Credit Card Protections for Online Purchases

Online shopping offers convenience, but it also carries risks when goods or services fail to arrive, are faulty or differ radically from their description. In England and Wales, UK law provides specific protections for cardholders who use credit cards to make purchases online. These protections help ensure that consumers are not left out of pocket when a seller breaches its obligations or goes out of business. This guide explains the legal protections available, how they work, time limits, common issues and practical steps for asserting your rights.

Why Credit Card Protections Matter

Paying by credit card provides legal safeguards that do not apply to cash, bank transfers or many “buy now pay later” arrangements. These protections help balance the contractual risks inherent in remote purchasing - particularly online sales where you cannot inspect goods before payment. The key protection is Section 75 of the Consumer Credit Act 1974, which makes your credit card provider legally responsible alongside the retailer in certain circumstances. In addition, many card schemes operate a chargeback mechanism that can provide refunds even where statutory rights do not apply.

Section 75 of the Consumer Credit Act: Core Legal Protection

What Section 75 Covers

Under Section 75 of the Consumer Credit Act 1974, your credit card company is jointly and severally liable with the retailer or supplier if a purchase goes wrong. This means you can claim directly against your card provider as if they were the seller when certain legal criteria are met.

You may be entitled to a refund if:

• The goods or services never arrive.
• They are faulty, defective or not as described.
• The seller breaches the contract (fails in a fundamental contractual obligation).
• The retailer ceases trading before fulfilling the contract.

Eligibility Criteria

Section 75 applies where:

• The total price of the single item or service purchased is more than £100 and not more than £30,000.
• Part or all of the purchase was paid for using a regulated credit card.
• There is a direct financial link between you, the credit provider and the trader.

You do not need to pay the full amount on the credit card to be covered. Even if you pay only a deposit with your card and the rest by other means, you can still claim for the full cost of the item if the total price falls within the statutory range.

When Section 75 Does Not Apply

Section 75 will generally not apply in the following situations:

• The individual item cost is £100 or less, even if combined with other purchases.
• The purchase was made via certain third‑party intermediaries where your credit card provider did not have a direct contractual relationship with the seller, such as some online marketplaces or agent‑mediated booking sites.
• You withdrew cash on your credit card and used that to make a purchase.
• You used a debit card, prepaid card or unauthorised payment method.
• Payments made through mechanisms without a direct creditor–supplier link (for example, some “pay by bank” services) lack Section 75 protection.

Chargeback: Card Scheme Protection

What Chargeback Is

Chargeback is a voluntary scheme operated by card networks (such as Visa, Mastercard and American Express) that allows your card issuer to reverse a payment on your behalf. Unlike Section 75, chargeback is not a statutory right - it is provided under card network rules and depends on your provider's willingness to pursue the refund through the retailer's bank.

When You Can Use Chargeback

You may be able to request a chargeback if:

• Goods or services were not delivered.
• Items are faulty or not as described.
• You were charged twice, or an incorrect amount was taken.
• A subscription continued after cancellation.

Unlike Section 75, chargeback can apply to transactions of any value and on both credit and debit cards. However, you must typically request it promptly - usually within 120 days of the transaction or when the issue was first noticed.

Limitations of Chargeback

Because chargeback is a card network mechanism rather than a legal right:

• Your provider is not obliged to pursue it.
• Success depends on obtaining agreement from the retailer's bank.
• Evidence requirements and outcomes can vary between card issuers.

How to Make a Section 75 or Chargeback Claim

Step 1: Try to Resolve With the Retailer First

Before escalating to your card provider:

• Contact the retailer in writing.
• Explain the issue concisely and request a refund or replacement.
• Keep copies of correspondence and order documentation.

While not always required, attempting resolution may strengthen a subsequent claim.

Step 2: Contact Your Card Provider

When escalating a dispute:

• Clearly state whether you are claiming under Section 75 or requesting a chargeback.
• Provide details of the transaction, communications with the retailer and reasons for your claim.
• Include evidence such as receipts, delivery confirmations, photographs and contractual terms.

Step 3: Keep Records and Follow Up

Maintain a written record of all communications with both the retailer and your card provider. Ask for written confirmation of your claim and any deadlines for additional information.

Step 4: Escalate If Necessary

If your claim is rejected or unresolved:

• Complain in writing to your card provider's complaints department.
• If the provider fails to resolve the dispute within eight weeks or issues a final response you disagree with, you can refer the matter to the Financial Ombudsman Service for independent review.
• For Section 75 disputes, statutory limitation periods may extend to six years from the date of the transaction in many cases, so long as you remain within the statutory criteria.

Common Questions and Issues

Online Marketplace Purchases

If you buy goods through a marketplace (for example, where individual sellers use the platform), Section 75 protection can be uncertain because there may not be a direct link between your card provider and the actual seller. In such cases, checking whether chargeback or the platform's own buyer protection scheme applies is important.

Using PayPal or Third‑Party Payment Services

Section 75 protection depends on the legal payment relationship. If you pay via PayPal where the transaction results in a contractual link between you and the merchant - rather than simply a payment processor - Section 75 may apply; however, this varies by provider and their agreements. If not covered, chargeback or the platform's buyer protection may be alternatives.

Deposits and Part Payments

As noted above, paying only a deposit by credit card can still trigger Section 75 protection for the full value of the contract provided the total price of the goods or services meets statutory thresholds.

Key Takeaways

Credit card payments for online purchases can provide robust consumer protection under UK law. Section 75 of the Consumer Credit Act 1974 allows you to claim directly against your credit card provider when goods or services go wrong, provided the purchase cost is between £100 and £30,000 and a qualifying contractual link exists. In addition, the chargeback mechanism offered by card schemes enables refunds for a broader range of problems and payment methods. To enforce your rights, document your purchase and communications, contact your card issuer promptly and, if necessary, escalate disputes to the Financial Ombudsman Service.

James William Steven Parker

James is the founder of UKLegalGuides.com and a former agent at the Ministry of Justice (UK). With a background in processing legal claims, he launched this platform to make the laws of England and Wales accessible to everyone.