What is Section 75?

What happens if you’ve used your credit card to make a purchase and there’s a problem with the item or service? Fortunately, credit card purchases between £100 and £30,000 could be protected by Section 75, which means that you may be entitled to a full refund.

In our guide, thimbl shares some key information about Section 75, including when you could be eligible to make a claim, and an alternative to Section 75 if you don’t meet the claim criteria.

What is Section 75?

Under the Consumer Credit Act 1974, Section 75 protects credit card users from a range of issues that could crop up after purchase, including the delivery of a faulty item or the company going bust before the item is dispatched.

What does Section 75 cover?

You’re covered by Section 75 if you use your credit card to make a purchase of over £100 and less than £30,000, and you:

• Have received an item that is not as described.
• Have received a faulty item that’s not under warranty.
• Haven’t received a purchased item at all.
• Paid for an item or service from a company that has gone bust before the item was sent or the service was provided.

This includes using your credit card in Google Pay or Apple Pay. You may be eligible in some circumstances when using PayPal Credit to make your purchase; it’s a good idea to check if you’re covered beforehand.

Please note that this list is not exhaustive; please contact your credit card provider if you’re unsure whether your personal situation meets the requirements to make a Section 75 claim.

What isn’t covered by Section 75?

You won’t be covered by Section 75 if:

• You used a Buy Now Pay Later (BNPL) service.
• You bought from a third-party seller/site, such as Amazon Marketplace or eBay.
• You paid for something using physical money that was withdrawn from your credit card.
• You received a faulty item that IS under warranty.
• The purchase was made using a debit card.

Again, this list is not exhaustive; if in doubt, please contact your credit card provider. Even if you’re not eligible to make a Section 75 claim, it’s important to be aware that you could still be eligible to claim a chargeback, which we’ll take a closer look at in the next section.

What’s chargeback? What’s the difference between chargeback and Section 75?

A chargeback can be applied for if a purchase doesn’t meet the requirements for a Section 75 claim; for example, the purchase was made on a debit card or falls short of the £100 minimum payment amount.
A chargeback is available for purchases made on credit cards and debit cards. It reverses a payment that has been made between a customer and a retailer, and refunds the money to the customer’s account.

Let’s say you paid for a new washing machine using your debit card, but it arrived faulty, and the retailer refuses to help. In this instance, you could contact your bank, explain the situation, and provide proof of the faulty purchase. If your chargeback claim is accepted, the money will automatically be reversed and refunded to your card.

In the table below, we’ve outlined some of the key differences between Section 75 and a chargeback.

Is Section 75 better than a chargeback?

There is no ‘better’ way to make a claim. The claim type available to you will depend on the details of your transaction; for example, the type of card you paid with, and the value of the transaction.
Should I use Section 75 or chargeback? If you’re eligible for both Section 75 and chargeback, it’s really up to you which one you use. When making your decision, you may wish to consider various factors, such as how long you have to claim and what your options are if your claim is rejected by your card provider.

How to make a Section 75 claim

1. Before you make a Section 75 claim, you should try and resolve the issue with the seller. If you’re unable to do this - for example, the company has gone bust, or the seller is unwilling to help - you can go ahead with your claim.


2. Please note that you may be asked to provide evidence of your attempt to negotiate with the seller, so it’s a good idea to keep a copy of any emails to hand.


3. Contact your credit card provider and tell them that you’d like to make a Section 75 claim. Generally, you should try to make your claim in writing, whether that’s by letter, email, or through a contact form on your provider’s website. Some providers may offer the choice to start a Section 75 claim through your credit card app.


4. What evidence is needed for a Section 75 claim? Your Section 75 claim should include the issue you’ve encountered with the item or service; how much the item or service cost; and whether the issue has directly resulted in damage that you’ve had to pay for. For example, you bought a faulty portable heater that overheated and singed the wallpaper behind it, meaning you’ve had to spend money to redecorate.


5. Your Section 75 claim will be reviewed by your credit card provider, and if successful, your money will be refunded. The money will be refunded directly back onto the credit card that was used to make the original purchase.

Not sure where to start? Citizens Advice has put this Section 75 claim template letter together, which you may find helpful.

My Section 75 claim was rejected – what now?

If your Section 75 claim is unsuccessful, you’re within your rights to escalate it to the Financial Ombudsman Service, which will impartially review your claim and make an independent decision.
You can find out more and learn how to make a claim with the Financial Ombudsman Service here.
Please note that this process can also be used to review a rejected chargeback claim.

Get free financial advice

You can access free, impartial money and debt advice through StepChange, MoneyHelper, Citizens Advice, and National Debtline.