Section 75 and your wedding suppliers
How paying by credit card can protect your wedding deposits, and the catches to avoid.
Under section 75 of the Consumer Credit Act 1974, if you pay for something on a credit card and the supplier doesn't deliver or goes out of business, your card provider can be jointly liable with the supplier. For a wedding, where you pay large deposits months or years ahead, that's worth knowing before you book.
The limits
Which? puts it as: the item or service must cost more than £100 and less than £30,000. The limit applies to the price of a single item, not the total of your basket: Which? reports a claim refused because two flight tickets came to £139.50 together but each cost under £100. For a wedding, think of each supplier's service (the venue hire, the photography package) as the item.
Paying only the deposit by card
You don't have to put the whole cost on the card. Which? says you're potentially protected for the total value of the item even if only part of the payment, such as the deposit, went on your credit card. A common approach is to pay the deposit by credit card and the balance however suits you.
The catches
- Pay the supplier directly. Protection needs a direct link between you, your card provider and the supplier. Paying through an agent or a marketplace can break that link.
- Be careful with PayPal. Which? reports a claim refused because the couple paid via PayPal. It may still be covered in some cases, but Which? advises paying directly by credit card wherever possible.
- The main cardholder should pay. Which? warns that a purchase made by a secondary cardholder may not be covered.
- Buy now, pay later isn't the same. Which? notes these services aren't regulated in the same way and offer fewer protections.
- Debit cards don't have Section 75. They may have chargeback, a voluntary scheme with time limits (Which? mentions claims within 120 days of the purchase).
How to claim
Contact the supplier first and keep a record. If that fails, write to your credit card provider with your contract, the receipt or statement showing the payment, and what went wrong. Section 75 claims aren't limited to 120 days the way chargeback is; the normal limitation periods apply (five years in Scotland, six elsewhere in the UK, per Which?).
Insurance is different
Section 75 helps when a supplier fails. Wedding insurance helps with other things, such as cancellation for reasons outside your control. Most couples use both: insurance bought with the first deposit, and deposits paid by credit card.
Sources
- Which?: Section 75, five things to watch out for
- Which?: Section 75 of the Consumer Credit Act
- legislation.gov.uk: Consumer Credit Act 1974, section 75
Questions
Does Section 75 cover a wedding venue deposit?
It can, if the venue hire costs more than £100 and less than £30,000 and you paid at least part of it directly to the venue on your credit card.
Does paying through PayPal count?
Not reliably. Which? reports claims refused for PayPal payments and advises paying directly by credit card wherever possible.
What if I paid by debit card?
Section 75 doesn't apply, but your bank's chargeback scheme might; claims usually have to be made within 120 days.
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