How paying with a credit card can help protect you against Coronavirus holiday and flight cancellations
THE global spread of coronavirus has caused travel disruption for thousands of holidaymakers.
For travellers who are still thinking about booking a trip, we explain how paying with a credit card can help protect your money if your holiday gets cancelled due to the outbreak.
Read our coronavirus live blog for all the latest news and updates
More than 94,000 people have been infected with the virus globally, including 90 confirmed cases in the UK.
The outbreak has seen the (FCO) advise against all travel to badly-hit areas including mainland China and northern Italy.
Airlines such as Ryanair and British Airways have also scrapped hundreds of flights as holidaymakers ditch destinations affected by coronavirus.
In the first instance if your holiday or flight is cancelled due to coronavirus then it's up to your airline or holiday firm to refund you or offer alternative travel.
There are no guarantees and they will usually only cancel travel if the FCO changes its advice and deems the destination unsafe to travel to.
But if your airline or holiday firm won't pay out then we explain how a credit card could help you get a refund.
How can a credit card protect your holiday booking?
If you pay for your flight or hotel with a credit card, and the total amount comes to more than £100 (and under £30,000) and your flight or holiday is cancelled due to coronavirus, you may be able to claim money back under Section 75 of the Consumer Rights Act.
This is because when you pay by credit card, your provider is partly responsible if you don't get the service you paid for.
Banks are still liable even if you only paid a deposit, as Section 75 covers the value of the goods and not the total amount paid.
What is Section 75?
SECTION 75 protection applies to most credit agreements, so as well as credit cards, it applies to store cards and store instalment credit deals too.
So if the retailer you're buying from goes bust or your goods aren't delivered or the items are faulty, you have the legal right to go to your card provider to get your cash back.
Section 75 also applies to goods bought online, over the phone or mail order which are delivered to the UK from abroad too.
Remember that you aren't covered by Section 75 if you pay for items with your debit card.
You'd only get a refund for what you paid at the point of your flight or hotel being cancelled.
To start a claim, you need to contact your credit card provider directly - has a free tool that can help you do this.
It's worth noting that if you paid for your flights and hotel separately, each one would need to come to more than £100.
If your flight and hotel together cost more than £100, but each cost less than £100, Section 75 would not apply.
For packaged holidays that aren't covered by ATOL, the single amount you paid for your trip will need to come to more than £100.
You won't be able to claim for a refund under Section 75 if you cancel the trip yourself.
Another thing to watch out for is goods paid through an agent or a third party, as your card provider could argue it doesn't have a "direct relationship" with the supplier.
What about if I want to pay by debit card?
Flights and hotels booked by debit card may be able to claim a refund by their banks using the Chargeback scheme.
Chargeback can be used to reclaim cash for goods and services you didn't receive.
Claims apply for purchases made by debit card, or by credit card for purchases under £100, and must be done within 120 days of the transaction.
To start a chargeback claim, you need to contact your card provider but as it isn’t written into law there is no guarantee you’ll get your money back.
Will travel insurance protect my holiday?
This depends on the terms and conditions of the policy you take out.
Check here for our full list of what the main travel insurers are saying about coronavirus.
Martyn James, from complaints tool Resolver, warned that some insurers may be inserting "no coronavirus claims" clauses into new contracts.
This is something you'll need to look out for before making a purchase.
You should also look out for clauses that specify that you won't be covered for cancellations caused by a pandemic.
MORE ON MONEY
We spoke to MoneySavingExpert founder Martin Lewis about whether you should book a holiday or not due to coronavirus fears.
The Sun has also rounded up a list of the countries which are yet to declare a case of coronavirus.
And here's everything you need to know about getting a refund if a gig, event or festival gets cancelled because of coronavirus.