Chargebacks happen from time to time when you accept card payments. Some are valid, others result from fraud. While they can’t always be avoided, knowing how they work helps you reduce your risk—and avoid disputes that are time-consuming or tough to win.
Understanding chargebacks – what you need to know
Chargebacks happen from time to time when you accept card payments. Some are valid, others result from fraud. While they can’t always be avoided, knowing how they work helps you reduce your risk—and avoid disputes that are time-consuming or tough to win.
What is a chargeback?
A chargeback is when a customer disputes a card payment through their bank. If the bank agrees with the customer, the transaction is reversed and the money is taken from your account and returned to them.
When should you accept or dispute a chargeback?
It depends on the value of the transaction, what proof you have, and whether it’s worth contesting. Ask yourself: Do I have clear evidence? Is it likely I’ll win the dispute?
Here are 7 of the most common chargeback reasons:
- Duplicate charge
- Customer paid another way
- Goods or services not received
- Order cancelled
- Item not as described or faulty
- Wrong amount charged
- Unauthorised MOTO (Mail Order/Telephone Order) transaction
The chargeback process – step by step
- Customer lodges a dispute with their Issuing Bank.
- The Issuing Bank raises a chargeback with the card network (e.g. Visa, Mastercard).
- The card scheme debits Oligo while dispute is investigated.
- We notify you immediately and your account is debited on the same day.
- You can either accept the Chargeback or challenge it with strong, clear evidence.
- Outcome depends on the evidence:
- If accepted, the funds are returned to you.
- If rejected, the chargeback stands.
For a more detailed overview, download our chargeback guide here.
How long do you have?
Time matters. Chargebacks can be lodged up to 90–120 days after the original transaction, depending on the reason. If you choose to dispute it, you must respond quickly with documentation. The cardholder’s bank then has 30–45 days to review your evidence and make a decision.
What does it cost?
Card schemes (like Visa, Mastercard and eftpos) set the rules and timeframes—and Oligo follows them.
When a chargeback is raised, the amount is debited from your account immediately.
We charge a $30 admin fee per chargeback, which appears on your monthly invoice.
Need help with a chargeback? Reach out to our team at support@oligo.com.au – we’re here to help.
