Chargeback vs Section 75: what to do when your bank rejects a refund

If your card refund was refused, first work out whether the right route is chargeback, Section 75, or both. Chargeback is a card-scheme process used for debit and credit cards. Section 75 is a legal protection for many credit purchases over £100 and up to £30,000. A refusal is not the final word; rebuild the complaint around the route that actually fits.

The two routes are often mentioned together, but they work differently. Confusing them can weaken a good complaint, because the evidence, deadlines and legal test are not the same.

Key takeaways

• Chargeback is a card-scheme process. It can apply to debit and credit cards, but the time limit is often tight.
• Section 75 is a legal protection under the Consumer Credit Act 1974. It can make the credit provider jointly liable with the seller for breach of contract or misrepresentation.
• Section 75 normally depends on a cash price over £100 and no more than £30,000.
• You can sometimes ask the bank to consider both routes, but you should explain why each one fits.
• If the bank rejects your complaint, the Financial Ombudsman Service is free and independent.

Chargeback vs Section 75 at a glance

Question	Chargeback	Section 75
What is it?	A card-scheme process	A legal protection
Which cards?	Debit and credit cards	Credit cards and some other credit agreements
Typical use	Non-delivery, cancelled services, faulty goods, refund not processed	Breach of contract or misrepresentation by the supplier
Price range	No fixed statutory price range	Usually cash price over £100 and no more than £30,000
Deadline	Often around 120 days under card-scheme rules, depending on the facts	No card-scheme 120-day rule, but act promptly and mind complaint limits
What can be recovered?	Usually the card payment amount	Potentially wider supplier liability, if Section 75 applies

Who this guide is for

This guide is for people who paid by card and then hit a refund problem, such as:

• goods that never arrived
• services that were cancelled or not provided
• faulty or misdescribed goods
• a merchant that refuses to refund
• a merchant that has stopped trading
• a bank or card provider that rejected a chargeback or Section 75 claim

It is especially useful if the bank's rejection letter does not clearly explain which route it considered.

What is chargeback?

Chargeback is a process run through card-scheme rules, not a statutory refund right. It is commonly used when a debit-card or credit-card payment went wrong and the merchant has not resolved it.

Common chargeback scenarios include non-delivery, duplicate charges, cancelled services, goods not as described, or a refund that should have been processed but was not.

The important practical point is timing. Card-scheme rules often give around 120 days to raise a chargeback about goods or services, and the exact start point can depend on the facts - for example, when you expected to receive the goods or services.

What is Section 75?

Section 75 of the Consumer Credit Act 1974 can make a credit provider jointly liable with the supplier for breach of contract or misrepresentation. In plain English, if you used eligible credit and the seller broke the contract or misled you, the credit provider may have to answer for that too.

The classic example is a credit-card purchase where the supplier never delivers, collapses, or sells something materially different from what was promised.

Two details matter:

• The cash price of the item or service usually needs to be over £100 and no more than £30,000.
• That price test is about the cash price of the item or service, not just the amount you put on the credit card.
• You may still have protection even if you only paid part of the price on the credit card, such as a deposit, as long as the Section 75 conditions are met.

Section 75 does not usually help with debit-card purchases. For those, chargeback is normally the route to consider.

Sources: Consumer Credit Act 1974, Section 75, Financial Ombudsman Service guidance on goods and services bought on credit, and FCA refund routes guidance. Last checked: 23.06.2026.

Why banks reject these claims

Refusals tend to fall into a few patterns:

• Wrong route: the customer asks for Section 75 on a debit-card payment, or only asks for chargeback when Section 75 may fit better.
• Late chargeback request: the bank says the card-scheme deadline has passed.
• Weak evidence: the file does not clearly show what was bought, what was promised and what went wrong.
• Merchant dispute framing: the bank treats it as something to resolve only with the merchant.
• Broken debtor-creditor-supplier chain: for Section 75, the bank may argue the legal relationship does not fit.

Do not answer a rejection with a longer version of the same story. Answer the specific reason the bank gave.

What evidence helps most?

Pull together:

• the card statement showing the transaction
• order confirmation, invoice or receipt
• the product or service description at the time of purchase
• terms and cancellation policy
• delivery tracking or failed-delivery evidence
• emails or chat messages with the merchant
• photos, expert reports or repair evidence for faulty goods
• evidence the merchant stopped trading, if relevant
• the bank's rejection or final response

For Section 75, focus on breach of contract or misrepresentation. For chargeback, focus on the card-scheme reason: non-delivery, cancellation, duplicate payment, goods not as described, or refund not processed.

How to rebuild the complaint after a rejection

Use this structure:

1. State the transaction: date, amount, merchant and payment method.
2. Name the route: chargeback, Section 75, or both.
3. Explain the problem in one sentence: non-delivery, breach, misdescription, merchant collapse, or another clear failure.
4. Set out the timeline: purchase, expected delivery, what went wrong, when you contacted the merchant, when you contacted the bank.
5. Answer the bank's reason: quote the refusal and reply to that point.
6. List the evidence: make it easy to check.
7. State the outcome you want: refund/reimbursement, correction of charges, or complaint-handling redress if relevant.

When and how to escalate

If the bank has sent a final response you disagree with, or eight weeks have passed without resolution, you can complain to the Financial Ombudsman Service.

The Financial Ombudsman Service is free, independent, and you keep any compensation it awards. You do not need a paid company to do this. Mind the usual six-month referral window from the final response, and check the current rules before relying on any deadline.

How HeyRefund can help

Card disputes often fail because the evidence is scattered or the wrong route is argued. HeyRefund helps you organise the payment trail, merchant evidence, bank rejection and complaint structure so you can send a clearer complaint yourself.

You can complain and escalate for free. HeyRefund just helps you prepare the file faster and more clearly.