Chargeback vs Section 75: Which Should You Use?

Understand your payment protection options and choose the right remedy

Quick Answer

Chargeback is for fraud and unauthorized transactions—your card was used without permission. Section 75 is for breach of contract—the merchant failed to deliver goods or services as promised. Choose chargeback for fraud, Section 75 for merchant failure. You cannot use both for the same transaction. Section 75 has a much longer timeframe (6 years vs 120 days).

Understanding Chargeback

A chargeback is a dispute mechanism with your card issuer where they reverse a transaction and return your money. It's designed to protect you against fraud, unauthorized transactions, and certain merchant failures. Your bank investigates the disputed charge and either rules in your favor (refund issued) or against you (chargeback denied). The merchant has the right to defend themselves.

Use chargeback for: Fraudulent charges (card cloned or stolen), unauthorized transactions (you didn't authorize it), payment for services not rendered, goods not received, and duplicate charges.

Understanding Section 75

Section 75 of the Consumer Credit Act 1974 creates a legal liability for your card provider if a merchant breaches a contract with you. It applies to purchases made on a credit card and makes the card issuer equally liable with the merchant for the merchant's failure. You can sue the card provider for breach of contract claims (faulty goods, goods not as described, services not provided as promised).

Use Section 75 for: Faulty or defective goods, goods that don't match the description, services not delivered as promised, fitness for purpose breaches, and significant merchant breaches of contract.

Side-by-Side Comparison

Factor
Chargeback
Section 75
Best for
Fraud & unauthorized use
Merchant breach of contract
Time limit
120 days
6 years
Card type
All cards
Credit cards only
Amount
Any amount
Over £100
Liability
Bank investigates
Bank jointly liable

What the Law Says

Consumer Credit Act 1974 (Section 75)
Linked transaction liability
Makes card provider liable for breach of contract by merchant in transactions between £100 and £30,000 made on credit card.
Payment Services Regulations 2017 (Part 4)
Chargeback rights
Establishes chargeback process for disputed transactions, fraud, and unauthorized use. 120-day filing deadline.
Visa/Mastercard Rules
Chargeback codes and procedures
Cards operate under Visa and Mastercard dispute resolution rules, which define reason codes and evidence requirements.

How to Choose

Ask yourself: Was this card fraud or unauthorized use? If yes, use chargeback. Or did the merchant breach contract (faulty goods, non-delivery, services not provided)? If yes, and it was a credit card transaction over £100, use Section 75. Section 75 is stronger because the bank is legally liable alongside the merchant. Chargeback is faster but only for fraud. Never use both—pick one or the other, and choose the strongest option for your situation.

FAQ

What if my purchase was under £100? +

Section 75 only applies to purchases over £100. For smaller amounts, use chargeback if applicable, or pursue the merchant directly through Small Claims Court or ombudsman services.

Can I use Section 75 on a debit card? +

No. Section 75 only applies to credit cards. For debit card purchases, you must use the chargeback process instead. This is a key advantage of credit cards for larger purchases.

If I use chargeback, do I lose Section 75? +

Yes. Once you initiate a chargeback, you cannot pursue Section 75 for the same transaction. Choose your strongest option first.

How long does each process take? +

Chargeback usually takes 60-120 days for resolution. Section 75 can take longer as it involves legal claims, but there's no strict deadline once filed. Section 75 gives you 6 years from the breach to claim.

What evidence do I need? +

For chargeback: evidence of fraud or unauthorized use (bank statement, proof you didn't authorize). For Section 75: evidence of the breach (photos of faulty goods, non-delivery proof, communications with merchant). Use our RightsCheck tool to gather and organize evidence.

Protect Your Payment

Use our Payment Protection Tool to determine whether chargeback or Section 75 is best for your situation and file a claim.

Start Your Claim