Unauthorised and mistaken transactions
Mistakes on your bank account
If there is an error on your bank account or credit card, the
sooner you report it to the bank, the more likely it is
you'll get your money back.
Here we explain what to do if you make a mistake transferring
money from your bank account or if you are worried someone else is
using your account without your consent.
How do unauthorised or mistaken bank
An unauthorised transaction is when funds are transferred from
your account without your knowledge or consent, by someone else who
has access to your account.
A mistaken transaction occurs when you pay the wrong person
or company by:
- incorrectly typing the BSB or account number
- putting in the wrong information because the person you are
paying has provided the wrong number
- selecting the wrong payee.
ASIC figures from a 3-month period in 2015 showed that 83% of
mistaken transactions were because people incorrectly entered the
bank account details of the person they were transferring money
How does the ePayments Code protect you?
The ePayments Code is a code of practice that most banks,
building societies, credit unions and some payment services have
signed up to. It protects you when you're
making electronic payments, including when you:
- withdraw money from an ATM
- buy goods or services using EFTPOS or credit card (although not when
you authorise the purchase with a manual signature)
- use telephone or internet banking
- pay with your credit card over the phone or internet
- use mobile phone payment services.
You can find out more about the ePayments Code on the ASIC website.
Can you get your money back if
there's a mistake on your bank account?
In most cases, you are entitled to a refund if there is an
unauthorised or mistaken transaction on your account. However,
there are some instances where you may not be able to get your
Getting your money back after a mistaken payment
If you put in the wrong BSB or account number, or chose the
wrong payee, you are likely to get your money back if you contact
your account institution within 10 business days and the money is
still in the recipient's account. Your account
institution will need to be satisfied that the mistake is
It will be a slower process if you report the problem after 10
business days, but you should still get your money back if the
money is still in the recipient's account.
If it is more than 7 months, and the money is still in the
recipient's account, then the recipient has to consent to the
return of your funds before you can get your money back.
Getting your money back after an unauthorised
You are likely to get your money back if:
- a forged, expired, faulty or cancelled PIN/password or card was used
- the transaction was fraudulently made by an employee of your
financial institution or merchant
- the transaction took place before you received your card, PIN
- a merchant incorrectly debited your account more than once
- the transaction occurred after you told
your financial institution that your card was lost or stolen,
or that someone else may know your PIN or password
- it's clear that you haven't contributed to the loss.
When you may not get your money back after an unauthorised
There is less chance of getting your money back from an
unauthorised transaction if you:
- acted fraudulently
- didn't keep your PIN or password secret
- unreasonably delayed telling your financial institution
that your card was lost or stolen or that someone else may know
your PIN or password
- accidentally left your card in an ATM.
However, even in these circumstances, the amount you are
liable for is subject to certain caps.
credit card transactions
Unauthorised credit card transactions are most likely to occur
where the card is not present, for example when it is used to make
phone or internet purchases, or where a merchant has charged you
more than once in error.
You will need to report the unauthorised transaction as soon as
you become aware of it. If your credit provider has signed up to
the ePayments Code, they must investigate the unauthorised
transaction, even if it falls outside the time period permitted
under the Visa and MasterCard scheme chargeback protections.
See ASIC's media release on Citibank refunds to
customers when they were misled about their rights around
How to report a mistake on
your bank account or credit card
Before you report an unauthorised or mistaken transaction, check
if your bank, credit union, building society or payment service
provider has signed up to the ePayments Code. You can check on this
When you report a mistake or unauthorised transaction on your
account make sure you get a reference number to verify that you
made the report.
If they subscribe to the Code, they must have processes in
place to return your money, in the circumstances outlined
above. If they are not a subscriber, you can still raise your
concerns with them. You can also ask them to sign up to the
To report a mistake or unauthorised transaction on your account,
call your financial institution as soon as possible and let them
In the case of an unauthorised transaction, you need to do this
quickly to fix up the problem and prevent any more unauthorised
It is worth closely checking your account
statements every month for any wrong transactions and reporting
them to your service provider as soon as possible.
Last updated: 12 Jan 2018