Falling victim to a scam can be distressing – but you may be entitled to a refund. Whether your money was stolen via a fake website, misleading service provider, or unauthorised transaction, Australian law offers several pathways for potential recovery.
This article, written by our e-commerce and consumer lawyers, breaks down your refund rights under the Australian Consumer Law (ACL), the ePayments Code, and through chargebacks and dispute resolution bodies like AFCA.
Key Takeaways
Act quickly! Most refund or chargeback windows close within 30-120 days.
You may be entitled to a refund under the ACL if goods/services weren’t delivered.
Unauthorised transactions may be covered under the ePayments Code.
Banks and credit card providers must investigate reported scams.
If your bank won’t help, you can escalate to the Australian Financial Complaints Authority (AFCA).
Your Refund Rights Under Australian Law
Australian law provides several overlapping protections for scam victims. Knowing which applies to your situation can help you recover lost funds more efficiently.
1. Refunds Under the Australian Consumer Law (ACL)
The ACL (found in the Competition and Consumer Act 2010) protects consumers from misleading or deceptive conduct. If you paid for goods or services that were never delivered (or were poorly delivered or falsely advertised) you may be entitled to a full refund under section 259.
Steps to Claim a Refund under the ACL:
Send a written refund request to the trader (if contactable).
Lodge a consumer complaint with the ACCC or your state/territory consumer agency.
File a claim with your local small claims court or tribunal (e.g. NCAT, VCAT, QCAT).
2. Protections Under the ePayments Code
If the scam involved a bank transfer, credit card, or online payment, you may be protected by the ePayments Code (administered by ASIC). Most Australian banks and credit unions are subscribers.
What the Code Offers:
Zero liability if you didn’t contribute to the loss (e.g. if your account was hacked).
Banks must process chargebacks where possible.
Banks must complete an investigation within 10 business days.
Important: Report suspicious or unauthorised transactions as soon as possible. Delays can weaken your refund claim.
Scams involving hacked email accounts and redirected payments are increasingly common. Learn more about how business email compromise scams work and what legal steps you can take in our guide on business email compromise and how to protect your business.
How to Get Your Money Back
If you have lost money to a scam, follow these steps to increase your chances of recovery:
Step-by-Step Refund Process
1. Contact your bank or card provider immediately.
2. Request a chargeback or transaction reversal.
3. Collect evidence: screenshots, receipts, emails, chat logs.
4. Submit a formal dispute citing the ACL or ePayments Code.
5. If unsuccessful, escalate your complaint to AFCA.
6. Consider legal action if the scammer is identifiable and other options fail.
Chargebacks Explained
A chargeback is a reversal of a credit or debit card transaction. It can be requested for most Visa and Mastercard payments within 30-120 days of the transaction.
Unlike some other countries (e.g. the UK’s Section 75), Australia does not have a statutory chargeback law. Instead, protections rely on bank policies, card scheme rules, and the ePayments Code.
Real-World Example: Refund Secured for an Author Misled by a Publisher
We recently assisted an Australian author who had paid a substantial fee to a publishing company promising editing, distribution, and marketing services. Despite the agreement, the publisher failed to deliver the promised services to a professional standard. Editing was incomplete, distribution was limited, and marketing never eventuated.
The author approached us for help after being ignored by the publisher’s customer support team.
How We Helped:
We reviewed the service agreement and identified multiple breaches under the Australian Consumer Law.
Our legal team drafted a formal letter of demand, citing the publisher’s failure to deliver services with due care and skill (as required under section 60 of the ACL).
Outcome: The publisher refunded the client in full after receiving our letter and facing potential legal action.
For more detailed guidance on claiming refunds for undelivered or poorly performed services, read our article on what to do if you paid for services that weren’t delivered properly.
Frequently Asked Questions
How quickly should I act after discovering a scam?
Contact your bank or card provider immediately. The sooner you act, the better your chances of recovering lost funds.
Can I get a refund if I authorised the payment?
Yes, if the trader misrepresented the goods or services or failed to deliver them, you may be entitled to a refund under the ACL.
What if my bank refuses to refund me?
You can escalate your complaint to the Australian Financial Complaints Authority (AFCA), which can review and overturn bank decisions.
Does the ePayments Code apply to my bank?
Most Australian banks subscribe to the ePayments Code. You can check your bank’s website or ASIC’s register to confirm.
What if the scammer is overseas?
You can still pursue chargebacks and complaints against Australian payment intermediaries. Direct legal action overseas is more difficult but not impossible in some cases.
