Section 75 and chargeback guide

The complete UK Section 75 vs Chargeback decision flow

Most consumer protection content makes Section 75 sound like a single magic button. It isn't. There are two separate protections, with different rules, different timelines, and different success rates. This page covers when each one applies, what's actually covered, the step-by-step claim process, and the four common mistakes that cause valid claims to fail.

The decision flow in 30 seconds

1. Did you pay any part of the purchase on a credit card?
   • Yes → consider Section 75 first (legally stronger).
   • No → chargeback is your only card-protection route.
2. Is the item or service priced between £100 and £30,000?
   • Yes → Section 75 applies (subject to other rules).
   • No → only chargeback applies.
3. Did the seller breach contract or misrepresent the goods/service?
   • Yes → you have a Section 75 claim.
   • No (e.g., you simply changed your mind) → you don't have either.
4. Was the purchase within the chargeback timeline? Varies by card scheme; typically 120 days from the transaction or, for delivery failure, from the expected delivery date. Section 75 has no such limit — you can claim up to 6 years later (5 in Scotland).

Section 75 in detail

Section 75 of the Consumer Credit Act 1974 makes the credit card provider jointly liable with the seller for breaches of contract or misrepresentation. That's a stronger consumer right than chargeback gives you.

• Applies to credit cards only. Not debit cards. Not prepaid cards. Not Klarna or BNPL.
• The whole purchase must be between £100 and £30,000. If you paid £50 deposit on a £500 sofa entirely by credit card, you're covered for the whole £500 even though only £50 went through the card.
• Direct supplier-buyer relationship required. If you paid through a third party (PayPal, sometimes Klarna, occasionally Amazon Marketplace), Section 75 may not apply because the chain of liability is broken. PayPal-paid items often have to go via chargeback or PayPal Buyer Protection instead.
• No timeline limit for the claim itself, but it must be a genuine contractual breach or misrepresentation. "I changed my mind" isn't a breach.
• The bank investigates within 8 weeks. If unresolved, you can escalate to the Financial Ombudsman Service — free, binding on the bank.

Chargeback in detail

Chargeback isn't a legal right — it's a card-scheme rule (Visa, Mastercard, American Express). The card scheme can claw back a transaction from the seller's merchant account if you show good cause.

• Applies to credit, debit and prepaid card transactions.
• No minimum or maximum transaction value.
• Strict time limits. Typically 120 days from the transaction (Visa, Mastercard) or 120 days from when you reasonably became aware of the issue (e.g., a non-delivery). Some schemes extend to 540 days for certain dispute types.
• Common grounds: non-delivery, defective goods, services not as described, fraudulent transactions, breach by going-bust retailer.
• Less robust than Section 75 if the seller pushes back. The bank tries to mediate; if the seller provides evidence (delivery proof, etc.), they can refuse to refund.

Which to use when (the decision matrix)

The step-by-step claim process

1. Contact the seller first. Both Section 75 and chargeback expect you to try the seller before escalating. Keep written evidence (emails, chat transcripts).
2. Send a formal written complaint citing the breach and giving 14 days to resolve.
3. If unresolved, contact your card provider. Specify whether you're claiming under Section 75 (credit card) or chargeback (debit / scheme rule).
4. Submit evidence: the purchase receipt, communications with the seller, photos/videos of damage, proof of non-delivery, expert reports if relevant.
5. If denied, escalate to FOS. Free, takes 6-12 months, binding on the bank.

The four mistakes that kill valid claims

1. Not trying the seller first. Banks routinely reject claims with "you didn't give the merchant a chance to resolve". Keep evidence of attempts even if you know they'll fail.
2. Missing chargeback time limits. 120 days from transaction (or expected delivery) is short. If the issue is more than 3-4 months old and you paid by debit card, you may have lost the right.
3. Treating Section 75 like a "change of mind" route. It's only for contractual breach or misrepresentation. Buyer's remorse isn't covered.
4. Letting the bank close the case at first refusal. First refusals are often based on incomplete review. Escalate to a complaint, then FOS. Most successful Section 75 outcomes come on second or third pass.

What's not covered by either route

• Cash purchases.
• Bank transfers (BACS, Faster Payments, CHAPS). These have separate scam-protection rules (CRM Code, APP fraud reimbursement).
• Cryptocurrency purchases.
• Items below £100 paid by credit card (Section 75 doesn't apply; chargeback might).
• Goods/services where the consumer was simply dissatisfied but the contract was honoured.

Sources we verify against

• Consumer Credit Act 1974, Section 75
• FCA — consumer credit rules
• Financial Ombudsman Service
• gov.uk — Consumer protection rights