Purchase protection abroad: Section 75, chargeback, and what your card covers

When a hotel overcharges you, an airline collapses, or a merchant won't refund a faulty purchase, your card's purchase protection can be the difference between recovering your money and losing it entirely. Section 75 (UK credit cards) and chargeback (all cards) are two powerful consumer rights that most travellers don't use.

Section 75: the UK credit card superpower

Section 75 of the Consumer Credit Act 1974 makes UK credit card issuers jointly liable with a retailer if something goes wrong with a purchase between £100 and £30,000. If you buy flights that cost £400 and the airline goes bust, your credit card issuer must refund you — even though the airline, not the card, failed to deliver. This is a legal right, not a discretionary policy. It applies to UK-issued credit cards only — not debit cards, not prepaid cards, not overseas credit cards. To qualify, the credit card must have been used to pay at least part of the purchase (not just as a deposit on a larger card transaction in some cases — check with your issuer). This protection is one of the strongest reasons to put at least the deposit of any significant travel booking on a UK credit card.

Chargeback: the universal fallback

Chargeback is available on all Visa, Mastercard, and Amex cards — including debit cards and prepaid cards. It's a dispute mechanism built into the card network, not a legal right, so the outcome isn't guaranteed. If a merchant charges you incorrectly, doesn't deliver what you paid for, or makes an unauthorised charge, you can raise a chargeback with your card issuer. The issuer then disputes the transaction with the merchant's bank. Chargebacks work well for: duplicate charges, unauthorised transactions, services not delivered (hotel no-shows, cancelled tours). They work less well for: disputes about quality ('the room was dirty'), vendor insolvency after assets are distributed, or transactions over 120 days old. Act quickly — most networks have a 120-day window from the transaction date.

Does Section 75 apply abroad?

Yes — Section 75 applies based on where the card was issued, not where the purchase was made. If you use a UK-issued Barclaycard to book a hotel in Thailand directly with the hotel, and the hotel goes bust or fails to honour your booking, you have Section 75 protection. However, there is a grey area around purchases made through intermediaries. If you book through Booking.com or an OTA, the payment goes to the OTA, not the hotel — the chain of liability runs between you and the OTA, not the hotel. If the hotel fails but the OTA is still operating, Section 75 may not apply to the hotel's failure. Always book direct with the hotel, airline, or tour operator to ensure the clearest Section 75 claim.

Purchase protection perks on premium cards

Beyond Section 75 and chargeback, many premium travel cards include an additional purchase protection benefit: insurance against accidental damage or theft of items bought with the card, typically for 90–180 days after purchase. Amex Platinum, for example, covers purchases up to £2,500 per item, £25,000 per year, for 90 days from purchase. This is separate from your home contents insurance and can be useful for expensive purchases made abroad (electronics, jewellery). Read the terms: most exclude items left unattended, motor vehicles, perishables, and software.

Price protection and refund protection

Some cards include price protection (if an item drops in price after you buy it, the card reimburses the difference) and refund protection (if a retailer refuses a return within 90 days, the card will refund you). These benefits are less common on UK cards than on US cards, where Chase Sapphire and Citi cards historically offered them. American Express still offers some level of return protection on select UK cards. These perks are useful but secondary — don't choose a card for these alone. They're a bonus on top of the primary reason to carry a card abroad: zero forex fees and emergency backup.

Key takeaways