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A guide to credit card purchase protection

A guide to credit card purchase protection

Spending on your credit card can give you extra protection if something goes wrong. Read our guide to what purchase protection can cover and what to watch out for.

Anelda Knoesen
From the Money team
minute read
posted 8 JANUARY 2020

What is credit card payment protection?

Credit card protection helps you to claim your money back if you use your credit card to buy something and there is a problem with it.

It allows you to get a full refund from your credit issuer on single purchases that cost between £100 and £30,000 and comes with any type of credit card.

What does section 75 of the Consumer Credit Act cover?

Under section 75 of the Consumer Credit Act, your credit card provider has equal responsibility with a seller if something goes wrong after you’ve paid for something. Your card provider typically has to refund you if:

  • Your 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
  • The company goes into administration before you’ve got the item you’ve paid for
  • You paid a £100+ deposit using your credit card on a single item, for example a sofa or holiday, you would still receive purchase protection on the full item, not just the deposit.

How do you claim money back on credit cards?

To claim back money on your credit card you will have to first contact the company that you bought from. If they don’t get back to you, or offer a refund, you can make a claim against your credit card company.

When you write to your credit card provider, you’ll need to state that you’re making a claim under Section 75 of the Consumer Credit Act, including copies of receipts as proof of purchase. You’ll also need to include any emails or letters you’ve sent to the company you purchased from.

When are you not covered by credit card protection?

There are some cases where you might not be covered by credit card protection. For example:

  • Your purchase is less than £100 or over £30,000
  • You used a third party provider, such as PayPal to pay instead of buying directly
  • What you purchased wasn’t a single item done by a single transaction. 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 under £100.

What debit card payment protection is there?

Debit cards don’t offer payment protection under Section 75 of the Consumer Credit Act, but are covered by something called chargeback. Chargeback covers you if an item you’ve bought is damaged, faulty or doesn’t arrive.

You’ll typically have 120 days from the date of the transaction to contact your bank to make a claim. You’ll also be expected to provide evidence that the item is damaged, faulty or didn’t arrive, along with proof you bought it.

Unlike Section 75, chargeback isn’t legally binding and your bank doesn’t share joint liability with the seller. When you make a claim, your bank will put in a request to the seller’s bank to claim the money back. The company can always dispute your claim, so there’s no guarantee that your bank can get your money back.

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