Most online scams are easier to recover from if you chose the right payment method at the start. This article compares the main card protections available to UK shoppers, explains their limits and shows why the National Cyber Security Centre (NCSC) advises against paying online by bank transfer. It is general information based on legislation and consumer guidance, not legal advice for a particular dispute.
Section 75 of the Consumer Credit Act
Section 75 of the Consumer Credit Act 1974 makes the card provider and the seller jointly and severally liable to the customer in specified circumstances, namely where there is a misrepresentation or breach of contract in a financed purchase. In practice, that means you can claim against the lender as well as the trader.
The statute excludes claims where the supplier’s cash price for an item is not more than £100 or is more than £30,000. MoneySavingExpert’s guide puts this as an item that costs at least £100.01 and no more than £30,000. The guide says Section 75 covers purchases made on credit cards, store cards and PayPal Credit, and also payments through Apple Pay or Google Pay.
The direct link requirement
MoneySavingExpert stresses that there must be a direct link between you and the seller, with no third party or intermediary involved in the transaction. Its example is buying concert tickets from a reseller rather than the venue, which would not qualify. It says PayPal Guest Checkout is covered because the payment still reaches the supplier directly. The point matters for online buying: paying through an intermediary can break the chain that Section 75 depends on, so check how the checkout page describes the transaction before you rely on this protection.
Chargeback for debit cards and smaller purchases
Chargeback is different in kind. MoneySavingExpert says it applies to debit card purchases and to transactions under £100, which are the situations where Section 75 does not. It operates under the rules of the card schemes, Visa, Mastercard and Amex, not under statute, and the guide gives a typical deadline of 120 days from payment. Because it is a scheme rule rather than a legal right, the outcome is not guaranteed. The NCSC makes a similar point when it says debit cards offer less protection than credit cards but may qualify for chargeback claims.
MoneySavingExpert recommends trying chargeback first when you are eligible, because it can be faster for straightforward disputes, before escalating to the longer statutory route under Section 75.
What the NCSC advises
The NCSC’s guidance on shopping online includes several payment-related points:
- Use a credit card where possible, because many protect online purchases as part of the Consumer Credit Act.
- Payment platforms such as PayPal, Apple Pay and Google Pay provide varying coverage, so check their terms.
- Never use direct bank transfer for online purchases.
- Research shops using consumer websites and trusted reviews before buying, and watch for deceptive domains that mimic genuine sites.
The bank-transfer warning is consistent with the rules on transfer fraud. The Payment Systems Regulator’s reimbursement framework for authorised push payment scams is specific to bank transfers and does not cover card, cash or cheque payments, and even for transfers it includes exclusions such as civil disputes. Paying by transfer therefore does not give you the card protections described above.
Choosing a method in practice
- Purchases between £100.01 and £30,000 direct from the seller: a credit card gives you Section 75 as well as the possibility of chargeback.
- Debit card or purchases of £100 or under: chargeback is the route, so note the 120-day typical deadline and keep evidence.
- Via a payment platform: read the platform’s own terms on buyer protection, as the NCSC advises.
- Bank transfer: avoid for online shopping, as the NCSC recommends.
When a dispute arises
Keep the order confirmation, advert, messages and proof of payment, and contact your card provider promptly, since chargeback has a time limit. Section 75 is framed around misrepresentation and breach of contract, while chargeback depends on the card scheme’s own rules. Neither is a substitute for checking a seller before you pay.
Common misunderstandings
- “All card payments are protected the same way.” They are not. Section 75 is a legal right tied to credit, whereas chargeback is a scheme process, as MoneySavingExpert explains.
- “The price threshold is about my whole basket.” The statute refers to the supplier’s cash price for the item, so read the thresholds against individual items.
- “Any intermediary is fine.” MoneySavingExpert says an intermediary can break the direct link that Section 75 requires.
The bottom line
Section 75 gives credit card users a claim against the card provider for items priced from £100.01 to £30,000, provided there is a direct link with the seller. Chargeback covers debit cards and smaller purchases through card-scheme rules, with a typical 120-day window and no guaranteed outcome. Bank transfers do not carry these card protections, and the separate reimbursement scheme for transfer scams has its own exclusions, which is why the NCSC says never to use them for online purchases.