TL;DR: Too long, Didn’t read
Credit Card (>£100): Use Section 75. It is a legal right. The credit card company is equally liable with the retailer. It is very powerful.
Debit Card (or <£100): Use Chargeback. This is not a law, but a banking process. It reverses the transaction.
When to use them: When a company goes bust, a flight is cancelled, or a retailer ignores your refund rights.
The Limit: Section 75 only works for items between £100 and £30,000. Chargeback has no minimum limit but has a 120-day deadline.
You bought a sofa, but the company went bust before delivering it. Or you ordered a laptop, it never arrived, and the shop is ghosting your emails.
If the retailer won’t help, your bank might. You have two powerful tools: Section 75 and Chargeback. But if you choose the wrong one, your claim could be rejected.
The First Step: Talk to the Shop
Before you call your bank, you must try to resolve it with the retailer.
If they sold you a faulty item, quote your rights to a refund.
If your item never turned up, remind them they are liable for lost parcels.
If they still refuse (or if they have gone bust), then you call the bank.
Tool 1: Section 75 (The “Super Weapon”)
This is part of the Consumer Credit Act 1974. It is incredibly strong legislation.
How it works: When you pay with a Credit Card, the card provider is jointly responsible for the purchase. If the shop breaks the contract, the bank must pay you back.
Criteria:
Must be a Credit Card (not Debit).
Item price must be over £100 and under £30,000.
You only need to pay part of it on the card (e.g., a £1 deposit on a credit card covers the whole £15,000 car).
A Quick Story: Meet Sarah
Sarah buys a kitchen for £5,000. She pays a £200 deposit on her Credit Card and the rest by bank transfer.
The kitchen company goes bankrupt before delivering.
Sarah has lost £5,000.
The Verdict: Sarah is safe. Because she paid the deposit on her Credit Card, Section 75 covers the entire £5,000. Her credit card provider must refund the full amount.
Tool 2: Chargeback (The Backup Plan)
This is not a law; it is a rule set by Visa, Mastercard, and Amex. It is for when Section 75 doesn’t apply.
When to use it:
You paid by Debit Card.
The item cost less than £100.
How it works: Your bank asks the shop’s bank to reverse the money. The shop can dispute this, so it isn’t guaranteed.
The Deadline: You usually only have 120 days from the transaction to claim.
Which One Should I Use?
Use this simple cheat sheet:
Paid by Credit Card + Item over £100? -> Use Section 75. (It’s a legal right, stronger protection).
Paid by Debit Card? -> Use Chargeback.
Item under £100? -> Use Chargeback.
How to Make a Claim
1. Write to the Retailer First
Get proof they rejected you. (See our guide on how to complain about faulty goods for a template).
2. Contact Your Bank
For Section 75: Write to your Credit Card company: “I am making a claim under Section 75 of the Consumer Credit Act 1974 for breach of contract / misrepresentation.”
For Chargeback: Call your bank and say: “I want to raise a Chargeback dispute for non-delivery of goods.”
Summary: Don’t Accept “No”
If a shop ignores the law, the bank can force their hand.
Section 75 = Credit Card Law.
Chargeback = Debit Card Process.
Always keep your receipts!
(Sources: MoneyHelper – Section 75, Citizens Advice – Problem with card purchase)
This guide is for information purposes only and is not legal advice. Banking disputes can be complex. Consult the Financial Ombudsman if your bank rejects your claim.