What is chargeback?
Have you ever bought something with your card and it didn't arrive? Or maybe it turned up broken? A chargeback might help you get your money back.
6 min read
In a nutshell
- Contact the shop first. You must try to get a refund directly from the seller before your bank can start a chargeback claim.
- Act within 120 days. You have about 4 months from your purchase date (or delivery date for future items) to make a chargeback claim.
- Keep all your evidence. Save emails, receipts, photos of faulty items, and notes from phone calls - this helps prove your case.
- Try Section 75 for bigger credit card purchases. If you spent over £100 on a credit card, Section 75 gives you stronger legal protection than chargeback.
What does chargeback mean?
A chargeback is a way to get your money back when something goes wrong with a purchase you made on your debit card or credit card.
Your bank asks the retailer’s bank to give your money back. They reverse the payment, so the money goes from the shop's account back into yours. Think of it as your bank helping you get a refund when the shop won't.
When can you use a chargeback?
You can ask for a chargeback when:
-
Your order didn't arrive
-
Items arrived broken or faulty
-
You received the wrong item
-
The company went bust before sending your order
-
You were charged the wrong amount
The key thing is that something needs to have gone wrong with your purchase. You can't use a chargeback just because you changed your mind.
Which cards does chargeback work with?
Chargeback works with debit cards, credit cards, and prepaid cards. It doesn't matter whether your card is from Visa, Mastercard, or American Express - they all offer this protection.
How is chargeback different from Section 75?
You might have heard about Section 75. It's another way to get your money back, but it works differently.
Section 75 is part of UK law, which means credit card companies must follow it. Chargeback isn't a law - it's a voluntary scheme. This makes Section 75 stronger protection when you can use it.
The main differences are:
-
Section 75 only works for credit cards, whilst chargeback works for debit cards too
-
Chargeback has no spending limits, whilst Section 75 only covers items costing £100 to £30,000
-
Section 75 can get you the full purchase price even if you only paid a deposit on your card
-
Chargeback only refunds what you actually paid on your card
-
You have 120 days for chargeback, but Section 75 has a time limit of around 6 years.
If you used a credit card and spent over £100, try Section 75 first as it gives you stronger legal protection.
What do you need to do first?
Before asking your bank for a chargeback, you must contact the shop and ask for a refund. Your bank won't start a chargeback unless you've tried this first.
Contact the shop by phone, email, or through their website. Explain what went wrong and ask for your money back. Keep records of everything - save all emails, write down dates and times of phone calls, and keep any receipts or order confirmations.
If the shop doesn't help or you can't reach them, then you can ask your bank for a chargeback.
How long do you have to ask for a chargeback?
You have 120 days (about 4 months) from when you made the purchase. This might sound like a long time, but it can go quickly.
For future items like concert tickets or holidays, the 120 days starts from the event date or travel date, not from when you bought them. So, if you book a holiday in January for August, your 120 days starts in August.
Don't wait around - act as soon as you spot a problem with your purchase.
Ocean Credit Card
See if it's a YES before you apply
- Up to £1,500 credit limit
- Checking won't affect your credit score
- Get a response in 60 seconds
Intelligent Lending Ltd (credit broker). Capital One is the exclusive lender.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
