How to get your prepayment back after an Australian supplier fails to deliver

If you paid an Australian supplier in advance and the goods or services never arrived, you are entitled to seek repayment — but the right path depends heavily on how you paid and whether the supplier cooperates. Start by asking the supplier for a refund in writing and collecting evidence; from there the options are: a bank/credit‑card chargeback (if you paid by card), a complaint to your state or territory consumer agency, or a tribunal claim for breach of contract. Which route you choose affects speed, cost and likelihood of success.

Explaining that up front matters because a quick written demand, or a timely chargeback, will often recover the money more cheaply than court action. Below I explain the practical sequence, what evidence matters, and when to escalate.

First practical move: document everything and ask the supplier to refund

Before escalation, put the request in writing. Say when you paid, what you ordered, how and when delivery was promised, and give a clear deadline for a refund (seven to 14 days is common as a practical request, not a universal legal rule). Keep copies of receipts, order confirmations, bank or card statements, screenshots of the supplier’s website and every message you send and receive.

This step follows the consumer problem‑solving approach recommended by the ACCC: contact the business first and use the ordinary ‘repair, replace, refund’ framework where applicable. See the ACCC’s guidance on contacting a business to fix a problem for practical tips and expectations (ACCC – Contacting a business to fix a problem).

Why this matters: tribunals and banks expect evidence you tried to resolve the dispute. A short, firm written demand clarifies the dispute and creates a timeline you can use later if you escalate.

If you paid by credit card: ask your bank for a chargeback, and know AFCA’s role

If the payment was on a credit or debit card, contact your bank as soon as the supplier fails to deliver. Banks can initiate a chargeback or dispute under card‑scheme rules; provide the bank with your evidence and your record of attempts to contact the supplier.

Chargebacks are governed by card networks and banks decide whether the claim fits scheme rules and time limits. The Australian Financial Complaints Authority (AFCA) explains chargebacks and recommends trying the merchant first; AFCA can then review whether your bank handled your chargeback request properly (it cannot substitute for final card‑scheme arbitration in every case). For an overview see AFCA’s chargeback factsheet (AFCA – Factsheet: Chargebacks).

If the bank refuses to pursue a chargeback or you are unhappy with how they handled it, you can take a complaint to AFCA about the bank’s conduct — AFCA may order redress if the financial firm breached its obligations.

What can go wrong: banks are limited by card‑scheme deadlines and rules; success is not guaranteed. If the supplier is overseas, card reversals and enforcement can be more difficult.

If you paid by bank transfer, BPAY, PayPal or other non‑card methods

Non‑card payments generally lack a universal chargeback safety net. PayPal and other platforms have their own dispute procedures; bank transfers and BPAY rely on the supplier or on the bank only in narrow circumstances (for example, transactions that are unauthorised). Because procedures differ, your practical options are:

• Use the payment provider’s dispute process (if available) and keep records.
• Lodge a complaint with your state or territory consumer affairs or Fair Trading office for non‑delivery of goods or services.

ASIC’s guidance explains that ordinary goods and services disputes are handled by state consumer agencies rather than ASIC itself; consult the relevant state office for complaint steps (ASIC – Disputes about goods and non‑financial services).

Lodge a complaint with your state/territory consumer agency if the supplier won’t cooperate

If direct contact and payment‑provider remedies fail, file a complaint with your local consumer affairs or Fair Trading office. These agencies can mediate, issue warnings or investigate repeat offenders and give practical guidance on next steps. For a NSW example, see the Service NSW guidance on when products or services aren’t delivered (NSW – When you don't receive products or services you've paid for).

State agencies differ in process and powers. They do not themselves order refunds in every case, but their involvement can persuade suppliers to cooperate and they can guide you to the appropriate tribunal for a formal claim.

When to go to a tribunal or small claims court

If the supplier refuses to refund and the amount is within your state tribunal’s monetary limit, lodge a claim for breach of contract or unpaid debt in the relevant small claims or civil tribunal. Procedures, filing fees and money limits vary by state — check your local tribunal rules (your state’s Fair Trading site will point you to the right service). ASIC’s information sheet also directs consumers to state dispute routes for unresolved contractual disputes (ASIC – Disputes about goods and services).

Before filing, weigh costs, time and the supplier’s solvency. If the supplier is insolvent or overseas, even a successful tribunal order may be hard to enforce.

Evidence that actually matters

The decision makers (banks, AFCA, tribunal members) will look for the same core proof: a record of the payment, proof of the order and terms, evidence of promised delivery, and your efforts to resolve the problem. Organise:

• Payment records (card statements, bank transfers, PayPal receipts).
• Order confirmations, invoices and any written terms or delivery dates.
• All communications with the supplier (emails, chats, call logs) and screenshots of the website if it states shipping times.
• A concise chronology of events.

When to get legal advice and a reasonable next step

If the sum is large, the supplier claims a contractual defence you dispute, or the supplier appears insolvent, get qualified legal advice. For many consumers and small businesses, the sensible sequence is: written demand → bank/PayPal dispute where applicable → state consumer complaint → tribunal claim. A professionally written demand letter can clarify the claim and sometimes prompt payment; for help with formal demands, you may consider a document preparation service such as which prepares documents from customer-provided information (note: BeforeSuit is not a law firm and does not represent customers).

If you follow this route, keep expectations realistic: chargebacks and tribunal claims succeed when evidence is clear, timelines are met, and the supplier has recoverable assets. Use the regulator links above to guide each step and choose the path that balances likely recovery with cost and delay.

For help preparing a professional demand letter, BeforeSuit can help you prepare your next steps.