Problems getting a refund? How to get your money back

If you’ve had a problem with a holiday company recently, or you’ve ordered goods from a shop online but they’ve not turned up, then chances are you’ve picked up a few tips on how to get your money back.

Refunds are one of the top issues Resolver users have been complaining about since Covid-19 kicked in – and not just simply asking for one. Despite refunds for cancelled flights and packaged holidays being enshrined in law – and a legal right to cancel goods bought online within 14 days for refunds too – many firms have flouted the rules leaving consumers out of pocket.

This has meant thousands of people have had to fall back on the ‘nuclear option’: getting your bank or credit card provider to recall your money’. Because the difficulties of others getting a refund have been well-documented, some consumers are even defaulting to this, which as we have said can cause problems in getting your claims through your bank or credit card provider accepted.

But what is chargeback? Or what’s that additional claim on your credit card that you can make too?

If you’re already looking for a way to get a refund, and the company isn’t playing ball, use our tool below to find out what options you may have depending on how you paid for your product or service.

For more on your options before you buy our additional guide below will help.

Find out how you can get that hard-to-reach refund

What are the routes to a refund?

Below we explain what routes you may have to obtain a refund should you have no joy from the company or provider that you bought from. It’s important to be aware that you will often – particularly now – have to provide some evidence that you have tried to get your money back directly first.

Chargeback

Starting with the lesser-known option, chargeback is an industry scheme where your payment card provider recalls your cash from the seller’s bank, rather than the seller itself. This is not a form of legal protection, but more a provider promise to its customers that they are covered should you have difficulty getting a refund when you’re entitled to one.

In very general terms you should be able to claim chargeback if you’ve paid for goods or services that aren’t provided and the firm is refusing to refund, if you’ve cancelled an order online within 14 days and haven’t been refunded, or if the firm has or looks like it’s about to go under.

It’s not guaranteed in every case though and you will need to call your bank or card provider to explain clearly what has happened. You’ll often have to sign a disclaimer first just in case the other person argues that you have a contract and it will help if you can show you’ve tried getting a refund from the company itself.

Use:

If you have paid for your goods or services costing any amount by debit card or a pre-paid credit card;
If you have used a Visa, Mastercard or Amex credit card and the cost was less than £100;
If you purchased via an online marketplace or other third party seller using your debit or pre-paid card;
If you have purchased the goods or services within 120 days.

Section 75

Section 75 of the Consumer Credit Act 2015 is a piece of legislation that can come in very handy if you are entitled to get your money back but it’s not forthcoming. In essence, if the items or service you bought between more than £100 and less than £30,000 then your credit card company is jointly liable for those purchases, along with the seller.

In general, you are covered if the goods didn’t turn up or were misrepresented, or you didn’t receive the service you paid for. Although as part of the Consumer Credit Act it is legislation, It’s not guaranteed and there are quirks, including that you have to have bought your goods or service directly from the provider, rather than through a third party such as an online marketplace or holiday booking site.

If you want to know more about Section 75 take a look at our guide to maximise your chances of a claim.

Use:

If you have used a Visa, Mastercard or Amex credit card and the cost was more than £100 but less than £30,000;
If you bought directly from the seller or provider;
If you need to claim after receiving the goods a while after you’ve bought them (e.g. if the item develops a fault).

Dispute Resolution

Millions of us use online payment services like PayPal and other e-payments. The advantage is there is (in most cases) a dispute resolution service if a problem occurs and with PayPal at least, you can go to the Financial Ombudsman for free if you’re still unhappy. But on the downside, these businesses are ‘third parties’ so you can’t make section 75 claims .

Use:

If you’ve paid for services using an e-payment system, for example, PayPal
You’ve had a section 75 or chargeback claim rejected and you dispute the conclusion.

What about if I have transferred money with online, branch or phone banking?

The money goes to the receiving account more or less instantly. This kind of payment is a direct transfer so if there is a dispute with another party then it’s trickier to get your cash back.

Recently the rules changed to make banks check that the names match the account details. This was because of the ‘fat finger fail’, where people typed in the wrong number but struggled to recall the cash. Always triple check before pressing send and if you think you’ve been defrauded and tricked into transferring money, call your bank and ask them to recall the money urgently.

What about cash, cheques and money transfer services?

If you pay by cash, or use an international transfer service like Western Union, the money is not ‘recallable’ if something goes wrong. So be wary if you are asked to use these methods of payment. The same goes with cheques – be cautious as there are ways to fiddle the system. Of course, paying by cash (if the shop allows you to) on the high street is fine and you can still get a refund under the law if your product is faulty, or through the shop’s own terms if they have a refund policy and you change your mind. Just keep your receipt.

If you’re having a problem with a payment service, we can help. Use Resolver to raise your case if you’re unsure how to proceed with your refund claim.