Credit Card Fraud UK Guide (Protection, Reporting, Refunds)

Section 75 Protection

Section 75 of the Consumer Credit Act 1974 is one of the most powerful consumer protections in the UK. It makes your credit card provider jointly liable with the retailer if something goes wrong with a purchase between £100 and £30,000. This means if you buy goods or services that are faulty, not delivered, or the company goes out of business, you can claim a refund from your credit card provider directly. Key rules: the purchase must cost more than £100 and not exceed £30,000. You do not have to spend the full amount on credit card — even part-payment of £1 on credit card for a £1,500 purchase qualifies. The protection applies to goods and services bought in the UK, EU, and most other countries. Section 75 covers: goods not delivered, goods faulty or not as described, services not provided (e.g., travel company goes bust), breach of contract, and misrepresentation. It does not cover purchases under £100, cash withdrawals, money transfers, or purchases from private sellers (not businesses). The credit card provider is jointly and severally liable — they cannot fob you off to the retailer. Recent FCA guidance (2024) clarified that Section 75 applies even to overseas purchases. Keep your receipts, credit card statements, and correspondence with the retailer. If your card provider rejects your Section 75 claim, you can escalate to the Financial Ombudsman Service.

Chargeback Scheme

The Chargeback scheme is a voluntary mechanism provided by Visa, Mastercard, and American Express that reverses transactions when there is a problem. Unlike Section 75, Chargeback is not a legal right — it is a contractual agreement between card schemes and banks. However, it covers any amount (no £100 minimum) and applies to debit cards as well as credit cards. Grounds for Chargeback include: unauthorised transactions — someone used your card without permission. Goods not received — you paid but the item never arrived. Goods faulty or not as described — you received something different from what you ordered. Duplicate processing — you were charged twice. Refund not processed — the retailer agreed to a refund but did not process it. You typically have 120 days from the transaction date or the date the problem occurred to make a Chargeback claim. There is no upper value limit, but amounts over £30,000 may be outside the scheme. Chargeback is not guaranteed — the card scheme investigates and may reject the claim. If the retailer disputes the chargeback, the funds may be temporarily taken back while the dispute is resolved. Always try Section 75 first for credit card purchases over £100 — it has stronger legal protection. Use Chargeback for debit card purchases, purchases under £100, or where Section 75 does not apply (e.g., private sellers).

How to Report Credit Card Fraud

If you suspect credit card fraud, act quickly. Step 1 — contact your credit card provider immediately using the 24-hour emergency number on the back of your card. Most providers have fraud teams available 24/7. They will freeze your card and investigate. Step 2 — review your recent transactions online or through your banking app. Identify any unauthorised transactions. Step 3 — report it to Action Fraud (the UK's national fraud reporting centre) online at actionfraud.police.uk or by calling 0300 123 2040. For Scotland, report to Police Scotland on 101. Get a crime reference number — you may need this for insurance claims. Step 4 — change the passwords on any accounts that may have been compromised. Step 5 — check your credit reports at Experian, Equifax, and TransUnion. Fraudsters may try to open accounts in your name. Set up fraud alerts on your credit files using services like CIFAS Protective Registration. CIFAS is the UK's fraud prevention service — registering adds a marker to your credit file that tells lenders to take extra steps to verify your identity. The FCA requires card providers to refund unauthorised transactions promptly, typically within 24 hours of being reported. You are not liable for unauthorised transactions if you have not acted negligently (e.g., sharing your PIN or security details).

Common Credit Card Scams in the UK

UK consumers face several common credit card scams. Phishing emails and texts (smishing) — you receive a message claiming to be from your bank asking you to click a link, verify your details, or move money to a "safe account." Never click links in unsolicited messages. Genuine banks never ask you to move money. Vishing (voice phishing) — a caller pretends to be from your bank's fraud team and asks for your full card number, PIN, or online banking password. Hang up and call your bank on the number on the back of your card. Card-not-present (CNP) fraud — your card details are stolen and used for online purchases. Strong Customer Authentication (SCA) rules introduced by the FCA in 2022 (part of PSD2) require two-factor authentication for most online payments, reducing this type of fraud. Card ID theft — someone applies for a credit card in your name using stolen personal details. Check your credit report regularly for unfamiliar accounts. Skimming — devices attached to ATMs or payment terminals capture your card data. Use contactless or mobile payment (Apple Pay, Google Pay) instead of inserting or swiping your card. Courier fraud — a caller claims your card has been compromised and sends a courier to collect your card. This is always a scam — banks never collect cards. Report all scams to Action Fraud.

How to Protect Yourself

Protect yourself from credit card fraud with these practical measures. Use contactless and mobile wallets — Apple Pay, Google Pay, and Samsung Pay use tokenisation, which replaces your card number with a unique, disposable token. This is more secure than using your physical card. Enable transaction alerts — set up push notifications for all card transactions so you spot unauthorised use immediately. Never share your PIN, password, or 3D Secure (Verified by Visa/Mastercard SecureCode) codes — legitimate organisations never ask for these. Check statements monthly — review every transaction on your credit card statement. Report anything unfamiliar immediately. Use virtual card numbers — some UK banks (Revolut, Monzo, Starling) offer virtual cards with one-time use numbers for online shopping. Register with CIFAS Protective Registration — this extra security layer adds identity verification steps to credit applications in your name. Keep software updated — ensure your phone, computer, and apps have the latest security updates. Shred card statements and documents — identity fraud often starts with bin raiding. Check credit reports annually — use MSE Credit Club, ClearScore, and Credit Karma for free reports from all three credit reference agencies. See our Identity Theft Prevention guide → for more protection tips.

FAQs

Am I liable for unauthorised credit card transactions in the UK?

No — under the Payment Services Regulations 2017, you are not liable for unauthorised transactions if you have not acted fraudulently or with gross negligence. Your provider must refund you immediately (usually within 24 hours).

What is the difference between Section 75 and Chargeback?

Section 75 is a legal right under UK law covering credit card purchases over £100. Chargeback is a voluntary scheme covering any amount on any card (credit or debit). Section 75 offers stronger protection but only applies to credit cards for purchases £100–£30,000.

Does Section 75 cover flights and holidays?

Yes — if you book flights, a holiday package, or accommodation on a credit card with a value between £100 and £30,000. If the airline goes bust, the holiday is cancelled, or the hotel is not as described, you can claim under Section 75.

How long does a Section 75 claim take?

Card providers should respond within 8 weeks. If the claim is straightforward (e.g., goods not delivered), it may take 2–4 weeks. Complex cases may take longer. If rejected, you can escalate to the Financial Ombudsman Service.

Do I need to report credit card fraud to the police?

Report to Action Fraud (online or by phone) for a crime reference number. The police do not usually investigate individual credit card fraud cases unless it is part of a larger organised crime operation. Your card provider handles the transaction dispute.