MONEY · SECTION 75 EXPLAINED
Section 75 & Chargeback Explained
Your rights when purchases go wrong and how to get your money back.
Quick summary
- Section 75 protects credit card purchases between £100–£30,000
- Chargeback applies to debit and credit cards
- Section 75 creates joint liability between lender and retailer
- Chargeback is a voluntary card scheme process
- Always raise disputes as soon as possible
For information only
When you pay for goods or services and something goes wrong — the company goes bust, the product never arrives, or it’s faulty — you may be able to recover your money. Two key protections in the UK are: • Section 75 (Consumer Credit Act 1974) • Chargeback (card scheme rules) They are not the same — and understanding the difference can make a significant difference to your chances of getting refunded. This guide explains how both protections work and when to use each. This is general information about UK consumer protections. It is not legal advice.
What Is Section 75?
Section 75 of the Consumer Credit Act makes the credit card provider jointly liable with the retailer if there is a breach of contract or misrepresentation.
This means you can claim directly from your card provider if:
•The item cost between £100 and £30,000
•You paid using a credit card
•The supplier breached contract (e.g. goods not delivered, faulty, or company collapsed)
You do not need to pursue the retailer first.
Example:
If you pay £1,500 for a holiday using a credit card and the travel company goes bust, you may claim from your card provider.
When Section 75 Does NOT Apply
Section 75 does not apply if:
- The purchase is under £100
- You used a debit card
- You used PayPal (in most cases)
- The card was not directly linked to the supplier
- You paid via a third-party intermediary breaking the “debtor-creditor-supplier” chain
Complex payment arrangements can invalidate protection.
What Is Chargeback?
Chargeback is a card scheme process, not a legal right.
It applies to:
- Debit cards
- Credit cards
- Prepaid cards
Card providers reverse the transaction through Visa, Mastercard or Amex rules.
Typical reasons include:
- Goods not received
- Faulty goods
- Duplicate charges
- Cancelled services
Time limit: Usually 120 days from expected delivery or transaction date.
Chargeback is not guaranteed but widely used.
Section 75 vs Chargeback — Key Differences
Is it a legal right?
Section 75:
Yes. It is a legal protection under the Consumer Credit Act 1974.
Chargeback:
No. It is a voluntary card scheme rule (Visa, Mastercard, Amex).
What cards does it apply to?
Section 75:
Credit cards only.
Chargeback:
Both debit and credit cards (depending on provider).
What purchase value qualifies?
Section 75:
Items costing between £100 and £30,000 (even if only part paid on credit card).
Chargeback:
No minimum purchase amount. Can apply to small transactions.
What are the time limits?
Section 75:
Up to 6 years in England and Wales (5 in Scotland) to make a claim.
Chargeback:
Usually around 120 days from when the problem occurred (varies by scheme).
Who is legally liable?
Section 75:
The credit card provider is jointly liable with the retailer.
Chargeback:
The bank reverses the transaction while investigating. It is not automatic legal liability.
Which is stronger protection?
Section 75:
Stronger, because it is written into UK law.
Chargeback:
Useful but dependent on card scheme rules and bank discretion.
Section 75 is stronger but narrower.
How to Make a Claim
1. Contact your card provider’s disputes team.
2. Explain the breach of contract.
3. Provide evidence:
• Receipts
• Correspondence
• Proof of non-delivery
• Bankruptcy notice (if applicable)
If refused, you may escalate to the Financial Ombudsman Service.
Escalation & Support
Financial Ombudsman Service
Website: https://www.financial-ombudsman.org.uk
Phone: 0800 023 4567
Email: complaint.info@financial-ombudsman.org.uk
Citizens Advice
Website: https://www.citizensadvice.org.uk
Phone: 0808 223 1133
Key takeaways
- Section 75 offers strong protection for credit card purchases
- Chargeback covers debit cards but is not a legal right
- Always keep receipts and written evidence
- Act quickly to avoid time limits
- Contact your provider promptly
- Escalate unresolved disputes to the Ombudsman
Does Section 75 cover part payments?
Yes. Even a £1 deposit on a credit card can trigger protection if the total purchase is over £100.
Can I use chargeback if I paid by debit card?
Yes. Debit cards rely on chargeback rather than Section 75.
How long do I have to claim under Section 75?
Up to six years in England and Wales (five in Scotland).
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