What is a chargeback and how does it differ from a Section 75 claim?

A chargeback is a process operated by card schemes — Visa, Mastercard, and American Express — that allows cardholders to dispute a transaction and have the amount reversed back to their account. It is not a statutory right created by Parliament; it is a voluntary scheme mechanism that the card networks have established as part of their operating rules. Chargeback is available on both debit and credit cards, for all amounts (there is no minimum purchase threshold), and for a range of dispute reasons including non-delivery of goods or services, goods significantly not as described, duplicate charges, incorrect amounts, cancelled recurring payments, and unauthorised transactions. The chargeback time limit under most card scheme rules is 120 days from the transaction date or from the date the cardholder became aware of the problem. By contrast, a Section 75 claim under the Consumer Credit Act 1974 is a statutory right that applies only to credit card purchases (not debit cards) where the cash price of the goods or services is between £100 and £30,000. Under s.75 CCA 1974, the credit card company is jointly and severally liable with the merchant as a matter of law, making it a stronger and more durable right — you can bring a s.75 claim in court if the credit card company refuses to honour it, and the limitation period is 6 years rather than 120 days. In practice, for many disputes involving credit card purchases between £100 and £30,000, it is advisable to assert both chargeback and s.75 rights simultaneously, or to start with s.75 given its stronger legal foundation. For debit card disputes and lower-value credit card disputes, chargeback is often the only available route and is generally effective where the factual basis for the dispute is clear.

What are the time limits for making a chargeback request in the UK?

The time limits for chargeback requests in the UK are primarily governed by the card scheme rules rather than by statute. Under Visa Core Rules, the standard chargeback time limit is 120 days from the transaction processing date. For disputes involving non-delivery of goods or services where a future delivery date was agreed, the 120-day period typically runs from the expected delivery date (or the date you became aware that goods or services would not be provided), not from the original transaction date. This means that for a holiday booked months in advance that is later cancelled, the 120-day period may run from the date the cancellation occurred rather than the booking date. Under Mastercard's Dispute Resolution Rules, a similar 120-day period applies, running from the transaction date or the date the cardholder became aware of the problem — subject to a maximum of 540 days from the transaction date in some categories. American Express operates under its own proprietary rules and generally has a 120-day limit as well. Your bank may also impose its own internal deadlines for raising chargebacks, which may be shorter than the card scheme time limits. However, if your bank's internal deadline has passed but the card scheme time limit has not, you should still raise the request formally — the bank is bound by the card scheme rules, and the Financial Ombudsman Service has held that banks cannot apply their own shorter time limits to defeat a chargeback that would otherwise be valid under the scheme rules. For unauthorised transactions, the Payment Services Regulations 2017 provide additional protections: under Regulation 74, you have 13 months from the debit date to notify your bank of an unauthorised transaction and receive a refund, as a matter of statutory right separate from the chargeback process.

What rights do I have under the Payment Services Regulations 2017 for unauthorised transactions?

The Payment Services Regulations 2017 (PSR 2017), which implement the revised Payment Services Directive (PSD2) in the UK, provide strong statutory protections for consumers and businesses in relation to payment transactions. For unauthorised transactions — transactions that you did not authorise (for example, card fraud where your card details have been used without your knowledge) — Regulation 76 of the PSR 2017 requires your bank to refund the amount of the transaction immediately and, in any event, no later than the end of the business day following the day on which you notify the bank of the unauthorised transaction. This is a statutory obligation, not a discretionary decision: the bank must refund first and investigate later (unless it has reasonable grounds to suspect you have acted fraudulently). The burden of proving that you authorised the transaction lies with the bank under Regulation 72 PSR 2017. Where a transaction was unauthorised, the bank must also refund any charges and interest you have incurred as a result of the transaction. Your liability for unauthorised transactions is limited to £35 in cases of 'negligence' (for example, where you have been careless with your card or PIN) under Regulation 77, and you bear no liability whatsoever for transactions that occur after you have reported the card lost or stolen. If a bank refuses to process a refund for an unauthorised transaction, claiming that you authorised it or that you have acted fraudulently, and this is disputed, the Financial Ombudsman Service has jurisdiction to investigate and direct a refund if the bank cannot prove authorisation or gross negligence on your part. The PSR 2017 protections apply to debit cards, credit cards, and bank transfers, making them wider in scope than either chargeback or s.75.

What happens if my bank refuses my chargeback request?

If your bank or card issuer refuses your chargeback request or does not respond within a reasonable time, you have several escalation options. First, and most importantly, you can refer the matter to the Financial Ombudsman Service (FOS) free of charge. The FOS has the power to investigate complaints about how banks handle chargeback requests and can direct the bank to process the chargeback, refund the disputed amount, and pay compensation for distress and inconvenience. The FOS applies both the card scheme rules and the Payment Services Regulations 2017 when assessing chargeback complaints, and has consistently found in cardholders' favour where the bank has refused to process a legitimate dispute. You can refer the matter to the FOS after 8 weeks if the bank has not resolved your complaint, or immediately if the bank issues a final rejection. The FOS does not charge consumers for its service, and its decisions are binding on the bank (up to £430,000) if you accept them. Second, if you paid by credit card and the purchase price is between £100 and £30,000, you may be able to make a separate claim under s.75 of the Consumer Credit Act 1974, which is a statutory right enforceable in court independently of the chargeback process. Third, you can bring a County Court claim against the merchant directly for the underlying breach of contract, and separately seek damages from the bank under the PSR 2017 if they have failed to refund an unauthorised transaction. Finally, you can report the bank's conduct to the Financial Conduct Authority, which supervises bank compliance with the Payment Services Regulations 2017 and the FCA Principles for Businesses.

Can I request a chargeback for a subscription that I cancelled but continued to be charged for?

Yes — a cancelled subscription or recurring payment that a merchant continues to charge after cancellation is one of the most common and well-established grounds for a chargeback under card scheme rules. This dispute reason is sometimes called a 'credit not processed' or 'cancelled recurring transaction' chargeback. The basis for the dispute is that the merchant has charged your card without authorisation following cancellation, making each subsequent charge effectively an unauthorised transaction. To succeed with this type of chargeback, you should provide evidence of the cancellation: a cancellation confirmation email, a screenshot of the cancellation confirmation on the merchant's website, a written cancellation request, or any other documentation showing that you cancelled before the disputed charge. You should also provide your bank statement showing the charge applied after the cancellation date. If you did not receive a written cancellation confirmation, your bank statement and the cancellation date you can evidence (even through a screenshot of a cancellation form) will generally be sufficient. Under Visa Core Rules, the relevant dispute reason code for a cancelled subscription is typically Reason Code 41 (Cancelled Recurring Transaction). Under Mastercard's rules, the applicable reason code is typically 4853. If the merchant argues that the subscription was not cancelled — for example, claims they have no record of your cancellation — the key question the card scheme adjudicator (and the FOS on escalation) will assess is which party's account of events is more credible on the available evidence. Banks and the FOS have consistently held that where a consumer has clear evidence of cancellation and the merchant has continued to charge, the chargeback should succeed.

Is chargeback available if the merchant has gone into administration or ceased trading?

Yes — chargeback is one of the most effective tools available to consumers when a merchant becomes insolvent or ceases trading before providing the goods or services paid for. When a company enters administration or liquidation, unsecured creditors (which include customers who have paid for goods or services not yet provided) are at the back of the queue and typically receive little or nothing from the insolvency process. Chargeback allows you to bypass the insolvency process entirely and recover your money directly from your bank or card issuer under the card scheme rules, without needing to engage with the administrator or liquidator. For Visa and Mastercard transactions, the applicable chargeback reason code where a merchant has ceased trading is typically 'goods or services not provided' or 'credit not processed' (where the merchant is expected to have issued a refund but has not done so due to insolvency). The 120-day time limit for the chargeback typically runs from the date when the goods or services were expected to be provided — not from the date of the original transaction — which is particularly helpful for forward bookings (such as flights, holidays, or events) where the payment was made well in advance. If you paid by credit card and the amount is between £100 and £30,000, you also have a parallel s.75 claim under the Consumer Credit Act 1974 against your credit card company, which is generally the stronger route for higher-value claims. In practice, raising both simultaneously maximises your chance of recovery.

Chargeback Request Letter — Visa, Mastercard & Amex (England & Wales) — United Kingdom

Create a formal chargeback request letter to your bank or card issuer for disputed Visa, Mastercard, or Amex transactions. Covers non-delivery, defective goods, duplicate charges, cancelled subscriptions, and unauthorised transactions. References Visa Core Rules, Mastercard Dispute Resolution rules, and Payment Services Regulations 2017.

What Is a Chargeback Request Letter — Visa, Mastercard & Amex (England & Wales)?

A Chargeback Request Letter is a formal written request made to a bank or card issuer asking for a disputed card transaction to be reversed under the card scheme dispute resolution process operated by Visa, Mastercard, or American Express. Unlike a Section 75 claim under the Consumer Credit Act 1974 — which is a statutory right — chargeback is a voluntary mechanism established under the operating rules of the card networks, available on both debit and credit cards regardless of the transaction amount.

Chargeback works by initiating a dispute process within the card scheme. The cardholder's bank (the 'issuing bank') raises the dispute with the merchant's bank (the 'acquiring bank') through the card network's dispute resolution system. The acquiring bank then contacts the merchant, who has the opportunity to provide evidence challenging the chargeback. If the merchant cannot provide sufficient evidence to rebut the dispute, the amount is credited back to the cardholder's account. Where the dispute is complex or both parties provide conflicting evidence, the card scheme may adjudicate and make a binding decision under its rules.

The principal card scheme rules governing chargebacks in the UK are the Visa Core Rules and Visa Product and Service Rules (for Visa debit and credit cards), the Mastercard Rules and Mastercard Chargeback Guide (for Mastercard debit and credit cards), and American Express's proprietary dispute resolution framework. The Payment Services Regulations 2017, which implement the revised Payment Services Directive in the UK, provide an additional statutory layer of protection for unauthorised transactions, requiring banks to refund the amount of an unauthorised transaction immediately on notification under Regulation 76.

For UK consumers, chargeback complements the statutory rights available under the Consumer Rights Act 2015, the Consumer Credit Act 1974, and the Misrepresentation Act 1967. Where the transaction was made by credit card and the purchase price is between £100 and £30,000, the cardholder has a parallel right to bring a Section 75 claim, which is generally a stronger and more legally durable remedy. A well-drafted Chargeback Request Letter sets out the factual basis for the dispute clearly and comprehensively, attaches supporting documentary evidence, and references the applicable regulatory framework to ensure the bank processes the request promptly and thoroughly.

When Do You Need a Chargeback Request Letter — Visa, Mastercard & Amex (England & Wales)?

A Chargeback Request Letter is appropriate whenever a cardholder in England and Wales has made a payment by debit card, credit card, or prepaid card and has a legitimate dispute with the merchant about the transaction, and attempts to resolve the matter directly with the merchant have been unsuccessful.

The most common situations in which a Chargeback Request Letter is needed are as follows. First, where goods have not been delivered. If you have paid for goods that were not delivered by the expected delivery date, and the merchant has not provided a refund or adequate explanation, chargeback is the standard remedy. This applies whether the failure to deliver is because the merchant has gone into administration, ceased trading, or simply failed to fulfil the order.

Second, where services contracted for have not been provided. Examples include a package holiday that was cancelled and not refunded, a contractor who took a deposit and did not perform the work, an event that was cancelled without a refund, or a subscription service that charged for a service not made available. Chargeback is particularly valuable in these cases when the merchant is uncontactable or has entered insolvency.

Third, where goods received are defective or significantly different from their description. Where an item is materially different from how it was described — for example, a counterfeit product, goods that are completely different from the photographs used to advertise them, or goods that are entirely unusable — this forms the basis of a 'significantly not as described' chargeback under Visa Reason Code 30 or Mastercard Reason Code 4853.

Fourth, where there is a duplicate charge or incorrect amount. If a merchant has charged your card twice for the same transaction, or has charged an amount different from what was agreed, a chargeback on grounds of duplicate processing or incorrect amount is appropriate.

Fifth, where a subscription or recurring payment has continued after cancellation. If you have cancelled a subscription service but the merchant continues to charge your card, each subsequent charge after the confirmed cancellation date is potentially subject to a chargeback on grounds of an unauthorised recurring transaction.

Sixth, where an unauthorised transaction has been made — that is, a transaction you did not authorise, typically as a result of card fraud. In these cases, the Payment Services Regulations 2017 provide additional statutory protections requiring the bank to refund the amount immediately, and the standard chargeback process is the mechanism through which such disputes are raised.

The Chargeback Request Letter is also appropriate as a first formal step before escalating to the Financial Ombudsman Service if the bank does not handle the dispute satisfactorily.

What to Include in Your Chargeback Request Letter — Visa, Mastercard & Amex (England & Wales)

A well-drafted Chargeback Request Letter must contain six essential elements to ensure the dispute is processed efficiently and successfully by the bank and the card scheme.

The first essential element is precise identification of the disputed transaction. The letter must include the card type (Visa, Mastercard, or Amex, and whether debit or credit), the last four digits of the card number (to identify the account without disclosing sensitive card data), the exact transaction date as shown on the bank statement, the merchant name as it appears on the statement, the transaction amount in pounds sterling, and any available transaction reference number. This information allows the bank to locate the specific transaction immediately and submit the correct chargeback request to the card scheme.

The second element is a clear statement of the dispute reason, matching the applicable card scheme reason code. The letter should identify whether the dispute is for non-delivery of goods, non-provision of services, goods significantly not as described, duplicate charge, incorrect amount, cancelled recurring transaction, or unauthorised transaction. Using the correct terminology ensures the bank selects the appropriate reason code, which directly affects the evidentiary requirements and the likelihood of success.

The third element is a detailed factual description of the dispute. This should explain chronologically what happened: what was purchased, what was promised, what was actually received (or not received), and how the situation constitutes a valid chargeback under the applicable scheme rules. A clear, factual narrative is more persuasive than a list of grievances and gives the card scheme adjudicator a complete picture of the dispute.

The fourth element is an account of attempts to resolve the matter directly with the merchant. While chargeback does not require the cardholder to have first attempted to resolve the matter with the merchant (unlike the s.75 process), evidencing such attempts demonstrates good faith and strengthens the credibility of the chargeback request. Where the merchant has ceased trading, is uncontactable, or has entered insolvency, this should be clearly stated.

The fifth element is a list of supporting documents enclosed with the letter. Key documents include the bank or card statement showing the transaction, the order confirmation or receipt, any correspondence with the merchant, cancellation confirmations, tracking information showing non-delivery, and any photographs or expert reports for defective goods disputes. The card scheme adjudicator will weigh the documentary evidence from both sides — stronger evidence from the cardholder at the outset reduces the risk of the bank closing the dispute prematurely.

The sixth element is a clear statement of the remedy sought — specifically, a provisional credit to the account of the disputed amount while the dispute is investigated — and a reference to the Financial Ombudsman Service as the escalation route if the bank fails to process the chargeback request satisfactorily within 8 weeks.

What Is a Chargeback Request Letter — Visa, Mastercard & Amex (England & Wales)?

When Do You Need a Chargeback Request Letter — Visa, Mastercard & Amex (England & Wales)?

What to Include in Your Chargeback Request Letter — Visa, Mastercard & Amex (England & Wales)

Frequently Asked Questions

Related Documents

Section 75 Claim Letter — Consumer Credit Act 1974 (England & Wales)

Consumer Rights Complaint Letter — Consumer Rights Act 2015 (England & Wales)

Formal Complaint Letter (UK)

Debt Verification Letter (England & Wales)

Particulars of Claim — Small Claims Track (England & Wales)