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If a UK online retailer enters administration before delivering your order or paying an agreed refund, contact your payment provider immediately. A qualifying credit-card purchase may be covered by Section 75 of the Consumer Credit Act 1974. Debit-card and many other card payments may be suitable for chargeback, while PayPal transactions have a separate dispute process. You can also register what you are owed with the administrator, but an insolvency claim is not guaranteed to be paid in full.
Confirm what has happened and who owes you the money
Do not assume that a delayed dispatch means the retailer is already in administration. Look for a formal notice on the retailer’s website, a message to customers, Companies House information, or a page published by the appointed insolvency practitioner. Save a copy of every notice because websites can disappear or change.
Administration is different from an ordinary refund delay
Administration is a formal insolvency procedure. The company may continue trading, sell stock, or stop taking orders while the administrator assesses its affairs. The administrator, rather than the normal customer-service team, may publish instructions for customers who are owed goods or money. Those instructions do not replace your right to ask your card issuer or payment platform about a recovery route.
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Check the order confirmation, invoice, card statement and payment receipt. Record the exact legal retailer named on each document, not just the trading name shown on the website. Note whether you bought directly, through a marketplace, through a digital wallet, or with a buy-now-pay-later arrangement. The entity that took your money may not be the same entity that supplied the goods.
This distinction matters most for Section 75. That protection generally depends on a direct legal relationship between you, the credit provider and the supplier. A marketplace or payment intermediary can break that relationship, although the transaction may still be eligible for chargeback or a platform dispute.
Choose the recovery route that matches your payment method
| Payment or claim route | When it may apply | Legal or contractual basis | Who processes it | What to verify |
|---|---|---|---|---|
| Section 75 | A direct credit-card purchase of a single item costing more than £100 and no more than £30,000, where the required creditor–supplier relationship exists and the retailer failed to supply the item or provide the agreed refund. | Statutory protection under Section 75 of the Consumer Credit Act 1974. | Your credit-card provider. | Single-item price, supplier identity, any intermediary, partial payment and the provider’s document requirements. |
| Chargeback | Debit-card payments and some credit-card payments that do not meet Section 75 criteria, including goods not received after a retailer failure. | A card-scheme process rather than the same statutory right as Section 75. | The bank or card issuer that processed the payment. | The issuer’s deadline, scheme reason code and evidence requirements. There is no single universal deadline for every card or scheme. |
| PayPal dispute | A payment made through PayPal that falls within its buyer-dispute rules. | PayPal’s current terms and dispute process. | PayPal through your account. | Citizens Advice states that a dispute should be opened within 180 days of payment; check the live account process and terms before relying on that period. |
| Claim in the administration | The insolvent company itself owes you goods, a refund or another amount. | Insolvency procedure; recovery depends on available assets and creditor priority. | The appointed administrator. | How to register the debt, the reference number, submission deadline and any later distribution notice. |
Section 75: the main credit-card route
Section 75 can make the credit provider jointly responsible with the supplier for a qualifying breach of contract or misrepresentation. The guidance used by Citizens Advice Scotland, MoneyHelper and UK Finance describes the usual value range as more than £100 and no more than £30,000 for a single item.
The relevant figure is normally the price of the individual item, not necessarily the total basket. If one item costs £120 and another costs £80, the £120 item may meet the value threshold while the £80 item does not. Ask the issuer how it treats bundled products, delivery charges and separate line items rather than assuming the whole order qualifies.
You may still have a Section 75 claim when only part of the item price was put on the credit card. For example, a deposit paid by credit card can potentially bring the full price of that qualifying item into the claim, subject to the transaction structure and the other eligibility conditions. Keep proof of every part of the payment.
Section 75 is not automatic for every credit-card purchase. Citizens Advice warns that purchases made through a third party such as a marketplace or PayPal will usually not have the required direct relationship. The provider should examine the actual contracts and payment flow. If Section 75 does not fit, ask about chargeback instead.
Chargeback: ask even when Section 75 fails
Chargeback is available for debit-card transactions and may also be available for credit-card transactions outside Section 75. It is a voluntary card-scheme process, so it is not identical to a statutory Section 75 claim and does not guarantee repayment.
Tell the issuer that the goods were not received because the retailer entered administration, or that an agreed refund remains unpaid. Ask which chargeback reason applies, the final date for submitting it, and exactly which documents are required. UK Finance advises including the payment date and method and explaining whether an online payment went through a platform such as PayPal or another service.
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PayPal and other wallets
A PayPal payment is handled under PayPal’s dispute rules rather than directly under the retailer’s card arrangement. Citizens Advice says to open a dispute within 180 days of payment. Treat that as an outer limit stated in the guidance, not as permission to delay: open the case promptly and check the current process shown in your account.
If you used another wallet, marketplace checkout or payment service, open its dispute route and contact the underlying card issuer as well. The intermediary’s terms may provide a separate remedy, while the issuer may need to decide whether chargeback is possible. Explain every intermediary so the provider can assess the correct route instead of rejecting the claim for an incomplete payment history.
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Buy-now-pay-later and finance arrangements
With a finance or buy-now-pay-later arrangement, identify whether the finance provider paid the retailer directly, whether the transaction was a regulated credit agreement, and which company appears on your agreement. Ask that provider what protections and complaint process apply. Do not stop scheduled payments without first asking how a disputed transaction should be handled; an unexplained missed payment can create a separate problem.
Claiming through the administration
The administrator’s process is separate from a card or wallet claim. Follow the published instructions for customers who are owed money and submit proof of the debt in the requested format. An unsecured customer claim may receive only a partial distribution, or none, depending on the company’s assets, secured creditors, expenses and creditor priority. The supplied official guidance does not establish a universal timetable or guaranteed consumer recovery.
Step-by-step: make the claim without losing a deadline
- Verify the formal status. Save the retailer’s administration announcement and the administrator’s contact or case page. Confirm the legal company name and the date the procedure began.
- Build an evidence folder. Include the order number, item description, single-item price, order date, promised delivery date, payment date and method, card or wallet receipt, invoice, delivery tracking, refund promise, emails, chats and screenshots. Keep the original files and a dated copy of any web page announcing the administration.
- Write a short chronology. List what you ordered, what you paid, when delivery or a refund was promised, when you contacted the retailer, and what happened after administration began. A clear timeline helps the issuer identify non-delivery or non-refund quickly.
- Contact the payment provider promptly. Use the number on the back of the card or the provider’s secure message facility. State whether you are requesting a Section 75 claim, a chargeback, or a platform dispute. Ask for a written list of required documents and the submission deadline.
- Describe the transaction accurately. Explain whether you paid the retailer directly or through a marketplace, wallet or finance provider. For a potential Section 75 claim, identify the supplier’s failure to deliver or refund and refer to Section 75 of the Consumer Credit Act 1974. Do not describe an ordinary insolvency non-delivery as fraud.
- Submit the form and documents. Use the issuer’s claim form or secure upload route. Keep a copy of what you sent, the date, the case number and any automated receipt.
- Answer follow-up questions. The provider may ask for proof that you cancelled, requested a refund, contacted the retailer, or checked the administrator’s notice. Reply by the stated date and keep sending documents through the same case channel.
- Register with the administrator as well. Follow its customer-claim instructions even while a card or wallet claim is being considered. Tell each party if another route pays you so that the same loss is not recovered twice.
What evidence makes a claim stronger
- Payment proof: card statement, wallet receipt or finance agreement showing the date, amount and merchant descriptor.
- Contract details: order confirmation, invoice, product description, terms presented at checkout and the delivery promise.
- Failure evidence: tracking showing no delivery, correspondence acknowledging cancellation, or a written promise to refund that remains unpaid.
- Insolvency evidence: the retailer’s notice, administrator announcement and the legal company name.
- Intermediary details: marketplace order ID, wallet transaction ID and the name of any payment platform.
- Communications log: dates, case numbers and copies of every message to the retailer, administrator and payment provider.
UK Finance specifically advises directing the card provider to the retailer’s website when the business has gone out of business, because an insolvency-practitioner notice may be available there. Save the notice rather than relying on the page remaining online.
How Section 75 eligibility is assessed
The £100 to £30,000 range
The guidance’s threshold applies to a single item priced above £100 and up to £30,000. A purchase at exactly £100 is outside the stated “more than £100” threshold. A single item above £30,000 is outside that range. Other legal or scheme-based remedies may still be available.
Partial payment and deposits
Paying only a deposit on the credit card can still be relevant to a Section 75 claim for the qualifying item’s full price. Provide the card receipt and evidence of the balance paid by another method so the issuer can assess the whole transaction.
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Marketplaces and payment intermediaries
The names shown on your order and statement may reveal a third-party structure. Section 75 usually depends on the creditor financing a transaction directly with the supplier. A marketplace, wallet or agent can alter that relationship. Ask the issuer to assess the chain rather than relying on a generic online form that assumes a direct retailer purchase.
Gift cards
UK Finance says a consumer may be able to use Section 75 for an unusable gift card costing more than £100. That is not a universal promise: eligibility still depends on the purchase, supplier relationship and payment structure. Keep the gift-card purchase receipt and proof that the card cannot be redeemed.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Administration claims and statutory consumer rights
The Consumer Rights Act 2015 and the government’s consumer-protection guidance provide rights for many distance purchases, including rights connected with delivery and refunds. Those rights establish what the retailer should have done; they do not guarantee that an insolvent company has enough money to pay every customer.
Registering as a creditor preserves your place in the administrator’s process, but it does not turn an unsecured customer into a priority creditor. Read the administrator’s instructions carefully, submit the requested proof and retain the acknowledgement. If the administrator later announces a distribution, follow its identity and bank-detail checks and beware of impersonation emails.
Common problems and how to handle them
“The issuer says Section 75 does not apply because I used a marketplace.”
Ask for the decision and the reason in writing. Confirm whether the issuer will consider chargeback and provide the marketplace and payment-flow details. A Section 75 rejection does not automatically rule out a card-scheme claim.
“The retailer’s website has disappeared.”
Send the issuer your saved order records, card statement, emails and any administrator notice. UK Finance notes that an insolvency notice may be available on the retailer’s site, but you should not wait for a page to return before starting the claim.
“I paid by debit card and the bank says there is no statutory refund right.”
Ask specifically for chargeback for goods not received because of retailer insolvency. Request the deadline and evidence list in writing. Chargeback is scheme-based and time-limited, so submit the request promptly.
“I opened a PayPal dispute but also want to use my card.”
Tell both providers about the other case and follow their instructions. Do not accept duplicate reimbursement. Keep the PayPal case number and the underlying card transaction details.
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“The administrator asks me to wait.”
Follow the administrator’s instructions, but do not let that prevent you from asking your card issuer about its own deadline. Card recovery and an insolvency distribution are separate processes.
“The provider calls this fraud.”
A retailer failing to deliver after entering administration is normally a non-delivery or insolvency dispute, not automatically an unauthorised payment. The Financial Conduct Authority distinguishes fraudulent-payment cases from ordinary disputes about a purchase. Describe only what happened and use the provider’s non-delivery or chargeback process unless your payment was genuinely unauthorised.
When to escalate
If the issuer does not explain a decision, ask for its formal complaints procedure and keep the case reference. Provide a concise chronology and the documents already submitted. The provider can confirm its review route and any applicable external escalation option. Do not assume that an administrator’s response replaces the card provider’s complaint process.
A practical decision checklist
- Credit card, direct retailer, single item over £100 and up to £30,000: ask for Section 75 first and chargeback as an alternative.
- Debit card: ask the issuer to raise chargeback for non-delivery or an unpaid refund.
- PayPal: open the PayPal dispute promptly; Citizens Advice states 180 days from payment, subject to the current account rules.
- Marketplace, wallet or finance provider: disclose the full chain and ask each relevant provider which dispute route applies.
- Any payment method: register the debt with the administrator and keep proof, while treating any insolvency distribution as uncertain.
What outcome to expect
A successful Section 75 claim can make the credit provider responsible for the qualifying loss. A successful chargeback or platform dispute may return the transaction amount under that scheme’s rules. An administration claim may produce only a partial payment or no payment. Because issuer deadlines, card-scheme rules and platform terms vary, the safest approach is to start every potentially available route promptly, provide a complete evidence pack and obtain each deadline in writing.
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