Understanding section 75 vs chargeback for your business

While section 75 of the Consumer Credit Act 1974 is the most well-known form of credit card protection in the UK, it is designed specifically for consumers. For business owners, the Visa chargeback scheme provides the essential protection you need for your business spending.

What is section 75?

Section 75 of the Consumer Credit Act 1974 is a law that protects consumers when they use a credit card to buy something. It makes the credit card provider jointly and severally liable with the retailer. This means if your purchase is faulty, never arrives, or the company goes bust, you can claim a refund from your card provider.

However, section 75 is specifically a consumer protection law. Because business credit cards—including the Capital on Tap Business Credit Card—are used for business-to-business transactions, they are typically unregulated and do not fall under this specific act.

What is a chargeback?

If you are not covered by section 75, you may still be protected by the chargeback scheme. Unlike section 75, which is a law, chargeback is a set of rules managed by card networks like Visa or Mastercard. It allows your card provider to reverse a transaction and pull the funds back from the bank used by the merchant if there is a dispute.

For most small business owners, chargeback is the primary way to get your money back. One of the biggest benefits is that it has no minimum or maximum spend, making it useful for all kinds of business expenses. 

What qualifies for credit card protection?

Whether a claim falls under section 75 or the chargeback scheme, the reasons for requesting a refund are very similar. To make a successful claim, the situation usually needs to fall into one of these categories:

• Supplier insolvency: You paid for a service or stock, but the company went out of business before providing it.

• Non-delivery: You ordered items that never arrived and the seller is not helping.

• Faulty or not as described: The equipment you bought for the office is broken, or it is a completely different model than what you paid for.

• Misrepresentation: A seller lied about what a product could do just to get the sale, which counts as a breach of contract.

• Incorrect amounts: You were billed twice or charged the wrong price.

When are you not covered?

There are a few times when card protection will not apply. You generally cannot claim if:

• You simply changed your mind about the purchase.

• The problem is with a service that was already completed correctly.

• You paid using a third-party processor (like some PayPal transactions) rather than paying the merchant directly.

Section 75 vs chargeback: key differences

The main difference between the two is that section 75 is a legal right for consumers, while chargeback is a service provided by card networks for both consumer and business cards.

How do I make a claim?

Whether you are seeking a refund through section 75 or a chargeback, you should always try to resolve the issue with the seller first. If they refuse to help or have ceased trading, follow these steps to start your claim:

1. Gather your evidence: Keep copies of your invoices, receipts, and any emails you sent to the supplier trying to fix the problem.

2. Contact your card provider: If you used your Capital on Tap Business Credit Card, you can contact our support team. It is important to note that because our card is a business product, you will not be eligible for section 75 protection, but you may be eligible to raise a chargeback instead.

3. Explain the issue: Provide the date of purchase, the amount, and a clear description of why you are disputing the charge. For example, you might state that the item was never delivered.

The bottom line

Section 75 is a vital safety net for your personal shopping, but for your business, the Visa chargeback scheme is what keeps your spending secure. As a Capital on Tap Business Credit Card customer, it's our job to make sure you aren't left out of pocket when a supplier lets you down. If something goes wrong, just get in touch on 020 8962 7401 and we’ll help you start the dispute process.

Frequently asked questions