Britons spend hundreds of pounds more in the run-up to 25 December, from spending money on festive outings to buying Christmas presents.
On average, households spend around £713 more in December – 29% more than a typical month, according to the Bank of England in December 2024.
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Credit card protection when shopping
When used in the right way, credit cards offer a number of perks.
A major benefit is that they come with Section 75 protection. If you use your credit card for a purchase of between £100 and £30,000, you will be covered by Section 75 of the Consumer Credit Act. It means the credit card company has equal liability with the seller if there’s a problem with the goods or services you've bought, or the company you bought them from fails.
Payments made by debit cards aren't covered by this protection. However, if there is a problem – such as the product doesn’t arrive or is faulty – and the firm refuses to refund you, you can ask your bank to reverse the transaction. This is known as chargeback, and it can apply to credit or debit card transactions.
Unlike Section 75, chargeback isn't a legal right. While claims can be successful, there’s no guarantee your card provider will be able to recover the money through chargeback and the trader will need to accept that you were justified in getting the money back.
Top credit card rewards not to miss
Make your shopping pay by clocking up rewards for your purchases. Some credit cards offer cashback or points which can be exchanged for things like vouchers or money off flights. Using these cards to pay for things you were intending on buying anyway can mean you earn perks on your spending.
Though be sure to be able to pay off your bill to avoid high interest charges, otherwise the perks are effectively cancelled out.
The best type of rewards credit card will depend on how and where you spend your money. For instance, the M&S Rewards Credit Card offers one reward point per £1 spent at M&S, but just one point per £5 spent elsewhere. The points can then be converted into M&S vouchers (200 points equates to £2 in vouchers). Therefore, the card might be more attractive to a regular M&S customer, compared to someone who rarely shops there.
Likewise, the British Airways American Express Credit card offers one Avios point for every £1 spent (it also has a welcome offer of 5,000 bonus Avios when you spend £2,000 in the first three months), and a companion voucher when you spend £15,000 on the card in a card membership year. This could be appealing if you’re planning on booking a trip abroad, although you might not reap the rewards as much if you prefer staying closer to home.
Eligible American Express card members can also benefit from extra cashback deals. For instance, Amex is currently offering £60 in statement credit if you spend £600 at one or more participating stores at the outlet shopping centre Bicester Village. The offer is available until 31 December and valid once per card. You need to save the offer to your card via the Amex app or website in order to be eligible.
We look at the top American Express credit cards in a separate piece.
Get cashback on your spending
Cashback credit cards are just one way to get money back from your Christmas shopping. You can earn money from online shopping by using cashback websites such as Quidco or TopCashBack. They give you a percentage when you click through to well-known retailers and buy something.
These websites use affiliate links – the retailer can track when someone visits them via the cashback site, and then pays them money for directing the customer to them. Cashback websites then share some of that with you.
Some banks offer customers cashback too – Chase currently offers 1% cashback on eligible debit card spending for the first year. It's limited to £15 per month and exceptions apply. Since 7 April, the cashback has been restricted to groceries, everyday transport, and fuel, and purchases must be made in the UK and the Channel Islands and paid for in sterling.
Monzo offers individual cashback deals typically between 2% to 10% to its personal current account customers. For instance, the challenger bank is currently offering 10% cashback, up to £30, on spending at Not on the High Street. This is a limited-time only offer and you need to activate the offer on your account before you pay.
