Increase font size Decrease font size

Disputed Card Transactions

Attention: open in a new window. Print

What is a 'disputed card transaction'?

Generally, there are two scenarios where a card holder will dispute a transaction:

  • Unauthorised transactions - the member did not authorise or perform the transaction
  • Authorised transactions - the member made a purchase or paid for services using a Visa card and they want to dispute the transaction back to the merchant for various reasons, for example, the amount charged was incorrect or the goods or services received were not as described. For more chargeback reasons, please refer to the FAQs table below.

Authorised transactions

In some circumstances, when a member disputes an authorised Visa debit card or credit card transaction we can return the disputed transaction back to the merchant. This process is governed by the Visa Scheme Rules (not us!) and is known as a 'chargeback'.

Normally, we may only submit a chargeback after the member has tried to resolve the dispute with the merchant first, and they were unsuccessful.

The member will need to complete our card dispute form within 30 days of the date of the statement which shows the disputed transaction and explain why they are disputing it.

It is important that we follow these steps. If we don’t, we may be unable to resolve the dispute in the member’s favour as the member may become liable for all or part of the transaction; resulting in potential IDR and EDR complaints.

Unauthorised transactions

If a member tells us that a Visa Debit or Credit Card transaction was not authorised by them, in certain circumstances, we may be able to successfully submit a chargeback on the member’s behalf.

Where an unauthorised transaction falls outside the Visa Scheme Rules for chargebacks, we may still be able to assess liability for the unauthorised transaction under our Terms and Conditions (which reflect the relevant sections of the ePayments Code).

We may determine liability for disputed electronic transactions:

  • If the transaction was unauthorised, and
  • Whether the member breached passcode security requirements.

Keep in mind (your soft skills)

When dealing with a disputed card transaction, the member may become emotional. It’s important that we show care, empathise where appropriate and provide any additional support or solutions.

Remember that you can speak to your supervisor or the Card Dispute Team if you need more information or clarity about our procedures.



  1. What is a disputed card transaction?
When the member says that a card transaction was not authourised or when they request us to investigate a transaction that appears on their account.
  2. What's a 'chargeback'?
The process governed by the Visa Scheme Rules, where we dispute a member’s Visa Debit or Credit card transaction to the merchant’s financial institution, on the member’s behalf.
  3. Can all transactions be charged back?
No, some card transactions can’t be charged back.
The Visa Scheme Rules provide a list of valid chargeback reason codes that may not cover all transactions.  The Rules also set out the information we need to ask the member to process the chargeback claim.
  4. What types of transactions may be investigated?
  • Transactions the member doesn’t recognise
  • Unauthorised transactions
  • Suspected fraudulent transactions
  • Transaction where goods and services were paid for but not received
  • Transactions where the payment amount differs
  • Goods or services received but were not as described
  • Duplicated transactions
  • Recurring debits which were cancelled
  • Goods which are defective
  • ATMs that did not dispense cash or gave the incorrect amount of cash
  5. What are typical transactions that can’t be charged back?
  • PayPal transactions – PayPal has its own dispute resolution process (a number of merchants do!)
  • Contract disputes
  • When the member changes their mind about the goods or service
Negative option billing scenarios – where a member trials a subscription and if they fail to ‘opt out’ before a certain date and the subscription continues (also see question 8 below).

Please contact the Card Dispute Team if you’re unsure whether a chargeback may be applied to a disputed transaction.

  6. Can I ask the member to contact the merchant directly?
Yes, you can. Sometimes it is quicker and easier if they contact the merchant directly to resolve the matter.

Ask the member to keep any correspondence between the merchant when submitting a dispute form, because this will support any chargeback lodged.

If the member is not successful with the merchant, help the member to complete our Card Dispute Form using the instructions in under question 7 below.

  7. How do I help the member?

You should:

  • Review the account details with them 
  • Identify the disputed transaction and if the Member is still unsure (see the list of examples above)
  • Send the Card Disputed Transaction Form to the Member to complete 
  • Advise the Member to provide any supporting documentation 
  • If it’s fraud /unauthourised transaction –  you must list the card as Stolen on FDI Visa exception file (VEF).
  8. What do I do if the member signed up for a free trial and has been charged (negative option billing)?
Some merchants offer a free trial period for goods or services. If the subscription was not cancelled before the trial period ends, the member may be charged each month. 

If this has happened, please ask the member:

  • Did they request a refund from the merchant directly?
  • Did they cancel the subscription within the time period?
  • Did they receive any goods or services?
  • Did they keep any records/emails/notifications of contact made with the merchant?
  • Whether they recall agreeing to any terms and conditions and refer them back to the term and conditions where appropriate
  • Whether they opened any goods received (generally, if unopened items are returned, the merchant will issue a direct refund within 7-10 days of receiving the returned products).
  9. Do I need to add notes in Prosper (CRM)?
Yes, all member interactions must be recorded in the CRM system.

Some tips for note taking:

  • Briefly summarise all member instruction and discussions (in context)
  • Use the “5 W” question technique (what, where, who, why and when)
  • Always note down important dates (i.e Date the claim form was sent and received)
Do not copy and paste internal communications into Prosper (such as emails to other Qudos staff or managers).
  10. Why is accurate Prosper note recording important?
It ensures we have captured our interaction with the member, and the member’s information/instructions correctly. The information will be used by the Card Dispute Team when they investigate and process the claim and may help protect us if an IDR or EDR complaint is lodged.
  11. What happens after the Card Dispute Form is received by our Card Dispute Team?
  • The claim is registered
  • An SMS or email notification is issued to the member advising the form has been received (within 5 days of receipt)
  • The team will investigate the claim
  12. How long does it take to investigate a claim?
  • We will investigate the claim with the merchant within 21 days.
  • If it has been resolved we will settle the matter and advise the Member
  • If the matter is still unresolved after 21 to 45 days we will send another notification advising that additional time is required.
  • If the matter is unresolved after 45 days a monthly notification is sent until the matter has been resolved.
Generally, all claims are resolved within 45 days if not sooner. The status of the claim will be updated in Prosper (CRM).
  13. What are the relevant Visa timeframes?
We are restricted by time constraints imposed by Visa when lodging a claim.
Any claim lodged after 90 calendar days from the transaction date may affect the Members chance of receiving a chargeback.
  14. What references do we rely on when making a decision? 
We use:
  • Visa Scheme Rules (ask the Card Dispute Team)
  • ePayments Code
  • Qudos Bank Terms and Conditions for Savings Accounts and Payment Services
  15. What is 'Visa Zero Liability'?
If we find the member has incurred financial loss we must ensure that any further inconvenience to the member is reduced.

We may offer provisional credit (advance payment in some circumstances) to the member within 5 business days if there is a financial loss.

However, certain conditions may apply, please refer to our Terms and Conditions for Savings Accounts and Payment Services.

  16. What is the ePayments Code?
We are subscribers to the ePayments Code. The ePayments Code regulates consumer electronic transactions, including ATM, EFTPOS and credit card transactions, online payments, internet and mobile banking, and BPAY.

Please see the ePayments Code or contact Legal for more information.

  17. Do I need to report disputed transactions to the Fraud/Risk & Compliance team?
All Disputed Card Transactions (including fraud or chargebacks) are processed by the Card Dispute Team. The Card Dispute Team regularly reports on disputed card transactions to Fraud/Risk & Compliance.

If the member reports multiple fraud attempts on the account ( card, internet banking, scam alert or phone banking etc) you can inform our Fraud Team at or the Card Dispute Team at

Both teams work closely together to ensure our members’ interests are taken care of. Always act quickly in notifying the teams to prevent any further losses.

  • Risk and Compliance
  • Card Dispute Team
  18. Where can I direct members if they want information on disputed transactions?
We have recently put together will a dedicated webpage on Disputed Transactions found on our public website.
We‘ll also roll out information on Card Security in a bid to continually educate our members and staff.
  19. What happens if the member wants to lodge a complaint about the claim?
You should:
  • Let the member know about our internal dispute resolution (IDR) process and provide them with our Dispute Resolution brochure if appropriate, and
  • Refer the complaint to Assistant Manager, Transactional Services for investigation and response
  • Issue Qudos Bank Dispute Resolution brochure
  20. What if I need more information?
Contact the Card Dispute Team