Section 75 vs Chargeback — Which Protects You When
When a UK purchase goes wrong — goods don’t arrive, the supplier goes bust, the item is faulty — you have two routes to your money back: Section 75 of the Consumer Credit Act 1974, or chargeback through your card scheme. They protect different things. Here’s the practical map.
Section 75 — The Strong Right
Section 75 makes your credit card issuer jointly liable with the retailer when:
- You pay by credit card (debit cards don’t qualify)
- The single transaction is between £100 and £30,000
- The retailer breached contract or misrepresented the product
You have 6 years to claim from when the breach occurred.
The card issuer can be required to refund the full transaction amount, including amounts above what you paid by card if the goods were bought as part of one purchase.
Critical: even £1 on the credit card invokes Section 75 if the total transaction was between £100 and £30k. So splitting a £500 holiday into a £50 deposit on credit card and £450 final payment by bank transfer can still trigger Section 75 cover (case law supports this — though card issuers sometimes contest it).
Chargeback — Card-Scheme Right
Chargeback is not a legal right but a card-scheme rule administered by Visa, Mastercard and Amex. It works on:
- Credit, debit, and prepaid cards
- No minimum or maximum transaction amount
- The card issuer raises a dispute with the merchant’s bank
Typical chargeable claims:
- Goods or services not received
- Goods materially different from description
- Faulty/damaged on delivery
- Duplicate charge
- Fraud
Time limit: usually 120 days from purchase or delivery date (depending on scheme rules).
When Each Applies
| Scenario | Best route |
|---|---|
| £85 dress doesn’t fit, retailer won’t refund | Chargeback (below S75 minimum) |
| £400 furniture delivered broken, supplier ignores | Section 75 |
| £1,200 flights, airline collapses | Section 75 |
| £60 hotel charge, never used | Chargeback |
| £2,000 home renovation, builder vanishes | Section 75 (highest leverage) |
| £8,000 conservatory, installer disputes the work | Section 75 (joint liability) |
What Section 75 Doesn’t Cover
- Cash withdrawals on credit card
- Single transactions under £100
- Single transactions over £30,000
- Transactions on prepaid or gift cards
- Disputes that are purely retailer customer-service issues
What Chargeback Won’t Help With
- Cash payments
- Bank transfers
- Cheques
- Purchases more than 120 days past
How to Make a Claim
Section 75:
- Write to the credit card issuer with full transaction details
- Include receipt, contract, evidence of breach
- The issuer has 8 weeks to respond formally
- If they decline, escalate to the Financial Ombudsman Service — free and binding
Chargeback:
- Contact your card issuer directly (often via app or phone)
- Explain the dispute and provide evidence
- Issuer raises the chargeback with the merchant’s bank
- Decision typically within 30–60 days
Bottom Line
For UK consumers in 2026: pay any major purchase (over £100) with a credit card to invoke Section 75 protection — even if you only put the deposit on the card. For smaller disputes, chargeback is the right tool. Both are free to use — your card issuer should not charge for raising either.
