It is used mainly for transactions made by debit card, although it can be used for credit cards where the amount is less than the £100 needed for Section 75. Unlike the system for credit cards this scheme is not law, it is a voluntary scheme set up by the banks themselves. It also has a 120 day time limit, so if you buy today and the goods are faulty the 120 days starts then.
If you book a flight and the airline subsequently goes out of business the 120 days will start from the point your flight should have left, unless you were informed by the airline that they would not be able fulfil their obligation. In this instance the time would start from when you were informed.
Most claims using chargeback tend to be for faulty goods, goods not being delivered, services not being provided or the company has gone bust.
If your bank refuses the chargeback claim you have six months to appeal to the Ombudsman. The rules that govern chargeback may vary from bank to bank, so you will need to check with your card provider on how they operate the system.
Although it can be useful to have this facility using a credit card is the much safer option, at least it is covered in law and not a voluntary scheme. Follow the links below for more detailed information on this scheme. As usual the two sites are ones we have highlighted before.
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