Introduction
Money leaving your account feels the same whether you typed the wrong BSB or someone else used your card. The process for getting it back is not the same. Australian banks sort these problems into two buckets — transactions you did not authorise, and payments you authorised but got wrong — and the rules, timeframes and likely outcomes differ between them. This guide explains where the line sits, what the recall process actually involves once you notice the error, and the specific questions to put to your bank so you are not left guessing.
The difference that matters: who pressed send
The practical test is whether you initiated the payment.
An unauthorised transaction is one made without your knowledge or consent. moneysmart.gov.au notes these can occur in a lot of different ways, including EFTPOS and credit card transactions, online payments, internet and mobile banking, and BPAY. It also states that your bank account is compromised if your login details have been shared without your knowledge or permission, even if no unauthorised payments have been made yet — which means acting on suspicious access is worthwhile before any money moves.
A mistaken internet payment is one you made yourself, but sent to the wrong person or for the wrong amount. You authorised it; the error is in the destination or the figure. A mistyped account number, a saved payee that turned out to be an old one, a decimal point in the wrong place, or paying the same bill twice are the common shapes this takes.
That distinction drives everything downstream. With an unauthorised transaction you are disputing the validity of the payment. With a mistaken payment you are asking your bank to retrieve money that was validly sent, from a recipient who has done nothing wrong.
What the recall process looks like
Timing is the single biggest factor you control. Under the process described by Legal Aid NSW, report the mistake as soon as possible, and the outcome depends on when you report:
| When you report | What happens |
|---|---|
| Within 10 business days | It is likely the money will be returned to you |
| Between 10 business days and seven months | The bank or credit union can freeze the money and request the recipient to show proof they are entitled to the funds, before deciding whether to return it |
| After seven months | The funds will be returned only if the recipient agrees |
Legal Aid NSW also notes that whether the money can come back depends partly on whether the unintended recipient has enough money in their account to cover the mistaken internet payment. If there is not enough left, the picture changes: once you have satisfied the bank or credit union that you made a mistaken internet payment, they must make reasonable efforts to recover the money for you. That is an obligation to try, not a guarantee of repayment — recover what "reasonable efforts" means in your case and how long those efforts continue.
What to ask your bank
Call or message your bank as soon as you spot the error, then get the answers in writing. Useful questions:
- Have you logged this as a mistaken internet payment, and what is the reference number?
- Which timeframe am I in — inside 10 business days, or beyond it — and what does that mean for my case?
- Can the funds in the recipient's account be frozen now?
- Has the recipient been contacted, and when is the next update?
- Can the payment be traced if it has moved on from the original account?
- If there is not enough money in the recipient's account, what reasonable efforts will you make to recover it?
- What do you need from me, and by when?
- If the answer is no, what is your internal dispute process and what are the deadlines?
Keep your own record: dates, times, names, reference numbers, screenshots of the transaction and of any payee details you entered. If the amount is large, follow up in writing rather than relying on a phone call alone.
If your bank is not resolving it
moneysmart.gov.au states that if you feel your financial institution is not doing enough to help, or is not willing to refund unauthorised transactions that you feel should be refunded or help you to retrieve mistaken payments, you can seek help. Legal Aid NSW points to the same pathway and, if you're struggling with your finances because of the unauthorised payment or mistaken transaction, suggests talking to a financial counsellor. It also refers readers to the Financial Rights Legal Centre's Reversing Bank Transactions fact sheet for what to do when a bank refuses to reverse a transaction.
Ask your bank for its written decision and its dispute process first — you will need that record if you escalate.
Reducing the chance of a repeat
The protections moneysmart.gov.au lists for bank accounts apply to both problems, because both often start with access or attention:
- Use strong passwords and PINs, and increase the security on your account
- Keep account details safe — cover your hand when entering a PIN, and check who you are speaking to before giving card details over the phone
- Consider your payment limits; if you do not need to make large transfers, consider reducing them
- Lock your card if it is lost or stolen
- Regularly check your transaction history
- Keep your contact details up to date so your bank can reach you about suspicious activity
For mistaken payments specifically, the habits that help are duller but effective: re-read the BSB and account number against the invoice before confirming, use copy-and-paste carefully since dropped or duplicated digits are easy to miss, and check the payee name that appears before you authorise a transfer.
Your next steps
- Confirm which problem you have — authorised but wrong, or not authorised by you at all — and use those words with your bank.
- Report it today. The 10-business-day window matters.
- Ask the questions above and record the answers.
- If the recipient's account cannot cover the amount, ask what reasonable efforts will be made to recover it.
- If your bank declines, request the decision in writing and seek help through the channels named above.
Verify current timeframes, your bank's specific process and any fees or limits with your bank directly, and with the Legal Aid service in your state or territory, since procedures can vary between institutions.
General information only
This article is general information about how mistaken internet payments and unauthorised transactions are commonly handled in Australia. It is not legal, financial or credit advice, and it does not predict the outcome of any individual complaint. Amounts, timeframes and obligations depend on your account terms and the facts of your case. Confirm details with your bank and, if you need advice about your circumstances, with a lawyer or financial counsellor. Australian Cash is an independent publisher of information and is not a bank, lender, broker, government body, regulator or comparison service.