Chargebacks and Refunds Policy
Version v5
Effective April 2026
Supersedes Version 4 (July 2024)
ABN99 615 157 572
Contents
SECTION 1
Introduction
This Chargebacks and Refunds Policy (“Policy”) outlines the processes and responsibilities related to chargebacks, refunds, and dispute resolution between AirPay Financial Technologies Pty Ltd (“AirPay”) and its merchants.
This Policy applies to both in-store (card-present) and online (card-not-present, MOTO and eCommerce) transactions conducted via all supported payment methods including Visa, Mastercard, American Express, eftpos, UnionPay International (UPI), Alipay, and WeChat Pay.
- This Policy is read together with your Payment Services Agreement (PSA) and Fee Schedule. In the event of any inconsistency, the PSA prevails.
SECTION 2
Definitions
| TERM | DEFINITION |
|---|---|
|
Business Day |
A day other than a Saturday, Sunday, or public holiday listed throughout Australia. |
|
Chargeback |
A reversal of a card or wallet transaction initiated by the cardholder or payment service user via their issuing bank or platform. |
|
ePayments Code |
The ePayments Code administered by ASIC, which governs certain electronic payment disputes for eligible electronic payment facilities. |
|
Merchant |
Any business entity processing payments via AirPay’s acquiring or gateway infrastructure. |
|
Refund |
A transaction initiated by the Merchant to return funds to the shopper for a completed transaction. |
|
Scheme Owner |
Card networks (Visa, Mastercard, etc.) and alternative payment platforms (Alipay, WeChat Pay, UPI). |
SECTION 3
Chargeback Liability and Risk Acknowledgment
Merchants accept full financial liability for all chargebacks unless a scheme-specific rule assigns liability elsewhere. Authorisation of a payment does not guarantee immunity from chargebacks. In particular:
- Merchants are liable for chargebacks arising from fraud, unfulfilled services, duplicated transactions, refunds issued via alternate methods, or consumer dissatisfaction.
- Scheme rules govern the chargeback process. Final decisions are made by the Scheme Owner or Issuer, not AirPay.
- AirPay reserves the right to debit chargeback amounts from future settlements or merchant reserves, including applicable dispute processing fees.
- Risk Warning: For MOTO and eCommerce transactions, the merchant bears the full risk of fraud-related chargebacks. Merchants are strongly encouraged to enable 3D Secure (3DS2) authentication for online card transactions, where available, as this may shift liability for fraudulent chargebacks to the card issuer under Visa and Mastercard scheme rules. Contact AirPay to discuss 3DS enablement options.
SECTION 4
Notification and Dispute Process
- AirPay will notify the merchant of a chargeback via email within two (2) Business Days of receiving notification from the card scheme or issuing bank, or as soon as practicable where scheme rules require earlier action.
- Merchants must ensure their contact details registered with AirPay are current. Delay caused by outdated contact details will not extend the merchant’s response window.
- Merchants have seven (7) Business Days from receipt of AirPay’s notification to respond with supporting documentation.
- Failure to respond within the stipulated timeframe will result in automatic liability and deduction.
- Valid evidence includes: signed delivery notes, invoices, email correspondence, order confirmations, terms and conditions acknowledged by the customer, and proof of refund where applicable.
- AirPay may defend chargebacks where scheme rules permit but is not obligated to submit disputes lacking appropriate documentation.
- For disputes involving electronic payment facilities covered by the ePayments Code (administered by ASIC), the Code's specific liability provisions may apply to eftpos and certain domestic card transactions. AirPay will notify merchants of any Code-specific requirements.
SECTION 5
Chargeback Resolution and Arbitration
- If the dispute is unsuccessful, the merchant’s account will be debited.
- If the issuer and acquirer remain in disagreement, card schemes may arbitrate. This is only used in material, high-value disputes due to associated fees.
SECTION 6
Chargeback Fees and Reserve Adjustments
- A non-refundable chargeback processing fee will be applied per incident, at the rate set out in the Fee Schedule executed between AirPay and the Merchant. This fee is separate from any amount debited for the chargeback itself.
- AirPay may adjust rolling reserves or suspend settlement in cases of excessive chargeback volume.
- Chargeback ratios exceeding 0.5% may trigger corrective action, up to suspension of affected payment methods.
SECTION 7
Refunds
- Refunds must only be processed via the original payment method used.
- Refunds must never exceed the original transaction amount.
- Refunds must not be issued to a different card, wallet, or bank account.
- Refunds are subject to transaction fees and, for some methods, additional refund fees.
- Refunds will be deducted from the next settlement amount payable to the Merchant. Where insufficient, AirPay will notify the Merchant in writing and the Merchant must deposit sufficient funds within two (2) Business Days.
- Refunds will not be funded by AirPay’s reserves.
- Merchants may establish a separate refund reserve for real-time refund capability.
SECTION 8
Payment Method-Specific Notes
8.1 PayTo Payments
PayTo payments operate via an Authorised Payment Mandate (APM) under the New Payments Platform (NPP) and are governed by the PayTo operating rules administered by Australian Payments Network (APN). PayTo disputes are not handled through the card chargeback process. Merchants wishing to dispute a PayTo debit must contact AirPay directly. To cancel a future PayTo debit, the Merchant or payer must revoke the APM through their financial institution or the AirPay platform before the debit is processed.
8.2 Alipay and WeChat Pay
These wallets do not have traditional chargeback mechanisms. Disputes and refund requests are raised by customers via the originating platform and are generally resolved based on merchant cooperation and fulfilment. AirPay reserves the right to deduct funds from the merchant’s account if these platforms mandate reversals.
8.3 eftpos and Domestic Cards
Governed by Australian EFT scheme rules and, where applicable, the ePayments Code administered by ASIC. Strong merchant records (e.g. signed receipts, PIN verification) are key to dispute defence. Under the ePayments Code, a merchant’s liability for unauthorised transactions may be limited where the merchant’s systems are not at fault.
8.4 AML/CTF Compliance and Chargebacks
In accordance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) as amended by the AML/CTF Amendment Act 2024 (Cth), AirPay may be required to refuse, reverse, or withhold settlement, or suspend or terminate this Policy and/or the Payment Services Agreement, in respect of any transaction or merchant account that is, or is suspected to be, associated with money laundering, terrorism financing, or sanctions violations.
- In such circumstances, AirPay is not obligated to provide the merchant with reasons for the action. AirPay and its staff are prohibited under s123 of the AML/CTF Act from disclosing that a suspicious matter report (SMR) has been filed with AUSTRAC.
SECTION 9
Merchant Best Practices to Avoid Chargebacks
- Maintain accurate transaction records for a minimum of seven (7) years in accordance with s105 of the AML/CTF Act. For card scheme purposes, retain chargeback-specific evidence for at least five (5) years.
- Clearly communicate refund and return policies at the point of sale and in all customer communications.
- Use recognisable business names for settlement descriptors that match your trading name.
- For deliveries, obtain customer signatures and match delivery name to cardholder.
- Avoid splitting transactions or processing payments on behalf of third parties.
- Monitor unusual order patterns, high-value requests, and non-matching billing/shipping data.
- Implement fraud screening tools appropriate for your transaction risk profile.
- Train staff on dispute prevention and evidence gathering procedures.
SECTION 10
Policy Enforcement
AirPay reserves the right to suspend payment services or terminate merchant agreements in cases of abuse, fraud, or excessive chargebacks, in accordance with the Payment Services Agreement.
Nothing in this Policy limits statutory consumer rights under Australian law, including the Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010 (Cth)).
AirPay may update this Policy from time to time. Continued use of the Services following notice of an update constitutes acceptance of the revised Policy.
SECTION 11
Contact Information
AirPay Financial Technologies Pty Ltd
ADDRESS
Level 35, Tower One, 100 Barangaroo Avenue, Barangaroo NSW 2000
PHONE
+61280467682
Website
Innovative Financial Solutions Empowering the Digital Economy
AirPay Financial Technologies Pty Ltd maintains compliance with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and applicable New Zealand AML/CFT legislation.
Contact Info
- admin@airpayfintech.com
- +61 2 8046 7682
- Tower One, 100 Barangaroo Ave, Barangaroo NSW 2000
Useful Links
Financial License
AFSL 526194
AAN 100844285
FSP 557526
AUSTRAC IND100844285-001
NZBN 9429046088413
© 2026 AIRPAY FINANCIAL TECHNOLOGIES PTY LTD. ABN 99 615 157 572. All Rights Reserved.
Compliant with AML/CTF Regulations