How to dispute a credit card transaction

06 April 2016 / Published in Your Money

Did the supermarket charge you twice for your groceries last week? Or did that pair of shoes you ordered online last month never turn up?

If you paid with your ASB credit card or Visa Debit card, we may be able to help. In certain circumstances, you can dispute a transaction and we'll look in to reversing it for you.

Below is everything you need to know to help resolve the issue with the merchant, or when to dispute a transaction.

I want to dispute a transaction, what should I do?

If you're not happy with a purchase or something has gone wrong with the transaction, get in touch with the merchant and ask them to resolve the issue.

If the merchant doesn't help, then you might be able to ask your bank to dispute the transaction.

My card has been used fraudulently, what should I do?

Contact us immediately and report a suspected fraud on your account.  We'll cancel the card and replace it with a new one to avoid further fraudulent attempts.

In what situations can I dispute a transaction?

Transactions can only be disputed in certain circumstances. You can't, for example, dispute a transaction if you decide you no longer like the top you bought. These are the types of transactions you can dispute:

  1. You didn't authorise the transaction or you don't recognise the transaction at all.
  2. You cancelled your subscription or a membership as per the terms and conditions and you're still being charged.
  3. There was an error in the transaction. E.g. you were charged twice or the transaction value was incorrect.
  4. You have a dispute with the merchant. E.g. you never received the goods or services you paid for or you received incorrect or defective goods.

It's important that in all situations, you contact the merchant and ask them to resolve the situation before talking to the bank.

What does disputing a transaction mean?

When you dispute a transaction, you're telling us something went wrong and you believe the transaction should be reversed. We then investigate and reverse the transaction where possible. After we've done this, we'll advise you of the outcome and whether we can reverse the transaction.

The process of disputing a transaction

If you want to dispute a transaction, this is the process to follow. It'll make things easier for you and will speed it up.

  1. Look into the transaction. If you see a transaction you don't recognise, do a little research to determine whether or not it's legitimate. Sometimes a merchant might bill under a different name, e.g. your New Zealand Herald subscription might show on your credit card statement as NZME. Other times merchants might use a billing company like PayPal so this will show on your statement rather than the merchant's name. You can use Google to help figure out who processed the transaction.
  2. Contact the merchant. If you've spotted an error with a transaction (e.g. an incorrect value or you were charged twice) or if you've got a dispute with a merchant (e.g. you didn't receive your purchase or you received damaged goods) then contact the merchant directly to resolve the issue. Do the same if you notice you're still being charged for a subscription or membership that you've cancelled. Explain everything that's happened and be prepared to show proof of your purchase and other supporting documents.
  3. Lodge the dispute. If you've done steps one and/or two and the issue still hasn't been resolved, it's now time to lodge the dispute. You can lodge a dispute with ASB by sending us a secure message through FastNet Classic and one of our team will try to get back to you within the same business day. If you've forgotten your ASB login password, you can reset your password using the ASB Mobile Banking app. Alternatively, you can call our contact centre or visit one of our branches. If you're disputing a credit card transaction, make sure you lodge the dispute in writing within 30 days of the closing date of your credit card statement.
  4. We'll dispute the transaction. We'll file the dispute with the merchant and its bank and then advise you of the outcome. Transaction disputes can take some time to process but we will contact you within 30 working days of receiving your dispute, so make sure you go through the first two steps beforehand.

Can I dispute this?

These are some of the transactions we find our customers asking us to dispute.

My credit card was stolen over the weekend and it's been used since. Can I dispute these transactions?

Yes you can. Please contact us immediately to cancel the card.  We recommend placing a block on your Visa card immediately using Card Control, after you discover it has been lost or stolen.

I bought a pair of shoes online and they never turned up, can I dispute the transaction?

Yes you can but you need to contact the merchant first and request they resolve it.

I went out for dinner last week and the restaurant charged me for my meal twice, can I dispute the transaction?

Yes you can but talk to the restaurant first and request they resolve the issue.

I paid my internet bill yesterday and my provider has also charged me a $1 transaction and it’s currently pending. Can you reverse it?

This is likely to be an authorisation charge that the company places while your payment goes through. It will remain pending for up to four days and then drop off so you will not be charged the $1. If you've got any questions, contact the merchant.

I bought something online that I no longer want. The transaction is still pending so can you reverse it?

We can't dispute a transaction on the basis that you've changed your mind. We also can't dispute a transaction until it's billed to your account and is no longer pending. You’ll need to contact the merchant to see if they can cancel your order and refund you.

An unknown merchant has made a deposit on my card, is this cause for concern?

Do some research online. If you're unable find out whom the merchant is, place a block on the card immediately. 

Tips for keeping safe when using your card

  • Check your statement. When you receive your statement each month, make sure you check it thoroughly and make note of any transactions that you don't recognise. You can keep an eye on your transactions more regularly by using FastNet Classic or the ASB Mobile app. If you notice a suspicious or unauthorised transaction, cancel the card immediately by using Card Control in the ASB Mobile app or by the replace card option on FastNet Classic.
  • Only shop on safe websites. If you're buying anything online or submitting your credit card or debit card details, it's important you make sure the website is safe and secure. Look out for things like a padlock in the address bar and https in the URL as these signify the website is secure. If you're ever unsure about a website's security, remember it's better to be safe than sorry.
  • Check terms and conditions. If you accept a website's terms and conditions and enter your credit card details or Visa debit card, this generally means that you've authorised the transaction. It's really important that you read the terms and conditions, especially when it comes to signing up to subscriptions and memberships. Check things like the term of the subscription and what penalties there are for cancelling.
  • Control your card. We created ASB Card Control so that you can easily manage your Visa card and keep it safe using the ASB Mobile app, anywhere, any time. Check it out on the ASB Mobile app or read about it here.

Things to remember when disputing a transaction

  • For credit card transactions, you must dispute it within 30 days of receiving your credit card statement.
  • You need to talk to the merchant and ask them to resolve the issue before coming to the bank.
  • It can take 30 working days between your lodging of a dispute and an outcome being reached.

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