Section 75: the credit card shield
Lesson 6 of 12 in our free Consumer Rights guide: a 5-minute money game with the key points below.
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Questions you'll answer
Mo put a £150 deposit on a credit card for a £900 sofa and paid the rest by bank transfer. The company went bust. Up to how much could Mo claim under Section 75?
Quick facts
- £400 sofa paid in full on a credit card, never delivered → Covered. Over £100, under £30,000, on a credit card. Textbook Section 75.
- £400 sofa paid on a debit card → Not covered. Section 75 is for credit cards. Debit cards use chargeback instead.
- £60 trainers on a credit card → Not covered. Under £100 per item. Chargeback might still help.
- £1,000 holiday: £200 deposit on credit card, rest by bank transfer → Covered. Plot twist: the FULL price counts. Even part-paying on a credit card can cover the whole amount.
- £500 laptop bought from a friend on a credit card via a payment link → Not covered. Paying through a third-party payment service can break the direct link Section 75 needs. And a private sale isn't a business sale.
- Myth: “Section 75 applies to debit card purchases.” — Only credit cards (and some other credit agreements). Debit cards rely on chargeback.
- Fact: “You can claim from the card provider even if the seller still exists.” — They're jointly liable. You don't have to wait for the seller to go bust.
- Fact: “Section 75 doesn't have the short card-scheme deadlines that chargeback has.” — Section 75 is a legal right, not a scheme rule. General legal time limits (usually 6 years, 5 in Scotland) still apply, so act promptly.