Section 75 Explained: Credit Card Protection on Purchases Over £100

Section 75 of the Consumer Credit Act 1974 makes your credit card provider equally liable with the retailer if something you bought for more than £100 and up to £30,000 is not delivered, is faulty or was misdescribed. It applies even if you paid only part of the price, such as a deposit, on the card. That means you can claim from the card provider when the retailer will not help or has gone out of business.

What does Section 75 cover?

Section 75 covers claims for breach of contract or misrepresentation against a business you paid with a credit card. In practice that includes goods that never arrive, goods that are faulty or not as described, services that are not provided, and companies that collapse before delivering what you paid for. The key conditions are:

• The price of a single item must be over £100 and no more than £30,000. The Act applies the limits to any single item the supplier has priced, not to the total of your basket.
• Any part of the price can be on the card. MoneyHelper confirms the protection applies even if you paid only a deposit on your credit card, and your claim can cover the full price.
• You must have paid the supplier directly. There has to be a "debtor-creditor-supplier" link: you, your card provider and the business that sold you the goods or service.

Because the card provider is jointly liable, you do not have to prove you have exhausted every option with the retailer, although you should try the retailer first. The provider can recover its costs from the supplier afterwards.

What does Section 75 not cover?

Section 75 does not cover purchases that fall outside the price band, payments on other types of card, or payments that went to someone other than the supplier. The common exclusions are:

• Single items costing £100 or less, or more than £30,000. Two £60 chairs bought in one £120 order are not covered, because each item is under the threshold.
• Debit cards and prepaid cards. Use chargeback instead.
• Payments where you logged in to PayPal and paid through your PayPal account. The Financial Ombudsman has found this breaks the link between card provider and supplier, although paying through a PayPal guest checkout may still be covered.
• Payments to an intermediary, such as some booking agents or marketplaces, where your card paid a different business from the one that failed to supply.
• Cash withdrawn on the card and then spent, because the supplier was paid in cash.
• Changing your mind. Section 75 needs a breach of contract or misrepresentation, not just a purchase you no longer want.

What is the difference between Section 75 and chargeback?

Section 75 is a legal right on credit card purchases; chargeback is a voluntary scheme run under card network rules that works on credit, debit and prepaid cards. Chargeback has no minimum amount but a much shorter deadline.

If you are unsure which applies, ask your card provider to consider both. Chargeback is often quicker for smaller amounts; Section 75 is stronger when a large purchase is involved or the deadline for chargeback has passed.

How does Section 75 work in real situations?

These examples use simple assumptions to show how the rules apply.

• Sofa, £1,200: you pay a £100 deposit on your credit card and the £1,100 balance by bank transfer. The retailer goes into administration before delivery. The item costs more than £100 and part was paid on the card, so you can claim up to the full £1,200 from your card provider.
• Headphones, £80, never delivered: the price is below the £100 threshold, so Section 75 does not apply. Ask for a chargeback within 120 days.
• Flights, £450, booked direct with an airline that collapses: the ticket is a single item over £100 bought from the supplier, so you can claim from your card provider. If you had booked through an agent that then paid the airline, the chain may be broken.
• Kitchen fitting, £9,000, poor workmanship: a service that is not carried out with reasonable care and skill can be a breach of contract. Get a written report from another fitter to support your claim.

How do you make a Section 75 claim?

Try the retailer first, then claim through your card provider with evidence. The process is:

1. Contact the retailer, explain the problem and ask for a refund, repair or replacement. Keep emails, letters and dates.
2. Gather evidence: the order confirmation, the card statement showing the payment, photos of faulty goods, and any expert report or delivery tracking.
3. Contact your card provider and say you are making a claim under Section 75. Most accept claims online or through their app.
4. Explain what went wrong, what you have tried and what you want: a refund, the cost of a repair or the difference in value.
5. Wait for the outcome. MoneyHelper says you should be told within eight weeks.
6. If the provider rejects the claim or does not reply within eight weeks, complain to the Financial Ombudsman Service. It is free, and you have six months from the date of the provider's final response to refer your complaint.

How long do you have to make a Section 75 claim?

MoneyHelper says there is no set time limit on Section 75 claims, unlike the usual 120 days for chargeback. In practice, claim as soon as the problem appears. Faults are easier to prove when they are recent, retailers keep records for a limited time, and a provider will ask why you waited if a claim arrives years later.

Does Section 75 cover purchases abroad?

Yes. In 2007 the House of Lords confirmed, in a case brought by the Office of Fair Trading against Lloyds TSB, that Section 75 applies to purchases from overseas suppliers made with a UK credit card. That makes a credit card a sensible way to pay for hotels, tours and larger purchases on holiday. Pair it with a card that charges no fee on foreign spending; our guide to the best UK cards for use abroad compares them.

How can you make the most of Section 75?

Put at least part of every purchase over £100 on a credit card, then pay the card off in full so the protection costs you nothing. Some simple habits help:

• Pay deposits for holidays, furniture, cars and building work on a credit card, even if you pay the balance another way.
• Book directly with the airline, hotel or tradesperson where you can, so the card payment goes to the business supplying you.
• Keep a no annual fee card, such as the Barclaycard Rewards or Halifax Clarity, open for this purpose if you mainly use debit.
• Set a direct debit for the full balance so you never pay interest on a purchase you only put on the card for protection.

Before you apply for a card, check your UK credit score and use an eligibility checker. For help choosing, see how to compare UK credit cards, our best UK credit cards guide and the UK credit cards hub.