A chargeback is a process that lets a card payment be reversed through the card scheme, for example when goods do not arrive or a transaction is disputed. It is run under Visa and Mastercard rules rather than UK law, and time limits apply.
In one line: A chargeback reverses a disputed card payment through the card scheme, subject to scheme rules and deadlines.
How a chargeback works
A cardholder asks their bank to dispute a transaction, and the bank raises a chargeback with the card scheme. If upheld, the amount is taken back from the retailer and returned to the cardholder.
If a 150 GBP order never arrives and the seller will not help, a chargeback can recover the payment. The request usually has to be made within a set window, often around 120 days from the transaction.
Chargeback applies to debit and credit cards alike, which makes it relevant where a purchase was paid by debit card and other legal protections do not apply.
Chargeback vs Section 75
Chargeback is a scheme process covering debit and credit cards but is not a legal right. Section 75 of the Consumer Credit Act is a legal protection on credit card purchases between 100 GBP and 30,000 GBP.
Section 75 makes the card provider jointly liable with the retailer, while chargeback simply reverses the payment, so the two offer different levels of protection on a disputed purchase.
Primary source: FCA / Section 75 Consumer Credit Act 1974