Falling for a fake seller costs more than the item price. Here is the item-by-item breakdown, from unrecoverable payments to chargeback rules and the hours a claim takes.
Summary
- How much a purchase scam costs you depends largely on how you paid: Section 75 covers credit card and buy now, pay later purchases where a single item cost over £100 and up to £30,000.
- Chargeback works for debit card payments and smaller credit card claims, but it is not a legal right, refunds are not guaranteed and time limits vary by provider.
- Bank transfers to UK accounts by Faster Payments or CHAPS are usually refunded under the rules from 7 October 2024, up to £85,000; BACS, Swift and overseas transfers are not covered.
- Beyond the direct loss, scams can mean borrowing, drained emergency savings and hours spent gathering evidence and pursuing a claim.
- Report scams to Report Fraud in England and Wales or Police Scotland in Scotland, and forward suspicious emails to report@phishing.gov.uk.
Falling for a fake online seller costs more than the price of the item. A survey for Citizens Advice found that more than seven million UK adults had been hit by a scam, with online shopping the most common trap. This breakdown works through what each cost looks like, and which payment routes leave you a way back.
What a Purchase Scam Looks Like in Practice
A purchase scam usually takes one of two forms: a website or social media advert that takes payment for goods that never arrive, or a seller that sends something counterfeit or not as advertised. Citizens Advice says people it supported had paid hundreds of pounds for clothes, mobile phones and furniture, then received fakes, unsafe items, or nothing at all. Sellers may take more than agreed, stop responding, or disappear altogether.
Fake goods carry their own rules. Under the Consumer Rights Act 2015 you have a legal right to a full refund on counterfeit items within 30 days of paying. Between 30 days and 6 months the seller must refund you if it cannot supply a genuine replacement. After 6 months, you may be limited to a part-refund.
Chargebacks, Section 75 and When Each Applies
How you paid matters as much as how much you paid. The table below sets out the main routes to recovery.
| How you paid | Recovery route | What it covers |
|---|---|---|
| Credit card or buy now, pay later, single item over £100 and up to £30,000 | Section 75 of the Consumer Credit Act 1974 | Lender jointly liable; limits apply per item, not per order |
| Debit or charge card | Chargeback | Any amount, but not guaranteed |
| Credit card or buy now, pay later where Section 75 does not apply | Chargeback | Any amount, provider’s time limits apply |
| Bank transfer to a UK account by Faster Payments or CHAPS | APP refund rules | Usually refunded, up to £85,000 |
| PayPal | PayPal dispute | Must be opened within 180 days of paying |
Section 75 makes the card lender take the same legal responsibility as the seller when a purchase goes wrong. Two traps catch people out. The £100 minimum applies to a single item, not the whole order: a phone at £80, headphones at £20 and £5 delivery comes to £105 in total, but no single item passes £100, so chargeback is the only route. Section 75 also usually fails on online marketplaces, where you did not buy directly from the trader.
One detail works in your favour: pay any part of the cost by credit card and Section 75 can cover the full price. A £50 credit card deposit on a £250 oven lets you claim the whole £250. If you split payment across more than one credit card, only one provider pays a Section 75 refund.
A chargeback is different. Your card provider asks the seller’s bank to refund the money. It is not a legal right, a refund is not guaranteed, and time limits vary by card provider, so contact them quickly. Contact the seller first before starting a claim.
Bank Transfers and the October 2024 Refund Rules
Bank transfer scams are authorised push payment (APP) scams: you make the payment yourself, so there is no card scheme to reverse it. From 7 October 2024, banks and payment service providers should usually refund you if you sent money to a UK account by Faster Payments or CHAPS, up to a maximum of £85,000. They do not have to refund transfers sent by BACS or Swift, or money sent abroad.
Contact your bank straight away and give it any information it asks for. If 8 weeks pass without your money back, or you receive a final response letter saying no action will be taken, you can complain to the Financial Ombudsman. Our guide to authorised push payment scams covers the warning signs.
Unauthorised card use is different: if your card is used without permission, it is for your bank to prove the payment was authorised.
The Costs People Forget: Time, Debt and Follow-On Losses
Among scam victims significantly affected financially, 12% said they fell into debt or had to borrow money, and 10% used emergency savings. Borrowing turns a one-off loss into ongoing interest.
Time is the quieter cost. A claim means contacting the seller first, gathering receipts and screenshots, then waiting while the provider investigates. Extra losses stack up too: a seller that takes more than expected, or an unagreed additional payment, can leave you disputing several transactions rather than one.
Where to Report and What Happens Next
In England and Wales, report lost money or hacking to Report Fraud; in Scotland, report the crime to Police Scotland. Forward suspicious emails to report@phishing.gov.uk, and report misleading adverts to the Advertising Standards Authority. Trading Standards investigates and can prosecute sellers, though it cannot recover your money.
For help with a claim, Citizens Advice runs a consumer helpline on 0808 223 1133, open on weekdays between 8am and 6pm.
Take care
If money left your account in the past 24 hours, contact your bank and the police as soon as you can. Scams catch people from every background, so embarrassment should not hold up the call.
Checks to Run Before You Pay a Seller You Do Not Know
A few minutes of research is the cheapest protection available:
- Read the seller’s terms and conditions before you check out.
- Look up the company’s address on its contact page: a street name is a better sign than a post office box.
- If the seller says it is a registered UK company, you can look up its records through the free Companies House search.
- Sign up to Trading Standards’ email alerts to see which scams are circulating.
Next steps
- Authorised push payment scams: how transfer scams work and what the October 2024 refund rules mean for your money.
- Buy now, pay later in the UK: how these agreements work, since they fall under Section 75 like credit cards.
- Contactless cards and mobile wallets: how card and phone payments are protected if your details are stolen.
Questions readers ask
Can I get my money back if I paid a scammer by bank transfer?
From 7 October 2024, your bank should usually refund you if you sent money to a UK account by Faster Payments or CHAPS, up to £85,000. Transfers sent by BACS or Swift, or money sent abroad, are not covered.
Does Section 75 apply if my whole order cost more than £100?
Only if a single item cost more than £100. The limit applies per item, not per order, so a £105 order made up of items under £100 falls to chargeback instead.
Is chargeback guaranteed?
No. Chargeback is not a legal right, your card provider does not have to refund you, and time limits vary by provider. Contact your provider as soon as possible and be ready to provide evidence.
Where do I report an online purchase scam?
In England and Wales, report lost money or hacking to Report Fraud; in Scotland, report the crime to Police Scotland. You can also report sellers to Trading Standards and scam adverts to the Advertising Standards Authority.
This guide is general information, not financial advice. Rules, rates and allowances can change, so check the latest details with the provider, GOV.UK or the Financial Conduct Authority before making decisions. For advice on your own circumstances, speak to an FCA-authorised financial adviser.