Paying by card is legal protection

When you shop online or pay for services in the UK using your card, the payment method you choose can make a dramatic difference to your legal rights if something goes wrong. Credit cards and debit cards both offer protection—but they work in different ways. Understanding these protections is especially important for expats and newcomers unfamiliar with UK consumer law.

Section 75: Your credit card shield

Section 75 of the Consumer Credit Act 1974 is the gold standard of UK payment protection. If you use a credit card to buy goods or services that cost between £100 and £30,000, your credit card company is jointly and severally liable with the seller. This means if the seller fails you—whether the goods never arrive, they're faulty, or the business misrepresents what it's selling—you can pursue a claim directly against the credit card company. You don't have to reach a stalemate with the retailer first.

The £100-£30,000 window

The protection applies only to single items or services costing between £100 and £30,000. The critical point: it's the total price of the item that counts, not how much you paid on the card. Even if you only paid a £10 deposit on your credit card toward a £5,000 holiday, the full £5,000 is covered. This applies to holidays, flights, car purchases, online goods, foreign transactions, and services.

One common mistake: if you buy two separate items—say a £80 flight and a £80 hotel stay—paying them separately, neither is covered by Section 75, even though together they exceed £100. But if you book both through the same provider and pay £180 as a single transaction, you're protected.

What Section 75 covers

• Goods that never arrive
• Services not provided
• Goods or services that are faulty, damaged, or not as described
• Misrepresentation by the seller about what you're buying
• The seller breaching their contract with you
• The seller going into administration or ceasing to trade
• Related 'consequential losses' (for example, if a cancelled event forces you to pay for a hotel and train tickets, you may be able to claim those costs too)

What Section 75 does not cover

• Cash withdrawn on your credit card (no link between the card company and the retailer)
• Purchases through Buy Now Pay Later platforms (the extra step breaks the link)
• Items under £100 or over £30,000
• Purchases where you didn't pay the seller directly (for example, some travel agents acting as intermediaries)
• Items still covered by the manufacturer's warranty
• Debit card purchases

How to make a Section 75 claim

Contact your credit card provider in writing (email is fine) and clearly state "I am making a claim under Section 75 of the Consumer Credit Act." Include details of the item, its cost, when you paid, and what went wrong. Keep copies of all correspondence, receipts, and evidence. Most card providers now let you make claims through their app or website, which is faster.

You can make a Section 75 claim up to six years from the original purchase date, and you can still claim even if you've since closed the credit card account.

Debit cards and chargeback

Debit card purchases are not covered by Section 75—because they don't fall under a credit agreement. However, UK debit cards have a different protection called chargeback, which is part of Visa, Mastercard, and American Express schemes. Chargeback is not a legal right like Section 75; it's a voluntary protection that card networks have agreed to offer. But it can be equally effective for getting your money back.

How chargeback works

Chargeback allows your bank to reverse a card payment and reclaim the money from the merchant's bank under card scheme rules. You typically have 120 days from the date of purchase to make a chargeback claim. For future purchases—such as event tickets—the 120-day window usually begins from the date the event was supposed to happen. There is no minimum or maximum amount you can claim.

What chargeback covers

• Goods or services never received
• Goods that are faulty, damaged, or not as described
• You were charged the wrong amount or double-charged
• Subscription services that continued charging after cancellation
• The merchant went out of business
• Unauthorised or fraudulent transactions

Before you ask your bank for a chargeback, make a genuine effort to get a refund from the retailer. Keep records of all emails, chat logs, and reference numbers showing you tried to resolve the dispute. Banks often require this evidence before they'll process a chargeback.

Chargeback on credit cards too

Credit card users can also use chargeback as a backup to Section 75. For example, if you spent less than £100 on a credit card, or bought something over £30,000, chargeback becomes your protection. Many expats and UK residents use chargeback first if they think their claim is straightforward (e.g., a package never arrived), reserving Section 75 for more complex disputes.

Bank transfers: minimal protection

Bank transfers are convenient, but they come with almost no built-in consumer protection. If you send money directly to a seller's bank account and the seller disappears or commits fraud, you have far fewer options than with card payments.

APP fraud: when you're tricked by a scammer

Authorised Push Payment (APP) fraud occurs when you are tricked into sending money to a fraudster via a bank transfer. Since 7 October 2024, new rules have been in place offering much stronger protection. If you send money by UK bank transfer using Faster Payments or CHAPS (the two main systems) and fall victim to APP fraud, your bank must now reimburse you within five working days. This reimbursement is no longer voluntary—it's mandatory.

However, this protection has strict limits. It only applies to transfers between UK accounts. If you send money abroad, or to a scammer outside the UK, you have minimal recourse. Additionally, you will not be reimbursed if the bank can prove you were grossly negligent—for example, if you ignored multiple warnings from your bank. The rule includes an optional £100 excess that your bank may deduct from your refund, though this must be applied fairly.

Claims must be made within 13 months of the last fraudulent payment. To protect yourself, always pay close attention to Confirmation of Payee (CoP) warnings—these check that the account name matches the business you're paying.

Non-fraudulent transfer disputes

If you send a bank transfer to a legitimate business that then refuses to deliver goods or refunds money, you have almost no protection. The transfer is irreversible once sent. This is why expats and newcomers should avoid bank transfers to strangers or when buying goods online. Card payments—especially credit card payments—are far safer.

Comparison: which payment method is safest?

For maximum protection, use a credit card whenever possible for purchases over £100. You get Section 75 protection plus chargeback as a backup. For smaller purchases or when you must use a debit card, chargeback is your safety net—but act fast and get the claim in within 120 days. Never use bank transfers for online shopping or for paying strangers. Keep all receipts, order confirmations, and correspondence for at least 13 months.