Chargeback: Getting Your Money Back on a Card Payment

Chargeback lets you ask your bank to reverse a card payment when something goes wrong, such as goods that never arrived, a faulty item, or a retailer that has gone bust. It works on both debit and credit cards, with a time limit of around 120 days.

What Chargeback Is (and Isn't)

Chargeback is not a law. It is a set of rules that Visa, Mastercard and American Express require the banks in their card schemes to follow, and it lets you ask your own card provider to ask the retailer's bank to reverse a payment when something has gone wrong. Common reasons include goods that never arrived, an item that was faulty or not as described, a service that was not provided, or a retailer that has stopped trading before delivering what you paid for.

Because chargeback is a scheme rule rather than a statutory right, there is no fixed minimum amount you must have spent, and there is no guarantee you will get your money back. Your bank raises the dispute on your behalf, the retailer's bank can contest it, and the outcome depends on your evidence and the scheme's own rules, not on a court judgment.

How Chargeback Works

You do not deal with the retailer's bank directly. Instead:

1. You contact your own card provider (the company whose name is on your statements) and explain what has gone wrong.
2. Your card provider may call this a "chargeback" or a "disputed transaction". Either term describes the same process.
3. Your provider raises the dispute with the retailer's bank through the card scheme's rules.
4. The retailer's bank can accept the chargeback, reject it, or ask for more evidence.
5. If it succeeds, the disputed amount is refunded to your card or account.

Chargeback works for debit cards, credit cards and prepaid cards. This is its key advantage over Section 75 claims, which apply to credit cards only.

The 120-Day Time Limit

Chargeback claims are commonly subject to a 120-day time limit. The clock usually starts from the date of the transaction, but where you paid for something you would receive later, such as event tickets or a holiday, it runs from the date you expected to receive the goods or service rather than the date you paid. Raise a chargeback as soon as you know something is wrong rather than waiting, since evidence such as messages, receipts and delivery tracking is easier to gather while the details are fresh.

Chargeback vs Section 75: What's the Difference

Chargeback and Section 75 both help you get money back on a card purchase, but they work in different ways and one is not simply a substitute for the other.

In practice, chargeback tends to suit smaller purchases, debit card payments, and situations where Section 75 does not apply, for example an item costing £100 or less. Section 75 tends to be the stronger route for a large purchase paid on a credit card, since the card issuer is directly liable in law rather than simply attempting a scheme dispute. If you paid part of a larger purchase on a credit card, such as a deposit, it is worth checking Section 75 as well as chargeback (see Section 75 claims for the £100-£30,000 rule and how part-payments count).

When Chargeback Is Useful

Chargeback is often the right first step when:

• You paid by debit card, so Section 75 does not apply at all.
• The item or service cost £100 or less on a credit card, so it falls below the Section 75 threshold.
• The retailer has stopped trading and cannot refund you directly.
• Goods never arrived, or a service was never provided.
• You believe a payment was taken in error or without your authorisation.

Chargeback does not replace your statutory rights under the Consumer Rights Act 2015. If goods are faulty, you still have a right to a refund, repair or replacement from the retailer directly (see faulty goods refund rights); chargeback is simply another route to get your money back if the retailer will not cooperate or has disappeared.

How to Raise a Chargeback Claim

1. Try the retailer first. Chargeback is generally meant as a last resort once you have tried, and failed, to resolve the problem directly with the seller.
2. Contact your card provider and ask to raise a chargeback (or "disputed transaction"). Do this in writing where possible and keep a record.
3. Provide evidence: order confirmations, receipts, delivery tracking, messages with the retailer, photos of faulty goods, or proof the business has ceased trading.
4. Act within the time limit. Raise the claim as soon as you can, ideally well within 120 days of the transaction or the date you expected delivery.
5. Ask for an explanation if your claim is refused or unsuccessful, so you understand why and can decide whether to escalate.

If Your Bank Refuses: The Financial Ombudsman

If your card provider will not raise a chargeback, or you think it handled your claim unfairly, you can complain to your bank first and then, if you are not satisfied with its response, take the complaint to the Financial Ombudsman Service, free of charge. The Ombudsman can look at whether your bank was fair in deciding not to raise, or to discontinue, a chargeback, how clearly it explained the process, and what evidence and time limits it applied. A chargeback can still fail, and it will not always be reasonable to raise one, but you are entitled to a fair and properly explained decision from your own bank.

Free Help

You do not need to pay a claims company to raise a chargeback or to complain about how one was handled. The Citizens Advice consumer service gives free, independent guidance on 0808 223 1133 (Welsh language: 0808 223 1144), and the Financial Ombudsman Service is free to use if your bank cannot resolve things. For the wider complaints route beyond chargeback, including small claims court, see how to complain about a company.

This article is general information about chargeback in the United Kingdom, not legal or financial advice, and does not cover every card provider's individual process or every possible scenario. For free, independent guidance on a specific problem, contact the Citizens Advice consumer service on 0808 223 1133. For the wider picture, see the UK Consumer Rights hub and the United Kingdom hub.