A chargeback is a payment reversal made by your bank or card provider after you dispute a transaction. It allows you to recover money paid by debit or credit card when something has gone wrong — for example, if goods never arrive, are faulty, or a service is not provided.

Chargebacks are not created by the Consumer Rights Act 2015, but they are often used alongside your statutory rights under that Act.

If you paid by credit card, you may also have stronger legal protection under Section 75 of the Consumer Credit Act 1974. Chargeback is different — and usually applies to both debit and credit cards.

How Does a Chargeback Work?

When you make a card payment, the money passes through your card network (Visa, Mastercard or American Express). If there is a problem, you can ask your bank to reverse the transaction through that network.

The bank temporarily refunds your money while it investigates. The retailer is asked to respond. If the bank agrees with your claim, the refund becomes permanent. If not, the money may be taken back again.

Chargeback schemes are governed by card network rules rather than statute law.

When Can You Use a Chargeback?

You can usually request a chargeback if:

  • Goods were not delivered.
  • Goods were faulty or not as described.
  • You were charged twice.
  • A subscription payment was taken after cancellation.
  • A service was not provided.

If the issue involves faulty goods, your legal remedies are set out under the Consumer Rights Act. For example:

Chargeback is simply one way of enforcing those rights when a trader refuses to cooperate.

Time Limits for Chargeback

Most card providers require you to raise a chargeback claim within 120 days of:

  • The transaction date, or
  • The date you expected to receive the goods or service.

There is usually an overall longstop limit of around 540 days, depending on the card scheme. Because these are scheme rules (not law), deadlines are strict.

Chargeback vs Section 75

Chargeback and Section 75 are often confused.

Chargeback:

  • Applies to debit and credit cards.
  • Based on card network rules.
  • No minimum purchase amount.
  • Not a statutory right.

Section 75:

  • Applies only to credit cards.
  • Purchase must be between £100 and £30,000.
  • Is a legal right under the Consumer Credit Act 1974.
  • The card provider is jointly liable with the retailer.

You can read a full explanation here: What Is Section 75?

If you paid by credit card, Section 75 is usually stronger protection. Chargeback is often used when Section 75 does not apply.

How to Start a Chargeback

Step 1: Contact the trader and request a refund first. Keep written evidence.
Step 2 : Contact your bank or card provider and say you want to raise a chargeback claim.
Step 3: Provide:

  • Proof of purchase.
  • Evidence of the problem.
  • Copies of communication with the trader.

If the trader refuses to engage, you may also consider sending a Letter Before Action before taking court proceedings.

Official guidance on consumer payment disputes can be found via the Financial Ombudsman Service:

Financial Ombudsman Service – Card Payment Complaints

What If Your Bank Refuses?

If your bank refuses your chargeback request and you believe the decision is wrong:

  • Make a formal complaint to the bank.
  • If unresolved after 8 weeks, escalate to the Financial Ombudsman Service.

This is free and independent.

Key Points to Remember

  • Chargeback is a scheme rule, not a statutory right.
  • It applies to both debit and credit cards.
  • There is no £100 minimum like Section 75.
  • Strict time limits apply.
  • It can be used to enforce your Consumer Rights Act remedies.