Can Your Credit Card Protect You From a Volcano?

I don't mean in a 'Dante's Peak' lava flow, lake of acidAssociation, which represents the credit card industry.
way but in the way that matters to millions ofEven if you've been caught out by the wording of
Europeans whose travel plans have been upset byterms and conditions that mean that an airline has not
the recent cloud of ash.breached its contract, some card companies are still
Let's just say the Icelandic volcano won't be the lastmaking refunds through a charge-back for a service
thing to spew fire as frustrated holidaymakers seeknot received.
recompense for their cancelled flights and subsequentVisa Debit Chargeback is a procedure in which the
hotel expenses.banks will "charge back" the value of the original
There are two issues: fees levied on consumerstransaction directly from the supplier's bank, and pass
forced to use a card abroad and getting money backthis amount on to the consumer.
from cancelled flights.Those wishing to try and claim should contact the
The first issue will be down to whether users havebank who provided them with their Visa debit card
suitable use abroad credit cards.within 120 days, requesting that they initiate the
That will only become in time but it does underline thechargeback process.
importance of this product.Unfortunately, this will not apply to those who booked
For the second point the consumers' first port of callRyanair flights with a prepaid MasterCard to avoid
will be the major insurers. However, they have not yettheir credit card booking charges.
revelaed whether they will produce the cash to coverThose consumers wishing to claim for extra hotel
the costs incurred because of the volcano since it's anexpenses that they bought with a credit card may be
"exceptional circumstance" or "act of God" claim.covered by "'consequential cover" under section 75 of
Section 75 of the Consumer Credit Act means thatthe Consumer Credit Act.
where a company breaks its contract to provide aAlthough purchases on a Visa debit card which is
good or service worth £100 or more, the cardattached to an account in overdraft are usually
company will make a refund.covered under the Consumer Credit Act, such
Credit card companies will be called upon to reimbursepurchases do not include 'consequential cover',
their customers under this act if consumers' are ableAccording to the UK Cards Association, purchases
to show that their airline is in breach of contract andmade on a Visa debit card do not include
does not provide them with the flight purchased."consequential cover".
However, if the airline's terms and conditions say itMasterCard credit cards - such as the popular Virgin
does not have to in "exceptional" or "Act of God"Money credit card - and Mastercard debit cards
circumstances, it is not in breach of contract. In suchmeanwhile are not covered under the Act in any
circumstances the credit card company does notcircumstance.
have to pay out, according to the UK Cards