Card Chargebacks

A chargeback can occur for several reasons, mainly if a cardholder notices a transaction which they haven’t authorised or don’t recognise.

With DEFT, the most common reason for chargebacks is when a payer has fallen victim to a scam. This involves the scammer using an innocent third-party’s stolen card to pay via DEFT.

A chargeback will also occur if you don’t respond to a retrieval request, the request is left unanswered or the supporting documentation you’ve supplied isn’t sufficient/not accepted by the cardholder’s bank.

Other scenarios where chargebacks can occur include:

• unauthorised transactions and unauthorised use of card
• incorrect transaction amount
• processing error
• transactions performed on a lost or stolen card

1. The cardholder initiates the chargeback by disputing a payment made on their debit or credit card with their bank.
2. The cardholder's bank will process a dispute through the card provider (Mastercard, Visa, American Express or Diners Club) and Macquarie is notified of the chargeback.
3. Macquarie will contact you via email to notify you of the dispute. If you believe the transaction was valid and authorised by the cardholder, you’ll have ten business days to gather supporting documentation for us to submit on your behalf.
4. If the supporting documentation isn’t accepted by the cardholder’s bank or you choose not to contest the chargeback, the disputed amount will be debited from your account.

DEFT billers

We recommend you:

• Always process refunds to the original method of payment. Never send a funds transfer to refund a card payment. You can contact Macquarie to initiate a refund.
• Remind payers to always pay DEFT directly, e.g., via DEFT.com.au or BPAY®. Payers should never transfer funds to an intermediary who offers to pay DEFT on their behalf.

If you prefer not to accept card payments, you can ask us to switch off this payment method at any time.

Macquarie Merchant Terminal and Macquarie Navigator clients

We recommend you follow the security checks provided below in order to minimise the risk of chargebacks in connection with transactions where a card is not present:

• Check the validity dates of the credit card are current.
• Obtain an authorisation for all transactions.
• Check the client’s name, address, and telephone number from a trusted source.
• Call the client directly to confirm the order.

®Registered to BPAY Pty Ltd ABN 69 079 137 518

We’ve observed several scams affecting clients that have led to card chargebacks.

Refund scams

What it looks like: A payer makes a card payment using DEFT or e-commerce website. Your business then receives a call or email from what appears to be a legitimate payer asking to cancel their service, and asking for a refund via an alternate method e.g. bank transfer.

What’s really happening: The payer used a stolen card to make the original payment. When the innocent payer notices the transaction, they’ll dispute the transaction with their bank, and your business will be liable to return the funds. If the funds have already been transferred directly to the scammer, your business will be left out of pocket.

How to avoid: Always refund transactions back to the original method of payment. For DEFT, contact us to initiate any refunds.

Intermediary ‘discount’ scams

What it looks like: A payer is approached by a third-party who offers them a ‘discount’ on their DEFT bill. The payer pays their bill to the third-party (with a discount) and the third-party makes a card payment to DEFT for the full amount of the bill.

What’s really happening: The third-party used a stolen card to make the payment. When the innocent payer notices the transaction, they’ll dispute it with their bank, and your business is liable to return the funds. The innocent payer is left out of pocket, and the funds they paid to the third party are lost.

How to avoid: Remind payers to always pay DEFT directly, e.g. via DEFT.com.au or BPAY®.

® Registered to BPAY Pty Ltd ABN 69 079 137 518

Please note, that authorisation of a transaction doesn’t represent or warrant that a transaction is genuine. It also doesn’t mean a transaction isn’t subject to a chargeback.

Authorisation only verifies that the relevant card account is open and there are sufficient funds available in the account to meet the transaction amount. It also doesn’t guarantee that the person using the card is the authorised cardholder.

It’s important to remember that card not present transactions carry an inherently higher chargeback risk. If these transactions are disputed by a cardholder or if you’re unable to satisfactorily confirm the transaction, then the liability will remain with you.

If you wish to contest a chargeback, you need to provide sufficient evidence to support the legitimacy of the disputed payment and that it was authorised by the cardholder. The evidence documents required are determined by the card providers.

Please see below for examples of evidence that can be used based on your industry classification:

Real Estate

• Signed contract or agreement - e.g. tenancy agreement.
• Tenant ledger.

Strata

• Levy notice or invoice.
• Relevant bylaws or rules that support the charge.
• A copy of correspondence between the strata committee and cardholder.

Legal

• Signed contract or agreement outlining the terms of the legal services provided.
• Invoices or statements showing services provided and fees.
• A copy of correspondence between the lawyer and cardholder.
• Evidence of outcome, such as a court ruling or settlement agreement.

Insurance

• Insurance policy documentation - e.g. certificate of currency or renewal notice, outlining the cover and premiums.
• A copy of correspondence with the cardholder. 

Before submitting any evidence, you need to satisfy yourself that your client (e.g., tenant or lot owner) owns the card used to make the payment. You can do this by verifying the card details provided in the chargeback notification email with your client. If the card belongs to someone else, the above evidence won’t prove any link between your business and the cardholder.

If you receive a retrieval request, you need to reply within the timeframe specified on the request email and with all relevant supporting documentation as required by the retrieval request. Please note that we are bound by relevant card scheme rules and are unable to alter the chargeback timelines so it’s important that you address chargeback notices quickly. 

You should email all relevant supporting documentation in relation to the transaction, including the following records to business@macquarie.com.

Supporting documentation may include:

• signed sales receipt
• method of shipment (if applicable)
• sales record, invoice, or order form
• signed delivery receipt and any other written confirmation of delivery
• brief letter stating what occurred with the transaction
• any other documents or records relevant to the transaction.

If you require assistance for merchant services, please contact the Merchant Support Team on 1800 183 879.

If you require assistance for DEFT, please contact the DEFT Support Team on 1800 620 673.