How to Dispute a Credit Card Transaction in Malaysia (Chargeback Guide)

Spotted a charge on your credit card that you did not make or authorise? You have the right to dispute it, and Malaysian law gives you clear protections throughout the process. The key is to act quickly: most card networks allow up to 120 days from the transaction date to raise a formal dispute, so do not wait.

What is a chargeback?

A chargeback is a forced reversal of a credit card transaction initiated by your bank on your behalf. It is different from a refund, which the merchant processes voluntarily. When you file a chargeback, your bank contacts the merchant’s bank (the acquirer) through the card network (Visa, Mastercard, or American Express) and demands that the transaction be reversed if the dispute is valid.

Common grounds for a chargeback in Malaysia include:

• Unauthorised transactions: someone used your card without your knowledge (fraud or theft)
• Non-delivery: you paid for goods or services that were never delivered
• Significantly not as described: the item received is materially different from what was advertised
• Duplicate billing: you were charged more than once for the same transaction
• Credit not processed: a merchant promised a refund but never issued it

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How long do you have to dispute?

Card Network	Cardholder dispute window	Notes
Visa	Up to 120 days from transaction or expected delivery date	Up to 540 days in certain fraud cases
Mastercard	Up to 120 days from transaction date	Clock starts on the transaction date itself
American Express	120 days from transaction date	AMEX often handles disputes directly as issuer

The 120-day rule is the practical standard across all major networks used in Malaysia. After that window closes, your bank loses the ability to raise a chargeback through the card scheme, even if your claim is legitimate. For online purchases where delivery is expected later, the clock typically starts from the expected delivery date, not the payment date.

If you only discovered the fraud after the window, you may still be able to file a police report and pursue the matter through Bank Negara Malaysia’s Financial Fraud Alert channel, though the chargeback route will no longer be available.

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Step-by-step: how to dispute a credit card charge in Malaysia

Step 1: Contact your bank immediately

Call the number on the back of your card or log in to online banking and raise the dispute. For suspected fraud, request that the card be blocked right away while you investigate. Most Malaysian banks (Maybank, CIMB, Public Bank, RHB, AmBank, Hong Leong) have a 24-hour card centre.

Under Bank Negara Malaysia guidelines, your bank must not require you to pay the disputed amount during the investigation period, and must not impose finance charges on that amount while it is under review. This protection applies to all licensed card issuers in Malaysia.

Step 2: Submit a written dispute and gather evidence

After the initial call, follow up in writing. Use your bank’s official dispute form (available at branches or via online banking). The key evidence you should attach:

• Bank or card statement showing the disputed transaction with date, merchant name, and amount
• Screenshot or email confirmation of your original purchase (if the dispute is about non-delivery or wrong item)
• Correspondence with the merchant: emails, WhatsApp messages, or chat transcripts showing your attempt to resolve the issue directly
• Photo evidence: if an item arrived damaged or substantially different from the listing
• Police report (Laporan Polis): strongly recommended for fraud or identity theft cases; some banks require it before processing an unauthorised-transaction claim

Step 3: Track the investigation timeline

Banks in Malaysia are generally expected to acknowledge your dispute within 1 to 3 working days. The full investigation can take 14 working days for straightforward cases and up to 180 days for complex fraud or cross-border disputes. During this period:

• Keep a record of all reference numbers your bank provides
• Note the name of every customer service representative you speak to
• Save copies of every document you submit

If your bank requests additional documents, respond promptly as delays from your side can pause the clock.

Step 4: Provisional credit

For clear-cut fraud cases, many Malaysian banks will issue a provisional credit to your account while the dispute is under investigation. This means the disputed amount is temporarily credited back to you pending the outcome. If the bank later finds the dispute invalid, the credit will be reversed.

Step 5: Know when to escalate

If your bank rejects the dispute and you believe the decision is wrong, or if the bank fails to respond within 60 days of your complaint, you have the right to escalate. Do not let a bank’s first refusal be the final word.

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Escalating to FMOS

The Financial Markets Ombudsman Service (FMOS) is Malaysia’s independent financial dispute resolution body, established on 1 January 2025 through the consolidation of the former Ombudsman for Financial Services (OFS) and the Securities Industry Dispute Resolution Centre (SIDREC). It operates under the auspices of Bank Negara Malaysia and the Securities Commission.

FMOS handles credit card disputes including unauthorised transactions and billing errors for direct financial losses up to RM250,000 (source: FMOS, 2025).

When can you go to FMOS?

• Your bank has issued a final decision that you reject, or
• Your bank has not responded within 60 days of your initial complaint

How to file with FMOS:

1. Visit www.fmos.org.my and complete the online dispute submission form
2. Attach your bank’s final decision letter (or evidence showing 60 days have elapsed without a response)
3. Include all supporting documents from Steps 2 and 3 above
4. You must file with FMOS within 6 months of receiving the bank’s final decision

FMOS will assign a Case Manager who will investigate and attempt to mediate a settlement. If no settlement is reached, a formal recommendation is issued. If you still disagree, you may request adjudication by an Ombudsman within 30 days. The Ombudsman’s final decision is binding on the bank (but not on you, meaning you retain the option to pursue civil remedies if you choose not to accept it).

FMOS services are free of charge for consumers.

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What if the bank rules against you?

A bank finding against your dispute does not automatically mean the case is closed. Your options:

1. Re-escalate via BNM LINK: Bank Negara Malaysia’s consumer platform at bnm.gov.my allows you to file a formal complaint against a licensed financial institution if you believe the bank has not followed BNM guidelines.
2. Tribunal for Consumer Claims (Tribunal Tuntutan Pengguna Malaysia): For disputes involving goods or services (e.g., a merchant that charged you but did not deliver), you can file a claim at the Consumer Claims Tribunal for amounts up to RM50,000. This is separate from the card network chargeback process.
3. Civil action: For larger amounts or cases involving criminal fraud, consult a solicitor about civil recovery or filing a police report with the Commercial Crime Investigation Department (CCID).

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Protecting yourself going forward

• Enable transaction alerts: All major Malaysian banks offer real-time SMS or push notification alerts for every card transaction. Turn this on so you catch unauthorised charges within hours.
• Use virtual card numbers: Some Malaysian banks and e-wallets generate single-use or merchant-locked virtual card numbers, reducing fraud exposure for online purchases.
• Review statements monthly: Do not wait for a problem to surface. Review your full statement every month, not just your total due.
• Freeze your card instantly: Most Malaysian banking apps now allow you to freeze and unfreeze your card instantly without calling the bank, which is useful the moment you suspect your card details have been compromised.

For more on managing your credit card wisely, see our guide on credit card finance charges in Malaysia and our overview of balance transfer offers.

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Key takeaways

• You generally have 120 days from the transaction date to file a chargeback with Visa or Mastercard in Malaysia.
• During an investigation, your bank cannot charge interest on the disputed amount or force you to pay it before a decision is reached (BNM rules).
• Always try to resolve the issue directly with the merchant first; banks will ask whether you did so.
• If your bank does not respond within 60 days or gives a final decision you reject, escalate to FMOS (free of charge, up to RM250,000).
• You have 6 months from the bank’s final decision to file with FMOS.
• Keep records of every call, form submission, and document throughout the process.

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Frequently asked questions

How long does a credit card chargeback take in Malaysia?

Simple cases can be resolved in 14 working days. Cross-border fraud or complex disputes can take up to 180 days. Your bank must acknowledge your dispute within 1 to 3 working days of submission.

Do I need a police report to dispute a credit card transaction in Malaysia?

A police report is strongly recommended for fraud and unauthorised transaction claims, and some banks require it before processing such disputes. For non-delivery or billing error disputes, a police report is generally not required, but documentation of your attempt to contact the merchant is needed.

Can the bank charge me interest on a disputed amount?

No. Under Bank Negara Malaysia guidelines, your issuing bank cannot impose finance charges or require payment of the disputed amount while the investigation is ongoing.

What is the maximum amount FMOS can award?

FMOS handles claims involving direct financial losses up to RM250,000 for credit card and banking disputes (FMOS, 2025). Larger amounts would need to be pursued through civil litigation.

What if the merchant is overseas?

You can still file a chargeback through your Malaysian bank. The bank will escalate through the Visa or Mastercard network to the merchant’s acquiring bank in the other country. The same 120-day window applies. Resolution may take longer for international disputes, and the strength of your evidence is especially important.