What is Section 75?
Written by
Emily Tye
Reviewed by
Amy LancashireSection 75 is a UK law that makes your credit card provider jointly responsible with the retailer if a purchase goes wrong. If a single item costs more than £100 and up to £30,000, and it turns out faulty, never arrives, is not as described, or the seller goes bust, you can claim your money back from your card provider, not just the retailer.
It comes from Section 75 of the Consumer Credit Act 1974, and it is one of the strongest protections you get when you pay by credit card. Here is how it works, what it covers, and how to make a claim.
What is Section 75 of the Consumer Credit Act?
Section 75 gives you a legal right to hold your credit card provider "jointly and severally liable" with the seller. In plain terms, that means if the seller breaks the contract or misrepresents what they are selling, your card provider is on the hook too.
This matters most when the seller cannot or will not put things right, for example if they go out of business. Instead of losing your money, you can ask your card provider to refund you.
The protection is automatic. You do not need to sign up for it or pay extra. It applies whenever you use a credit card for a qualifying purchase.
How does Section 75 work?
Section 75 relies on what the law calls a debtor-creditor-supplier link. That is the direct chain between you (the debtor), your card provider (the creditor), and the seller (the supplier).
When you pay with a credit card, your provider is effectively part of the transaction, which is why the law holds them partly responsible. This is also why Section 75 applies to credit cards but not debit cards. With a debit card, the money moves straight from your account to the seller, so that three-way link does not exist.
If you want a fuller picture of how the two differ, read our guide on the difference between a credit and debit card.
What does Section 75 cover?
Section 75 covers a breach of contract or a misrepresentation by the seller. In practice, that includes when:
the goods are faulty or damaged
the goods or services never arrive
what you received is not as described
the retailer goes out of business before delivering
you paid a deposit for something that was never provided
It can also cover consequential losses in some cases. For example, if an airline collapses and you have to book a replacement flight home, those reasonable extra costs may be part of your claim.
Being able to claim back on faulty or undelivered purchases is one of the advantages of a credit card over other ways of paying.
The £100 to £30,000 rule explained
For Section 75 to apply, the cash price of a single item must be more than £100 and no more than £30,000.
The word "single" is the part people get wrong. The threshold applies to one item, not your total bill. So:
a £150 pair of headphones is covered
two separate £60 items bought in one go are not covered, because neither item costs more than £100 on its own
The item has to cost over £100 by itself. Adding up smaller purchases to cross the threshold does not work.
This is a simplified explanation of the price rules. If you are unsure whether a specific purchase qualifies, check with your card provider.
Do I have to pay the full amount on my credit card?
No. This is one of the most useful parts of Section 75. You only need to pay part of the cost on your credit card to protect the whole purchase. Even paying a deposit is enough.
For example, if you buy a £2,000 sofa and pay a £100 deposit on your credit card, then the rest by bank transfer, the full £2,000 is still protected. As long as some of the payment went on your credit card and the item costs more than £100, you are covered for the total price.
What isn't covered by Section 75?
Section 75 is strong, but it has clear limits. It does not cover:
Debit card purchases. These have no debtor-creditor-supplier link. Chargeback may help instead (more on that below).
Items costing £100 or less, or more than £30,000. The single-item price has to fall inside the range.
Cash withdrawals and money transfers. Using your credit card to withdraw cash from a credit card is not a purchase of goods or services, so it is not covered.
Some third-party payments. If you pay through an intermediary like PayPal, or buy from a third-party seller on a marketplace, the direct link between you and the seller can break. This can leave the purchase outside Section 75.
Third-party payments are a grey area rather than a flat no, so it is worth checking the specifics of how you paid before assuming you are or are not covered.
Section 75 vs chargeback: what's the difference?
If Section 75 does not apply, chargeback might. Chargeback is not a law. It is a set of rules that card schemes like Visa, Mastercard and American Express follow, letting your provider try to reverse a payment by claiming it back from the seller's bank. The key differences:
Feature | Section 75 | Chargeback |
|---|---|---|
What it is | A legal right (Consumer Credit Act 1974) | A card scheme rule (Visa, Mastercard, Amex) |
Cards covered | Credit cards | Debit, credit and prepaid cards |
Purchase value | More than £100, up to £30,000 | No set maximum. Small minimum on some cards (£10 on Mastercard) |
In short: Section 75 is a legal right, so your provider is directly liable, but it only applies to credit card purchases over £100. Chargeback covers almost any card payment, including debit cards and purchases under £100, but it is a scheme agreement with tighter time limits and no guarantee. For a full breakdown, see our guide on what is a chargeback.
How do I make a Section 75 claim?
Try the seller first. Giving the retailer a chance to fix the problem or refund you is often the quickest route. Skip this step if they have gone out of business or are ignoring you.
Contact your credit card provider. Use your app, online portal, or write to them. Say clearly that you are making a "Section 75 claim under the Consumer Credit Act".
Explain what went wrong and provide evidence. Include receipts, order confirmations, and any messages showing you tried to resolve it with the seller.
Wait for a decision. Your provider will review the claim and, if it is upheld, refund you.
What if my Section 75 claim is rejected?
If your provider rejects your claim, or hasn't resolved it within eight weeks of you complaining, you can take it to the Financial Ombudsman Service. The service is free to use and independent. You usually have six months from the provider's final response to do this.
The Financial Ombudsman received 60,364 credit card complaints in 2024/25, with Section 75 among the most complained-about issues. If you believe your claim was wrongly turned down, it can be worth taking further.
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.
