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Section 75 is one of the most valuable consumer protections in the UK — and it’s completely free. Understanding how it works could save you thousands of pounds.
What Is Section 75?
| Feature | Detail |
|---|
| What it is | Legal protection under Consumer Credit Act 1974 |
| What it does | Makes credit card company equally liable as seller |
| Coverage | Single item over £100, up to £30,000 |
| Cost | Free — automatic with any credit card |
| Where it applies | UK and overseas purchases |
What’s Covered
| Scenario | Covered? |
|---|
| Faulty goods | ✓ |
| Goods not as described | ✓ |
| Non-delivery | ✓ |
| Company goes bust | ✓ |
| Service not provided | ✓ |
| Breach of contract | ✓ |
Examples
| Example | Protection |
|---|
| Buy TV that breaks, retailer refuses refund | Claim from card company |
| Book holiday, travel firm goes bust | Claim full amount back |
| Order furniture, never arrives | Claim from card company |
| Car repair botched | Claim cost back |
| Flight cancelled, airline won’t refund | Claim from card company |
Coverage Limits
| Minimum | Maximum |
|---|
| Item must cost more than £100 | Item must cost no more than £30,000 |
Important: Multiple Items
| Scenario | Coverage |
|---|
| Single item costing over £100 | Covered |
| Two items at £50 each = £100 | Not covered (each item under £100) |
| Single order £200, but cheapest item £30 | Only items over £100 are covered |
Per Item, Not Per Transaction
Section 75 applies to individual items, not the total transaction value. Each item must cost over £100 to qualify.
The Powerful “Part Payment” Rule
| What It Means | Example |
|---|
| Pay ANY amount on credit card | Full purchase protected |
| Even £1 on card = full protection | For a single item over £100, up to £30,000 item |
| Rest can be by another method | Cash, debit, bank transfer |
Example
| Item | Credit Card | Other Payment | Protected Amount |
|---|
| £5,000 holiday | £500 deposit | £4,500 bank transfer | Full £5,000 |
| £15,000 car | £100 deposit | £14,900 on finance | Full £15,000 |
| £200 appliance | £50 | £150 cash | Full £200 |
The part-payment rule means: pay ANY part on credit card, and the WHOLE purchase is protected (as long as the item costs over £100 and up to £30,000).
Why This Matters
| Strategy | Benefit |
|---|
| Large purchase? | Put deposit on credit card |
| Even if paying mostly by other means | Credit card portion triggers protection |
| Doesn’t matter how small the card payment | Full amount protected |
How to Make a Claim
Step 1: Try the Seller First
| Action | Why |
|---|
| Contact seller | They may resolve it |
| Document everything | Emails, dates, what was said |
| Give reasonable time | Usually 14-28 days |
| Action | Detail |
|---|
| Call or write to card issuer | Not Visa/Mastercard — your bank |
| Explain the issue | What happened, what seller said |
| State you’re claiming under Section 75 | Make it explicit |
| Provide evidence | Receipts, correspondence, contract |
Step 3: If Card Company Refuses
| Action | Detail |
|---|
| Formal complaint | Follow their complaints process |
| Financial Ombudsman | If still unresolved after 8 weeks |
| Ombudsman decision | Binding on card company |
What to Include in Your Claim
| Evidence | Detail |
|---|
| Credit card statement | Showing the transaction |
| Receipt/invoice | Original purchase evidence |
| Correspondence | With seller |
| Details of the problem | What went wrong |
| What you’re claiming | Amount and why |
Section 75 vs Chargeback
| Feature | Section 75 | Chargeback |
|---|
| Legal basis | UK law | Card scheme rules |
| Minimum item price | Over £100 | Any amount |
| Maximum item price | £30,000 | No maximum |
| Cards covered | Credit cards only | Credit and debit |
| Time limit | Usually 6 years in England and Wales (Limitation Act 1980) | Usually 120 days |
| Strength | Stronger | Can be reversed |
| Part payment | Covers full amount | Only amount on card |
When to Use Each
| Situation | Best Option |
|---|
| Item over £100 on credit card | Section 75 |
| Item of £100 or less | Chargeback |
| Debit card purchase | Chargeback |
| More than 120 days ago | Section 75 (if credit card was used) |
| Need quick resolution | Try chargeback first |
Special Situations
Overseas Purchases
| Scenario | Coverage |
|---|
| Buy from UK seller | Covered |
| Buy from EU seller | Covered |
| Buy from US/worldwide seller | Covered |
| Online purchase in foreign currency | Covered |
Section 75 applies wherever you buy from, as long as you use a UK credit card.
Third-Party Payments
| Method | Section 75 Applies? |
|---|
| Pay seller directly | ✓ |
| Pay via PayPal (credit card behind) | Possibly — disputed; try it |
| Pay via Amazon Marketplace | Usually against Amazon’s policies; try Section 75 |
| Gift card purchased on credit card | No — you bought the gift card, not the item |
Safest: Pay the actual seller directly on your credit card.
Items + Services
| Purchase | Section 75? |
|---|
| Physical goods | ✓ |
| Services (travel, repairs, etc.) | ✓ |
| Digital purchases | ✓ |
| Recurring subscriptions | Each payment must be for an item priced over £100 |
Why Credit Cards Beat Debit Cards
| Debit Card | Credit Card |
|---|
| Your money gone immediately | Card company’s money at risk |
| Only chargeback (weaker) | Section 75 + chargeback |
| No part-payment protection | Part-payment = full protection |
| Good for small purchases | Essential for large purchases |
See our credit card vs debit card guide for more.
Key Takeaways
- Always use credit card for purchases over £100, free protection
- Even £1 on card = full protection, for items over £100 and up to £30,000
- Keep documentation — receipts, correspondence, statements
- Try seller first — but don’t wait too long
- Know your rights — card companies must consider valid claims
- Financial Ombudsman — if card company unfairly refuses
This is why you should have a credit card even if you prefer debit — the protection is invaluable.
Section 75 on Holidays and Travel
Common Holiday Scenarios Covered
| Scenario | Section 75 applies? |
|---|
| Airline goes into administration | Yes, claim full ticket cost |
| Hotel overbooks and offers inferior accommodation | Yes, breach of contract |
| Package holiday company collapses | Yes, claim full cost |
| Cruise company fails to deliver promised services | Yes, misrepresentation |
| Tour operator changes itinerary significantly without refund | Potentially, depends on contract terms |
| Travel insurance company refuses valid claim | No, insurance disputes have different resolution routes |
Third-party booking platforms create complexity for Section 75 claims because the merchant on your credit card statement is the platform (Airbnb, Booking.com, etc.) rather than the property or airline directly.
General guidance:
- Airbnb: Your credit card merchant is Airbnb Ireland (or Airbnb Inc.). Section 75 claims against Airbnb directly relate to Airbnb’s contract with you, if the host cancels and Airbnb refuses to refund, you may have a Section 75 claim against Airbnb.
- Booking.com / Expedia: Similar, the merchant is the platform, and Section 75 relates to Booking.com’s obligations under the contract.
- Direct supplier booking: Booking directly with the airline or hotel names them as the merchant, cleaner Section 75 claim if they fail.
Where possible, book directly with suppliers for cleaner Section 75 protection. If booking through a platform, understand that the claim is against the platform, not the underlying supplier.
ATOL, ABTA, and Section 75 Together
Several protections can overlap on package holidays:
- ATOL (Air Travel Organisers’ Licensing): Protects package holidays including flights booked through an ATOL-licensed operator. If the operator collapses, ATOL refunds or repatriates you.
- ABTA (Association of British Travel Agents): Industry protection for non-flight package holidays. Financial protection and dispute resolution.
- Section 75: Legal right against your credit card issuer.
Having multiple protections is not a problem: you can pursue any available route and do not need to choose in advance. If ATOL resolves your claim, you do not also need to claim on Section 75 (and should not “double claim”). But if one route fails or is delayed, another route remains available.
Section 75 vs ATOL Protection
If you book a package holiday through an ATOL-protected operator, you also have ATOL protection (a separate government-backed scheme). Section 75 applies regardless of ATOL status. Having both protections does not harm your claim, both routes are available.
For choosing the right card for travel, see Best Travel Credit Cards UK and How to Avoid Foreign Transaction Fees.
Time Limits for Section 75 Claims
There is no fixed statutory time limit in Section 75 itself, but limitation periods apply:
- Contract claims: Generally 6 years from the date the breach occurred
- Misrepresentation: 6 years from discovery of the misrepresentation
- Credit card issuer internal deadlines: Your issuer may have shorter internal timelines, but these cannot legally override the statutory right
In practice, raise a Section 75 claim as soon as you are aware of the issue. Do not wait. The earlier you raise a claim, the easier it is to document and the more likely the issuer is to process it efficiently.
For chargeback claims (which sit alongside Section 75): The Visa/Mastercard chargeback window is typically 120 days from the transaction or the expected delivery/service date. Chargeback has a much stricter time limit than Section 75.