subject: How Credit Cards Can Protect You [print this page] They can't stop a bullet or inflate into a handy dingy but nevertheless credit cards can protect you in more ways than you might think.
There are two main ways that they offer protection. First, under law and second, with a wealth of extra services on protecting purchases, personal identity theft and other types of card fraud.
The first is worth being aware of because it offers a basic level of protection over debit cards or prepaid cards but the second could be a useful criteria when you compare credit cards, depending on your needs.
When it comes to protection under law the main thing to know is that you're protected under section 75 of the consumer credit act of 1974.
This act basically says that the credit card provider and the retailer are equally responsible when you make a purchase: that means if it's not delivered you can claim the money back from the card issuer.
This is a level of protection which is offered to all credit card holders and that looks likely to be the case for the near future as plans to extend the same protection to debit card holders have fallen by the wayside.
Luckily there are several other ways in which holders of plastic can find that they're protected when they spend.
When you have use abroad credit cards there's protection in the form either of single trip travel insurance, in the form of travel accident insurance - which basically covers less than a full insurance policy - or travel inconvenience insurance.
This is usually no replacement for full travel insurance but it's often a good extra when covering travel costs with a credit card.
Many cards also offer emergency card replacement when you're abroad in the case of loss whilst abroad.
However, it should be noted that many of these extras can be a way to disguise the fact that the card shouldn't be used abroad: for example because it charges high fees when used outside of the united kingdom.
There's also extra protection on purchases on some credit cards over and above that offered under law.
For example, the Virgin money credit card offers cover on anything you buy on the card between 50 and 1,000 against theft or accidental damage for up to 100 days from purchase.
These offers generally have a maximum claim limit but some of them cover more than that card.
