Chargeback vs Section 75


#1

That’s not entirely true. I am a big fan of Curve but it’s important to know that if you’re in the U.K, you lose any protection that would normally come from Section 75 of the Consumer Credit Act. This is important for some people/transactions such as flights, where an airline could go bust after you purchase the ticket, before you fly.

I know that Curve can use the MasterCard chargeback process. But being covered by a private company policy is not the same thing as being covered by U.K. legislation.


When your friend asks you "What is Curve?", how would you describe it in a single sentence?
#2

Can you be more specific? Why does it matter in case of state mandated protections?


#3

In the airline bankruptcy case you can use chargeback to dispute the charge and get your money back because you didn’t receive the product you paid for :slight_smile:


#4

Under a chargeback, there is no guarantee that you will get any money back for undelivered/faulty goods or services. A card issuer could decline your claim. (I’m not saying they will, but they could)

Under Section 75 of the CCA, the card issuing company is legally on the hook

More information on it here: https://www.moneysavingexpert.com/shopping/visa-mastercard-chargeback/#chargevs75

There are pros and cons for each, but they are not the same. For most purchases, giving up S.75 isn’t a big deal, but for some it will be.

Anyway, this is a bit off topic for the OP… sorry


#5

In the good old bad old days of charging for credit cards, I would book flights using a debit card to save a few quid. I then got burned by the Malev collapse. I used the Visa chargeback process and in short got nothing. Since then I’ve always put all purchases on a credit card (within reason, even if there’s a charge, though not an issue now). With a credit card with S75 protection, there’s more guaranteed protection as the credit card company is jointly liable. I’ve used it a number of times since then with success.


#6

Not to worry, it’s a good topic and therefore made into its own :slightly_smiling_face: Thank you for contributing to the conversation!


#7

Slightly related…can you confirm that Curve is a debit card and not a credit card? Because I was refused by a merchant (the Deposit protection service) who declared it was a credit card.


#8

It is a debit card. Says so on the back :grin:


#9

Agreed - for bigger purchases I would be a bit worried to rely on MC/Visa chargeback processes. S75 much stronger.


#10

Thanks jkb :+1:
Must have been the word above that threw them. “Commercial “


#11