What is the difference between Section 75 and chargeback?

Section 75 is a legal right under the Consumer Credit Act 1974 that makes your credit card provider jointly liable with the seller for purchases between £100.01 and £30,000. Chargeback is a voluntary scheme run by card networks (Visa, Mastercard, Amex) that applies to both debit and credit cards, with no minimum purchase amount. Section 75 is a stronger legal protection — your card provider must act. Chargeback is a process the card company can undertake but is not legally required to.

Can I use Section 75 with a debit card?

No — Section 75 only applies to credit card purchases. If you paid by debit card, you can use chargeback instead. This is one of the main reasons it's advisable to use a credit card for significant purchases (even if you pay the balance in full each month) — you get the additional legal protection of Section 75.

What is the time limit for Section 75 claims?

There is no specific time limit mentioned in Section 75 itself, but claims are subject to the Limitation Act — meaning you generally have 6 years from the date of the breach of contract or misrepresentation to make a claim (5 years in Scotland). Chargeback has much shorter time limits — typically 120 days from the date of the transaction or from when you became aware of the problem.

Can I use Section 75 if I only paid part of the purchase on my credit card?

Yes — even if you only paid a small portion of the total cost on your credit card (say £1 of a £5,000 purchase), Section 75 applies to the entire amount. The purchase price must be between £100.01 and £30,000, but you don't need to have paid the full amount on your credit card. This is why many people put a small amount on a credit card and pay the rest by other means — to trigger Section 75 protection.

Section 75 vs Chargeback — Which Protects Your Purchase? | PocketWise

When a purchase goes wrong, you may be able to get your money back through Section 75 or chargeback. They work differently and have different rules. Here’s when to use each.

Section 75 vs Chargeback at a Glance

Feature	Section 75	Chargeback
Legal basis	Consumer Credit Act 1974 (legal right)	Card network rules (Visa, Mastercard — voluntary scheme)
Card type	Credit card only	Credit card, debit card, prepaid card
Minimum purchase	£100.01	No minimum
Maximum purchase	£30,000	No maximum
Liability	Card provider is jointly liable with the seller	Card provider requests money back from seller’s bank
Time limit	6 years (Limitation Act)	Typically 120 days
Strength	Very strong — legal obligation	Moderate — not guaranteed
Partial payment on credit card	Yes — covers full purchase even if only part was on credit card	Only covers the amount paid on the card used

When to Use Section 75

Situation	Use Section 75?
Company went bust before delivering goods/services	Yes
Goods arrived faulty or not as described	Yes (if over £100)
Seller refuses a refund you’re entitled to	Yes
Holiday company cancelled your trip	Yes
Car bought on credit card is defective	Yes
Booking cancelled but no refund given	Yes
Item was counterfeit	Yes
Paid deposit on credit card, rest by bank transfer	Yes — covers the full amount
Purchase was under £100.01	No — use chargeback instead
Paid by debit card	No — Section 75 is credit card only

When to Use Chargeback

Situation	Use chargeback?
Paid by debit card	Yes — only option
Purchase was under £100	Yes — Section 75 doesn’t apply
Goods never arrived	Yes
Charged twice or wrong amount	Yes
Subscription you cancelled still being charged	Yes
Fraudulent transaction on your card	Yes
Seller won’t engage or respond	Yes
Paid over £30,000 (outside Section 75 range)	Yes
Need a quick resolution	Yes — often faster than Section 75

When Both Apply — Which to Use First?

Scenario	Recommendation
Goods over £100, paid on credit card, seller still trading	Try seller first → chargeback → Section 75
Goods over £100, company went bust	Section 75 — stronger protection
Goods under £100, paid on credit card	Chargeback — Section 75 doesn’t apply
Paid on debit card	Chargeback — only option
Time-sensitive (approaching 120-day chargeback limit)	Chargeback first — Section 75 has a longer time limit
Want to keep Section 75 as backup	Start with chargeback, escalate to Section 75 if needed

How to Make a Section 75 Claim

Step	Action
1	Try to resolve with the seller first — put your complaint in writing
2	If unresolved, contact your credit card provider
3	Explain the problem — breach of contract or misrepresentation
4	Provide evidence — order confirmation, correspondence with seller, photos of faulty goods
5	State that you are making a claim under Section 75 of the Consumer Credit Act 1974
6	The card provider investigates and should respond within 8 weeks
7	If they refuse or you’re unhappy, escalate to the Financial Ombudsman Service

What You Need

Evidence	Purpose
Proof of credit card payment	Statement showing the transaction
Proof of what was purchased	Order confirmation, receipt, contract
Evidence of the problem	Photos, correspondence, delivery records
Your correspondence with the seller	Shows you tried to resolve it first
Amount claimed	The total amount you’re seeking (can be more than what was paid on the credit card)

How to Make a Chargeback Claim

Step	Action
1	Try to resolve with the seller first
2	If unresolved, contact your card provider (bank)
3	Explain the problem — goods not received, faulty, wrong amount, etc.
4	Provide evidence
5	Bank initiates chargeback with the seller’s bank
6	Seller can dispute (“representment”) — providing their evidence
7	If seller disputes successfully, you can ask for a second chargeback
8	Final arbitration by the card network if still disputed

Chargeback Time Limits

Card network	Standard time limit	From when?
Visa	120 days	From the transaction date or when you became aware of the problem
Mastercard	120 days	From the transaction date or expected delivery date
Amex	120 days	Varies by reason code

Common Scenarios

Scenario 1: Flight Cancelled, Airline Refuses Refund

Payment method	Action
Credit card (flight cost £200+)	Section 75 — card provider is jointly liable
Debit card	Chargeback — claim within 120 days
Paid via PayPal linked to credit card	Chargeback via PayPal buyer protection first, then Section 75 (may be complex — the contract is with PayPal, not the airline)

Scenario 2: Company Goes Bust Before Delivering Goods

Payment method	Action
Credit card (goods over £100)	Section 75 — your strongest protection
Debit card	Chargeback — within 120 days
Bank transfer	Very limited options — may be unrecoverable

Scenario 3: Faulty Goods, Seller Refuses to Help

Purchase value	Payment method	Action
Over £100	Credit card	Section 75 (or chargeback first if you prefer speed)
Under £100	Credit card	Chargeback
Any amount	Debit card	Chargeback

Scenario 4: Holiday Booking Not as Described

Payment method	Action
Credit card (over £100)	Section 75 — misrepresentation claim
Debit card	Chargeback — within 120 days of return
Part credit card, part bank transfer	Section 75 covers the full amount

Section 75 Limitations

Limitation	Detail
Only credit cards	Not debit cards, prepaid cards, or charge cards
Purchase must be £100.01–£30,000	Below £100.01 or above £30,000, use chargeback
Direct relationship required	You need a debtor-creditor-supplier arrangement (some third-party payments like PayPal may complicate this)
Linked credit agreements	Applies to purchases made directly or under arrangements between the seller and card provider
Gift cards bought on credit card	Generally not covered — the credit card purchase is for the gift card, not the end product

If Your Claim Is Rejected

Step	Action
1	Ask for a written explanation of why it was rejected
2	Challenge the decision with additional evidence
3	Escalate to the Financial Ombudsman Service (FOS)
4	FOS is free to use and can override the card provider’s decision
5	Or take the matter to small claims court