Chargeback vs Section 75: UK refund rights

If a UK card purchase goes wrong, Section 75 usually gives the strongest legal route for credit card purchases £100–£30,000, while a chargeback is a voluntary scheme you can still try first; if the card provider refuses, escalate using its complaints process and then the Financial Ombudsman.

What’s happening

Most disputes start the same way: something is bought online or in-store, the seller delays, the item never arrives, the service is cancelled, or what turns up is clearly not what was paid for. The seller then becomes hard to reach, offers a partial refund, blames a courier, or insists the buyer must accept store credit. In UK cases, the next move is often to ask the bank to “do a chargeback” or to mention “Section 75”, but the two are not the same and the right option depends on how the payment was made.

Chargeback is a card-scheme process (Visa, Mastercard, Amex) that banks can use to reverse a card payment in certain situations. It is not a law, and outcomes vary because it depends on evidence, time limits, and the merchant’s response. Section 75 is a legal protection for certain credit card purchases where the credit provider can be jointly responsible with the seller. That difference matters when the seller is insolvent, refuses to engage, or is based overseas.

Typical patterns seen in UK complaints:

Debit card purchases where the bank offers chargeback but says Section 75 does not apply.
Credit card purchases under £100 where Section 75 is not available, so chargeback is the main route.
Credit card purchases over £100 where the bank tries to treat it as chargeback only, even though Section 75 may apply.
Payments made through PayPal, Klarna, or other intermediaries where the “direct link” to the supplier is disputed.
Holiday, furniture, and event-ticket disputes where delivery dates slip and the seller argues it is “still coming”.

Knowing which tool fits the payment method and the problem usually decides whether the refund happens quickly or turns into months of back-and-forth.

Spot the right route

Start by identifying the payment type and amount:

Credit card, total cash price £100–£30,000: Section 75 may apply if there is a breach of contract or misrepresentation.
Credit card, under £100: Section 75 does not apply; chargeback is usually the practical route.
Debit card: chargeback may be available; Section 75 does not apply.
Bank transfer: neither chargeback nor Section 75 applies in the same way; recovery is harder and often depends on fraud processes.

Recognise common dispute types

Both chargeback and Section 75 are usually triggered by one of these:

Non-delivery: paid, but nothing arrives.
Not as described: materially different from what was advertised.
Faulty goods: fails quickly or is unusable.
Cancelled service: supplier cancels or cannot provide what was sold.
Misrepresentation: key claims were untrue and induced the purchase.

What the law says (UK)

Section 75 is a legal right under the Consumer Credit Act 1974, section 75 – joint and several liability for breach of contract or misrepresentation, meaning that where a debtor-creditor-supplier agreement exists and the cash price is between £100 and £30,000, the credit card provider can be held responsible alongside the trader for the same loss; if the card provider rejects a valid Section 75 claim or delays unreasonably, the usual escalation is to make a formal complaint to the provider and then take it to the Financial Ombudsman Service after the provider issues a final response or eight weeks pass, while chargeback remains a separate card-scheme remedy that can still be attempted but is not a statutory right. Source: Citizens Advice.

Steps to fix

Confirm how you paid

Check the statement line and receipt. “Visa Debit” or “Mastercard Debit” points to chargeback. A credit card purchase may support both routes, but Section 75 depends on the total cash price (not just the deposit) and the relationship between card provider, supplier, and buyer.

Collect the right evidence

Successful disputes usually come down to clear, dated proof. Gather:

Order confirmation, invoice, and the product/service description as sold (screenshots help if the listing changes).
Delivery promises, tracking, and any courier messages.
Emails, chat logs, and notes of phone calls (date, time, who said what).
Photos or video for faults or “not as described” issues.
Any cancellation terms shown at checkout and the seller’s refund policy.

Try the trader once

Card providers usually expect an attempt to resolve it with the seller unless the seller has disappeared or is insolvent. Send one clear message: what went wrong, what remedy is wanted (refund, replacement, or cancellation), and a reasonable deadline (often 7–14 days). Keep it factual and avoid long arguments.

Choose chargeback when it fits

Chargeback is often fastest for straightforward non-delivery or duplicate payments. Ask the bank/card provider to raise a chargeback and provide the evidence pack. If the bank asks for a date when the goods were due or when you realised there was a problem, give a precise timeline. If the merchant disputes it, the bank may request more proof or the case may be reversed, so keep copies of everything.

Use Section 75 for stronger cases

For credit card purchases £100–£30,000, Section 75 is often the better route where the seller is refusing a refund, has gone into administration, or the loss is significant. Make the claim in writing (secure message or email is fine if the provider accepts it) and label it clearly as a “Section 75 claim”. State:

The cash price and date of purchase.
The supplier name and what was promised.
Whether it is breach of contract (e.g., non-delivery) or misrepresentation (e.g., key claim was false).
The remedy sought and the amount claimed.

Where only a deposit was paid on the credit card, Section 75 can still apply if the total cash price is within the threshold and the purchase structure meets the required link; providers sometimes push back on this, so include the full invoice and payment breakdown.

Handle “PayPal and intermediaries” carefully

Disputes get messy when the card payment is made to an intermediary rather than directly to the supplier. Some cases still succeed, but the card provider may argue the required relationship is broken. If PayPal (or similar) was used, check whether the card statement shows the supplier name or only the intermediary. If it only shows the intermediary, expect more questions and be ready to use the intermediary’s own dispute process as well.

Keep to realistic timescales

Chargeback has scheme time limits that can be shorter than people expect, and banks often ask for prompt reporting once the issue is clear. Section 75 claims can take longer because they are assessed like a legal complaint. If the seller is stalling with repeated “next week” promises, it is usually better to start the card process rather than waiting indefinitely.

Use the right wording

When speaking to the bank, clarity helps:

For chargeback: “Please raise a chargeback for non-delivery/not as described. Here is the evidence and the date the goods were due.”
For Section 75: “This is a Section 75 claim under the Consumer Credit Act 1974 for breach of contract/misrepresentation. The cash price was £X and the loss is £Y.”

Watch for eviction-related scams

Some disputes involve rent payments, deposits, or “holding fees” where a landlord or agent takes money and then tries to evict or disappears. If the problem is actually about being forced out or threatened with eviction, the next step is to check whether any notice is valid before moving out; see Section 21 notice — is it valid? and Section 8 notice explained.

What NOT to do

Do not wait for endless promises. UK sellers often keep buyers in a loop until chargeback windows are close to expiring.
Do not accept “store credit” as the only option if a refund is being sought; it can weaken the argument that a refund is required.
Do not return goods without proof. Always use tracked delivery and keep the receipt; “returned” without tracking often ends in a stalemate.
Do not exaggerate or claim fraud if it is a dispute. Banks treat fraud and consumer disputes differently; mislabelling can slow everything down.
Do not close the card account mid-claim unless the provider confirms it will not affect the dispute process.
Do not rely on phone calls alone. If the bank says something helpful, ask for it in writing or follow up with a secure message summary.
Do not assume Section 75 applies to debit cards. It is a credit card protection linked to consumer credit law.

What happens if it’s ignored

When nothing is done, the usual outcome is that the seller keeps the money and the buyer loses leverage as time passes. For chargeback, the practical risk is missing the scheme deadlines or losing the chance to challenge the merchant’s rebuttal. For Section 75, delay can mean evidence becomes harder to obtain: listings disappear, emails are deleted, and delivery timelines become disputed. If the seller becomes insolvent, direct refunds often stop completely, and the card route may be the only realistic recovery path.

Another common UK outcome is partial settlement pressure: the seller offers a small “goodwill” refund on the condition that the buyer closes the dispute. Once accepted, it can be harder to reopen the claim for the remaining amount, especially if the bank treats it as resolved.

When to escalate

Escalate within the bank

If the bank refuses to raise a chargeback without a clear reason, or treats a Section 75 request as “not something offered”, ask for a formal complaint. Provide a short timeline and attach the key documents. Banks tend to respond better when the request is framed as a complaint about handling rather than a repeated informal request.

Use the Ombudsman route

For Section 75 disputes, escalation usually means: complain to the card provider, then go to the Financial Ombudsman Service after a final response or after eight weeks. Keep the complaint focused on the legal basis (breach of contract/misrepresentation, cash price, loss) and the provider’s failure to apply Section 75 properly.

Escalate with the trader

If the trader is UK-based and still trading, a letter or email headed “formal complaint” with a deadline can sometimes unlock a refund, especially where a manager review is needed. Where the trader is overseas or unresponsive, it is usually more efficient to focus on the card provider route.

Know when it’s urgent

Escalate quickly where:

The seller has stopped responding or the website has gone offline.
There are signs of insolvency (administration notices, mass complaints, cancelled deliveries).
The bank says the chargeback window is closing.
The purchase is time-sensitive (weddings, travel, events) and the seller is delaying decisions.

FAQ

Is Section 75 better than chargeback?

For eligible credit card purchases £100–£30,000, Section 75 is usually stronger because it is a legal right against the card provider; chargeback can still work but is scheme-based and can be reversed if the merchant successfully disputes it.

Can both be used?

Often yes. Many providers try chargeback first because it can be quicker, but a valid Section 75 claim should still be considered if chargeback fails or is not appropriate.

Does Section 75 cover debit cards?

No. Debit cards generally rely on chargeback (if available) and the bank’s own dispute processes.

What if only a deposit was…

Section 75 can still apply if the total cash price is within £100–£30,000 and the purchase structure meets the required link, but providers often ask for the full contract and proof of the total price.

What if the seller is overseas?

Chargeback can still work for overseas merchants, and Section 75 can sometimes apply, but evidence and merchant responses can take longer; starting the process early usually helps.

What if the bank says “it’s…

Ask for the decision in writing with the reason, then raise a formal complaint; if it is a Section 75-eligible credit card purchase and the provider still refuses, the next step is Ombudsman escalation.

Before you move on

Save a single folder containing the listing/advert, order confirmation, delivery promises, and all messages, then submit either a chargeback request or a clearly labelled Section 75 claim in writing today; if you felt pushed to act quickly or told there was no time, that’s often a sign the process wasn’t handled properly.

Get help with the next step

If the bank is refusing to act or the seller is stalling, send the key documents and the payment details through the UKFixGuide contact form to get help shaping the next message or escalation.

Helpful links