AA Legal Documents
Law guide

Paying for your holiday: cash or credit?

There are advantages to paying for your holiday by credit card. If the holiday was disappointing because it was wrongly described or you did not get what you paid for, you may be able to claim against the credit company, as well as the tour operator, under section 75 of the Consumer Credit Act 1974, which makes the credit card company equally liable for poor goods or services. This claim is only available if the amount that you paid is between £100 and £30,000.

This is available even if the payment was made to an overseas travel operator, in terms of a court decision in the House of Lords in October 2007.

Some banks will provide cover for claims that are under £100, and you should always check the terms and conditions of your bank regarding your credit card and financial protection.

Despite this, it is always best to take out a travel insurance policy, because whilst you may be able to get your money back through the credit card company, other expenses such as repatriation will not be claimable.

For more information, see our 'Travel insurance' section.