Getting Your Money Back if You Purchased with a Credit Card or PayPal

If you purchased something using a credit card, debit card, charge card, or through PayPal, there are actions you may do. You may request a refund if you:

• you did not receive what you payed for
• received a damaged or broken item
• received anything that differed from what was stated

It is typically advisable to make contact with the trader. If you are unable to contact them or they refuse to assist, contact your card issuer or PayPal for assistance.

Make an attempt to contact the trader

When contacting the merchant, you should follow their complaints method. On their website, you may see if the trader has a complaints mechanism.

It's preferable to email or write to the trader - a template letter can help. Make a duplicate of anything you email in case you need to double-check it later.

If you are unable to reach the trader or they refuse to assist you, you may contact your card issuer or PayPal.

If you used a Buy Now Pay Later service, you should visit their website to see if they can assist you.

Look into the best approach to get your money back

If you purchased with a Buy Now Pay Later provider or with money from your PayPal account, you should file a dispute on the website of your provider.

If you lodge a dispute on the PayPal website, you have 180 days from the day you paid to do so - around 6 months.

If you purchased with a credit card, you should request a refund under Section 75 of the Consumer Credit Act if you spent more than £100 but less than £30,000.

The restrictions apply to a single item that you want to return, not the entire purchase. Section 75 is normally inapplicable if you:

• did not purchase directly from the trader - for example, if you purchased via eBay and paid with a Buy Now Pay Later provider

You should file a 'chargeback' to get your money back if you:

• paid using a debit or credit card
• You can't use Section 75 if you pay with a credit card.

If you purchased with Buy Now Pay Later, you can still request a chargeback, but your credit or debit card issuer may refuse.

Whether you are unable to contact the merchant, you should consult the terms and conditions of your Buy Now Pay Later supplier to see if they can assist you.

Example

Harly used her credit card to purchase a phone and some headphones.

The phone was £80, the headphones were £20, and the shipping fee was £5, for a total of £105. None of the things were delivered.

She is unable to invoke Section 75. Despite the fact that she spent £105, no one item cost more than £100. Olga should request chargeback.

If you paid using more than one way

You can utilize Section 75 if you paid a portion of the cost using a credit card, as long as the overall cost of the item is more than £100 and less than £30,000.

You may only seek a Section 75 refund from one credit card company.

If you divide the fee using a credit card and a debit or charge card, ask your credit card issuer to utilize Section 75. If you used more than one credit card, ask just one credit card company. It makes no difference which one.

Example

Peter paid £250 for a broken oven. He made a £50 credit card deposit and a £200 cash payment.

Section 75 is available to him. He is entitled to the whole £250 cost, not just the £50 he paid by credit card.

If you did not purchase straight from the merchant,

You can still request a chargeback.

Section 75 is normally inapplicable if you purchased anything through a third party rather than directly from the trader. For example, you may have purchased it from:

a marketplace, similar to Amazon or eBay, in which you utilize one company's website to purchase from other firms

a website similar to GroupOn, where you buy a voucher to use with other businesses' wallets, such as PayPal, where you deposit money and then use that money to buy stuff a travel agent

You can request that your card company apply Section 75, but they may refuse.

If your card company refuses to let you utilize Section 75, request a chargeback instead.

Using Section 75 to make a claim

Inform your card provider that you intend to file a Section 75 claim. The organization that sends you your statements is your card provider. Their contact information is available on their website. It is advisable to make your request in writing.

If you have a combined credit card, the primary cardholder should contact the credit card company.

When writing to them, you should request:

• the amount you paid in full, or the cost of restoring the item if it is defective
• money to compensate for bad quality or for the merchant deceiving you
• the expense of fixing any harm caused by a defective product or service

Example

D'Reno purchased a malfunctioning washing machine, which caused damage to his floor.

He can receive funds to repair or replace his floor as well as funds to repair or replace his washing machine.

If you are successful, your credit card company will reimburse your money.

Submitting a chargeback claim

Inform your credit card company that you intend to file a chargeback. The organization that sends you your statements is your card provider. Their contact information is available on their website. It is advisable to make your request in writing.

Your credit company may refer to chargebacks as something different, such as 'disputed transactions.' If you request a chargeback, they will understand what you mean.

When you contact them, you should request one of the following:

• You will only receive the amount you paid with this card; you will not receive any amount paid with any other card or payment method.
• less than the whole amount you paid to compensate for the problem

Exmaple A:

Cassandra used her debit card to purchase a dress and a t-shirt.

The dress was £90, the t-shirt was £30, and the delivery fee was £5, for a total of £125. Cassandra received the dress but not the t-shirt, and the trader has yet to respond to her email.

She can request chargeback to get the £30 she spent for the t-shirt.

Example B

Hercules paid £250 for a broken washing machine.

He made a £50 card deposit and a £200 cash payment.

He can utilize chargeback to recover the £50 he paid by card.

If he bought the washing machine with a credit card, he may attempt Section 75 instead and possibly receive more money back.

If you are successful, your credit card company will reimburse the money to your card or bank account.

Even if you've already received your refund, the merchant might contest it. If there is an issue, your card provider will notify you. If possible, save the money for a few weeks just in case their challenge is successful.

If your claim is denied, you can ask your card company if they utilized the 'appeals procedure.'

If your claim is rejected,

If you try to utilize Section 75 and don't receive your money back, you can file a complaint with the Financial Ombudsman Service. You may not receive your money back.

If you try to use chargeback and don't receive your money back, you can contact your credit card company to find out why. There's nothing further you can do if they state they've appealed to the trader's bank and the appeal was denied. If they refuse to appeal to the trader's bank, you can file a complaint with the Financial Ombudsman Service.

The Financial Ombudsman Service is an independent organization. They'll look at your case from all sides in order to make a judgement they believe is fair. You may not receive your money back.

If you disagree with the Financial Ombudsman's judgment, you may be entitled to seek assistance from a 'alternative dispute resolution' (ADR) service.

You may find out if the trader is a member of an ADR program by asking them. If they are not a member of an ADR scheme, inquire whether they are willing to join one.

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