Use both routes where they fit, but do not treat either as an automatic refund. A qualifying credit-card purchase can support a statutory Section 75 claim when the cash price of the individual item was more than £100 and no more than £30,000. Chargeback is a separate card-scheme process that may cover debit, credit and prepaid-card payments, normally within a scheme deadline. Contact the card issuer or lender promptly and ask it to assess the correct route—or both—against the actual payment and contract arrangements.
A retailer entering administration or liquidation does not, by itself, prove that a claim succeeds. You still need to show what was bought, what the retailer promised, how the payment was made and why the supplier breached the contract or why a recognised chargeback ground applies.
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Section 75 and chargeback at a glance
| Question | Section 75 | Chargeback |
|---|---|---|
| What is it? | A statutory claim against a qualifying creditor for a supplier’s breach of contract or misrepresentation. | A card-scheme process in which the issuer seeks to reverse or recover a card payment under scheme rules. |
| Which payments can qualify? | Qualifying credit-card, point-of-sale loan or certain catalogue-credit transactions, subject to the required debtor–creditor–supplier relationship. | Debit, credit or prepaid-card transactions where the scheme permits the dispute. |
| Price or amount rule | The cash price of the single item must be more than £100 and no more than £30,000. Paying only part of that price by credit card can still be sufficient. | No equivalent Section 75 threshold. The disputed card transaction, scheme ground and evidence determine what can be claimed. |
| Time limit | The official overview cited here does not set a fixed statutory deadline. Prompt action is still important and case-specific advice may be needed. | Usually about 120 days, but the start date and deadline vary by scheme and by when delivery or an event was expected. |
| What can you recover? | A claim against the creditor corresponding to the claim against the supplier; the creditor and supplier are jointly and severally liable when the statutory conditions are met. | Reversal or recovery of the card payment through the scheme process. It is not the same statutory right as Section 75. |
| Main uncertainty | Whether the credit, supplier and consumer form the required legal relationship and whether there was a qualifying breach or misrepresentation. | Whether the stated scheme ground, evidence and timing satisfy the issuer’s card-network rules. |
The comparison reflects section 75 of the Consumer Credit Act 1974, MoneyHelper guidance accessed on 13 October 2026, and Financial Ombudsman Service guidance accessed on the same date.
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How Section 75 works
It is a legal claim against the creditor
Section 75(1) of the Consumer Credit Act 1974 gives a consumer “a like claim against the creditor” for a qualifying supplier misrepresentation or breach of contract and makes the creditor, with the supplier, “jointly and severally liable to the debtor.” In practical terms, the card lender can be pursued for the loss that the supplier’s breach caused, rather than leaving you to rely only on an insolvent retailer.
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The underlying contract still matters. A failed retailer is usually relevant because it did not supply goods or services, cancelled an order without refunding you, or otherwise broke the agreement. Insolvency is the setting; it is not a separate guarantee of payment.
The price test applies to one item’s cash price
The statutory test looks at the cash price of the individual item, not simply the amount that appeared on your credit-card statement. An item priced at £100 or less is outside the Section 75 threshold, as is an item priced above £30,000. The qualifying range is therefore more than £100 and no more than £30,000.
MoneyHelper explains that paying only part of the qualifying price with the credit card can still be enough. For example, if a single appliance cost £600 and you paid a £60 deposit by credit card before paying the balance another way, the deposit payment may still connect the credit agreement to the qualifying purchase. Keep the invoice showing the item’s full cash price and the separate payment records.
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Section 75 depends on a qualifying debtor–creditor–supplier relationship. A card bearing a credit logo is not, by itself, proof that the statutory conditions are met. The type of credit, the identity of the creditor and supplier, and the way money moved through any intermediary can affect eligibility.
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Ask the lender to examine the actual transaction flow. A payment intermediary, marketplace, wallet or other extra party can make the legal relationship less straightforward. Do not assume that a card payment is covered merely because it was processed as “credit” on a statement.
How chargeback works
A scheme process rather than a statutory claim
Chargeback is handled through the card issuer under the relevant card-network rules. It can be available for debit, credit and prepaid cards when the facts fit a recognised dispute ground, such as goods not received after a retailer failed. The issuer decides whether the request meets the scheme requirements and may seek information from the merchant’s acquiring bank.
Because chargeback is contractual and scheme-based, its rules are different from Section 75. It does not create the same direct statutory liability for the lender, and an issuer may reject a request if the reason, evidence or timing does not fit the applicable scheme process.
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Timing is usually the urgent issue
Consumer guidance commonly describes a period of about 120 days, but that is not one universal countdown. Depending on the transaction, the clock may relate to the payment date, the date goods should have arrived, or the date an event or service was due. Ask the issuer for the precise deadline that applies to your transaction and submit the request before that date.
Waiting for a formal insolvency distribution can use up the card-scheme window. Start the chargeback conversation as soon as it becomes clear that the retailer will not perform, even if you are also preparing a Section 75 claim.
What to do when the retailer fails
- Identify the payment method. Check whether you used a credit card, debit card, prepaid card, point-of-sale finance, catalogue credit or an intermediary. Download or save the card statement and order confirmation.
- Record the contract and item price. Keep the product or service description, the single item’s cash price, delivery promise, cancellation terms and any event date. For a Section 75 assessment, distinguish the item price from postage, add-ons or a whole-basket total.
- Confirm what failed. Note whether the order was never dispatched, a service was cancelled, goods were materially misdescribed or a promised refund was not paid. Preserve the retailer’s insolvency, administration or closure notice if one exists.
- Contact the retailer when that is practical. Send a concise written request for delivery or a refund if the business is still operating and contact is realistic. Keep the message and any response. If the retailer has disappeared or is in liquidation, MoneyHelper says you can make a Section 75 claim to the card company without futile contact attempts.
- Contact the issuer or lender immediately. Explain the purchase, date, price, supplier, payment method and failure. Ask it to assess Section 75 and chargeback separately where both may apply. For Section 75, state clearly that you are making a claim under the Consumer Credit Act 1974.
- Submit the evidence requested. Provide the order, invoice, payment proof, correspondence, insolvency notice and a short chronology. If the dispute concerns quality or misdescription, include photographs, an independent assessment or other objective material where available.
- Get the chargeback deadline in writing. Ask which scheme ground is being used, the relevant start date, the final submission date and whether additional evidence is required. Do not rely on an informal statement that “the bank will deal with it.”
- Track the case. Save the case number, the date each document was sent and the issuer’s decision. If the provider asks a question, answer promptly and keep a copy of your reply.
Evidence that makes an assessment possible
- Order confirmation, invoice or contract identifying the supplier and what was purchased.
- Proof of the item’s cash price and any separate charges.
- Credit-card, debit-card or prepaid-card statement showing the payment.
- Receipts for deposits, instalments or balance payments made by other methods.
- Delivery promise, booking date, event date or service schedule.
- Emails, web-chat transcripts, letters and screenshots showing attempts to obtain delivery or a refund.
- Administration, liquidation or closure information from a credible source.
- Photographs, technical reports or other evidence where goods were defective or misdescribed.
- A written chronology with dates, amounts and the remedy requested.
Send copies rather than irreplaceable originals. Keep files in a format the issuer can open and retain the original emails and web pages where possible.
Choosing the route in common situations
You paid a deposit by credit card for an item costing £500
Ask for a Section 75 assessment because the single item falls within the statutory price range even though only part of the price was put on the card. Include the invoice showing £500, the card receipt for the deposit and proof that the retailer failed to supply the item. You may also ask whether chargeback is available for the card transaction, but the two routes have different tests.
You paid £80 by debit card for a failed order
The amount is outside Section 75’s single-item threshold, but that does not prevent a chargeback request. Contact the debit-card issuer quickly, explain the non-delivery and ask for the scheme deadline and evidence requirements.
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You paid more than £30,000 for one item
That item does not meet Section 75’s statutory price condition. Ask the issuer about chargeback if the card scheme permits it, and consider other contractual or insolvency remedies. Do not describe the transaction as Section 75 eligible solely because a small deposit was paid by credit card.
You used a marketplace, wallet or payment intermediary
Tell the issuer every entity shown in the order and payment records. The extra party may affect the debtor–creditor–supplier relationship for Section 75 and may determine which merchant is identified in a chargeback case. Let the lender or issuer assess the payment chain instead of assuming that the card brand settles the question.
The payment was not authorised
Raise an unauthorised-payment complaint separately and immediately with the bank. This article concerns an authorised purchase where the consumer paid a retailer but did not receive the contracted goods or services; unauthorised-payment rules follow a different process.
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The issuer may ask for a clear statement of the breach, the amount sought and proof that the transaction is connected to the supplier. For chargeback, it may ask you to select or explain a scheme dispute ground and may request evidence before submitting the case through the network. A provisional credit, if offered, is not necessarily a final decision.
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Respond to requests by the stated deadline. If the issuer says the retailer’s insolvency alone is insufficient, explain the underlying failure to supply, cancellation or other breach and provide the documents that establish it. If it says the card transaction is outside Section 75, ask which part of the debtor–creditor–supplier relationship or price calculation it considers missing.
If the bank or lender rejects the claim
Ask for a reasoned decision
Request the decision in writing, including whether the provider considered Section 75, chargeback or both. Ask it to identify the evidence or legal condition that led to the rejection. A vague statement that “chargeback is not available” is not enough to tell you whether the problem was timing, the dispute ground, the merchant response or missing documents.
Use the firm’s formal complaints process
Make a formal complaint to the bank or lender. Set out the payment method, item price, relevant dates, documents supplied and the remedy you want. Keep proof of the complaint date and the firm’s final response.
Consider the Financial Ombudsman Service
The Financial Ombudsman Service may consider how the firm handled the case if it rejects the complaint or does not provide a final response within eight weeks. The Ombudsman assesses the financial firm’s handling of the dispute; it does not turn every failed retailer purchase into an automatic refund. Follow the Ombudsman’s eligibility and time-limit instructions when you receive the firm’s response.
Limits you should understand before relying on either route
- No automatic outcome: Neither Section 75 nor chargeback guarantees recovery for every failed retailer.
- Failure must be demonstrated: You need evidence of a qualifying breach, misrepresentation or chargeback ground, not merely a rumour that a business is struggling.
- Price is transaction-specific: Section 75 uses the cash price of the individual item, so a basket total or a card statement amount may not answer the test.
- Payment structure matters: Intermediaries and unusual finance arrangements can affect Section 75 eligibility.
- Chargeback deadlines vary: The often-mentioned 120-day period can use a different starting event, especially for future delivery or events.
- Recovery can overlap with insolvency processes: Tell the issuer about any refund, charge or distribution you later receive so the same loss is not claimed twice.
- No reliable universal success rate: Official guidance does not establish a current refund percentage for failed-retailer Section 75 or chargeback cases.
Authoritative guidance and the legal wording
Section 75 is found in the Consumer Credit Act 1974 as published on legislation.gov.uk; the page cited for this guidance incorporates changes in force on or before 1 October 2026. MoneyHelper’s “Section 75 and chargeback protection” guidance, accessed 13 October 2026, explains price thresholds, part payments and retailer failure. Its chargeback guidance describes the scheme route and timing. The Financial Ombudsman Service’s “Problems with goods and services: section 75 and chargeback” guidance, accessed 13 October 2026, discusses transaction structure, evidence, deadlines and complaints. A 2019 GOV.UK response to the Law Commission’s report on consumer prepayments during retailer insolvency provides wider policy context but does not create a guaranteed refund for an individual purchase.
The statutory sentence is the key distinction: for a qualifying supplier misrepresentation or breach, the consumer has a like claim against the creditor, which is jointly and severally liable with the supplier. Chargeback can be valuable, especially for debit and prepaid cards, but it remains a scheme process whose result depends on the card rules, evidence and timing.
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