Australian small businesses are being crippled by a broken chargeback system.

Right now, customers can dispute payments months after receiving goods or services -  and banks routinely reverse funds without proper investigation, often without even contacting the business first.

This practice enables chargeback fraud (also known as “friendly fraud”) and places the entire financial burden on small businesses -  even when they have proof of delivery, tracking, customer communication, and a clean transaction history.

For many businesses, one chargeback is not “part of doing business” - it can mean:

• Loss of product
• Loss of shipping costs
• Loss of revenue
• Bank fees
• Higher merchant risk ratings
• Financial stress and closure

Meanwhile, customers face little to no accountability, and banks face no obligation to fairly assess disputes.

This is not consumer protection - it is systemic failure.

We are calling on Australian banks and the Federal Government to:

1. Require banks to properly investigate chargebacks before funds are removed
2. Mandate that businesses are contacted and given a fair opportunity to respond
3. Introduce penalties for proven chargeback fraud
4. Create consistent, transparent chargeback rules across all banks
5. Protect legitimate small businesses from financial harm

Small businesses are the backbone of Australia’s economy.

We deserve fair treatment, due process, and protection from abuse.

Chargeback fraud in 2023 jumped by 32% reaching $762 million and continues to rise impacting every industry not just small businesses but mid and large businesses are all facing the small issue. 

If you are a business owner, worker, or consumer who believes this system needs reform - add your name and share this petition.