Section 75 dispute timeline

Financial Chat
1

does anyone remember what exactly happens during a Section 75 dispute?

  1. you raise dispute with payment processor
  2. funds temporarily reversed(?)
  3. fee paid? By whom?
  4. both parties (merchant and processor after asking customer) upload evidence to a portal(?)
  5. agreement or otherwise?

i’m not sure about anything past stage 1 really…

edit: for anyone reading i don’t need an explanation of what section 75 is, what a consumer needs to do nor the well-trodden terms/requirements. i’m asking specifically what actually happens and the timeline for things like fees paid between merchant and credit card company, evidence provided by both these parties and the exact terms and timeline for any reversal.

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2

No.

You claim from the credit card provider.

The credit card provider refunds you, provided the claim is in accordance with the legislation (eg. the original goods or services cost over £100 and less than £30,000, for example)

You may be asked for proof that the goods are not fit for purpose, but most claims are simply refunded.

3

Are you asking about a transaction made with a credit card, or with your Monzo account?

If the latter, you need information about the chargeback process, as Section 75 doesn’t apply to Monzo.

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4

All the info is here. Just ask if you don’t understand anything.

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5

i said “section 75” and asked in a general not monzo forum. so to clarify, i’m asking about section 75 not mastercard chargeback. afaik that is only credit card :slight_smile:

6

how is that different from payment processor?

and what is your “no” in response to? which step doesn’t happen?

er where? the mse article doesn’t answer any of the questions i asked as far as i can see. it’s purely from the consumer’s point of view.

once the payment processor begins the chargeback what happens? do the temporarily reverse the payment now or wait for a decision? they usually ask the consumer for evidence after the process begins. what’s the timescale for that? does the merchant talk directly to the processor or someone else? does the merchant have to pay fees?

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7

The credit card company is not the payment processor. You claim from the credit card company.

The ‘no’ was to the entirety of your opening post, none of which was relevant.

There’s no temporary reverse of the charge, no fee and almost always no faffing with evidence. You make a claim, and the credit card provider refunds you. It should be instant, or within a couple of days.

In the background the credit card provider might attempt to claw back their money from the supplier, but I don’t know the process for that I’m afraid.

I’m sorry you found the link unhelpful. I assumed, incorrectly, that you wanted to know the process in making a claim.

8

so when is the charge reversed? this is something i’m trying to work out a clear answer to. and is it before the case is closed or after?

do merchants really pay zero fee?

and when there’s a dispute between credit card company and merchant, how do they resolve this without evidenec?

9

A Section 75 claim isn’t a chargeback, exactly. When you take credit to make a purchase (whether a loan, or credit card) whoever provides the credit is jointly liable for the goods or services provided. If there is something wrong with the goods or services, and you can’t resolve this with the supplier, you can make a claim against the credit provider as if the credit provider was the supplier.

Certain conditions have to be met; for example, the goods must be between £100 and £30,000, but as long as the conditions are met, then the credit provider pays you back.

10

I believe this is what happens if the claim is a Monzo chargeback. Not a Section 75 claim. It’s one reason why Monzo will make you contact the merchant and try and resolve it with them first. They really don’t want to get into this cycle if it can be avoided. In any case, it would therefore appear to be irrelevant in this circumstance.

11

no i wanted to know the answers to the questions i asked.

i tried to be very precise about this as there’s abundant easily-searchable information about what it looks like from a customer’s point of view. i just couldn’t find anything explaining the actual timeline of the process and what exactly happens (as opposed to the upper part of the iceberg which the customer sees) so i asked here in financial chat because there are people who work in finance and/or are very knowledgeable.

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12

sorry, bad wording on my part. i did mean s75 not chargeback. what do you call this part of a s75 claim instead?

i’m aware of all this. you can read it all in section 75 and 75a. i’m asking specifically about what actually happens in the process between merchant and credit card company.

13

for example i seem to remember reading that once a s75 begins the funds are reversed and then this reversal is reversed again if the credit cad company later sides with the merchant. can anyone shed any light on this? if it’s not the case what actually happens to the money the merchant has charged and when?

14

Except you weren’t precise, and then you responded rudely to me when I tried to clarify what you were asking for as you have managed to badly mix up Section 75 disputes and the chargeback process, which are entirely different things.

So far everything you’re saying or asking about the ‘behind-the-scenes process’ is what applies to a chargeback dispute, not a Section 75 claim.

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15

i’m very sorry if you think i’ve been rude that certain has never been my intention (and i’m a little confused too). i don’t see why you say i have badly mixed these up though as i was careful not to use the word chargeback once in my first post nor the word visa or mastercard to avoid that very confusion.

but it’s very helpful if the timeline is closer to a chargeback than a section 75 so thank you for that. can you explain the differences in the process then please as well as what actually happens in a s75 instead?

16

perhaps i can try to be clearer now:

  1. what is the behind the scenes process for s75?
  2. what is the behind the scenes process for chargeback?

if anyone knows this especially timescale, points where transactions are reversed and fees, etc. that would be very helpful because every time i search i can’t find anything but consumer explanations of when these are applicable not what actually happens.

17

Apology accepted. I will do my best to explain the difference between the two processes.

With a Section 75 claim, you’re claiming directly from your credit card company because they are jointly liable with the merchant if something goes wrong. Section 75 is enshrined in law.

As far as you’re concerned as a consumer, once the credit card company has paid out, that’s it. There’s no back and forth after payout, they won’t take the money back from you and give it back to the merchant. That’s it.

The reason there’s a timeline with chargebacks is because in this case, the provider is not liable at all. It’s why they will ask you to try and resolve the issue with the merchant first, and only step in once that has been exhausted.

It is with chargebacks that things can flip back and forth. Chargebacks are not enshrined in law.

A Monzo staff member did post a while back some details of how the timeline works for Monzo, which may be what you’re remembering seeing. I’ve been unable to find the post again, though, but it does work somewhere along these lines:

  1. You contact Monzo support to raise a chargeback request.
  2. Monzo ask you to try and get a refund from the merchant first.
  3. You come back to Monzo with some evidence that the merchant isn’t playing ball.
  4. Monzo may still not do a chargeback for you if they don’t feel it has a reasonable chance of succeeding. In this case, you would now turn to the small claims court, probably.

If Monzo do start the chargeback process, they they will reverse the transaction, and take the money from the merchant and put it back in your account.

The merchant can dispute this, and take the money back from you.

Monzo can dispute the dispute, and take the money back from the merchant and put it in to your account.

This can repeat until each side gives up. To prevent an infinite loop, there is an escalating fee to pay with each reversal. At some point, one side or the other will give up.

The fee is paid by the bank on one side, and the merchant on the other.

In both Section 75 and chargeback cases, evidence from the customer would need to be provided up-front before the claim is paid (in the case of Section 75) or the process started (in the case of a chargeback). Once either of those two things have happened, you’re unlikely to have the bank ask for more evidence because they wouldn’t have got to that point without already having a preponderance of evidence.

As I said, I can’t find the forum post about how the chargeback process works for Monzo, but Which have an article which covers some of it:

I hope that helps clear things up some.

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18

at the risk of sounding like a broken record, i’m more concerned from the behind the scenes view (i.e. the merchant/cc perspective).

when do the merchant get the funds in the first place?
if a s75 starts when do they lose them?
do they have to pay any fees.

19

this was exactly what i was looking for but for chargeback :slight_smile: is there nothing similar with s75?

and do you have the fee scale anywhere?

20

With Section 75, I don’t know how, precisely, it works behind the scenes. For two reasons. One, as a consumer it’s not relevant to me. And two, we haven’t had a credit card company employee post the flow on here. :sweat_smile:

I’m sure there are going to be some cases where if you make a successful Section 75 claim, the credit card provider may not even try and recover the money from the merchant (say, the merchant is bankrupt).

The only thing I can say for certain is that “Your credit card company pays out on your claim” would effectively come at the end of the timeline as far as you’re concerned.

The Which article linked earlier does give some insight into a S75 timeline under “How do I make a claim?”

say: “I am making a claim under Section 75 of the Consumer Credit Act”.
It should then send you a claim form
Sometimes the credit card company will ask you to get independent verification of a fault.
Sometimes it will tell you it will try to reclaim the cash from the company in administration. You can simply answer: “Great news, I wish you the best of luck. However you are completely liable for my goods yourself, and I would like the full amount I’m entitled to please, regardless of that claim.”

That’s really as much further insight into S75 that I can give.

Not that I’m aware of. The reason we know it for chargebacks is because the outcome to the consumer rests on what happens in this process in a way that it doesn’t for the S75 process.

At the risk of sounding like a stuck record, the customer process for S75 is: you prove to your credit card provider that there was a problem with the transaction, they pay out as they are liable. Money doesn’t ping back and forth in the same way. I can’t say if the credit card company will reclaim the money from the merchant first, afterwards, or even not at all (see Which quote above).

I’m afraid I don’t know the fee scale, I don’t think that was shared with us.

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