Have you saved the date saved in your diary?
I am sure you are aware that next Friday is BLACK FRIDAY.
If you are anything like me, you’ll have been saving up for a few months, ready to do the big Christmas shop next Friday.
Although it’s a good idea to save up and not to get into debt, it may be better for you to get your high priced purchases on your credit card.
I have a few high ticket items to buy – My daughter wants a laptop, my son has asked for a gaming PC, and I will be buying myself a new laptop.
Each one of the above gifts costs ver £100.01. This brings me to the topic of this blog post.
Have you heard of Section 75?
Just in case you haven’t, here is a brief overview.
Section 75 is a law that means your credit card provider must protect purchases from £100.01 but under £30,000 for free. This means you could get your money back from your credit card provider if there’s a problem with your purchase.
Section 75 is a legal protection that helps to ensure you do not pay off a debt for something you didn’t receive or was faulty.
You’re protected when you pay on a credit card, store card or with store instalment credit; those credit providers are responsible too. You’re even covered if a company goes bust.
Here are some examples:
You buy a laptop from a shop, and you find it’s faulty
You order an expensive necklace from overseas that doesn’t arrive
You buy flights direct from an airline that goes bust
How can Section 75 protect me?
Section 75 protects you if you order something and the retailer goes bust or buy a faulty item. This extra protection means you can claim your money back from the credit card provider (even if you’ve since closed your credit card account).
What’s not covered?
Goods/services paid for by a secondary cardholder.
Suppose the purchase was made by a secondary cardholder. In that case, you need to prove that the purchase was for the benefit of the primary ard holder. If you’re buying Christmas presents for other people, you’ll need to buy them on your card yourself. You won’t be protected if an additional cardholder makes the purchases.
Goods and services that you bought from an intermediary including travel agents, group buying sites Paypay and other similar sites
You need to make the purchase directly to the business. You won’t be protected if you pay via PayPal.
Goods and services that are paid through a ‘Buy now Pay later’ Service. For example, Klarna and similar services
You need to pay for the purchase in one go. You won’t be protected if you use a buy now pay later method.
Some consumers buying goods on Amazon through Marketplace suppliers have been turned down for Section 75 claims by credit card companies. You may need to fight to get your protection.
It’s the cost of the item not the purchase as a whole. So if the item costs £100.01 or more you may be protected. If your bill is made up of items costing under £100.01 then you won’t be protected. For example, a bag costing £89.99 and a top costing £25 resulting in a total bill of £114.99 won’t be protected as the items cost under £100.01.
Did you know?
You are still protected even if you only use your credit card to pay for part of your purchase – even 1p would count. The only condition is that what you’re buying costs between £100.01 and £30,000.
Personally, I would buy the gifts on my card and then pay off the entire balance with my saving ( that I diligently saved throughout the year for Christmas spending)
Where to find out more?
The content shared in this blog is for informational purposes only. You should not construe any such information or other material as advice in a legal, tax, investment, financial, or other sense. You should consult a suitably qualified, independent adviser before making any financial decisions.
Have you learned anything new in this blog post?
Will you be using your credit card to buy your high ticket Christmas items?
Leave your comments in the box below.
I will be buying items that cost over £100.01 on my credit card and paying them off straight away!
I hope you found this blog helpful