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 within 14 days for refunds too – many firms have flouted the rules.
This has meant that hundreds of thousands of people have had to fall back on the ‘nuclear option’ – getting your bank or credit card provider to recall your money using ‘chargeback’.
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
THIS is where you transfer money from your bank account using online, branch or phone banking. The money goes to the other person’s account more or less instantly.
This kind of payment is a direct transfer, so if there is a dispute with another party then it’s trickier to get your cash back.
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/