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With Christmas fast approaching, and the recession refusing to let go its grip on  the UK economy, hard-pressed consumers need to be aware of the financial and legal protection afforded to them via credit and debt cards, says ACCA (the Association of Chartered Certified Accountants).

Provided the costs of a transaction are between £100 and £30,000, purchases made on a credit card are protected under section 75 of the Consumer Credit Act 1974. This protection applies if the goods are faulty or if products or services are not delivered, and can be sought regardless of whether the firm in question is solvent or not.

John Davies, head of business law at ACCA, says: 'This is not the only good news for customers. Where it was once true that debit card purchases were outside the ambit of section 75, users of Visa debit cards are now safeguarded under the Visa Debit Chargeback scheme. Importantly, all banks who issue a Visa debit card - about two-thirds of all British banks - must comply with this rule. This rule applies to both domestic and overseas transactions.'

Under this scheme, money can be recovered if the purchased goods are damaged or are not delivered. Further, there is no limit to the amount to which can be claimed. The only caveat is that all such claims must be undertaken within 120 days of purchase.

Unfortunately, there is no similar scheme for Maestro debit cards, which still remain unprotected. Nor is protection afforded to consumers who make payments using cash or credit card cheques.

John Davies adds: 'With the festive season around the corner, it is essential that purchasers take into account the protections afforded to them if they choose the right method of payment. This is especially true in the case of telephone or internet transactions as, in light of current trends, these two mediums are likely to see an increase in popularity. This is particularly true for large internet-based firms such as Amazon or eBay.'

John Davies concludes: 'The credit and debit card safeguards afforded by the 1974 Act are extremely effective in ensuring that money owed to consumers is coughed up by firms. With credit so tight at the moment, every penny counts and no-one wants to see their hard-earned money swallowed up when retailers go bust. These protections provide a staunch bulwark against the vagaries of the current economic crisis. But it is vital that consumers keep some evidence of their purchase, such as a receipt or print-out of an internet transaction. Businesses and banks are of course not required to refund any money if their customers cannot provide any proof of sale.'