Bank transfers
Credit card payments
Paying by credit card hasn’t guaranteed a refund either. Customers have reported very different outcomes depending on their bank or card issuer. One Commonwealth Bank customer successfully received a chargeback through Mastercard after arguing there had been a “failure to supply goods and services”.
Another Westpac Mastercard holder was refunded the full $2,300 through a chargeback. However, not everyone was successful. One customer with a Citibank-issued Mastercard said their claim was rejected after being told the bank’s purchase protection applied to physical goods, such as electronics, but not travel or holiday bookings.
Meanwhile, an ANZ Visa debit card holder reported receiving a full refund. Taken together, the experiences suggest the deciding factor isn’t simply whether someone paid by bank transfer, debit card or credit card, but each bank’s own policies for handling travel disputes.
Some customers have also been successful only after challenging an initial rejection or escalating their complaint.
Federal reform push continues
AVG Travels lost its ATIA accreditation in August 2022 but continued trading until it collapsed in May, leaving almost 800 creditors owed a combined $4.3 million. The liquidation remains with ASIC and the federal government, while two petitions are calling for stronger consumer protections.
A Change.org petition has attracted more than 1,300 signatures, while the House of Representatives e-petition EN10136 had reached 315 signatures as of 16 July, with signatures open until 22 July. Both petitions are calling for reforms including a UK-style ATOL compensation scheme, mandatory disclosure when travel businesses lose accreditation, and stronger protections for consumers who pay by bank transfer, BPAY or debit card.
Jhunjhunwala said stronger consumer protections would ultimately benefit reputable travel agents by restoring confidence in the industry. “When consumers discover that an agency can lose accreditation and operate for years with no obligation to anyone, they don’t just lose trust in that agency – they lose trust in every travel agent they have ever booked with. That is a real cost to the travel industry.”
EXCLUSIVE: ‘It’s a real cost to the travel industry’: AVG Travels petition to go to Parliament
