There are arguments that having another party involved in the process takes away the Section 75 protection. However, if you use your credit card to pay for something through PayPal and the funds go direct to the seller, then as long as the company you're buying from has a 'Commercial Entity Agreement' with PayPal you may still be able to claim against your credit card company. There are legal arguments that having another party involved in the transaction process takes away the Section 75 protection. So where possible, make any credit card payment direct to the company actually supplying the goods or services. This is because the card provider may argue that as payment wasn't made directly to the supplier of the goods or service, Section 75 doesn't apply. If you buy through a ticket agency, then it may not. If you buy direct from the venue, then Section 75 may apply if the cost is over £100. In this circumstance, Section 75 may not apply and you may not be able to claim against the credit card provider.Ī good example of this is when you buy concert tickets. It's not unusual for a business taking payment to be acting as an agent for the actual supplier. Section 75 doesn't apply to debit cards, but you could use chargeback instead. ![]() The price of the goods or services that you wish to claim for must have been between £100 and £30,000.Section 75 of the Consumer Credit Act allows you to make a claim against your credit card company to get your money back.You can make a chargeback claim by contacting your credit card provider or via online banking or using your banking app. If the item or service you've bought was under £100, you may still be covered by chargeback. Remember that you can make a claim even if an account is closed and that Section 75 can apply to credit card transactions made abroad. However, if you bought two items that together cost more than £100, but each cost less than £100, Section 75 would not apply and the card company wouldn't usually be liable. So if your claim against the trader is for the cost of fixing or repairing an item, this would be the claim you could bring under Section 75 against the card provider. Section 75 gives you the same rights against the card company as you have against the retailer. It's the value of the goods you're buying that is key - not the amount paid on the card.įor example, if you ordered a new sofa from a furniture store and paid a £60 deposit with your credit card and the balance of £600 by cheque, you would be covered for the whole £660 if the dealer went out of business and you didn't get your sofa. ![]() However, to claim under Section 75 you don't have to have paid more than £100 or the full amount on your credit card – the card company is liable even if you made only part of the payment (for exmaple a deposit) on your card. Section 75 will not apply if the lender is also the supplier. Section 75 protection also requires your credit card provider and the seller of goods to be different parties. The goods or service you bought must have cost over £100 and not more than £30,000. There are some limitations to when a card company is liable along with the retailer or trader. ![]() If you have credit card debts, you’re less likely to be approved for loans - banks will take into account any outstanding debts when deciding how much to lend you. You’ll also end up paying interest on the balance, which will cost you more the longer you carry it. While credit card companies allow you to make a minimum payment, your credit score will be damaged if you don’t pay off your balance in full each month. But you need to make sure you don’t spend more than you can afford to pay back. Payment will be due more than a month after purchases were made, so you may be able to delay paying for big-ticket items. Paying by credit card and then clearing the debt in full will help build this up over time.Ĭredit cards can also help you manage your cash flow. If you’re hoping to take out a substantial loan in the future - for example, to buy a house - you’ll need to establish a track record of using a credit card, which is measured by your credit score. Some credit cards offer rewards, including cashback or air miles - the more you spend, the more benefits you can earn. ![]() What are the benefits of using a credit card?Īside from offering you Section 75 protection, credit cards have other advantages.
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