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.
Learn about credit card protection for purchases in the UK, including how Section 75 of the Consumer Credit Act and chargeback schemes work, eligibility, limitations, and practical steps to recover money if goods or services go wrong. This guide clarifies your rights and what to do next in England and Wales.
When you use a credit card to pay for goods or services, you benefit from statutory and contractual protections that do not apply when paying by cash or bank transfer. These protections can help you recover money if something goes wrong - for example, if an item never arrives, is faulty, misdescribed, or the company supplying it goes bust. This guide explains the key legal rights, procedures, limitations, and practical steps involved in credit card purchase protection in England and Wales.
Understanding Credit Card Consumer Protection
What Legal Protections Apply?
In the UK, the principal legal protection for credit card purchases is Section 75 of the Consumer Credit Act 1974 (CCA). This creates a statutory right against your credit card provider where certain conditions are met. In addition to Section 75, there is a voluntary scheme known as chargeback which card issuers run by agreement with payment networks. These operate differently, with distinct eligibility and timeframes.
Section 75 of the Consumer Credit Act 1974
What Is Section 75 Protection?
Section 75 makes your credit card provider jointly and severally liable with the retailer or supplier for certain purchases you make with your credit card. This means you can pursue your claim directly against the credit card company rather than rely solely on the seller to resolve your dispute.
When Does Section 75 Apply?
To qualify for protection:
- The purchase must be made with a credit card (including store cards and similar regulated credit agreements).
- The total value of the goods or services must be more than £100 and no more than £30,000.
- There must be a breach of contract or misrepresentation by the seller - for example, goods not delivered, faulty items, or services not as described.
- Section 75 may apply even if you only paid a deposit with the credit card, so long as the total purchase price falls within the stated range.
This protection applies whether the purchase was made in person, by phone, online, or abroad, provided the relevant criteria are met.
Examples of Covered Scenarios
Common situations where Section 75 applies include:
- A purchased item never arrives.
- A product is significantly faulty or not as described.
- A company supplying a holiday or other service goes into administration before fulfilment.
- A supplier misrepresents the nature of the goods or services.
Limitations and Exclusions
Section 75 does not apply in some circumstances, such as:
- Transactions on debit cards or charge cards.
- Payments made through third-party payment processors where the direct link between you, the seller and the credit card provider is broken (for example certain marketplace platforms or alternative payment methods).
- Cash withdrawals or gambling transactions.
- Combined purchases where each individual item costs £100 or less, even if the total transaction exceeds £100.
How to Make a Section 75 Claim
- Contact your credit card provider as soon as possible once you identify a problem.
- Provide evidence of the transaction, correspondence with the seller, and receipts or order confirmations.
- Clearly state that you are making a claim under Section 75 of the Consumer Credit Act.
- If the provider rejects your claim, you can escalate to the Financial Ombudsman Service.
There is no strict statutory deadline for Section 75 claims, but as a practical matter you should make your claim promptly. Some card issuers follow a six‑year limitation period consistent with general contractual claims.
Chargeback: A Voluntary Scheme
What Is Chargeback?
Chargeback is a facility offered by Visa, Mastercard, American Express and other card networks that allows card issuers to attempt to recover funds from the retailer's bank when a dispute arises. It is not a legal right but a contractual mechanism between banks and payment schemes.
When Can You Use Chargeback?
Chargeback can be used when:
- Goods or services are not delivered.
- Items are faulty, counterfeit or defective.
- You are charged multiple times by mistake.
- A subscription continues after cancellation.
Unlike Section 75, chargeback is available for all types of card payments (credit, debit and prepaid), and there is no minimum spend threshold. However, claims must typically be made within 120 days of the transaction, subject to specific network rules.
Chargeback vs Section 75
Key differences include:
- Legal entitlement: Section 75 is a statutory right; chargeback is voluntary.
- Eligibility: Chargeback can apply to lower value transactions and debit cards, whereas Section 75 only applies to credit purchases between £100 and £30,000.
- Outcome control: Chargeback outcomes depend on banking network procedures and recovery from the retailer's bank.
Card providers may sometimes resolve disputes using chargeback before considering a Section 75 claim, especially where the retailer is still trading.
Practical Steps for Consumers
1. Try to Resolve with the Supplier First
Before turning to card protections, always attempt to resolve the issue directly with the seller. Provide clear details of the problem and ask for a refund or replacement.
2. Notify Your Card Provider Promptly
Contact your credit card issuer or bank as soon as an issue becomes apparent. Early notification strengthens your position and ensures compliance with timing requirements for schemes like chargeback.
3. Keep Detailed Records
Save all communication with the seller, receipts, contracts, delivery confirmations, and screenshots. These documents form key evidence when making a claim.
4. Escalate If Necessary
If your card issuer rejects your claim under Section 75 or chargeback, consider escalating through the provider's formal complaints procedure. If unresolved, you can take the dispute to the Financial Ombudsman Service.
5. Understand Timeframes
Act quickly. While Section 75 may allow claims over several years, chargeback claims are bound by a shorter timeframe, often around 120 days from the transaction date.
Common Questions
Does PayPal Offer Section 75 Protection?
If you pay through PayPal using a credit card without logging into PayPal, Section 75 may still apply. If you pay via your PayPal account, however, Section 75 generally will not apply as the credit agreement is with PayPal rather than the seller.
Are Business Purchases Covered?
Generally Section 75 applies to credit agreements where the borrower is an individual or certain types of unincorporated entities. If the purchase is strictly for business use and not a consumer transaction, eligibility can vary. Professional advice is recommended in those circumstances.
Key Takeaways
Credit card purchases in England and Wales benefit from robust legal protections. Section 75 of the Consumer Credit Act 1974 gives you a statutory right to hold your card provider jointly liable with a retailer when goods or services go wrong, provided the purchase falls between £100 and £30,000. Meanwhile, chargeback offers a voluntary mechanism for reclaiming funds for card payments of any value, including debit cards. To protect your rights effectively:
- Keep thorough records.
- Contact your card issuer promptly.
- Work through formal dispute and complaints procedures.
- Escalate unresolved disputes to the Financial Ombudsman Service.
Understanding these protections empowers you to take effective action when purchases do not meet expectations or contractual promises.
