Credit card refunds for travel

Paul is yet to get money back for his cancelled travel and wants to know if his bank can help.

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Q. Paul
Is getting a refund on travel paid for by credit card still an option? According to the Commonwealth Bank, the government says they cannot reverse transactions for travel (in other words, enter a dispute against a service provider for failing to deliver the paid-for service) during the current crisis. I was investigating whether I could cancel a trip to Japan and South Korea instead of accepting a credit against the company, less a $199 per person ‘rescheduling fee’.

A. I am not aware of any government direction instructing banks to no longer allow chargebacks for travel.

Banks are certainly encouraging customers to try to reach agreement with travel providers before proceeding to this step, as they will only offer a chargeback if they feel the provider is unreasonably withholding your money.

There are time limits on chargebacks, however. If you are asking for a chargeback for ‘services not provided’, which is an acceptable request, under the Visa card scheme rules, you have 120 days from the transaction processing date until your chargeback rights expire.

Different banks also have different terms and conditions, with some setting a much shorter time frame, such as 30 days after the date of the statement on which the transaction is recorded.

If you do plan on claiming a chargeback with you bank, it is important to keep a record of all your payments and correspondence with your travel providers.

Have you had to cancel travel plans? How much money were you able to get back and how many times did you have to settle for a travel credit or similar compensation?

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Written by Ben

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