MARTYN JAMES

Pitfalls and protections: What's the safest way for you to pay?

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There are lots of different ways to pay for goods and services. Yet the way you pay can have a big impact on your consumer rights - and on getting your money back if things go wrong. Here's my guide.

CREDIT CARDS

Credit cards can charge you ludicrous levels of interest. However, they are the best way you can protect your purchases. That's because the Consumer Credit Act says you can claim your money back from your card provider if the goods are misrepresented, don't work or don't turn up.

Each item you buy must cost over £100 and under £30,000. However, make sure you pay off the card before interest is applied.

There are, of course, lots of catches with these claims (known as 'section 75 claims'). You have to buy direct from the seller of the goods and not use a third party company, for example. You aren't guaranteed to get a refund either. But if you are worried about a business going under, it's the best level of protection.

DEBIT CARDS

There are two words to remember if you've paid for goods or services with a debit (or a credit) card: 'chargeback'.