Do Business Credit Cards Get Section 75 Protection? Purchase Protection Explained

What Is Section 75 Protection on Credit Cards?

Section 75 of the Consumer Credit Act 1974 makes your credit card issuer jointly and severally liable with the supplier if something goes wrong with a purchase. That means you can claim directly against the card company, not just the retailer, if there is a breach of contract or misrepresentation.

The protection applies when:

• The item or service costs more than £100 and no more than £30,000 (the cash price of the individual item, not your total basket)
• You paid at least part of the cost on a regulated consumer credit card
• There is a direct link between the card issuer, you, and the supplier, known as the debtor-creditor-supplier relationship

This joint liability is what makes Section 75 so powerful for consumers. If the retailer has gone bust, refuses to refund, or misrepresented what they were selling, you have a second route to getting your money back.

One important caveat: if you pay through an intermediary payment service or a third-party wallet rather than directly to the supplier, that debtor-creditor-supplier link can break, and Section 75 may not apply.

Do Business Credit Cards Have Section 75 Protection?

No, in almost all cases, business credit cards do not have Section 75 protection. The law applies to regulated consumer credit agreements, and dedicated business credit cards are typically unregulated for Section 75 purposes.. For more detail, see our guide to comparing business credit cards.

Barclaycard's business card terms state explicitly that Section 75 rights "do not apply to corporate entities or organisations outside the scope of the Consumer Credit Act." Capital on Tap's guidance for business customers confirms the same position: business cards are generally unregulated and therefore fall outside Section 75.. For more detail, see our guide to VAT records for business credit card expenses.

This is not a loophole or a technicality that card issuers have found. It reflects how the Consumer Credit Act was written, it protects individual consumers, not companies. A limited company is a separate legal entity. When it holds a business credit card, the borrower is the company, not an individual consumer, so the Act's protections do not attach.

The practical implication: if your business pays a supplier on a business credit card and that supplier goes bust or fails to deliver, you cannot fall back on Section 75. Your options are chargeback (a card scheme process, not a legal right) and any contractual protections in your supplier agreement.

Section 75 vs Section 75A: What Is the Difference for Business Cards?

Section 75 gives the cardholder a direct claim against the card issuer for the full amount. Section 75A is a related provision that applies to credit agreements linked to specific contracts, typically hire purchase or conditional sale, and gives a narrower right of redress where the creditor has not complied with their obligations.

For business card users, neither provision helps much. Both sit within the Consumer Credit Act 1974 framework, which is built around consumer protection. Business credit agreements that fall outside the Act's regulated scope are not covered by either section.

The distinction matters more for sole traders (see below) and for consumers comparing different types of credit. For a limited company using a business card, the relevant protection is chargeback, not Section 75 or 75A.

How Much Does Section 75 Cover?

Section 75 covers purchases where the cash price of the individual item or service is more than £100 and no more than £30,000.

Key points on the value band:

• The £100 threshold is the price of the item, not the amount you put on the card. You could pay just £1 on the credit card and still be covered, as long as the item costs over £100 in total.
• The £30,000 cap is per item. A single contract worth £35,000 falls outside Section 75, even if you pay part of it on a credit card.
• If you buy multiple items in one transaction, each item is assessed separately against the £100,£30,000 band.
• There is no upper limit on what you can recover, if a £25,000 holiday is cancelled, you can claim the full £25,000 from the card issuer.

These thresholds have not changed since the Act was introduced and remain in force as of mid-2026.

Section 75 Protection Time Limit: How Long Do You Have?

You can bring a Section 75 claim up to six years from the transaction date in England and Wales. This six-year window comes from the Limitation Act 1980, which sets the standard period for contract claims.

That is a long runway. If you bought goods in 2021 and only discovered a problem in 2026, you may still have a valid claim, provided all other conditions are met.

Scotland operates under different limitation rules (five years under the Prescription and Limitation (Scotland) Act 1973), so Scottish businesses and sole traders should check the applicable period.

Can I Claim Section 75 on a Business Purchase?

Generally, no, not if the purchase was made on a dedicated business credit card held by a limited company. The Consumer Credit Act's Section 75 protection is for consumer credit agreements, and most business cards sit outside that regulatory framework.

There is one route where a business-related purchase might qualify: if a sole trader or individual director uses their own personal credit card to pay for something connected to the business, and the card is a regulated consumer credit agreement in their own name, Section 75 can still apply. The key is whether the credit agreement is a regulated consumer agreement, not whether the purchase is for business purposes.

So a freelancer who puts a £2,000 software licence on their personal Visa credit card may have a Section 75 claim if the software is never delivered. A limited company that puts the same purchase on its corporate card almost certainly does not.

Do Sole Traders Get Section 75 Protection?

Sole traders can get Section 75 protection, but only when using a personal credit card in their own name. Because a sole trader is not a separate legal entity from the individual running the business, a regulated personal credit agreement in their name can still qualify under the Consumer Credit Act.

The protection does not automatically extend to a dedicated sole trader business card if that card is issued under an unregulated business credit agreement. The label on the card matters less than the regulatory status of the underlying credit agreement.

What Is Not Covered by Section 75 Protection?

Section 75 has several firm exclusions that catch people out.

From 15 July 2026, certain Buy Now Pay Later agreements gained Section 75-style coverage under new FCA rules. This expands consumer protection to more payment types, but it does not change the position for business credit cards.

Section 75 Protection vs Chargeback: What Is the Difference?

Section 75 is a statutory right under the Consumer Credit Act 1974. Chargeback is a card scheme process run by Visa, Mastercard, or American Express. They are different in scope, strength, and who can use them.

For business card purchases, chargeback is the primary fallback. It is not a legal guarantee, but card schemes take disputes seriously and it works well for clear-cut cases, a supplier that has gone bust, goods that never arrived, or a duplicate charge.

If you want to understand the broader landscape of business funding and payment tools, the Business Credit Cards guide at Funding Fred covers card types, limits, and what to look for when comparing providers.

Section 75 Protection for Purchases Over £30,000

Section 75 does not cover individual purchases where the cash price exceeds £30,000. A single contract worth £31,000 falls outside the protection entirely, even if you pay part of it on a qualifying credit card.

For high-value business purchases above this threshold, the options are:

• Chargeback (no upper value limit under card scheme rules, though time limits apply)
• Contractual protections negotiated with the supplier
• Trade credit insurance, which covers supplier default on larger transactions
• Structured payment terms that reduce exposure

If your business regularly makes large capital purchases, it is worth reviewing how those transactions are structured. See the Funding Fred guide on asset finance vs business loan for large capital purchases for options that may suit high-value procurement better than a card.

How to Make a Section 75 Claim Step by Step

This process applies to qualifying purchases on regulated personal credit cards. Business card users should follow the chargeback process with their card issuer instead.

1. Confirm eligibility. Check the item cost is between £100 and £30,000, you paid at least part on a regulated credit card, and the purchase was direct from the supplier (not through an intermediary).
2. Contact the supplier first. Try to resolve the issue directly. Card issuers will often ask whether you have done this before processing a Section 75 claim.
3. Gather evidence. Collect the receipt or order confirmation, any correspondence with the supplier, proof of what was promised (advertising, contract terms), and evidence of what went wrong.
4. Contact your card issuer. Call or write to the credit card company and state that you are making a Section 75 claim under the Consumer Credit Act 1974. Be specific about the breach of contract or misrepresentation.
5. Submit your evidence. Most issuers have an online claim form or will accept a written letter. Include all supporting documents.
6. Escalate if needed. If the card issuer rejects your claim and you believe it is valid, you can refer the complaint to the Financial Ombudsman Service free of charge.

Section 75 Protection If a Merchant Goes Out of Business

Section 75 is at its most useful when a merchant has gone bust. Because the card issuer is jointly and severally liable, you do not need the supplier to still be trading to make a claim.

If a retailer enters administration and cannot fulfil your order or issue a refund, you can go straight to your credit card company. You do not need to wait for the insolvency process to conclude or join a queue of creditors.

This applies only to qualifying purchases on regulated consumer credit cards. For business card purchases, the chargeback route is still available, but it has a much shorter window (typically 120 days) and the merchant's bank may dispute it if the company is in formal insolvency proceedings.

Section 75 vs Purchase Protection: Which Is Better?

These are two different things and the comparison depends on what you are trying to protect against.

Section 75 is a statutory right covering breach of contract and misrepresentation. It applies when a supplier fails to deliver, delivers something materially different from what was described, or goes out of business.

Purchase protection (also called purchase cover or purchase assurance) is an optional insurance benefit offered by some card issuers. It typically covers accidental damage or theft of newly bought items for a set period, often 90 to 180 days. It is not a legal right; it is a benefit that varies by card and can be withdrawn or changed.

For business cards that lack Section 75, purchase protection insurance is a useful but limited substitute. It does not cover supplier failure, misrepresentation, or insolvency, the scenarios where Section 75 is most valuable.

If your business needs broader financial protection and working capital headroom, a business credit card with strong spend controls, employee cards, and cashback may serve you better than chasing insurance benefits. Check eligibility in a 2 min check, no hard check to start.

Does Section 75 Cover Partial Refunds?

Yes, Section 75 can cover partial refunds in some circumstances. If a supplier has delivered part of an order but not all of it, or if there is a partial breach of contract, you can claim for the portion that was not fulfilled.

The claim must still relate to a qualifying purchase (over £100, under £30,000 per item), and the breach of contract or misrepresentation must be clear. Card issuers may require evidence of what was delivered versus what was promised before agreeing a partial settlement.

Partial claims are assessed on the same basis as full claims, the card issuer looks at whether there was a genuine breach and what loss you suffered as a result.

Next steps

Section 75 protection is one of the strongest consumer rights in UK financial law, but it is built for consumers, not businesses. Limited companies using dedicated business credit cards are almost always outside its scope. Sole traders using personal cards may still qualify, but the moment a business card is issued to a company rather than an individual, the protection falls away.

For business owners, the practical takeaway is straightforward: do not assume your business card carries Section 75 rights. Check whether your card is regulated under the Consumer Credit Act. For purchases that matter, understand the chargeback window and use it before it closes. And for high-value procurement, build contractual protections into supplier agreements rather than relying on card-based recourse.

If your current business card is giving you low limits, no spend controls, and no clear view of where the money went, and you are accepting that as normal, it may be time to compare what is available. Business Credit Cards. Without the Fuss. Run a 2 min check with no hard credit search and no obligation to see which leading card providers match your business. Limits from £1k to £250k+, virtual cards, employee cards, cashback, and up to 56 days interest-free. Compare this with the practical guide to business credit cards in the UK.

For broader context on managing business finances and funding options, the Funding Fred guides on business credit scores, personal guarantees on business loans, and the small business financial health masterclass are worth a read.