Section 75 & Chargeback UK 2025 — How to Get Your Money Back From Your Bank
If a retailer goes bust, delivers the wrong item, or simply refuses to give you a refund you are legally owed, your credit card company or bank may be able to get your money back for you — sometimes even when the seller has disappeared. Section 75 of the Consumer Credit Act 1974 gives credit card holders a powerful legal right for purchases over £100. Chargeback is a separate, contractual scheme that covers debit cards and smaller amounts. This guide explains both, step by step.
What Is Section 75?
Section 75 of the Consumer Credit Act 1974 makes a credit card company jointly and severally liable with the retailer or supplier for any breach of contract or misrepresentation in connection with a purchase. "Jointly and severally liable" means the credit card company is equally responsible alongside the retailer — so if the retailer cannot or will not pay, you can claim the full amount from your credit card provider instead.
This is a statutory right — it is written into law and cannot be contracted out of. Your card issuer cannot refuse a valid Section 75 claim by pointing to its own terms and conditions. The right exists regardless of whether the credit card company had any involvement in the transaction beyond processing the payment.
When Does Section 75 Apply?
Section 75 applies when all of the following are satisfied:
- The purchase was made using a credit card (not a debit card, charge card with no credit element, or prepaid card)
- The item or service cost between £100 and £30,000 — the individual item must cost over £100, not just the total order
- There is a breach of contract or misrepresentation by the supplier — the goods were faulty, not delivered, significantly not as described, or the supplier has gone into administration
- There is a direct debtor-creditor-supplier relationship — the card was used to pay the supplier directly (not through a third-party payment intermediary in most cases)
Section 75 vs Chargeback — Key Differences
⚖️ Section 75 (Legal Right)
- Credit cards only
- Purchase price £100–£30,000
- Statutory right — cannot be refused
- No time limit in statute (6 years in practice)
- Full amount recoverable
- Card company equally liable with seller
🏦 Chargeback (Scheme Rule)
- Debit AND credit cards
- Any purchase value (even under £100)
- Voluntary scheme — can be refused
- Time limit: typically 120 days from transaction
- Full amount usually recoverable
- Bank disputes transaction with merchant's bank
Section 75 in Detail — What You Can Claim
Breach of Contract
A breach of contract occurs when the supplier fails to fulfil their obligations — goods are faulty, a service is not performed, goods are not delivered, or the supplier goes into administration before completing the order. You do not need to prove fault on the part of the credit card company — the liability is automatic and strict. If the supplier breached the contract with you, the card issuer is equally liable.
Misrepresentation
Misrepresentation occurs when a supplier makes a false statement of fact that induces you to make the purchase — for example, falsely claiming a holiday resort had facilities that did not exist, or describing a car as having a full service history when it did not. Section 75 covers both fraudulent and innocent misrepresentation.
Partial Payment
One of the most powerful aspects of Section 75 is that it applies even if you only paid part of the purchase price on the credit card. If you paid a £50 deposit on a £2,000 holiday using your credit card and paid the rest by bank transfer, you can still use Section 75 to recover the full £2,000 — not just the £50 deposit. The credit card company is liable for the entire purchase, not just the card payment.
Items Costing Just Over £100
Section 75 applies to any individual item or service costing between £100 and £30,000. For a shopping basket with multiple items, each item is assessed individually. A single item costing £100.01 qualifies. Multiple items each costing £99 in the same transaction do not qualify individually, even though the basket total exceeds £100.
Chargeback in Detail
Chargeback is a dispute mechanism operated by the card networks (Visa, Mastercard, American Express) that allows your bank to reverse a transaction and recover money from the merchant's bank. It is not a legal right — it is a contractual process governed by the card scheme rules — but banks and card issuers are expected to use it on your behalf.
Chargeback is available for both credit and debit cards and covers transactions of any value. It is particularly useful for:
- Purchases under £100 where Section 75 does not apply
- Debit card purchases where Section 75 is not available
- Fraudulent transactions you did not authorise
- Goods not received
- Goods significantly not as described
- A company that has gone bust before delivering
The 120-Day Time Limit
The most important practical constraint on chargeback is time. Most card schemes require a chargeback claim to be submitted within 120 days of the transaction date (or 120 days from the expected delivery date if goods were not received). Some schemes allow up to 540 days in limited circumstances. Act promptly — waiting months to raise a chargeback dispute risks losing the right entirely.
How to Make a Section 75 Claim
- Contact the retailer first — Section 75 requires you to have a breach of contract or misrepresentation. Start by contacting the retailer and requesting a remedy (refund, replacement, or repair). If they refuse or are insolvent, you have grounds for a Section 75 claim.
- Gather your evidence — collect the original receipt or confirmation, proof of payment on the credit card, evidence of the breach (photos of faulty goods, written refusal from the seller, administrator's notice if insolvent), and any correspondence.
- Contact your credit card provider — call the number on the back of your card or write to their customer services. State clearly that you are making a Section 75 claim under the Consumer Credit Act 1974. Do not let staff deflect you to a general complaints process.
- Submit your claim in writing — follow up any phone call with a written claim setting out the facts, the breach, the amount claimed, and attaching your evidence.
- Escalate to the Financial Ombudsman if refused — if your card issuer refuses a valid claim or fails to respond within eight weeks, you can complain to the Financial Ombudsman Service (FOS) for free. The FOS upholds a significant proportion of Section 75 disputes.
How to Make a Chargeback Claim
- Act within 120 days — do not delay. Calculate 120 days from the transaction date (or expected delivery date for non-receipt) and submit well before the deadline.
- Contact your bank — tell them you want to raise a chargeback dispute. Most banks have an online disputes process or a dedicated number for card disputes. Have your account details, the transaction amount, merchant name, and transaction date ready.
- Explain the reason — common chargeback reason codes include: item not received, item significantly not as described, duplicate charge, and fraudulent transaction. The bank will select the appropriate code based on your explanation.
- Provide supporting evidence — screenshots of product descriptions, order confirmations, delivery tracking showing non-delivery, and any communication with the merchant strengthen your case.
- Wait for the outcome — the bank contacts the merchant's bank, which has the right to contest the chargeback. The process typically takes 30–45 days. If the merchant provides compelling evidence, the chargeback may be rejected. You can appeal or escalate to the FOS.
Common Scenarios Where These Rights Apply
Company Goes Into Administration
If a retailer enters administration before delivering your order, you are an unsecured creditor of the company and unlikely to recover much through the insolvency process. Section 75 (for credit card purchases over £100) or chargeback (for any card) allows you to recover your money from the card company instead, without waiting for the insolvency to resolve.
Holiday Company Collapse (ATOL)
Package holidays booked with an ATOL-protected tour operator are protected by the Air Travel Organisers' Licensing scheme. But even without ATOL, a Section 75 claim against your credit card issuer should cover the cost of a failed holiday booking over £100. You can claim through ATOL and Section 75 — but not recover more than your actual loss from both combined.
Online Marketplace Purchases
Purchases from individual sellers on platforms like eBay or Facebook Marketplace are unlikely to be covered by Section 75 because the card payment typically goes to the platform (eBay/PayPal) rather than directly to the seller — breaking the debtor-creditor-supplier link. Chargeback may still be available. Purchases from retailers sold directly on Amazon (fulfilled by Amazon) are more likely to be covered.
Faulty Goods
Under the Consumer Rights Act 2015, goods must be of satisfactory quality, fit for purpose, and as described. If a product fails prematurely, you are entitled to a repair, replacement, or refund from the retailer. If the retailer refuses your legal rights, a Section 75 claim against your credit card company (for purchases over £100) or chargeback should succeed on the basis of breach of contract.
When the Financial Ombudsman Can Help
If your credit card issuer or bank rejects your Section 75 or chargeback claim, you can escalate to the Financial Ombudsman Service (FOS) for free. The FOS is independent, its decisions are binding on financial institutions (though not on consumers), and it handles thousands of payment disputes each year. Submit your complaint to the FOS within six months of the financial institution's final response letter. The FOS upholds a significant proportion of Section 75 claims that were initially refused by issuers.