details down separately.
CommBank Disputed Transactions
One of the least user friendly is Commbank. I tested out the Commbank chat bot and after a number of interactions was directed to call them.
On a positive note they do make it clear that this is the last resort and I should contact the business first.
ANZ Disputed Transactions
The ANZ process was easy enough but far from elegant. It is only available from desktop service. Once you log in and view your card details “Lodge a Transaction Dispute” can be found on the left hand side navigation.
Before you commence the process you will need to have the transaction details handy, unlike Westpac it does not remember the details.
Clicking on the lodge a transaction takes you to an overview page
You are then presented with a page to enter your transaction details. Once it is submitted you recieve a letter from ANZ to confirm that the dispute has been lodged. ANZ claim they will keep you updated every two weeks (as part of the card scheme rules)
NAB Transaction Dispute
You can dispute NAB transactions directly off their website. It also provides clear information on what is required. It appears you can dispute a transaction without having to log in to their Internet Banking.
What Happens Once I Dispute A Transaction?
Once you dispute the transaction your bank takes over and contacts the merchant with the details you provided. You may be contacted to provide further evidence to support your case.
Advice I received from experienced bankers indicate that in legitimate cases the funds will be returned.
How Long Does A Disputed Transaction Take?
Under the Credit Card Scheme rules, your bank needs to keep you updated every two weeks. The whole process can take between 6 to 8 weeks between submitting your dispute and getting a final outcome.
Why You Should Always Pay With a Credit Card
We always recommend that you pay for overseas travel using a credit card rather than a bank transfer or BPAY. The simple reason is because a credit card provides cardholder protection when it comes to disputed transactions.
Banks and card schemes have a set of rules that protects cardholders from service providers (quaintly described as merchants).
Update: Major Merchants Dispute and Refund Policies
One of our colleagues passed on this website that describes the dispute and refund policies of major merchants including major hotels brands eg Intercontinental and Airlines eg Qantas, Singapore Airlines etc.
It was recommended by Mastercard so is a really good starting point.
Summary of Disputed Transactions
Disputed transactions should be seen as a last resort. Often the threat of a disputed transaction will get a result.
However if this fails then make sure you have have the documentation to support your cause and patience.
NOTE: Make sure you don’t close your credit card transactions until all disputes have been received, otherwise you may never see your money.
