How you pay can have serious consequences for refund hopes

IF you’ve had a problem with a holiday company recently, or you’ve ordered goods from a shop online but they’ve not turned up, then chances are you’ve picked up a few tips from the news on how to get your money back.

Refunds are by far the thing that people ask me about the most since lockdown and the pandemic kicked in. Despite refunds for cancelled flights and packaged holidays being enshrined in law – and a legal right to cancel online purchases Protections are different THIS is where you within 14 days depending on how you pay transfer money for refunds too from your bank – many firms have flouted the account using online, branch or rules. phone banking. The money goes

This has meant that hundreds to the other person’s account of thousands of people have had more or less instantly. to fall back on the ‘nuclear option’ This kind of payment is a direct – getting your bank or credit card transfer, so if there is a dispute provider to recall your money with another party then it’s using ‘chargeback’. trickier to get your cash back.

But what is chargeback? Here’s a guide to the different ways you can pay for things – and your rights when things go wrong.

DEBIT CARDS

IF you make a payment on your debit card and something goes wrong, then your card provider may be able to ‘charge back’ the money.

This is an industry scheme (not a law) where your card provider recalls your cash. It’s not guaranteed in every case though. In very general terms, if you’ve paid for goods or services that aren’t provided and the firm is refusing to refund, or you’ve cancelled an order online within 14 days and haven’t been refunded, or if the firm looks like it’s about to go under, you may be able to charge back your cash.

Call the bank or credit card company and tell them what’s happened. You’ll often have to sign a disclaimer first in case the other person argues you have a contract.

CREDIT CARDS

IF you’ve spent more than £100 and under £30,000 on your credit card and the goods or services don’t turn up or are misrepresented, you may be able to make a claim under section 75 of the Consumer Credit Act.

Again, it’s not guaranteed and there are quirks – you have to buy direct from the supplier of the goods or services, for example. There’s a huge guide here: news. resolver.co.uk/ section-75-ofthe-consumercredit-act-allyou-need-toknow/

FASTER PAYMENTS PAYPAL AND E-PAYMENTS

MILLIONS of us use online payment services like Paypal and other e-payments. The advantage is there is (in most cases) a dispute resolution service if a problem occurs and with Paypal at least, you can go to the Financial Ombudsman for free if you’re still unhappy. On the downside, these businesses are ‘third parties’ so you can’t make section 75 claims if you’ve used an e-payment service.

CASH, CHEQUES AND MONEY TRANSFER SERVICES

IF you pay by cash, or use an international transfer service like Western Union, the money is not ‘recallable’ if something goes wrong. So be wary if you are asked to use these methods to pay.

The same goes with cheques (never give a cheque to a stranger). Of course, paying by cash on the high street is fine – just keep that receipt!

If you’re having a problem with a payment service, can help. Visit resolver.co.uk/