How to deal with unwanted charges and recurring payments

It can be frustrating to see an unexpected or unwanted charge on a payment card or bank statement. Thankfully there are ways to avoid fraudulent charges, including by reporting suspicious transactions to your financial institution and cancelling compromised cards.

While these are useful options to deal with suspicious activity and can help resolve some payment disputes, they cannot always help avoid unwanted charges, and there can be risks if you remain legally liable for the payment.

Many small businesses find themselves locked into unwanted contracts or subscription services with recurring payments, but they are not always entitled to a refund.

It can be tempting to try and get out of the recurring payment by cancelling a payment card or reporting it as fraudulent, but doing so could inadvertently trigger additional challenges, particularly if a debt collection agency becomes involved. If a debt is not properly dealt with, it could even impact your credit rating.

There are many circumstances where lodging a dispute with your financial institution may be easiest way to resolve a payment issue. However, it is important to first try to resolve a disputed payment with the other party and double check your contractual obligations.

Even if a financial institution is able to process a charge back, your liabilities are determined by any contracts you have entered into and these may stand even if you secure a refund or avoid future recurring payments by cancelling your payment card. This could lead to further legal consequences and harmful impacts to your business.

There are a range of services you can access if you have an unwanted charge or payment dispute:

If you suspect fraud or there is suspicious activity you should contact your bank as soon as possible. If it is a dispute about what you owe, then you can contact your financial institution, explain your situation and see how they can help.
If it is a commercial dispute, the Commission’s mediation services offer a cost-effective way of resolving disputes without the high cost and delays of going to court.
Depending on your circumstances, the Commission may also be able to advocate on your behalf if you feel a service provider has misrepresented their product or service or has engaged in unfair practices.
NSW Fair Trading may also be able to offer guidance if you believe a service provider has breached their obligations under the Australian Consumer Law.
If you are unsure what to do about a debt or disputed debt, you may wish to speak to a qualified financial counsellor.