Paying safely online: cards, PayPal and bank transfers
Last checked November 2026. Offers and rules change: confirm with the provider before you rely on them.
The safest way to pay online is by credit card for anything costing over £100, and by debit card or PayPal for smaller amounts. Avoid paying a person or shop you do not know by bank transfer, because it is the hardest kind of payment to get back.
How the main ways of paying compare
| Way of paying | Protection if things go wrong | Best used for |
|---|---|---|
| Credit card | Section 75 legal protection on items costing over £100 and up to £30,000; chargeback for other amounts | Larger purchases, holidays, furniture, anything ordered well ahead |
| Debit card | Chargeback, a card-scheme process rather than a legal right | Everyday online shopping |
| PayPal and similar services | The service's own buyer-protection scheme | Marketplaces and smaller shops, so the seller never sees your card number |
| Bank transfer | No purchase protection; reimbursement rules only where you were tricked by a fraudster | People and firms you already know and trust |
Credit cards and Section 75
Section 75 of the Consumer Credit Act makes your credit card provider jointly responsible with the retailer when something goes wrong. If the goods never arrive, are faulty, are not as described, or the company goes out of business, you can claim from the card provider instead.
- It applies to a single item or service costing more than £100 and not more than £30,000.
- You only need to have paid part of the price on the card, even just a deposit, for the whole amount to be covered.
- It applies across the UK and to purchases from overseas and online retailers.
- It may not apply if you paid through an intermediary rather than directly to the supplier, which can include some purchases made through payment services or marketplaces.
Go to the retailer first. If that fails, contact your card provider and say you want to make a Section 75 claim. If the provider turns you down unfairly, you can take the complaint to the Financial Ombudsman Service, which is free.
Debit cards and chargeback
Chargeback lets your bank reverse a card payment by claiming the money back from the retailer's bank. It covers debit cards, and credit card purchases of £100 or less, for things like goods not arriving or a company ceasing to trade.
It is run under the rules of the card schemes, such as Visa and Mastercard, and is not a legal right, so success is not guaranteed. There are time limits, so contact your bank as soon as it is clear the retailer will not help, and ask for "a chargeback claim".
PayPal and other payment services
With PayPal you set up an account linked to your card or bank account and then pay shops by logging in, so the seller never sees your card details. It has a buyer-protection scheme for goods that do not arrive or are significantly not as described, subject to its own terms and time limits.
Paying by tapping your phone or using a stored card through Apple Pay or Google Pay is still a card payment, so the card's own protections generally apply.
Why bank transfers are different
A bank transfer, also called a Faster Payment, moves money from your account straight into someone else's, usually within seconds. It is ideal for paying your window cleaner or sending a grandchild birthday money. It is a poor way to pay a stranger, because there is no chargeback and no Section 75. If a seller on a marketplace or a website you do not know insists on a transfer, walk away.
When you set up a new payee, your bank checks whether the name you typed matches the name on the account. If it warns you the name does not match, stop and check with the person directly.
If you are tricked into a transfer: the reimbursement rules
When a criminal persuades you to send them money by bank transfer, it is known as authorised push payment (APP) fraud. Since 7 October 2024, rules set by the Payment Systems Regulator have required banks and payment firms to reimburse most victims. At the time of writing (November 2026):
- the rules cover payments made by Faster Payments or CHAPS between UK accounts
- the maximum that must be reimbursed is £85,000 per claim
- your bank can deduct an excess of up to £100, though not if you were vulnerable to the scam
- most claims should be decided within five working days, though the bank can take longer if it needs more information
- you must report within 13 months of the last payment to the fraudster
- a bank can refuse if you were grossly negligent, for example by ignoring its specific warnings, but that test does not apply to vulnerable customers
The rules do not cover payments sent abroad, card payments, cash, or ordinary disputes with a genuine trader. The regulator explains the scheme on its page about APP fraud reimbursement protections. The limits could change, so check there for the current figures.
If you think you have been scammed, ring your bank at once on the number on your card or by dialling 159, then follow the steps in spotting scams.
Good habits at the checkout
- Check the web address and the retailer before you type anything; see online shopping safety.
- Never tell anyone your PIN, your online banking password or a one-time code your bank has sent you. The code is for you to type in, never to read out.
- Look through your statement each month and query anything you do not recognise.
- Use strong, separate passwords for your email and bank; see passwords made simple.
Common questions
Is a credit card really safer than a debit card online?
For purchases over £100, yes, because Section 75 is a legal right against the card provider. Below that, both rely on chargeback, and the practical difference is small.
Does Section 75 cover something that cost exactly £100?
No. The item must cost more than £100. For anything at or below that, ask about chargeback instead.
A seller wants paying by bank transfer to hold an item. Should I?
Not if you do not know them. It is one of the commonest ways people lose money on marketplaces. See buying on marketplaces.
What if the retailer goes bust before delivering?
Contact your card provider. A credit card purchase over £100 can be claimed under Section 75; otherwise ask for a chargeback. Your consumer rights explains where else to turn.