This means that if the merchant selling the goods is in breach of contract or misrepresents the goods in any way, the credit card company is required to compensate the customer.
This will apply when:
- a consumer uses a UK credit card to buy goods while abroad;
- a consumer orders goods from a foreign supplier while abroad for delivery into the UK;
- a consumer in the UK buys goods by telephone, mail order or over the Internet which are delivered to a UK address from overseas; or
- there are face-to-face pre-contract dealings with a foreign supplier who is temporarily in the UK, or with a UK agent of a foreign supplier, but the contract is not completed in the UK.
With the holiday season now in full swing, holiday makers who use their credit cards abroad will be relieved to know they are still protected under UK law. The decision will also protect those who buy goods using the Internet.