Bank’s refund policy on eftpos transactions a goodwill gesture, not a legal obligation

Jessica bought airline tickets costing $1,900 from a nationwide travel agent using her Visa debit card. However, because Jessica made the transaction in person, it was processed through the eftpos payment system. The travel agency subsequently collapsed.
March 2022

As a goodwill gesture, the bank introduced a policy whereby it agreed to refund all customers who bought tickets from the agency using the eftpos payment system for a limited time. It stipulated that the rules for assessing refund applications would be the same as those applicable to customers who had used the Visa system to buy tickets and then sought a chargeback. One of those rules is customers must apply for a chargeback within 120 days of a disputed transaction. Jessica approached the bank for a refund 149 days after buying her tickets, and the bank declined her request.

Our investigation

We explained to Jessica that the bank could not initiate a chargeback because she had made the transaction using the eftpos payment system, not the Visa payment system. Furthermore, the bank was not under any obligation to implement a refund policy for those who had purchased tickets using eftpos– it was purely a goodwill gesture. We found, therefore, that the bank had not breached any duty or obligation to Jessica by deciding not to be flexible on the 120-day time limit.


We did not uphold Jessica’s complaint.

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