How do credit card refunds work?

What is a credit card refund?

When you purchase via a credit card and then request a refund, you won’t be able to receive a refund via cash or other methods. Instead, you’ll receive a separate credit on your credit card account equal to the original purchase amount.

Example

The process begins after we agree to refund a deposit. If the Oz Lotteries deposit amount you are returning is the only balance on your account, then your balance will return to the original opening balance of your card, nullifying your debit after the refund is processed.

Please note: If you have paid your credit card down to a zero balance and then receive your refund, you will have a negative balance on your credit account. Any future purchases will be applied to the negative balance first. 

How does a credit card refund work?

To fully understand how refunds are granted to your credit card account, it’s essential to know how the transactions are processed. When you purchase with a credit card, your credit card company is who makes the original payment on your behalf. The available credit on your account goes down after your card issuer approves the transaction. Then, you pay your credit card provider back for the purchase when you make payments to your credit card account.

Credit card networks are the companies that process the transactions between your credit card issuer and Oz Lotteries where you make purchases. So, we need to send your refund back to your credit card issuer before they can credit your account for the purchase. That is why credit card refunds often take several days to process, and you can only receive a refund in the original payment method.

Please note: your card issuer may not refund any foreign transaction fees because it costs them money to process an international purchase, so consult with them to know for sure.

How long does a credit card refund take?

Since return transactions must go through the credit card networks, it often takes several days to see the credit returned to your account. The exact time can vary depending on your return method, the card issuer and the merchant. Generally, it will take 5 - 14 business days. Additionally, if the return isn’t processed by your card’s closing date, it won’t appear on that month’s statement. 

If you would prefer to use the funds on your Oz Lotteries account, you can ask our team to credit your Oz Lotteries account instead of processing a refund. These funds are available immediately for use. However, you will not be able to withdraw these funds yourself, should you wish for a refund at a later date. At any time, you can request a refund from our team and they will process this via the original payment method. 

Please note: funds cannot be withdrawn to a different payment method. This is in accordance with anti-money laundering requirements.

What is the difference between a refund and chargeback?

A credit card refund occurs after you make a purchase and then have the purchase amount credited back to your account. 

A chargeback, on the other hand, reverses the original charge and can only occur after you have filed a billing dispute with your credit card company.

Unless you are enacting your card issuer’s return protection, the merchant (Oz Lotteries) initiates the refund process while your credit card company initiates a chargeback. 

A chargeback can also take much longer because your card company has 90 days to resolve the issue and up to 150 days to complete the charge reversal process. You cannot charge back a purchase that has already been refunded. 

Should you have any questions or feedback, please don't hesitate to contact our Customer Support on 1300 188 911 or at support@ozlotteries.com