How long do credit card refunds take and how do you get one?

Credit card refunds take around 5 days to process. Here's what you need to know – and 4 steps you can take to get one.

If you want to return a purchase, haven't got what you paid for or have been overcharged, you can request a refund. Usually, businesses will process a refund onto the card that you originally used to pay.

Sometimes, you'll need to contact your credit card provider to get a refund.

How to get a credit card refund in 4 steps

  1. Contact the business. Get in touch with the business or merchant involved in the transaction and let them know you want a refund. Make sure you explain the reason for the refund and ask if there are any specific details they need.
  2. Organise your required documents or items. If you are returning an item for a refund, follow the requirements outlined for a postage or in-store return. If you are requesting a refund for some other reason, provide the merchant with supporting documents. For example, you may need the original receipt or credit card statement details that show you have been incorrectly charged.
  3. Provide your credit card details. Present the credit card that you have used for the transaction, or securely give the merchant details of the card (if over the phone or online) so that they can process the refund.
  4. Sign any required documents. Carefully read and fill out any return or refund documents as requested by the merchant. This is for their records and helps them verify the refund.

How long does a credit card refund take to show up on Internet banking?

  • Credit card refunds from a business or merchant. Refunds from a merchant can take from 2 up to 90 days to be processed, although the average is about 5 business days. You can contact individual businesses to find out how long they will take to process the refund.
  • Credit card chargebacks. When you request a chargeback or transaction dispute through your credit card provider, it usually takes up to 8 weeks for the provider to go through all the steps required and come to a decision. In some cases, it could take longer. If the provider's decision is that you are eligible for a refund, they will let you know how long it will take to process.

If you want to check that the refund has gone through, be aware that some providers will list refund transactions under the "credit" column – similar to any card payments that you make. Others may include a minus symbol to indicate that it is a refund (for example, -$200) or "CR" to show it's an account credit. You will also see details of the merchant or processor that has refunded you in the description section of your account.

Tip: Is your refund taking a while? Pay your credit card bill anyway

Credit card refunds usually take about 5 business days to process, but it could take longer in some cases. So don't worry if you don't see the refund on your credit card straight away.

If you get a credit card bill during this period, paying the balance will help you avoid interest charges. When the refund is processed, it will be added as a credit to your account. Refunds don't usually count towards your repayment obligations, so always pay at least the minimum amount listed on your statement by the due date.

How to contact your bank to request a refund

If you need to request a refund on your credit card, you should contact your card issuer as quickly as possible. You can find the contact details for most of the major banks and card providers in Australia below:

ProviderPhone number
American ExpressVaries by card. Click here for contact information.
ANZ13 22 73

24-hour service

Bank of Melbourne13 22 66

24-hour service

Bankwest13 17 19

24-hour service

Bendigo Bank1300 236 344

Mon-Fri: 8am-9pm (AEST)

Sat-Sun: 9am-8pm

Citi13 24 84

24-hour service

Coles1300 306 397

Mon-Fri: 8am-9pm

Sat: 8am-8pm Sun: 8:30am-8pm

Commonwealth Bank13 22 21

24-hour service

HSBC1300 308 008

Mon-Fri: 8am-8pm

IMB133 462

Mon-Fri: 8am-8pm Sat: 9am-4pm

Latitude Financial ServicesVaries by card. Click here for contact information.
Macquarie Bank1300 150 300

24-hour service

NAB1300 361 138

Mon-Fri: 8am-5pm

People's Choice13 11 82

Mon-Fri: 8am-8pm

Sat: 8:30am-4:30pm

Qantas Money1300 992 700

24-hour service

St.George13 33 30

24-hour service

Suncorp Bank13 11 55
Virgin Money13 37 39

24-hour service

Westpac132 032

Mon-Sun: 8am-8pm

Woolworths1300 10 1234

24-hour service

Types of credit card refunds

There are 2 main ways to get a credit card refund, which we’ve outlined in detail below:

1. Point of sale or merchant refunds

If you want to return a purchase, find you have been incorrectly charged or want a refund for non-delivery of items you've paid for, your first step should be to contact the merchant.

The representative you speak to will refer to the credit card refund policy to make sure the claim is eligible and then guide you through the refund process. Merchants can also remove pre-authorisations that "hold" funds in your account before or after a full payment is made (think hotel bookings).

2. Chargebacks

If the merchant does not agree to reverse the credit card transaction, you can dispute it by requesting a "chargeback" through your credit card provider.

This type of credit card refund involves the bank reversing all or part of the amount of the disputed transaction. Chargebacks are done in accordance with the applicable card terms and conditions set by Visa, Mastercard or American Express and often take longer to process than merchant credit card refunds.

When can I get a credit card refund?

There are many instances when you can get a credit card refund, either through the business or your credit card provider, depending on the circumstances. Some of the most common scenarios include:

  • Multiple transactions. When the same transaction is charged to your account more than once.
  • Returned items. If you return an item to the merchant and meet the return policy requirements.
  • Incorrect transaction. If it is clear that you did not carry out the transaction.
  • Lost or stolen. If the card was used fraudulently after it was reported as lost or stolen.
  • Faulty products. When the equipment used to process the transaction is found to be faulty.

When can’t I get a credit card refund?

There are some situations where you won’t be eligible for a credit card refund. These include:

  • Don't meet return policy. If you return an item to a merchant but don’t meet the return policy requirements (e.g. item is worn).
  • Shared credit card details. If you have shared your credit card or credit card details with other people.
  • Failed to report a lost or stolen card. If you don’t report a lost or stolen credit card straight away.

You might also be unable to get a credit card refund if the charges are “pre-authorised” and meet the standard practices of a merchant (i.e. a hotel or airline that “holds” funds for a set period of time in case of incidental charges). In this instance, you could contact the merchant to request a release of the funds, rather than an actual refund.

How can I request a chargeback?

Getting a credit card refund from a merchant is relatively straightforward, which is why it’s usually the first port of call. If you can't get a refund, the chargeback process may involve a little effort:

  1. Contact your credit card provider. Explain the situation to your card issuer in detail. They may advise you to contact the merchant again before proceeding with the chargeback.
  2. Provide evidence of the issue. Your provider may ask you for verbal or written details of the incorrect charges and you could have to fill out a credit card dispute form. Provide as much information as possible, including statements, receipts and any other details about your contact with the merchant.
  3. Wait for a response. The credit card refund laws around chargebacks require banks to wait up to 45 days for a merchant to respond to your dispute claims. If the merchant does not respond in that time, your dispute will be approved and you’ll get your money back. If they do respond, further steps will be taken to resolve the situation. You can request updates from your provider during this time, but will have to wait it out before you can get a refund.
  4. Provide any further details. If the merchant accepts the dispute, your refund will be processed as usual. If they reject it, your provider may ask for further details until the situation is resolved. Most credit card providers aim to provide an outcome within 45 days, but in some cases it could take up to 120 days for the provider and merchant to resolve the dispute.

Do I need to give my CVV number for a refund?

In most cases, you should not need to provide your credit card CVV for a refund, including refunds for in-store and online purchases.

In these cases, the business should already have the details they need to process the refund. Then, it's a matter of them confirming your information and making sure it's the same card – so they may ask for the card number and name. If you're getting a refund in person, you may also need to enter your PIN or sign the refund receipt.

When might a CVV be needed for card refunds?

The major exception around CVVs and refunds is when a business is processing it as a MOTO (Mail Order/Telephone Order) transaction. In simple terms, some businesses include a MOTO option in their payment set-up as a way of processing phone and other card-not-present transactions.

With this option selected, a CVV will typically be requested when processing any transactions the business puts through as a Telephone Order.

According to Tyro Payments – one of the major EFTPOS and payment processing providers in Australia – this is because these types of transactions are riskier for businesses and "require more careful possessing than a card present transaction​".

But not all refunds (or purchases) made over the phone are processed as MOTO transactions. So, if you are asked for your card's CVV as part of a refund, it's worth asking whether this is needed and finding out why it is needed before going ahead.

If you're suspicious, you could also contact your credit card provider to discuss your options. In some cases, you may be able to dispute it or request a chargeback instead.

How does a credit card refund work when there is no balance on the card?

If you haven't made any new purchases since you paid your credit card balance off, the refund will show up as an account credit. This means your account will show a balance that is higher than your available credit limit, which is sometimes referred to as a "positive balance" or an "account in credit".

As an example, say you have a credit card with a $3,000 credit limit and no outstanding payments. If you were refunded $200, you would have a positive balance of $3,200. Your account would then be in credit (you wouldn't owe any money) until you spent $200 or more on your card.

What if you used the card before the refund was processed?

If you paid off your card, made some new purchases and then got the refund, your balance will be adjusted to reflect the refund amount.

Using the same card example above, let's say you spent $300 and had $2,700 of available credit left. When the $200 refund was added to your account, your balance would change to $100 and you would have $2,900 of available credit.

However, it's important to be aware that refunds do not count towards your credit card repayments. This means you will still need to pay the minimum amount listed on your next statement, regardless of how the refund has affected your balance.

Finder survey: On average, how much do people spend on their credit card each month?

ResponseMaleFemale
20003.57%0.52%
10001.32%0.86%
5001.32%0.17%
50000.75%0.34%
30000.69%
1000.56%
15000.38%0.17%
20.38%
2000.38%0.34%
2500.38%
25000.38%0.34%
40000.38%
7000.38%
12000.19%0.34%
100000.19%0.17%
10880.19%
14000.19%
23000.19%
30.19%0.17%
3000.19%0.17%
350.19%
400.19%
4000.19%0.17%
4320.19%
45000.19%
50.19%
55000.19%
5600.19%
7500.19%
90000.19%
10.17%
10090.17%
150.17%
35000.17%
470.17%
500.17%
570.17%
6000.17%
60000.17%
66000.17%
780.17%
800.17%
8000.17%
87550.17%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023

What are the other factors to consider when requesting a credit card refund?

  • Time limit. Merchants outline the amount of time you have to legitimately request a refund, so check individual policies before making any transactions. For chargebacks, you usually have to dispute the credit card transaction within 30–90 days of when it first appears on your credit card statement.
  • Interest charges. Depending on the circumstances of your credit card refund, you may be charged interest during the refund process. But if you have lodged a chargeback claim with your credit card provider and it is approved, you should be refunded the full amount as well as any interest that was charged on it during the investigation.
  • Refund payments. If money is returned to your account, the funds are considered a credit to your account. This means a refund will not count as a payment towards your balance if you need to pay the minimum amount due for the statement cycle.
  • Credit card refund fees. While there shouldn’t be a fee for refunds processed by a merchant, some banks do apply a fee for chargebacks. Third-party payment processors such as PayPal or SecurePay may also charge additional fees for credit card refunds, with the cost typically ranging from $10–25.
  • Rewards points. Credit card refunds are not eligible for earning points. So if you bought something with a credit card that earns reward or frequent flyer points, your point balance would also be adjusted once the refund goes through.

Whether you need a credit card refund for non-delivery, incorrect charges or simply a change of mind on your purchases, the quickest and easiest option is to contact the merchant directly. If that doesn't work, you can dispute the transaction through your credit card provider to get a chargeback.

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Editor

Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio

Amy's expertise
Amy has written 565 Finder guides across topics including:
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22 Responses

    Default Gravatar
    VeronicaAugust 19, 2018

    I need a refund for a service not provided but my bank changed my credit card from Visa to MasterCard so am having a hard time getting the refund I have contacted the merchant no reply contacted bank they said the merchant has to refund to new card.

      AvatarFinder
      JhezelynAugust 23, 2018Finder

      Hello Veronica,

      Thank you for your comment.

      Usually, when you want a refund to one of your payments, the first point of contact should be the merchant. The merchant processes the refund on their end and forwards it to the bank. The refund will be sent to the payment instrument used. The processing timeframe depends on the bank policy before it reflects to your account.

      In your case, you were referred to the merchant because the merchant needs to reprocess the refund and send it to the new card. You should ask the merchant to connect you to the department that handles the refund.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

    Default Gravatar
    ChrisAugust 29, 2017

    What happens if a merchant has refunded to a suspended credit card? Will the credit still go through to the customer?

      AvatarFinder
      HaroldAugust 30, 2017Finder

      Hi Chis,

      Thank you for your inquiry.

      Generally, this will depend on the merchant and the credit card issuer. Usually if it’s just suspended (and not cancelled) it will still go through and be credited to the account.

      I hope this information has helped.

      Cheers,
      Harold18

    Default Gravatar
    KrisJuly 11, 2017

    When issuing a refund but using another card can the merchant find out the bank account details through the credit card number?

      Default Gravatar
      DanielleJuly 12, 2017

      Hi Kris,

      Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.

      I would suggest presenting the credit card that you have used for the transaction, or securely give the merchant details of the card (if over the phone or online) so that they can process the refund.

      I hope this helps.

      Cheers,
      Danielle

    Default Gravatar
    GillianApril 28, 2017

    Hi we are merchant and would like to refund a specific amount to our guest Australia’s credit card. Is there any banks fees being deducted on my guest side? I would like to know how much we need to add in so that our guest will not be short changed.

      AvatarFinder
      HaroldMay 1, 2017Finder

      Hi Gillian,

      Thank you for your inquiry.

      Typically, some banks do apply a fee for chargebacks. Third-party payment processors such as PayPal or SecurePay may also charge additional fees for credit card refunds, with the cost typically ranging from $10–25.

      I hope this information has helped.

      Cheers,
      Harold

    Default Gravatar
    AnilJanuary 3, 2017

    I paid a certain amount thru my credit card to a company for booking some service. Later I cancelled the booking. The company has agreed to refund a part of the payment. They said they do not need any bank details. Can they refund the amount to my credit card account without asking for any details?

      AvatarFinder
      DeeJanuary 3, 2017Finder

      Hi Anil,

      Thanks for your question.

      When you request a refund from a merchant, generally, you’ll need to provide the details of the credit card you used for the transaction so that the refund can be processed.You may also be required to sign some documents as proof of the refund.

      If the company did not require you to provide the details of your credit card, it could be that they already have the needed information. You can also directly call them to verify the status of your refund.

      Cheers,
      Anndy

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