30 DEC 2019

Our Guide on Credit & Debit Card Protection Policies – What to Know

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Purchasing items using your credit or debit card can be incredibly convenient, not to mention the added legal protection or a chargeback in case you don’t receive the item as promised or the company goes bust. That said, there are some things you need to be aware of when it comes to filing a claim on your credit card when something goes wrong.

Credit or debit card errors are more common than what you think. So when you see that something is not right on your credit card bill, do not panic. As long as you don’t delay the process, solving the issue can be pretty simple and straightforward.

Let us go through the details on your right as a cardholder.


Credit Card Protection Scheme

If you used your card for a purchase worth over £100 and up to £30,000 for goods or a travel holiday, you are covered under Section 75 of the Consumer Credit Act 1974. It means that the credit card company has equal liability or responsibility with the seller should something go wrong with the items you have purchased or if the company where you purchased the item from failed to deliver its promise.

What does it cover? You are protected when the company failed to provide the goods or services or the supplied items or services are not up to standards. You are also protected when the company has misinterpreted your needs. For example, when a gaming supplier says a certain game application you purchased will work with a particular program when it actually won’t.

To qualify for the protection act, you need to spend between £100 and £30,000, with the £100 as the minimum amount that is applied to each product or each set of products, as opposed to the total bill. So, let’s say, you bought a jacket and a dress that were not part of a suit, with each item costing less than £100, then you will not qualify in the consumer protection act. Another example is when you are buying tickets for a holiday or an event. A “family ticket” would constitute as one item, however, individual tickets for each family member would not.


Paid by Debit Card

Section 75 of the Consumer Credit Act unfortunately only covers credit card payments, and not debit cards or any charge cards, where all dues must be paid at the end of the month. In this case, you can use the chargeback scheme to get your money back.

This chargeback scheme is a voluntary scheme operated by Mastercard and Visa that covers Visa Electron, Maestro, and Visa debit cards. Unlike Section 75, this scheme is not really a legal requirement. However, it has been deemed as a good banking practice according to the Financial Ombudsman Service.

If you want to make a claim under this scheme, you must do it within 120 days from the purchase date. Check with your bank on how you can qualify for the chargeback scheme.

It helps to understand the rules and regulations governing credit card protection policies to know how you can protect yourself in case something goes wrong. Get in touch with Consumer Reclaim to know more information, we specialise in consumer mis-selling of goods and services.

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