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The Banking regulation act and Credit Card acts provide significant protections to users for transations on credit. Basically from 90 - 120 days from a transaction the user can repudiate it (so in effect the law transfers the risk to Bank and Merchant - not user).
Grounds for repudiation are basically:
1. Not the goods I ordered
2. Goods not in saleable condition
3. Not my transaction
These protections are for credit card risks. Once the user says I repudiate this transaction the Bank must confirm the grounds for the charge-back and effect it - then its between the merchant and the card issuing bank to clear up the mess. Too many chargebacks and the Bank will remove access to credit for this merchant.
So are transactions safe - no, but the risk is transfered to the issuing bank by several Australian laws. Banks accept this small risk for the profits credit transactions create.
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