This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Purchases gone wrong? Learn your legal rights when paying by credit card. This guide explains how to use Section 75 of the Consumer Credit Act and chargeback schemes to recover your money.
Credit cards are widely used in England and Wales for everyday purchases and larger transactions. Beyond offering a convenient way to pay, credit cards also provide significant legal protections if things go wrong with a purchase, such as non‑delivery, faulty goods, or a business failing to honour its contract. This article explains your rights under the law, how to enforce them, the processes involved, what time limits apply, and what practical steps you can take to seek refunds or compensation. It is aimed at consumers with no legal background as well as students and professionals who require clear explanations of consumer law and financial protection.
Core Legal Protections for Credit Card Purchases
Section 75 of the Consumer Credit Act 1974
The most important statutory protection available to UK credit card users is Section 75 of the Consumer Credit Act 1974. This law makes your credit card provider jointly liable with the retailer or service provider if something goes wrong with your purchase. This means you may be able to claim your money back from the card company as if it were responsible for the contract itself.
When Section 75 Applies
Under Section 75:
- The total value of the goods or services must be more than £100 and not more than £30,000. The relevant amount is the price of the item(s), not necessarily what you paid on the card.
- Section 75 applies even if you only paid a deposit or part of the price on your credit card, provided the transaction meets the threshold.
- Coverage includes situations where the trader misrepresents the product or service, fails to deliver, or breaches the sales contract.
For example, if you booked a holiday costing £1,200 and paid a £100 deposit with your credit card, you could claim the full amount back under Section 75 if the trip was never provided.
However, Section 75 does not apply:
- If the retailer and the card provider are the same entity - the direct link between the trade and credit must exist.
- For cash withdrawals from your credit card or transactions such as money transfers or gambling payments.
- To payments made through certain third‑party processors (such as some marketplace sellers or payment services) where the direct contractual link is broken.
These protections also apply to purchases made online, by telephone, or face‑to‑face, including transactions in the UK and overseas.
Chargeback Protection
In addition to legal rights under Section 75, credit and debit card users benefit from an industry scheme known as chargeback. Chargeback is not a statutory right, but it is offered by card schemes (such as Visa, Mastercard, American Express) and allows your card issuer to attempt to reverse a transaction under certain conditions.
How Chargeback Works
Chargeback may apply when:
- Goods or services are not received, including where the merchant has stopped trading.
- Purchased items are faulty, counterfeit, or defective.
- You were charged the wrong amount, or you were double‑charged.
- A cancelled subscription continues to be charged.
Unlike Section 75, chargeback:
- Has no minimum or maximum claim value.
- Applies also to debit and prepaid card transactions.
- Must usually be claimed within a specific timeframe - often around 120 days from the date of the transaction or, for future events, from the date they were due to occur.
Because chargeback is a voluntary protection, a card provider may refuse a claim if it cannot successfully recover funds from the retailer's bank.
How to Make a Section 75 Claim
Step‑by‑Step
- Gather Evidence and Documentation
Before you make a claim, collect evidence such as receipts, order confirmations, correspondence you've had with the seller, and details of what went wrong with your purchase. - Attempt Resolution with the Merchant
You should usually try to resolve the issue directly with the retailer first by requesting a refund or replacement. However, you can also contact your credit card provider about a Section 75 claim at the same time - you do not need to wait for the retailer to reach a standstill. - Contact Your Credit Card Provider
Explain clearly that you wish to make a claim under Section 75 of the Consumer Credit Act. Provide all supporting documents and a statement of what you are requesting (typically a full refund). - Wait for the Provider's Decision
The card provider will investigate and respond. If they decline your claim, they must provide a reason. You may have to give further evidence.
Time Limits
You can make a Section 75 claim:
- Within six years of the transaction date for most purchases.
- If the goods or services were not delivered, you can typically start the six‑year period from when they should have been delivered.
If a claim is rejected, keep records of all correspondence - you may escalate the matter.
Escalating a Dispute: Financial Ombudsman Service
If your credit card provider refuses your Section 75 or chargeback claim and you remain dissatisfied, you can escalate your complaint to the Financial Ombudsman Service (FOS). The FOS is an independent body that can review disputes between consumers and financial service providers and make binding decisions. You normally need to:
- Make a formal complaint to the card provider first.
- Wait up to eight weeks for a final response.
- If the provider issues a “deadlock letter” or has not resolved your complaint satisfactorily, you can take your case to the FOS.
The Ombudsman will consider the facts, relevant law, and fairness to determine whether you should receive compensation or refunds.
Common Questions and Practical Scenarios
Does Section 75 Apply to PayPal or Marketplaces?
Section 75 protections may not apply if you pay through certain third‑party processors or marketplaces because the direct link between you and the seller is broken. Check with your provider, as some platforms may offer alternative protection schemes.
What If the Item Was Paid in Instalments?
If you paid only part of the purchase price on your credit card (for example, a deposit), Section 75 can still protect the entire transaction value provided the total cost meets the statutory threshold.
Can I Use Chargeback Instead of Section 75?
Yes. If your purchase does not qualify for Section 75 (for example, it is under £100), chargeback may still allow the card provider to reverse the transaction if accepted under the scheme rules.
Key Takeaways
Consumers in England and Wales have strong protections when paying by credit card:
- Section 75 of the Consumer Credit Act 1974 gives you a statutory right to claim your money back from your credit card provider if a purchase goes wrong and meets specific criteria.
- Chargeback provides additional, scheme‑based protection for a broader range of card transactions.
- You should gather evidence, attempt resolution with the trader, and make clear claims to your provider. If unresolved, you can escalate to the Financial Ombudsman Service.
Understanding and using these rights can strengthen your position and help you recover funds when purchases fail to meet legal or contractual expectations.
