Which ways of paying online protect you if something goes wrong

The way you pay decides how easily you can get your money back if an order never arrives, turns up broken, or the shop disappears. The differences are large, and they matter most when you’re buying from a shop you don’t know. Here they are, from the strongest protection to the weakest.

Credit cards

In the UK, section 75 of the Consumer Credit Act 1974 makes your card provider jointly responsible with the seller when you pay by credit card for a single item costing more than £100 and up to £30,000. If the seller breaks the contract or misled you, you can claim from the card provider instead. It applies even if only part of the price, such as a deposit, went on the card. It usually doesn’t apply when you pay through a go-between such as PayPal.

In the US, the Fair Credit Billing Act lets you dispute billing errors on a credit card, including charges for goods you didn’t accept or that weren’t delivered as agreed. Write to the card issuer within 60 days of the first statement showing the charge. The issuer must acknowledge your letter within 30 days and resolve the dispute within two billing cycles, and no more than 90 days.

Chargebacks on debit and credit cards

A chargeback is a refund your bank claims back from the seller’s bank under the card network’s rules. It isn’t a legal right in most countries, but banks generally use it when goods don’t arrive, aren’t as described, or the shop has gone out of business. Citizens Advice says you should usually ask within 120 days of the purchase or of the date you expected the goods. It works for debit cards, where section 75 doesn’t.

In the EU, the payment services rules also protect you against payments you didn’t authorise: report them without delay, and within 13 months at the latest, and the bank must normally refund you by the end of the next working day.

PayPal and other wallets

PayPal’s Buyer Protection covers items that don’t arrive and items that are significantly different from their description. Its US terms give you 180 days from payment to open a dispute for an item that never arrived. For an item that isn’t as described, some regional versions set a shorter limit counted from delivery, so check the terms for your country. A claim is decided by PayPal under its own rules, which exclude some purchases.

If you paid through PayPal with a credit card, a card dispute may still be possible when PayPal’s process fails, though section 75 rarely applies to payments made this way.

Buy now, pay later

In the UK, the Financial Conduct Authority has regulated interest-free buy now, pay later from third-party lenders since 15 July 2026, for agreements made from that date. Lenders now have to check you can afford the repayments, and you can take complaints to the Financial Ombudsman Service.

In the EU, the revised Consumer Credit Directive brings most buy now, pay later products under consumer credit law from 20 November 2026, including creditworthiness checks and clear information before you sign.

Wherever you are, a missed instalment can bring fees and affect your credit record. If an order goes wrong, tell the lender straight away; most pause repayments while a dispute is looked at.

Bank transfers

A bank transfer to a seller you don’t know is the hardest payment to reverse. There’s no chargeback and no buyer protection. In the UK, banks have had to reimburse most victims of authorised push payment scams since 7 October 2024, up to £85,000, but that covers fraud, not a genuine seller who sends the wrong thing. Be wary when a shop or a marketplace seller asks you to pay by transfer outside the platform.

Which to use

• Expensive item in the UK: a credit card, paid directly to the seller, for section 75.
• Unknown shop anywhere: a credit card or a wallet with buyer protection, never a transfer.
• On a marketplace: pay through the platform’s own checkout, so its guarantee applies. See buying on a marketplace.
• Spreading the cost: check that the instalments fit your budget before you think about the protection.

If you need to claim

Contact the seller first and keep a written record; card providers and PayPal will usually ask what you did. Then claim promptly, because the deadlines above run from the purchase or the statement, not from the day you gave up on the seller. Keep the order confirmation, the listing, photos of the problem and any messages. If the problem is a faulty product, your rights against the seller are explained in when something you bought breaks.

Sources

1. Consumer Credit Act 1974, section 75 (legislation.gov.uk)
2. Citizens Advice: Getting your money back if you paid by card or PayPal
3. FTC: Using credit cards and disputing charges
4. PayPal (US): Dispute filing timeframes
5. FCA: Buy now pay later
6. Consumer Credit Directive (EU) 2023/2225 (EUR-Lex)
7. Revised Payment Services Directive (EU) 2015/2366 (EUR-Lex)

Rules change. If something here is wrong or out of date, please tell us and we’ll fix it. This guide is general information, not legal advice.