PayPal opens refund pathway for Bluesfest fans as chargebacks gather pace

PAYPAL has become the latest payments provider to offer a potential refund route for Bluesfest Byron Bay ticket holders, announcing a one-time exception to its usual dispute time limits following the festival’s collapse.

The company said customers who bought tickets using PayPal could still be eligible to lodge claims under its buyer protection policy even if purchases were made more than 180 days before the cancellation.

“In light of Bluesfest’s sudden cancellation, and to support our customers, PayPal is making a one-time exception to its standard buyer protection eligibility window,” a spokesperson said.

“PayPal will consider all eligible claims for Bluesfest 2026 tickets purchased using PayPal, including those made more than 180 days prior to the dispute.”

Customers who used PayPal’s ‘Pay in 4’ option have been encouraged to contact the company directly through its website for assistance.

The development adds to a growing focus on payment disputes and chargebacks as the most practical pathway for some fans seeking refunds, with banks already outlining case-by-case processes governed by global card scheme rules.

Insolvency firm Worrells is handling the liquidation of the company behind Bluesfest Byron Bay.

Corporate law expert Professor Jason Harris from the University of Sydney has warned many ticket holders may recover little or none of their money through the liquidation process itself.

“In a lot of insolvencies, particularly liquidations, the only people that get paid are secured creditors and the insolvency practitioners,” he said.

“All unsecured creditors in those circumstances will often get nothing.”

While ticket buyers can register as creditors, Professor Harris said they typically sit near the back of the repayment queue because they do not hold security over company assets.

Banks including CommBank and National Australia Bank have confirmed customers can lodge disputes where paid services are not delivered, although strict time limits may apply depending on transaction timing.

With refund prospects through the liquidation uncertain, some ticket holders have already secured refunds through chargeback claims.

The Times News Group has sighted more than a dozen verified letters from financial institutions confirming successful chargebacks following the festival’s cancellation.

Ticket holder Carlos McCarthy said he had initially struggled to reach a real person at his bank but was ultimately successful in securing a refund through the chargeback process.

“Stoked to get a refund,” he said.

“Although I was really looking forward to the festival.”

Professor Harris said uncertainty around refunds could have wider consequences for the live music sector, with audiences potentially becoming more hesitant to buy tickets in advance.

Industry guidance encourages promoters to hold ticket funds in trust until events take place, although compliance is voluntary.

“If we want to stop this happening again, we make sure ticket sale proceeds are paid on trust,” Professor Harris said.