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Customers urged to pandemic-proof holiday purchases with credit card payment protection

With billions of pounds set to be spent on holidays abroad this year, TotallyMoney, the credit app that helps everyone move their finances forward, is calling for holidaymakers to protect their payments with Section 75 of the Consumer Credit Act 1974.

  • Following the relaxing of covid restrictions, the number of holiday bookings has spiked by up to 200%*
  • Brits are predicted to spend a massive £41bn on foreign travel in 2022**
  • With travel businesses reporting turnover 78% lower than pre-pandemic levels†, some could be teetering on the edge,  potentially following the likes of Thomas Cook, Flybe, Wow Air, and Laterooms, who all collapsed in recent years‡
  • Section 75 protects all credit card transactions between £100 and £30,000. This includes holiday companies and airlines going bust, or cancellations due to covid
  • It only covers customers paying with a credit card — not cash, debit cards, loans or buy now pay later services

As the impact of covid continues to unfold, and with inflation hitting a 30-year high, customers can’t afford to gamble with their finances and should protect all payments where possible.

The credit card payment guard 

TotallyMoney is urging Brits to cover holiday bookings, both domestic, and international, with Section 75. This covers any purchase made with a credit card costing between £100 and £30,000. 

Section 75 means the credit card company and supplier are equally liable for any breach of contract. Even if you only put down a deposit on your credit card, paying the rest by other means, you can still claim back the full amount. 

Your claim will only be successful if the Debtor-Creditor-Supplier (DCS) link isn’t broken. This means that the exchange of money between you, your credit card company, and the service provider must be maintained. So, you won’t be able to claim when booking through third parties such as or Expedia, or if you pay via PayPal.

Section 75 is only valid on purchases using credit cards, and not debit cards, loans or buy now pay later services. It doesn’t cover just travel, but all other qualifying purchases. This could range from buying a faulty dishwasher or ordering a new television that doesn’t turn up.

TotallyMoney’s five Section 75 tips are below, with a link to its in-depth guide here

Buy now, spread longer

This recommendation comes at a time when TotallyMoney customers are 31% more likely to be eligible for a credit card now§, compared to the beginning of the pandemic. 

With only part of the payment required using a credit card, customers won’t necessarily need a high limit. However, they should always check their pre-approved offers, to see how likely they are to be accepted, before applying.

Additionally, some of the most competitive purchase card offers seen in years are available now, customers can buy now and spread payments, interest-free, for up to two years. That gives extra breathing space, as well as payment protection.

Alastair Douglas, CEO of TotallyMoney comments, 

“With the impact of covid still playing out, we can’t take anything for certain. That includes booking holidays with a guarantee we’ll be able to travel. However, customers making payments with credit cards can be confident, knowing that if anything does go wrong, they can make a claim for their money back under Section 75.

“Claiming requires no excess, and customers will be covered if there’s a breach of contract. This includes if the holiday firm goes out of business, the airline goes bust, or travel is cancelled as a result of covid measures.

“At TotallyMoney, we’re on a mission to help everyone move their finances forward. By protecting larger purchases with Section 75, customers can ensure they don’t get caught short when a supplier fails to keep to their side of the bargain.”

Five Section 75 Tips

Here’s our top five things to remember for Section 75. We also have a full guide here

1. £100 to £30k

Individual items and purchases costing more than £100 and up to £30,000 are covered under Section 75. So, whether it’s a cancelled flight or an all-inclusive family holiday, as long as you paid part of it on a credit card, you could be reimbursed the full amount if the company goes bust.

2. Just credit

Unless at least partially paid on a credit card, Section 75 doesn’t apply to purchases using debit cards, cash, loans, or buy now pay later services. It’s only valid when using credit cards.

3. Rule number 3, no third parties

Buying through a third party, like travel agents, won’t offer Section 75 protection. You need to have paid the company directly (so purchases made through PayPal, for example, aren't covered).

4. Part pay for full cover

Remember that only part of the purchase needs to be paid with a credit card. So for instance, if you pay the deposit with a credit card and the rest debit, should anything prevent you from settling the balance (like the airline collapses), Section 75 lets you claim the full amount. Not just the part paid on credit.

5. Not just travel

You’re covered for all qualifying purchases. Whether you buy a new television and it doesn’t turn up, or if you buy a faulty dishwasher. If you’ve used a credit card, you could be protected under Section 75 of the Consumer Credit Act 1974.



**American Express



§ TotallyMoney December 2021 vs Q2 2020

For more information, please contact the press team

About TotallyMoney

With a focus on the one in three UK adults financially under-served by the financial services industry, TotallyMoney is the credit app on a mission to help everyone move their finances forward.

TotallyMoney believes people’s financial data should work for them, and not against them and with more than four million customers, they provide the UK’s only free, live credit score and report.

Its service helps customers understand their financial position and provides personalised recommendations so they can start creating financial momentum. TotallyMoney also works closely with leading lenders, to ensure eligible customers are matched with the right products, underpinned by its robust data, product and tech capabilities.

TotallyMoney is regulated by the Financial Conduct Authority (FCA).

We're on a mission to help everyone move their finances forward and gain financial momentum.

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TotallyMoney is owned and operated by TotallyMoney Limited which is registered in England and Wales (Company Registration Number 06205695). TotallyMoney Limited is an Appointed Representative of TM Connect Limited, which is registered in England and Wales (Company Registration Number 06967012) and authorised and regulated by the Financial Conduct Authority in respect of consumer credit related activities (FCA FRN: 511936). Trading Address and Registered Office: Chapter House, 16 Brunswick Place, London N1 6DZ. Credit is available, subject to status, only to UK residents aged 18 or over.

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