Advice to parents: if your child uses your credit card without you knowing

If your child uses your credit card without you knowing, to buy something on the Internet, you do have some rights under EU law to cancel the contract and get your money back.

Within 7 days

You have a minimum 7-day cooling off period to cancel the contract. (Some countries have established even longer cooling off periods, notably Denmark, Portugal, Germany, Finland and Sweden have 14 days, and Greece has 10 days.) This starts from the day you get the product or from the day a contract for a service is made. (There are a few cases where this right does not apply; in particular if the goods are perishable, for unwrapped cds, videos etc or computer software or for goods made to the customer’s wishes). The order confirmation, that the supplier is legally required to provide to you, must also have information on how to cancel. The only charge you may be asked to pay is for the cost of returning the goods. If the payment for the goods or service has already been charged to your credit card, then the money must be repaid within 30 days.

Longer than 7 days

If you do not act within this 7-day period then the situation is not so clear. Most European Union countries by law do not allow children to buy goods or services beyond their means. So if your child uses your credit card to buy an expensive item, like a bike, you should normally be able to cancel this contract, even outside the 7-day period, without too many problems. If, however, your teenager has used your credit card, without your knowledge, to buy some cds or books, your chances of getting your money back could be quite poor.

Another point in your favour is that the EU Distance Selling Directive gives a consumer rights if his or her credit card is used fraudulently, and, in principle, use of your credit card by your child, without your permission, could be considered as fraudulent. The Directive says that EU governments must allow the consumer to cancel a payment or to get their money back for a payment made due to fraudulent use of the consumers’ card.

Finally, in some countries, paying by credit card gives you extra protection if things go wrong, because you have the right to make a claim against the card issuer as well as the Internet trader.

So what do you do if you find that your child has used your credit card to buy on line?

1. First of all return the goods straight away, at least within 7 days, and ask for the contract to be cancelled.
2. Even it is longer than 7 days after delivery, return the goods and explain the situation. Refuse to pay for the goods or ask for your money back if your card has already been charged.
3. If the seller refuses to accept cancellation of the contract, refer him to your rights under the EU Directive, as set out above.
4. If the seller still refuses to allow you to cancel the contract and get your money back, check out your local and national systems to pursue claims. See also the section in our website dealing with your rights.
5. Look at the seller’s website to check if he is a member of a scheme which makes sure that consumers are treated fairly when they shop on-line. If it is, tell the seller you are going to appeal and who you intend to appeal to.
6. Check what protection is given to you by your credit card issuer (eg Visa or Access). Maybe you can claim the money back from them if you are having problems the seller.