XL Airline -- status of plastic payments?

sometimes. I think it depends on who issues it. I've successfully claimed money back from goods purchased online using Visa Debit from Co-Op.

You have no legal entitlement unless it is in your bank's T&C. You could ask though, they might refund it.

Some banks offer a similar guarantee with VISA Debit cards to that offered by UK credit cards. It depends on the individual bank that issues the card.

Peter Crosland

The question of chargebacks on Debit Cards has just been featured on BBC2's Working Lunch programme. See;

My offspring and a friend were booked with this company for next month. Paid cash for the tickets. They went down to the travel agency this afternoon and got a full refund and booking for an alternative holiday.

I think this was discussed here several months ago.

I seem to remember that you are protected with a debit card if your use of the card to purchase the goods resulted in your account being overdrawn. That's because the card then becomes a "Credit Token" under the terms of the 1974 Consumer Credit Act, just as a credit card is.

Chris

I think their saving grace is that they booked through a travel agent rather than directly with XL.

Nobody here or on BBC/SKY ITV news has mentioned anything about travel insurance, im pretty sure its part of the agreement between the passenger and the airline that people must have travel insurance to board.

I would assume the majority of people have travel insurance so does this travel insurance not cover anything like this ??.

"Essex Laptops - Andy Usher" gurgled happily, sounding much like they were saying:

No, it isn't.

It may seem it, but that's only because travel agents get a huge markup on selling massively overpriced ad-hoc insurance for more than you can buy a better annual policy for.

No, of course not. They're not insuring the airline/holiday company - they're insuring YOU. They'll pay if YOU have to cancel or cut short the holiday. But not if the airline/holiday company goes titsup.com

The time I claimed back on a debit card the purchase didn't make me overdrawn.

Ok, This is fine, I rarely travel with insurance but was told it was law/compulsory by checkin staff

Most policies exclude it. Swift Cover lets you cover it for an extra charge, and M&S provide cover. Most others don't.

Travel insurance may not be much help. There was an article in last Saturday's (?) Times in relation to Zoom going bust noting that travel insurance might not cover costs to e.g. get you home when Zoom went bust as many travel policies don't include Scheduled Airline Failure Insurance any more (the Post Office insurance is one exception.

I think there is a separate VISA scheme, ask your bank.

You are definitely covered if you paid by debit card while overdrawn (or, if the payment took you overdrawn, for the amount by which you went overdrawn). Then you have exactly the same rights as if you paid by credit card.

Possibly protected by ABTA. They didn't enquire too closely. Just relieved they aren't losing a holiday

Purchases made using a Visa Debit card are covered by insurance in EXACTLY the same way as for credit cards. This is not commonly known even by the card issuers who when asked will say that you are not covered. If you persist and point out to them the Visa terms they will concede that they were wrong, apologise and deal with your claim.

Sorry but this is incorrect. Debit card chargebacks in this instance will only be covered if in the terms and conditions of issue of your debit cards by individual banks. There is no national 'Visa' rules because Visa is just a commercial company and cannot override any UK or EU legislation such as our Consumer Credit Act.

In that case any refund would have been a result of your bank's own internal policies, and not a statutory entitlement.

Chris

It has nothing to do with insurance. It's to do with the legal responsibility banks have for items purchased with a credit card. That obligation does not exist with debit cards, unless the account is overdrawn.

Chris