What is credit card protection?
Credit card protection is a term used to describe regulations and mechanisms that are designed to protect you when you make purchases using your credit card.
In the UK, there are two main types of credit card payment protection that could be available to you when you spend on your credit card:
Section 75 protection
Chargeback.
What is Section 75 of the Consumer Credit Act and what credit card protection does it include?
If you use your credit card to buy something that costs over £100 but not more than £30,000, your purchase could be protected by Section 75 of the UK Consumer Credit Act.
Section 75 credit card protection applies to all types of credit card. And in certain cases, it could allow you to get a full refund from your credit card provider, even if you only used your credit card to pay part of the full purchase amount.
Under Section 75, your credit card provider has equal responsibility with a seller if something goes wrong with a purchase.
That means you could claim back the money you’ve paid from your credit card provider if you can’t get it back from the retailer. That could be the case if, for example, the company you’ve bought from goes bust or if the retailer refuses to put things right.
Need to know
Section 75 might only offer protection in certain cases. Whether you can make a successful claim depends on the circumstances, the terms and conditions of your credit card provider, and the Mastercard, Visa or American Express scheme rules. Every case is individual, so don’t assume you’ll automatically be covered.
What credit card cover do I have from Section 75?
Under Section 75 of the Consumer Credit Act, you could claim a refund from your credit card provider if, for example:
An item isn’t delivered to you, but you’ve still been charged.
The item you bought is faulty or damaged and the company won’t refund you or offer a replacement.
Your item arrives and it isn’t what was described or doesn’t work as advertised.
The company goes into administration before you’ve got the item or service you’ve paid for – this could include airlines or holiday tour operators.
You’ve paid for transport and accommodation for an event that is then cancelled.
What does Section 75 not cover?
You might not be covered by credit card purchase protection if:
Your purchase is worth £100 or less, or over £30,000.
You used a third-party provider, such as PayPal, Worldpay or Google Wallet, or a ‘Buy now, pay later’ service to pay, instead of buying directly from the retailer or service supplier.
Similarly, if you buy a holiday through an agency, or you buy concert tickets through a ticket-selling platform, you may not have Section 75 protection. Read the terms of the third party’s buyer protection scheme carefully before you buy.
You paid using a debit card or charge card.
You withdraw cash using your credit card.
The individual items you bought are priced £100 or less, even if part of a purchase totalling over £100. For example, if you bought three tickets for £90 – paying £270 in total – they won’t be covered. This is because the single item is £100 or less.
The purchase was made by an additional cardholder. To be covered, you might need to show that you, as the primary cardholder, will benefit from the purchase. For example, Section 75 could apply if it was a joint purchase like a family holiday or if the additional cardholder used the card to buy you a birthday present.
You use your credit card to buy a gift in someone else’s name. For example, if you buy a flight or a gift subscription for somebody else, you may not be able to claim under Section 75.
You use your card for money transfers or other indirect forms of payment, such as vouchers bought from a third-party supplier – for example, a clothes store voucher bought at the supermarket.
Hire purchase (HP) also isn’t covered under Section 75. However, the supplier is legally obliged under the Supply of Goods Act to make sure goods they sell are as described and not faulty.
How to make a Section 75 claim
Before you start a Section 75 claim on your credit card, you should first contact the retailer or company that you bought from to give it an opportunity to put things right.
If it doesn’t get back to you to offer a refund or is no longer in business, follow these steps to make a Section 75 claim:
Write or email your credit card provider and state that you’re making a claim under Section 75 of the Consumer Credit Act. You may also be able to start a claim through your credit card provider’s online portal or mobile banking app.
Clearly detail when and where the payment was made and how much you paid. Include a copy of the receipt or proof of purchase that backs up your claim.
Explain why you’re making a claim under Section 75. For example, this could be because the good or services you received were faulty or misrepresented.
Inform your credit card provider of the steps you’ve taken to contact the retailer or company involved, and the response you’ve received from them. Include a copy of any correspondence as evidence.
Indicate what you would like your credit card provider to do. For example, you could ask them to refund the purchase price of the item into your credit card account. Or you could ask them to cover the money you’ve spent on repairing a damaged item.
Remember that it’s not guaranteed that your Section 75 claim will be successful. Keep a copy of any correspondence between you and your credit card provider in case you do need to take things further.
Note that you’ll need to be the primary cardholder to make Section 75 credit card claims. And you’ll be making a claim against the bank or financial firm that issued your credit card, not the payment network: Visa, Mastercard or American Express.
How long will it take to receive the money after a Section 75 claim?
There’s no legally binding time limit for how long it should take your card provider to investigate and resolve your Section 75 claim. It depends on the resources available at your credit card provider to look into your case.
If you’re unhappy with how long it’s taking, you can make a complaint to your credit card provider. It’s obliged to respond to your complaint within eight weeks.
Is there anything I can do if my Section 75 claim is rejected?
If your credit card provider refuses your Section 75 claim, but you believe you have a strong case, the first step is to make an official complaint to your credit card provider.
If it doesn’t respond within eight weeks, or you’re unhappy with the response, you can make a complaint to the Financial Ombudsman Service. You should do this within six months of receiving the card provider’s final response.
If the Financial Ombudsman decides in your favour, they can compel your credit card provider to make it right. Bear in mind though that there is no guarantee that your claim will be successful.
You can start a complaint to the Financial Ombudsman Service by using their complaint checker. It can direct you to the correct online forms to fill in to get the ball rolling. Alternatively, call 0800 023 4567 between 8am and 5pm, Monday to Friday.
Do I have credit card purchase protection under £100?
You don’t have credit card protection on purchases under £100 from Section 75. But you may be able to request a refund from your credit card provider under the Chargeback scheme if you’re unable to get a refund directly from the retailer.
Chargeback covers debit and credit card purchases but, unlike Section 75, it’s not legally binding. Your credit card provider may or may not subscribe to the Chargeback scheme. And there’s no guarantee your Chargeback claim will be accepted.
How does debit card Chargeback work?
Chargeback works the same way for debit cards as it does for credit cards. And it could cover many of the same circumstances as Section 75. For example, you could make a Chargeback claim if:
Something you bought using your credit or debit card doesn’t arrive
It arrives but it’s faulty or damaged, or not as described
The company you bought from has gone out of business
You’ve been charged the incorrect amount or charged twice
You’re charged for a repeat payment after cancelling a subscription.
As with Section 75, you must try to resolve the issue with the retailer directly before you try Chargeback.
When you make a Chargeback claim, your card provider attempts to reclaim the money from the retailer or service provider’s bank by reversing the transaction. You’ll need to provide evidence that backs up your claim, and the retailer can dispute it.
There’s usually no minimum spend required for a debit card or credit card purchase to be covered by Chargeback, but there are time limits. You’ll typically have 120 days from the date of the transaction to contact your bank to make a claim.
Do I have any credit card insurance for purchases over £30,000?
Section 75 protection doesn’t apply to credit card purchases over £30,000. But if you have a linked credit agreement for a purchase over £30,000 but less than £60,260, you may be protected under Section 75a of the Consumer Credit Act.
A linked credit agreement is where you’ve agreed a financing deal to buy goods or service. Car finance is a common example. Buying a new kitchen on finance is another.
But credit agreements secured on land are excluded.
Unlike Section 75, the credit provider and the supplier are not equally responsible if something goes wrong. To make a claim under Section 75a, you must first have tried to resolve the issue with the product or service provider directly, but with no success.
Do credit cards guarantee refunds for holidays and flights?
If you booked a holiday or flight directly with a tour operator or airline, you should be covered by Section 75. But Section 75 doesn’t usually apply if you book through a travel agent.
Package holidays aren’t usually covered by Section 75 as they should come under separate ATOL or ABTA consumer protection rules.
When it comes to flights only, you need to buy your tickets directly from the airline and each booking must cost over £100 to qualify for Section 75 protection.
Just be careful if you’re using a low-cost airline, as your outbound and inbound flights could be considered separate bookings.
It’s not 100% guaranteed that you’ll be covered by Section 75 or your claim will be successful, so make sure you have travel insurance in place before you set off.
Does Section 75 cover goods and services I’ve only paid a deposit for?
You may be able to claim through your credit card provider if you use your credit card to pay a deposit for products or services and the company fails to fulfil its promise.
To qualify for credit card protection under section 75, you don’t necessarily need to pay more than £100 towards a purchase on your credit card. Provided that the total cash price of the goods or service you’re buying is over the £100 threshold, you should still be able to claim.
For example, imagine you used your credit card to pay a £50 deposit for a new £500 sofa, then paid off the remaining amount with your debit card. Under Section 75, you may have credit card purchase protection for the full cost of the sofa and not just the deposit, if the retailer goes bust and fails to deliver.
How else can I protect myself with a credit card?
Stay vigilant against credit card fraud to protect your money and your online identity. Here are some common scams to be on the alert for:
Stolen credit cards – because many credit cards are now contactless, fraudsters don’t have to know your PIN to go on a spending spree. If you lose your card, contact your card provider immediately so it can block the card.
Phishing – beware of emails or texts that look like they’re from your bank or credit card provider, asking you to click on links or enter personal information. These phishing attempts can be very convincing, but no legitimate organisation should ever ask you to give out security information in this way.
Credit card skimming – fraudsters can use electronic devices to ‘skim’ the details of your card when you go to pay. If you notice payments you didn’t make, contact your card provider immediately. It should block your card and get in touch if it notices any suspicious activity.
Identity theft – fraudsters can use your personal details to set up accounts in your name and run up credit card debt. Make sure you shred any documents or correspondence containing sensitive or personal details before they go in the bin.
Can I compare credit cards with protection?
As credit card protection is a legal requirement under Section 75 of the Consumer Credit Act, you won’t need to compare credit cards based on this protection. All credit card providers are required to meet these standards.
Compare credit cards
If you’re looking for a credit card, we can help you search for one that suits your needs. Just use our eligibility checker to see how likely it is that you’ll qualify for a credit card before you apply.
FAQs
Will overseas purchases be protected?
Yes, Section 75 of the Consumer Credit Act provides credit card purchase protection in the UK and overseas. If you have a UK credit card, Section 75 protection applies whether the purchase is made in the UK, abroad or online.
You should get the same type of credit card protection, as long as the purchase meets the criteria set out by your credit card provider.
Will group bookings for tickets or holidays be protected?
If you’ve booked a holiday or tickets to an event on behalf of a group, then technically you should be covered, so long as each individual ticket cost more than £100 and you meet all the other criteria.
However, although you should be protected by Section 75 for family bookings, it’s not clear cut if you’re booking for independent individuals (such as friends or another couple).
Flights, reservations or tickets under other names aren’t guaranteed to be covered by credit card protection. It may depend on the terms of your card provider.
If you’re concerned or in any doubt, just ask your group to book individually. Or in the case of holidays, consider group travel insurance.
Are cash withdrawals covered by Section 75?
No, if you use your credit card to make a cash withdrawal, the money you spend won’t be covered by Section 75. This is because there’s no link between the credit card provider and the retailer.
It’s a good idea to avoid using your credit card for cash withdrawals anyway. If you do, you’re likely to be charged a fee and interest from the moment you take out the money.
Is there a Section 75 time limit for making a claim?
You can make a Section 75 claim for up to six years from the date of the credit card purchase.
Can I still get Section 75 protection if I can’t get credit?
No, Section 75 purchase protection only applies to payments made by credit card. However, you may have purchase protection under the Chargeback scheme for purchases made by prepaid cards.
Prepaid cards are cards that you can load up with money to use on your everyday spending, like a pay-as-you-go debit card. Because there’s no borrowing involved, you normally don’t need a credit check to get one.
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