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    Parcel Refund

    Section 75 and Chargeback for Parcel Disputes

    When a retailer refuses to refund a missing, late, or damaged parcel, your payment method gives you a second line of defence. Section 75 of the Consumer Credit Act 1974 and the chargeback process through your card scheme can both get your money back without going to court. This page explains when each route applies, how to use them, and what to do if your bank refuses.

    Quick answer

    • Section 75 applies to qualifying credit card purchases over £100 and not more than £30,000, your card issuer is jointly liable with the retailer.
    • Chargeback applies to debit cards and credit card purchases of £100 or less, it is a card scheme rule, not a legal right, but banks must follow it.
    • Both routes require evidence: your order confirmation, correspondence with the retailer, and proof the goods were not received or were faulty.

    When Section 75 applies

    Section 75 of the Consumer Credit Act 1974 makes your credit card provider jointly and severally liable with the retailer whenever: the cash price of the item was over £100 and not more than £30,000, you paid at least part of the price on a credit card, and the retailer breached the contract or made a misrepresentation. For parcel disputes, the most common basis is breach of contract: the retailer failed to deliver the goods. You do not need to have paid the full amount on the credit card, even if you paid £1 on credit card and the rest by another method, Section 75 still covers the whole transaction. The purchase must be directly between you and the retailer. Purchases through a payment intermediary such as PayPal do not qualify, even if a credit card funded the PayPal account, because the credit agreement is with PayPal rather than with the retailer.

    When chargeback applies

    Chargeback is not a legal right but a rule of the Visa, Mastercard, and Amex card schemes. It allows your bank to reverse a card transaction when goods were not received, goods were significantly not as described, the merchant has gone out of business, or the transaction was fraudulent. Chargeback applies to debit cards for any amount and to credit cards for purchases of £100 or less where Section 75 does not apply. Most banks require a chargeback to be raised within 120 days of the transaction date, though Visa's rules allow up to 540 days in some circumstances. For parcel disputes, use the reason code "item not received" if the parcel never arrived, or "item not as described" for damaged goods. Banks will almost always ask you to show you gave the retailer a reasonable opportunity to resolve the issue before raising the dispute.

    How to make a Section 75 claim: step by step

    1. 1Gather your evidence: order confirmation, tracking record, screenshots of your dispute with the retailer, and their refusal or non-response.
    2. 2Contact your credit card provider by phone, online banking, or their app. Ask specifically to raise a Section 75 claim under the Consumer Credit Act 1974, some frontline agents default to chargeback if you do not use those exact words.
    3. 3Explain the basis: the retailer breached the contract by failing to deliver the goods, or by delivering them in unsatisfactory condition.
    4. 4Provide your evidence. Most banks accept email screenshots, order printouts, and tracking records as PDFs.
    5. 5The bank must investigate. Under FCA dispute resolution rules, they have 8 weeks to give a final response. Straightforward non-delivery claims are often resolved in 2 to 4 weeks.
    6. 6If the bank rejects your claim, you have 6 months to refer it to the Financial Ombudsman Service (FOS) free of charge.

    How to raise a chargeback: step by step

    1. 1Contact your bank or card issuer by phone, in-app, or via a web form. Most high-street banks, Barclays, HSBC, Lloyds, Halifax, NatWest, have a chargeback request process.
    2. 2State that you want to raise a chargeback for an item not received (or item not as described for damaged goods).
    3. 3Provide your evidence: order confirmation, tracking showing non-delivery or last-known status, and your correspondence with the retailer.
    4. 4Your bank will raise a dispute with the merchant's bank. The merchant typically has 30 days to respond with counter-evidence.
    5. 5If the merchant does not respond or cannot disprove the claim, the chargeback is accepted and the funds are returned to your account.
    6. 6If the chargeback is rejected, escalate to the Financial Ombudsman Service within 6 months of the bank's final response letter.

    What if my bank refuses?

    Banks occasionally reject Section 75 claims or chargebacks incorrectly. Common but wrong reasons include: telling you to resolve it with the retailer first (not a legal requirement for Section 75); saying the purchase does not qualify because you paid by Apple Pay or Google Pay (FCA guidance confirms digital wallets funded by a credit card do qualify for Section 75); or rejecting a chargeback because 120 days have elapsed (check whether Visa's extended timeline applies). If your bank refuses, write a formal complaint to their customer services. If they maintain the rejection, escalate to the Financial Ombudsman Service (FOS) at financial-ombudsman.org.uk, as the service is free for consumers and the FOS upholds a significant proportion of Section 75 and chargeback complaints.

    Frequently asked questions

    Can I use Section 75 if I paid through PayPal or a buy-now-pay-later service?

    No. Section 75 requires a direct link between your credit agreement and the retailer. If you paid through PayPal, the credit agreement is with PayPal as a payment intermediary, not the retailer, so the debtor-creditor-supplier chain required by Section 75 is broken. Buy-now-pay-later services such as Klarna or Clearpay are separate credit agreements and Section 75 does not apply. PayPal does have its own Buyer Protection covering items not received, raise a dispute through PayPal's Resolution Centre within 180 days of payment.

    Does Section 75 apply if I only paid £1 on my credit card?

    Yes. The minimum charge to the credit card is £1, but the item's cash price must be over £100. For example, if you paid a £5 deposit on a credit card and the remaining £195 by bank transfer, the full £200 is covered by Section 75. The Act protects the whole transaction, not just the portion charged to the card.

    How long do I have to raise a Section 75 claim?

    There is no strict statutory deadline. The standard limitation period under the Limitation Act 1980 is 6 years from the date the cause of action arose. In practice, raise the claim as soon as you have exhausted the retailer route, delays weaken your position and banks may question why you waited. For chargeback, the time limit is typically 120 days from the transaction date, so act quickly.

    Can I use Section 75 for Amazon purchases?

    It depends on who sold the item. If Amazon itself is the seller and you paid by credit card with the price over £100, Section 75 applies. If you bought from a third-party seller on Amazon Marketplace, Section 75 may not apply because the retailer is the third-party, not Amazon, and the required creditor-supplier chain may not be in place. For Amazon Marketplace purchases, use the A-to-Z Guarantee first, then escalate to chargeback if that fails.

    My bank says I need to contact the retailer first: is that true?

    For Section 75, legally no. The Consumer Credit Act 1974 makes the card issuer jointly and severally liable, so you can approach the bank directly without first resolving it with the retailer. That said, banks routinely ask for evidence that you attempted to resolve it with the seller, and having that correspondence strengthens your case considerably. For chargeback, Visa and Mastercard rules do not require prior contact with the retailer, but most banks ask for it as supporting evidence.

    What if both Section 75 and chargeback fail?

    If both routes fail, you have two further options. First, complain formally to the Financial Ombudsman Service (FOS) at financial-ombudsman.org.uk, it is free for consumers and the FOS upholds a large proportion of complaints about Section 75 and chargeback rejections. Second, use the Small Claims Court via Money Claims Online at gov.uk/make-court-claim-for-money for amounts up to £10,000 in England and Wales. Filing costs are between £35 and £455 depending on the claim amount, and many retailers settle before a hearing once the court claim form arrives.

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