What is a chargeback?
Written by
Emily Tye
Reviewed by
Amy LancashireA chargeback lets you ask your card provider to reverse a payment and get your money back when a purchase goes wrong and the seller won't put it right. Your bank claims the money back from the seller's bank through the card network. It works on debit cards, credit cards and prepaid cards, but it's a card scheme rule set by Visa, Mastercard and American Express rather than a legal right, so a refund isn't guaranteed.
People usually turn to chargeback when a company has taken their money but failed to deliver, sent something faulty, gone out of business, or charged them for something they didn't buy. If you paid by credit card and the purchase cost more than £100, you may also be covered by Section 75, which is a legal protection and works differently. We cover the difference below.
How does a chargeback work?
A chargeback moves money back through the same route it was paid. Here's what happens:
You contact the seller first and give them a chance to fix the problem or refund you.
If they refuse or you can't reach them, you ask your card provider to raise a chargeback.
Your bank submits the dispute through the card network to the seller's bank.
The seller's bank reviews it. If the seller can't show the payment was valid, the money is taken back and returned to you.
Your bank may credit your account while it looks into the claim. This isn't always final. If the seller disputes the chargeback and shows the payment was legitimate, that credit can be reversed later.
When can I use a chargeback?
Chargeback is designed for situations where you've paid but haven't got what you agreed to. You can usually claim when:
Goods or services never arrived
What you received is faulty, damaged or not as described
The company went out of business before delivering
You were charged the wrong amount, or charged twice
It won't help in every case. Chargeback generally doesn't apply if you've simply changed your mind, or if you paid a third-party service like a PayPal balance rather than paying the retailer directly with your card, because that can break the link between your card and the seller.
If a payment was taken from your card without your permission, that's fraud rather than a dispute with a seller, and it has its own protection. Contact your bank as soon as you spot it. Learn more about credit card fraud in our guide.
Chargeback vs Section 75: what's the difference?
Chargeback and Section 75 both help you recover money, but they work in completely different ways.
Chargeback is a card scheme rule that covers almost any card payment. Section 75 of the Consumer Credit Act 1974 is a legal right that makes your credit provider jointly liable with the retailer, but only on credit card purchases within a set price range. Learn more about Section 75.
| Chargeback | Section 75 |
|---|---|---|
What it is | A card scheme rule (Visa, Mastercard, Amex) | A legal right under the Consumer Credit Act 1974 |
Cards covered | Debit, credit and prepaid cards | Credit cards |
Purchase value | No maximum. £10 minimum on Mastercard; none on Visa or Amex | Item must cost more than £100 and no more than £30,000 |
Who's responsible | The seller, via their bank | Your credit provider, jointly with the retailer |
Time limit | Usually up to 120 days from the transaction or expected delivery | Up to six years from the breach of contract (five in Scotland) |
How reliable is it? | Depends on the card scheme rules and the seller's response | A legal right, but you still need to show a breach of contract or misrepresentation |
Two things worth knowing. Under Section 75, your credit provider is equally responsible, so you can claim directly from them rather than chasing the retailer. You also only need to have paid part of the cost on your credit card for the whole purchase to be covered, so a £200 deposit on a £3,000 kitchen paid by credit card can protect the full £3,000.
As a rough guide: if you paid more than £100 on a credit card, Section 75 usually gives you stronger protection. If you paid by debit card, or the purchase was £100 or less, chargeback is normally your route.
You can find more on how card payments are handled in our guide to the difference between a debit and credit card.
How do I claim a chargeback?
You raise a chargeback through your card provider, not the card network directly. To give your claim the best chance:
Contact the seller first and keep a record of what they say
Gather your evidence: the receipt or order confirmation, the transaction on your statement, and any emails or messages
Contact your bank or card provider and tell them you want to raise a chargeback
Explain what went wrong and share your evidence
Timing matters. You usually have up to 120 days to claim, counted from the transaction date or from when you expected to receive the goods or service, according to Visa's guidance on chargeback and purchase disputes. If a company looks likely to go out of business, claim as soon as you can.
It helps to spot problem payments early, so it's worth knowing how to read your credit card statement.
What if my chargeback is refused?
A chargeback isn't the final word. The seller can dispute it, and if they show the payment was valid, any money you were refunded can be taken back. Your bank might also decide the claim doesn't meet the card scheme rules.
If that happens, you can complain to your card provider, and if you're still unhappy, take it to the Financial Ombudsman Service. The Ombudsman is free to use and can look at whether your provider handled your chargeback claim fairly.
FAQs
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
