Len Dastard takes a look at the Visa Chargeback scheme
Despite it being around for a few years not many people know about the Visa Chargeback scheme. I have had many people say that they have asked their bank whether such a scheme exists just to be greeted with a shrug of the shoulders and a vacant stare. Well, hear it from me, it exists. Nationwide, Barclays, Halifax and Lloyds TSB are all part of the scheme.
Let's start with a very quick recap of the protection offered by a credit card. If you spend between £100 and £30,000 on your credit card you are covered under Section 75 of the Consumer Credit Act 1974. The protection offered is against the goods or service that you paid for using your credit card.
If your bank issues a Visa debit card then you are able to rely on the the Visa Chargeback scheme. The big difference to the protection offered under Section 75 Consumer Credit Act 1974 is that there is no minimum spend required to initiate a claim under this scheme.
Such claims can arise when:
Goods are damaged
Goods or services are not delivered
There has been unauthorised account activity
Credit not received when order cancelled
It is worth bearing in mind that a claim under Section 75 Consumer Credit Act 1974 should be preferred as the credit card is legally liable to deal with the claim (as long as you provide adequate evidence etc). The Visa Chargeback scheme is not legally binding as it is just a scheme devised and offered by Visa. Therefore it is certainly worth giving this some thought before making an expensive purchase.
It will always be your responsibility to contact your card issuer to begin a claim. Most claims will need to be brought within 120 calendar days from the actual transaction date. It is therefore important that you get all of your evidence together as soon as possible after realising that there are problems with the transaction. Some banks allow a little longer than the 120 days but certainly do not take the risk without getting their confirmation first. Card holders are also covered when retailers go in to administration. So as soon as you know that a retailer has gone in to administration you need to get the claim in as soon as possible.
Have you ever had to rely on the Visa Chargeback? Did you know about it? Get in contact - [email protected]