Most people reach for a credit card without thinking about the legal protection attached to it, yet Section 75 of the Consumer Credit Act can be one of the most valuable things about paying this way.
It applies automatically to qualifying purchases, with no extra insurance to buy and nothing to sign up for, which is exactly why so many cardholders never end up using it.
This guide explains what Section 75 actually covers, where its limits sit, and how it compares to chargeback, so you know which protection to reach for when a purchase goes wrong.
Section 75: the protection many people never use
Section 75 makes your credit card provider jointly and severally liable alongside the retailer for anything that goes wrong with a purchase. In practice, that means you can claim the money back from your card provider directly, without having to chase the seller first.
This matters most when a retailer has gone out of business, stopped responding, or is based overseas, since none of those situations would normally leave you with an easy way to get your money back.
What section 75 actually covers
The protection applies to faulty goods, items that never arrive, and purchases where the seller misrepresented what you were buying, whether that happened in a shop, online, or abroad.
- Faulty or damaged goods that the seller refuses to repair, replace or refund
- Items or services that were paid for but never delivered
- Purchases where the description was misleading or inaccurate
- Cases where the retailer becomes insolvent before fulfilling the order
The price limits that decide whether you are covered
Section 75 only applies to a single item or service priced between 100 and 30,000 pounds. Buying several smaller items that add up to more than 100 pounds does not qualify unless each individual item crosses that threshold on its own.
You are covered for the full price of the item even if you only put a small part of it on the card, so paying a 50 pound deposit on a 500 pound purchase still brings the whole amount under Section 75.
What section 75 does not cover
Debit cards fall outside Section 75 entirely, since the protection only applies to credit cards, store cards and some Buy Now Pay Later agreements.
Purchases made through certain third-party platforms, such as marketplace sellers or PayPal balance payments, often fall outside the protection too, even if a credit card technically funded them.
Additional cardholders and anyone who was not the main account holder at the time of purchase are also excluded from making a claim.
Section 75 vs Chargeback: which one applies to you
Chargeback is a scheme run by card networks rather than a legal right, and it covers debit cards as well as credit card purchases under 100 pounds, where Section 75 does not apply.
Chargeback claims usually need to be raised within 120 days of the purchase, while Section 75 gives you far longer, generally up to six years in England and Wales.
When a purchase qualifies for both, trying chargeback first is often quicker for a straightforward case, with Section 75 available afterwards if that attempt does not resolve things.
Steps to make a section 75 claim
- Contact the retailer first and give them a reasonable chance to fix the problem, since most card providers expect this before they step in.
- Gather your evidence, including receipts, order confirmations and any messages showing what went wrong.
- Contact your credit card provider through their app, website or phone line and explain the purchase and the issue clearly.
- Keep a record of everything you send, since a written claim is easier to follow up than a phone call alone.
- Escalate to the Financial Ombudsman Service if your claim is rejected or ignored for more than eight weeks, since this route is free to use.
FAQ
1. Does Section 75 cover purchases made abroad?
Yes, as long as the purchase was made on a UK credit card and falls within the usual price limits, it makes no difference whether the retailer is based in the UK or overseas.
2. Can I claim if I only paid part of the price on my card?
Yes. As long as at least part of the payment went on the card, the full price of the item is covered, even if most of it was paid another way.
3. What if the retailer has already gone out of business?
This is actually one of the situations Section 75 is designed for. You can claim directly from your card provider instead of trying to recover money from a company that no longer exists.
Protection that is already paid for
Section 75 does not cost anything extra and does not need to be activated, yet it sits behind a large share of everyday credit card spending without most cardholders ever thinking about it.
The next time a purchase over 100 pounds goes wrong, whether that is a holiday booking, a piece of furniture or an online order that never turns up, checking whether Section 75 applies is worth doing before writing the money off.