Chargeback: How to Recover Money Through Your Bank
Chargeback is a way of getting money back on a debit or credit card payment by asking your bank to reverse the transaction. Unlike Section 75 (which is a statutory right on credit cards), chargeback is a scheme rule operated by the card networks, Visa, Mastercard, and American Express. It is not a legal right, but banks are generally required to process genuine chargeback claims. This guide explains when chargeback applies, how to claim, and how it differs from Section 75.
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What is chargeback?
Chargeback is a mechanism provided by card networks (Visa, Mastercard, Amex) that allows your bank to reverse a transaction and reclaim the funds from the merchant's bank. It is available on both debit and credit cards, though on credit cards, Section 75 is usually stronger.
- ✓Available on Visa, Mastercard, and American Express cards (debit and credit)
- ✓Not a legal right, it is a card scheme rule, but banks are generally obliged to process genuine claims
- ✓Covers the full transaction amount, no minimum or maximum
- ✓Can be used for debit card purchases where Section 75 does not apply
- ✓Works internationally, even for purchases made abroad or from overseas companies
- ✓The merchant can dispute your chargeback, but in many cases they do not
When can you use chargeback?
Chargeback applies in a range of situations, the most common are:
Chargeback time limits
Time limits for chargeback depend on the card network. Always act as quickly as possible:
| Card network | Standard time limit |
|---|---|
| Visa | 120 days from transaction date (or expected delivery date) |
| Mastercard | 120 days from transaction date (or expected delivery date) |
| American Express | 120 days, but Amex handles claims directly and may be more flexible |
How to make a chargeback claim
Chargeback vs Section 75, which should you use?
If you paid by credit card, you may have both chargeback and Section 75 available. Here is how they compare:
| Feature | Chargeback | Section 75 |
|---|---|---|
| Legal basis | Card scheme rules | Consumer Credit Act 1974 (statutory right) |
| Applies to | Debit AND credit cards | Credit cards only |
| Minimum amount | None | £100 (purchase price) |
| Maximum amount | No limit (full transaction) | £30,000 |
| Time limit | 120 days (typically) | 6 years (limitation period) |
| Who is liable | Merchant's bank (then merchant) | Your credit card provider (jointly) |
| Strength | Scheme rule, bank may refuse | Statutory right, cannot be refused |
Chargeback on PayPal, Apple Pay, and Google Pay
Using digital payment methods adds complexity to chargeback claims:
- ✓PayPal: PayPal has its own Buyer Protection scheme, use this first. If PayPal rejects your claim, you may be able to chargeback through the underlying card that funded your PayPal account, but this is not guaranteed
- ✓Apple Pay / Google Pay: these use your underlying debit or credit card. The same chargeback rules apply as for the underlying card
- ✓Bank transfer (BACS/Faster Payments): chargeback does not apply to bank transfers, there is no equivalent scheme. If you paid by bank transfer, you may be able to recover money via the Contingent Reimbursement Model (CRM) Code if the bank failed to protect you from fraud
- ✓BNPL (Buy Now Pay Later) schemes (Klarna, Clearpay, etc.): these are not covered by Section 75. Check the BNPL provider's dispute process. Chargeback may apply if you funded the BNPL account with a card
If your bank refuses a valid chargeback claim
Banks sometimes incorrectly reject valid chargeback claims. If this happens:
- ✓Make a formal complaint to the bank in writing, give them 8 weeks to resolve it
- ✓If the complaint is rejected or 8 weeks pass without resolution, escalate to the Financial Ombudsman Service (FOS)
- ✓The FOS is free, independent, and can award compensation for a bank's failure to handle chargeback correctly
- ✓The FOS has upheld many chargeback complaints, particularly for non-delivery and fraud cases
- ✓Alternatively, if the amount is large and chargeback is unavailable, consider a Small Claims Court claim against the merchant
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
Frequently asked questions
What is a chargeback and how does it work?
Chargeback is a process where your bank reverses a card transaction by reclaiming the money from the merchant's bank. It is available on debit and credit cards (Visa, Mastercard, Amex) and can be used when goods or services are not delivered, goods are not as described, or you have been charged fraudulently. It is a card scheme rule, not a statutory right, but banks are generally required to process genuine claims.
How long do I have to make a chargeback claim?
The standard time limit is 120 days from the date of the transaction or the expected delivery date (whichever is later). So if you paid for something in advance, the clock may not start until the expected delivery. Always act as quickly as possible, banks have some discretion in how they interpret time limits, and the sooner you claim, the stronger your position.
Can I do a chargeback on a debit card?
Yes, chargeback applies to both debit and credit cards. This is one of its most important uses: for debit card payments, chargeback is often your only mechanism for recovering money when a merchant fails to deliver or delivers something not as described, since Section 75 only applies to credit cards.
What is the difference between chargeback and Section 75?
Section 75 is a legal right under the Consumer Credit Act 1974 that applies to credit card purchases of £100 to £30,000. It makes your credit card provider jointly liable with the merchant. Chargeback is a card scheme rule that applies to both debit and credit cards with no minimum or maximum amount, but has a 120-day time limit and is not a statutory right, your bank can technically decline it. For credit card purchases over £100, Section 75 is usually stronger.
My bank rejected my chargeback claim, what can I do?
Make a formal complaint to the bank in writing. If the complaint is rejected or unresolved after 8 weeks, escalate to the Financial Ombudsman Service (FOS) for free. The FOS can require banks to process chargeback claims and award compensation for poor handling. Alternatively, if the amount involved is significant, consider a Small Claims Court claim against the merchant.
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