Understanding Your Rights When Paying by Card or PayPal
When you pay for goods or services by credit card, debit card, or PayPal in the UK, you benefit from important legal protections if something goes wrong with your purchase. Knowing your rights can make it much easier to get your money back if the items you ordered are faulty, not as described, or never arrive.
Your Rights Under UK Law
UK consumer law gives you strong rights when you buy goods or services. The Consumer Rights Act 2015 states that anything you buy must be:
Of satisfactory quality (free from faults or damage)
As described (matches what was advertised or agreed)
Fit for purpose (suitable for the use you told the seller about)
If goods fail to meet these standards, you generally have the right to a repair, replacement, or refund.
Protections When Paying by Card
If you paid by credit card and the item cost more than £100 (up to £30,000), Section 75 of the Consumer Credit Act 1974 gives you extra protection. This law makes your credit card provider jointly responsible with the seller if something goes wrong. That means you can claim your money back from your card provider if the seller refuses to help, goes out of business, or disappears.
For debit card payments, you can use a process called "chargeback" to ask your bank to reverse the transaction if you don’t get what you paid for. While chargeback isn’t a legal right, most UK banks participate in this scheme and can help you recover your money for faulty, misdescribed, or undelivered goods.
Protections When Paying by PayPal
When you pay using PayPal, you may be covered by PayPal’s Buyer Protection scheme. This lets you open a dispute and request a refund if your order doesn’t arrive or is significantly different from what was described. However, PayPal’s protection is subject to time limits and certain conditions, so it’s important to act quickly.
Why Knowing Your Payment Rights Matters
Understanding your rights before you seek a refund can save time and frustration. Each payment method offers different routes to get your money back, and knowing which applies can help you act confidently if the seller isn’t cooperating. If you’re unsure or want to learn more about your rights in general, see our guide to problems with purchased goods for broader advice on what to do under UK consumer law.
In summary, whether you paid by credit card, debit card, or PayPal, UK law and payment provider schemes offer several ways to protect your money. Always keep records of your purchase and communications with the seller, as these can help support your claim if you need to escalate the issue.
How Credit and Debit Card Payments Are Protected
How Credit and Debit Card Payments Are Protected
When you pay for goods or services with a credit or debit card, UK law gives you extra protection if things go wrong. Whether your item is faulty, doesn’t arrive, or isn’t as described, there are key ways you can try to get your money back.
Section 75 Protection for Credit Card Payments
If you used a credit card to pay for something costing between £100 and £30,000 (even if you only paid a deposit with your card), you have powerful rights under Section 75 of the Consumer Credit Act 1974. This law means your credit card provider is equally responsible with the seller if there’s a problem with your purchase.
What does this mean in practice?
If a retailer goes out of business, refuses to refund you, or simply ignores your complaint, you can claim directly from your credit card company. This applies whether you bought in-store, online, or over the phone. Section 75 covers most types of purchases, including holidays, electronics, and furniture.
Key points about Section 75:
The item or service must cost over £100 and up to £30,000.
You don’t have to pay the full amount on your credit card – using it for the deposit is enough.
The protection applies even if the card is closed or paid off.
It covers situations where the seller misrepresents the goods, fails to deliver, or supplies faulty items.
For a step-by-step guide on how to make a claim and what to expect, see the Section 75 Consumer Credit Act guide from MoneySavingExpert.
Chargeback for Debit and Some Credit Card Payments
If you paid with a debit card, or your credit card purchase was under £100, you may still be able to get your money back through something called chargeback. Chargeback isn’t a legal right, but it’s a scheme most banks and card providers follow as part of their rules with Visa, Mastercard, and American Express.
How chargeback works:
You ask your bank to reverse a payment if your goods haven’t arrived, are faulty, or the seller has gone bust.
Chargeback can also apply to credit card payments under £100.
You usually need to make a chargeback claim within 120 days of the transaction or when you first notice a problem.
Chargeback is especially useful if Section 75 doesn’t apply, such as for purchases under £100 or when you use a debit card.
When and How to Use These Protections
Start with the seller: Always try to resolve the issue with the retailer first. If they refuse to help, you can contact your card provider.
Section 75: Use this if you paid with a credit card and the purchase was over £100. Contact your card provider and explain the problem. They’ll usually ask for evidence, such as receipts and your correspondence with the seller.
Chargeback: Use this for debit cards or credit card purchases under £100. Contact your bank as soon as possible – each provider has its own process, but acting quickly helps.
Common questions:
Can I use Section 75 if I bought from a third party (like an online marketplace)?
Sometimes, Section 75 doesn’t apply if there’s a third party involved, so check the details of your purchase.What if I paid with PayPal?
PayPal has its own buyer protection scheme, which is different from Section 75 and chargeback.
Understanding these protections can help you shop with confidence. If you run into trouble, knowing your rights gives you the best chance of getting your money back. For more detailed information, visit the Section 75 Consumer Credit Act guide.
PayPal Buyer Protection Explained
PayPal Buyer Protection Explained
PayPal Buyer Protection is designed to help you get your money back if something goes wrong with a purchase you’ve made using PayPal. This protection applies whether you’ve bought goods or services online, including through popular marketplaces and independent retailers. Here’s what you need to know about how it works, what’s covered, and the steps you should take if you need to make a claim.
What Is PayPal Buyer Protection?
PayPal Buyer Protection is a policy set by PayPal that allows you to claim a refund if an item you’ve purchased doesn’t arrive, arrives damaged, or isn’t as described by the seller. This policy is separate from your legal rights under the Consumer Rights Act 2015, but it offers an extra layer of support, especially when dealing with sellers who are unresponsive or based overseas.
Under PayPal’s policy, if your claim is successful, PayPal will reimburse you for the full purchase price plus original postage costs.
How to Open a Dispute and Escalate to a Claim
If you have a problem with a purchase, the first step is to try and resolve the issue directly with the seller through PayPal’s Resolution Centre. Here’s how the process works:
Open a Dispute:
Log in to your PayPal account and go to the Resolution Centre.
Select the transaction and open a dispute within 180 days of the purchase date.
Explain the problem clearly – whether the item hasn’t arrived, is faulty, or isn’t as described.
Communicate with the Seller:
PayPal encourages both parties to communicate and try to resolve the issue within 20 days.
You can exchange messages and provide evidence, such as photos or tracking information.
Escalate to a Claim:
If you can’t reach an agreement, you can escalate the dispute to a claim within 20 days of opening the dispute.
PayPal will then review the case and make a decision, usually within a few weeks.
You may be asked to provide additional information or evidence to support your claim.
If PayPal decides in your favour, they will refund the payment to your PayPal account.
What Types of Transactions Are Covered?
PayPal Buyer Protection covers most physical goods and some services, but there are exceptions. Covered transactions typically include:
Physical items purchased online (e.g., electronics, clothing, books)
Some intangible goods (e.g., digital downloads), depending on the seller and the nature of the transaction
Items that do not arrive
Items that arrive but are significantly different from the seller’s description (for example, receiving a different model or a damaged product)
However, certain transactions are not covered, such as:
Real estate or vehicles
Custom-made items that are accurately described but don’t meet your expectations
Items picked up in person
Payments made as “friends and family” transfers
It’s important to read PayPal’s User Agreement for the full list of exclusions.
Time Limits and Important Deadlines
To benefit from PayPal Buyer Protection, you must act within specific time limits:
180 Days: You must open a dispute within 180 days of making the payment.
20 Days: After opening a dispute, you have 20 days to escalate it to a claim if the issue isn’t resolved.
Missing these deadlines means you may lose the right to have PayPal investigate your case.
Practical Tips for Using PayPal Buyer Protection
Always keep records of your transactions, including receipts, emails, and any correspondence with the seller.
If you receive an item that’s not as described, take clear photos as evidence.
Use PayPal’s “Goods and Services” option when paying, not “Friends and Family,” to ensure you’re covered.
Act promptly if you notice a problem – don’t wait until the deadline is near.
PayPal Buyer Protection can be a valuable tool for getting your money back when things go wrong, but it’s important to understand the process and act quickly to protect your rights.
Steps to Take If You Haven’t Received Goods or They Are Faulty
When you pay for goods by card or PayPal and the items don’t arrive, are faulty, or aren’t as described, you have clear rights under UK law. Here’s what you should do to maximise your chances of getting your money back.
1. Contact the Seller First
Your first step should always be to contact the seller directly. Explain the problem clearly – whether your order hasn’t arrived, is faulty, or is not as described. Ask for a refund, replacement, or repair as appropriate. Make sure to keep a record of all communication, including emails, messages, and notes from any phone calls.
If you need more guidance on what to do if something you ordered hasn’t arrived, there are step-by-step instructions available.
For faulty goods, you are protected by the Consumer Rights Act 2015. This law states that goods must be as described, of satisfactory quality, and fit for purpose. If they aren’t, you’re usually entitled to a refund, repair, or replacement. You can find more details about your rights regarding returns and refunds for faulty goods.
2. Gather Key Information
If the seller does not resolve the issue, prepare the following before contacting your card provider or PayPal:
Order details: Keep your order confirmation, receipts, and any correspondence with the seller.
Proof of payment: Bank statements or PayPal transaction records showing the payment.
Evidence of the problem: Photos of faulty goods or screenshots of misleading product descriptions.
Timeline: Note the dates of order, delivery (or non-delivery), and your attempts to resolve the issue.
Having this information ready will make the process quicker and strengthen your claim.
3. Act Within Important Timeframes
It’s important to act promptly to protect your rights:
Credit and debit card payments: If you paid by card, you may be able to claim a refund through your card provider. For credit cards, Section 75 of the Consumer Credit Act 1974 protects purchases between £100 and £30,000. For debit cards, you might be able to use the chargeback scheme. Both options have time limits – typically, chargeback requests must be made within 120 days of the transaction (or expected delivery date), while Section 75 claims should be made as soon as possible.
PayPal payments: PayPal’s Buyer Protection scheme usually allows you to open a dispute within 180 days of your purchase.
Acting quickly gives you the best chance of success, so don’t delay once you realise there’s a problem.
By following these steps, you can make sure you’re using all the protections available to you. For more detailed advice, explore our guides on if something you ordered hasn’t arrived and returns and refunds for faulty goods.
Contacting the Seller First
Contacting the Seller First
Before you approach your card provider or PayPal for a refund, it’s important to try to resolve the problem directly with the seller. This is usually the quickest and simplest way to get your money back, and most retailers are required by law to deal with complaints about faulty goods, missing deliveries, or items not as described.
Why Contact the Seller First?
Under the Consumer Rights Act 2015, if something you’ve bought is faulty, not as described, or doesn’t arrive, the seller is responsible for putting things right. This means they should offer a repair, replacement, or refund, depending on the circumstances. Many sellers also have their own returns or complaints procedures, which can resolve issues without the need to escalate your claim.
How to Approach the Seller
Be clear and polite: Explain the problem, referencing your order number, what you bought, and when. Clearly state what you would like the seller to do – such as a refund, replacement, or repair.
Provide evidence: Attach photos of faulty items, copies of receipts, or screenshots of order confirmations to support your claim.
Put it in writing: Whenever possible, contact the seller in writing (by email or letter). This creates a record of your communication, which may be useful if you need to escalate your complaint later.
Keep records: Save copies of all messages, emails, receipts, and any responses from the seller.
If you need a template or guidance on how to write to a company to cancel a service you arranged online, over the phone, or by mail order, you can use this letter to cancel a service arranged online.
Using Your Cancellation Rights
If you bought something online, over the phone, or by mail order, you usually have extra protection under the Consumer Contracts Regulations. These give you a 14-day ‘cooling-off period’ to change your mind and cancel your order for most goods and services, starting from the day after you receive your items. If you’re within this timeframe, you don’t have to give a reason for cancelling.
To find out more about your cancellation rights and how to use the 14-day cooling-off period, see our guide on how to cancel a purchase within 14-day cooling-off period.
What If the Seller Doesn’t Respond?
If the seller ignores your request or refuses to help, keep all the evidence of your attempts to resolve the issue. You’ll need this if you decide to ask your card provider or PayPal to step in. Taking these steps first will strengthen your case and show that you’ve tried to sort things out directly.
Gathering Evidence and Documentation
Gathering Evidence and Documentation
When you’re trying to get your money back after paying by card or PayPal, having the right evidence and documentation is essential. This helps you prove your case, whether you’re dealing with the seller, your card provider, or PayPal. Here’s what you need to know:
Keep Receipts, Order Confirmations, and Proof of Payment
Always save your receipts and order confirmations when you buy something online or in-store. These documents show exactly what you bought, when you bought it, and how much you paid. If you made your purchase online, keep copies of confirmation emails and any invoices. If you paid by card, your bank or credit card statement can also serve as proof of payment.
If you need to make a claim under Section 75 of the Consumer Credit Act 1974 (for credit card purchases over £100 and up to £30,000), or use the chargeback scheme (for debit and credit card payments), you’ll need this evidence to show that you made the payment and are entitled to a refund.
Take Photos or Videos of Faulty Goods
If the goods you received are faulty, damaged, or not as described, it’s a good idea to take clear photos or videos as soon as you notice the problem. Make sure the images show the fault clearly and, if possible, include the packaging and any labels. This visual evidence can be very helpful when explaining your case to the seller, your card provider, or PayPal.
For example, if you received a broken item, take close-up photos of the damage and wider shots that show the whole product. If something is not as described, you might want to include a screenshot of the product listing alongside your photos.
Save All Communication with the Seller and Payment Provider
Keep records of all emails, messages, and letters exchanged with the seller. If you spoke to someone on the phone, make a note of the date, time, and what was discussed. If you use PayPal’s Resolution Centre or your card provider’s online chat, save copies of these conversations.
Having a full record of your attempts to resolve the issue shows that you’ve given the seller a fair chance to put things right, which is often required before your card provider or PayPal will step in. Under the Consumer Rights Act 2015, you generally have the right to a refund, repair, or replacement if goods are faulty or not as described, but you usually need to contact the seller first.
Practical Tips
Create a folder (digital or physical) to organise all your evidence.
Back up important emails and photos in case you need them later.
If you return an item, keep proof of postage or tracking information.
By gathering and organising this documentation, you’ll be in a much stronger position to get your money back. It also helps speed up the process if you need to escalate your claim to your card provider, PayPal, or another dispute resolution service.
How to Request a Refund Through Your Card Provider or PayPal
When you’ve tried to resolve an issue directly with the seller but haven’t had any luck – perhaps your goods haven’t arrived, are faulty, or aren’t as described – it’s time to escalate your claim. If you paid by credit or debit card, or via PayPal, you have extra protection and can ask your card provider or PayPal to help you get your money back.
When to Escalate Your Claim
You should first contact the seller and give them a reasonable opportunity to resolve the problem. If they refuse to refund you, ignore your messages, or offer an unsatisfactory solution, you can then approach your card provider or PayPal. This is especially important if the seller has gone out of business or is simply not responding.
How to Submit a Chargeback or Dispute Claim
Credit and Debit Cards:
You may be able to use a process called “chargeback” with your bank or card provider. Chargeback isn’t a legal right, but most UK banks and card issuers participate in schemes run by Visa, Mastercard and American Express. You can request a chargeback for reasons such as non-delivery of goods, items not as described, or if the seller has failed to provide a refund.
To start a chargeback claim, contact your bank or card provider (usually by phone, secure message, or online form) and explain the situation. Be clear about what you bought, how much you paid, and why you believe you’re entitled to a refund.
PayPal:
If you used PayPal, you can open a dispute through the PayPal Resolution Centre. You’ll need to log in to your PayPal account, locate the transaction, and follow the steps to report a problem. PayPal will ask for details and may try to resolve the issue between you and the seller first. If that doesn’t work, you can escalate the dispute to a claim, and PayPal will review the evidence and make a decision.
What Evidence You Need to Provide
Whichever route you choose, you’ll need to provide clear evidence to support your claim. This may include:
A copy of your original order or receipt.
Any correspondence with the seller (such as emails or messages).
Proof of payment, such as card statements or PayPal transaction details.
Photos of faulty or damaged goods, if relevant.
Tracking information if the item was never delivered.
Providing as much detail as possible will help your case and speed up the process.
Typical Timelines and Outcomes
Chargeback:
You usually need to submit a chargeback claim within 120 days of the transaction, although some card providers may allow longer in certain circumstances. Once your claim is submitted, your bank will investigate and may issue a temporary refund while they review the case. If successful, the money will be returned to your account. If your claim is rejected, you should be given a clear explanation.
PayPal Disputes:
You must open a dispute within 180 days of your purchase. If the seller doesn’t respond, or you’re not happy with their response, you can escalate to a claim within 20 days. PayPal typically resolves claims within a few weeks, depending on how quickly both sides respond and the complexity of the case.
If your claim is unsuccessful, or you’re still not satisfied with the outcome, you may need to take further action. Find out more about what to do if a company won’t refund you in the UK for additional steps and guidance.
Making a Chargeback Claim with Your Card Provider
Making a Chargeback Claim with Your Card Provider
If you paid for goods or services with a credit or debit card and something has gone wrong – such as the items not arriving, being faulty, or not matching the description – you may be able to use the chargeback process to get your money back. Chargeback is a form of consumer protection offered by most banks and card issuers, including Visa, Mastercard, and American Express.
What Is Chargeback?
Chargeback is not a law, but a voluntary scheme run by card providers. It allows you to ask your card provider to reverse a transaction if there’s a problem with your purchase and you can’t resolve it directly with the seller. It applies to both credit and debit cards, and can be used for a range of issues, including:
Goods or services not received
Items that are faulty or not as described
Payments made in error or duplicated
The seller going out of business before delivering your order
For credit cards, chargeback is separate from your rights under Section 75 of the Consumer Credit Act 1974, which provides additional protection for purchases over £100 and up to £30,000.
How to Start a Chargeback Claim
If you think you have grounds for a chargeback, it’s important to act quickly. Most card providers require you to start your claim within 120 days of the transaction or when you became aware of the problem. In some cases, you may have up to 540 days, but it’s best to check with your bank or card company.
Here’s how to start the process:
Contact the seller first: Try to resolve the issue directly. Keep records of your communication, as your card provider may ask for evidence.
Gather your evidence: Collect receipts, emails, screenshots, and any other documentation showing what you ordered, what was delivered (if anything), and your attempts to resolve the issue.
Contact your card provider: Call the customer service number on the back of your card, or log in to your online banking and look for the option to dispute a transaction. Explain the situation clearly and provide any evidence you have.
Complete any forms required: Some banks may ask you to fill out a chargeback claim form or provide written details of your case.
What Happens After You File a Chargeback?
Once you’ve submitted your claim, your card provider will investigate. They may:
Temporarily refund the disputed amount to your account while they look into the claim (this is sometimes called a “provisional refund”).
Request more information or evidence from you or the seller.
Contact the seller’s bank to get their side of the story.
If your claim is successful, the money will be returned to your account. If the seller disputes the claim and your card provider finds in their favour, the refund may be reversed.
It’s important to note that chargeback is not guaranteed. The final decision rests with your card provider and the card scheme rules. However, if you’re unhappy with the outcome, you can escalate your complaint to the Financial Ombudsman Service.
Chargeback is a useful tool for getting your money back when something goes wrong with a card payment, especially if the seller is unresponsive or unwilling to help. Always act promptly and keep detailed records to give your claim the best chance of success.
Disputing a Payment via PayPal
Disputing a Payment via PayPal
If you’ve paid for goods or services using PayPal and something goes wrong – such as the item not arriving, being faulty, or not matching the seller’s description – you may be able to get your money back through PayPal’s Buyer Protection scheme. Here’s how the process works and what you need to know to make a successful claim.
How to Open a Dispute in Your PayPal Account
The first step is to open a dispute in PayPal’s Resolution Centre. You must do this within 180 days of making your payment. To start a dispute:
Log in to your PayPal account.
Go to the ‘Resolution Centre’.
Find the transaction you want to dispute and select ‘Report a Problem’.
Choose the reason for your dispute – such as ‘Item Not Received’ or ‘Significantly Not as Described’.
Provide as much detail as possible, including dates, a description of the issue, and any supporting evidence (for example, photos or correspondence with the seller).
At this stage, PayPal encourages you and the seller to communicate directly through the Resolution Centre to try to resolve the issue. Often, disputes can be settled at this stage if the seller agrees to refund your payment or send a replacement.
Escalating to a Claim
If you and the seller can’t reach an agreement, or if the seller does not respond within 20 days of opening the dispute, you can escalate the dispute to a claim. This means you are asking PayPal to review the case and make a decision.
To escalate:
Go back to the Resolution Centre.
Find your open dispute and select the option to ‘Escalate to PayPal’.
Submit any further information or evidence you have, such as tracking details, screenshots, or correspondence.
It’s important to escalate your dispute within 20 days of opening it – otherwise, PayPal will automatically close the dispute and you may lose the opportunity to claim a refund.
PayPal’s Decision Process and Possible Outcomes
Once you escalate to a claim, PayPal will investigate the case. They may contact both you and the seller for more information. PayPal will look at the evidence provided, including proof of delivery, item descriptions, and communication between you and the seller.
PayPal’s Buyer Protection policy is designed to cover situations where:
The item never arrived.
The item is significantly different from the seller’s description.
The item is faulty or counterfeit.
If PayPal finds in your favour, they will refund the full purchase price and original postage costs to your PayPal account. If they decide in the seller’s favour, you will not receive a refund. You will be notified of the outcome by email and in your PayPal account.
Under UK law, including the Consumer Rights Act 2015, you have the right to receive goods that are as described, of satisfactory quality, and fit for purpose. PayPal’s Buyer Protection is an extra layer of support, but it does not replace your legal rights. If PayPal does not resolve the issue in your favour, you may still have other options, such as making a claim with your card provider or seeking advice from consumer protection organisations.
Tip: Always keep records of your transactions, communications, and any evidence that supports your claim. This can help strengthen your case if you need to escalate the dispute.
Additional Considerations and Related Issues
Additional Considerations and Related Issues
When seeking a refund for goods or services paid by card or PayPal, there are a few extra situations and rights to be aware of. Understanding these can help you protect your money and know what steps to take if something goes wrong.
What if the Seller Goes Out of Business?
If a company stops trading or goes out of business after you’ve made a purchase, getting your money back can be more complicated. However, you may still have options. For example, you might be able to claim a refund through your card provider or PayPal, especially if you paid by credit card under Section 75 of the Consumer Credit Act 1974. For more guidance on what to do in these cases, see if a company stops trading or goes out of business.
Dealing with Scams and Fraud
If you suspect you’ve been targeted by a scam or fraudulent seller, it’s important to act quickly. Not only should you contact your card provider or PayPal to dispute the transaction, but you should also take steps to protect yourself from further harm. Learn how to spot warning signs and get advice on what to do next by visiting check if something might be a scam.
Special Cases: Fake, Counterfeit, or Stolen Goods
Receiving fake or counterfeit items, or suspecting your goods may be stolen, brings its own set of challenges. If you discover the goods are not genuine, you can report fake or counterfeit goods. If you think the items you’ve bought might be stolen, find out your rights and next steps by reading if you think you’ve bought stolen goods.
Other Types of Refunds and Compensation
Not every dispute is about non-delivery or faulty goods. For example, if you purchased an item that was incorrectly priced, your rights may differ. Learn more about what to do if you bought a mis-priced item.
If a faulty product causes damage to your property or injury, you might be able to claim compensation if an item or product causes damage, in addition to seeking a refund.
Digital Purchases and Other Guarantees
Refund rules can also apply to digital downloads, such as music, software, or films. Your rights are slightly different in these cases – see our page on refunds for faulty digital downloads for more details.
If your product comes with a warranty or guarantee, you might have extra protection beyond your card or PayPal rights. You can often claim using a warranty or guarantee for a repair, replacement, or refund.
Related Financial Disputes
Refund disputes aren’t limited to shopping. If you’re dealing with issues like rental deposits or believe you’ve been mis-sold a financial product such as a mortgage, you have additional rights and remedies. Find out more in our guide to a mis-sold mortgage in the UK: your guide to rights & remedies.
By understanding these additional considerations, you can make sure you’re fully protected and aware of all your options when trying to get your money back. If your situation doesn’t fit the usual pattern, exploring these related topics can help you find the right solution.
If the Seller Goes Out of Business
If the Seller Goes Out of Business
Sometimes, after you’ve paid for goods or services, the company you bought from may stop trading or go out of business before you receive your order, or before issues with your purchase are resolved. This can make getting your money back feel more complicated, but you still have options.
Why it’s challenging
When a business goes out of business (also known as becoming insolvent or entering administration), it usually means it no longer has the funds to pay its debts or fulfil orders. In these cases, you may not be able to contact the seller or get a refund directly from them. Any claim you make with the business will typically be added to a long list of creditors, and customers are rarely first in line for repayment.
Your options for getting your money back
If you paid by credit card, debit card, or PayPal, you may still be able to reclaim your money through your payment provider:
Credit card payments: Under Section 75 of the Consumer Credit Act 1974, if you paid between £100 and £30,000 for goods or services (even if you only paid a deposit on your credit card), your card provider is jointly responsible with the seller if something goes wrong. This means you can make a claim directly with your credit card company if the seller is out of business.
Debit card payments: Most debit card providers offer a ‘chargeback’ scheme. This isn’t a legal right but is a voluntary agreement between banks. You can ask your bank to reverse the transaction if you don’t receive the goods or services you paid for. There are usually time limits (often 120 days from when you notice a problem), so act quickly.
PayPal payments: PayPal offers its own Buyer Protection scheme, which may allow you to claim a refund if your item doesn’t arrive or isn’t as described, even if the seller is no longer trading. Check PayPal’s terms for details and time limits.
Practical steps to take
Check the company’s status: Confirm whether the business has officially gone into administration, liquidation, or has just closed down. This may affect your next steps.
Contact your card provider or PayPal: Explain the situation and ask to make a claim under Section 75, chargeback, or PayPal Buyer Protection, as appropriate.
Keep records: Gather receipts, order confirmations, and correspondence with the seller. These will help support your claim.
Act quickly: Some refund schemes have strict deadlines, so don’t delay.
Want more detailed advice?
For step-by-step guidance on what to do if a company stops trading or goes out of business, including information about insolvency and how to make a claim, see our dedicated advice page.
Understanding your rights and acting swiftly can improve your chances of getting your money back, even if the seller is no longer trading.
Identifying and Avoiding Scams
Identifying and Avoiding Scams
Scams can happen to anyone, and they often target people making purchases online or by card. Being able to spot the warning signs of a scam is key to protecting your money and your rights. Here’s how you can identify potential scams, what impact they may have on your ability to get a refund, and where to report suspicious activity.
How to Spot a Scam
Scammers are becoming increasingly sophisticated, but there are some common signs to watch out for:
Unusual Payment Requests: Be wary if a seller asks you to pay by bank transfer or in a way that’s hard to trace, rather than using your card or PayPal.
Too-Good-to-Be-True Offers: If a deal looks much cheaper than elsewhere or seems unrealistic, it could be a scam.
Pressure to Act Quickly: Scammers often push you to make quick decisions or threaten that you’ll miss out if you don’t pay immediately.
Lack of Contact Information: Genuine businesses will provide a physical address and working customer service details. Be cautious if you can’t find these.
Suspicious Websites or Emails: Look for poor spelling and grammar, strange website addresses, or emails that don’t match the seller’s official domain.
If you’re unsure about a seller or a particular transaction, it’s a good idea to check if something might be a scam before making a payment. This guide offers step-by-step advice to help you spot suspicious activity.
How Scams Affect Refunds
If you’ve paid by credit or debit card or PayPal and discover you’ve been scammed, your rights to a refund can depend on the circumstances:
Credit Card Payments: Under Section 75 of the Consumer Credit Act 1974, if you paid between £100 and £30,000 for goods or services, your card provider is jointly responsible with the seller if something goes wrong – including if you’ve been scammed.
Debit Card Payments: You may be able to use the chargeback scheme to try to recover your money, but this isn’t a legal right and is at your card provider’s discretion.
PayPal Payments: PayPal’s Buyer Protection may allow you to claim a refund if you didn’t receive your item or it wasn’t as described, but this doesn’t cover all types of scams.
It’s important to act quickly if you suspect a scam. The sooner you contact your card provider or PayPal, the better your chances of recovering your money. However, some types of scams – especially those involving authorised push payments (where you were tricked into transferring money yourself) – can be harder to resolve, and refunds aren’t always guaranteed.
Where to Report Scams
Reporting scams not only helps you but also protects others from falling victim. If you believe you’ve been targeted by a scam or have lost money, you should:
Contact your card provider or PayPal immediately to report the transaction and request a refund or chargeback.
Follow the steps on the check if something might be a scam page for more guidance on reporting and dealing with scams.
Remember, staying alert and knowing the warning signs can help keep your money safe. If you’re ever in doubt about a transaction, take the time to check and seek advice before proceeding.
Other Related Consumer Rights and Remedies
Other Related Consumer Rights and Remedies
While requesting a refund from your card provider or PayPal is a common way to get your money back, you have several other rights and remedies as a consumer under UK law. Here are some additional options you may want to consider if you’re having trouble with a purchase:
Using Warranties or Guarantees
Many products come with a warranty or guarantee, which is a promise from the manufacturer or retailer to repair, replace, or refund your item if something goes wrong within a certain period. This is separate from your legal rights under the Consumer Rights Act 2015, which gives you protection if goods are faulty, not as described, or don’t last a reasonable length of time.
If your product is covered, you may be able to claim using a warranty or guarantee instead of pursuing a refund through your card provider or PayPal. This can sometimes be a quicker or more straightforward option, especially for repairs or replacements. For a step-by-step guide, see warranties or guarantees.
Claiming Compensation for Damage
If a faulty product causes damage to your property or personal injury, you may be entitled to compensation. For example, if a faulty electrical appliance causes a fire or a defective cosmetic causes a skin reaction, you have the right to claim compensation if an item or product causes damage. Compensation claims are covered by the Consumer Protection Act 1987, which holds manufacturers and importers responsible for harm caused by defective goods. Keep records of the damage and any related expenses to support your claim.
Rights for Faulty Digital Downloads
Digital content, such as apps, music, films, or e-books, is also protected by UK consumer law. If you buy a digital download that turns out to be faulty, doesn’t work as described, or causes damage to your device, you may be entitled to a refund, repair, or replacement. For more information about your rights and how to get your money back, visit refunds for faulty digital downloads.
Reporting Counterfeit or Fake Goods
If you suspect that goods you purchased are fake or counterfeit, it’s important to take action. Selling counterfeit goods is illegal, and reporting it helps protect other consumers. You can report fake or counterfeit goods to the relevant authorities for further investigation. This can also support your case for a refund or compensation.
Exploring these alternative remedies can help you resolve issues with your purchase, even if the seller is uncooperative or your initial refund request is unsuccessful. Understanding your full range of rights ensures you’re better protected when shopping with your card or PayPal.
