Is the full value of a credit card purchase covered?

Q We run a travel firm and we have been trying to clarify what protection is provided to credit card holders under section 75 of the Consumer Credit Act 1974.

I understood that the full value of the transaction is covered, even if the credit card has only been used to pay a deposit and the balance paid by other means. However, my local bank branch manager tells me that only the amount actually paid by credit card is covered.

We would like customers to be able to pay their deposit by credit card knowing that their entire transaction is covered in this way, but then be able to pay the balance by cheque, avoiding credit card surcharges.
HS

A The degree of protection offered by section 75 to customers who pay by credit card is clear. It says that the credit card company is jointly liable for any breach of contract or misrepresentation on the part of the seller.

You get the protection even if you pay only the deposit by card as long, as the goods or services you are buying cost between £100 and £30,000.

The claim is definitely not limited to the amount of the credit card transaction, since it is possible to claim for all losses arising from the breach of contract or misrepresentation.

I can only think you were told that a Section 75 claim is limited to the amount of the transaction because your travel firm acts as a travel agent.

Strictly, section 75 does not apply if a payment is made to an agent and not the supplier.

Perhaps some credit card companies will pay out compensation in these circumstances, but only up to the amount of the transaction. This would explain the conflicting advice you received.

If you want your customers to have the full protection of section 75, you will have to ensure that they use their card to pay the supplier directly.