For travel customers, Section 75 is a legal safety net when a travel company fails or does not deliver. The test is the cash price of the item, not the amount put on the card, so a holiday with only the deposit paid by credit card can be covered in full. A card issuer that pays a claim can recover its loss from the supplier, so a travel business can end up paying for its own failures through the customer’s card issuer. Since 15 July 2026, Section 75 has also covered regulated buy now pay later agreements from third-party lenders.

What it does not cover

• debit cards, charge cards that must be paid off in full each period, prepaid cards, bank transfers and cash

• a single item with a cash price of £100 or less, or of more than £30,000

The payment chain

Section 75 needs a link between the card issuer and the supplier. When a customer pays a travel agent and the agent then pays the tour operator or airline, the card issuer may argue that the link is broken. The Financial Ombudsman Service says payment through a third party such as an agent is a common reason for rejecting claims, but not always a fatal one, and the High Court backed a card issuer in a 2022 case where someone other than the supplier was paid. A business that organises a package itself is responsible for every service in it.

Worth knowing

If an ATOL holder fails, the Air Travel Trust may ask customers who paid by credit card to claim from their card issuer instead. Section 75 is different from a chargeback, which is a card scheme process rather than a legal right.