As Christmas looms, not to mention Black Friday next week, banks are queueing up to flash their credit cards at shoppers.

However you normally pay for the seasonal splash, it does make sense to ensure that bigger ticket items over £100 go on a credit card.

Jody Baker, Head of Money at, says: “The law means your credit card provider must take the same responsibility as a retailer does if things go wrong with a purchase, this is across both goods and services. So if your present is lost in the post, you buy a service with a company that then goes bust, or if what you purchase ends up being faulty, then the credit card company can also be called on to repay you.”

However Matt Sanders at adds: “There are certain circumstances where Section 75 protection may not apply, such as where an additional cardholder makes a purchase, or spending via payment services or group buying sites such as PayPal, Amazon Marketplace and Groupon, and purchases through an agent or third party.”

Baker notes the card wars currently under way. “Some good options include the Halifax 24 Months All in One, which offers 24 months interest free on balance transfer and purchases or the Virgin 37 Month Balance Transfer card (exclusively with which also offers three months 0 per cent interest on new purchases and a case of wine – great for Christmas. But be sure to then make regular payments to pay off the balance on the card before the interest free period is over.”

Cashback and reward credit cards can also deliver a bonus on your shopping, but only if you repay your balance in full at the end of the month. Otherwise, any benefits you receive are quickly eroded by interest payments.

Cashback cards typically refund between 1per cent and 3per cent of the amount spent on the card, subject to certain restrictions, usually credited back to your account on an annual basis.

Reward credit cards pay you a specific reward for your spending – anything from air miles to supermarket loyalty points.

For drivers the new AA FuelSave card may appeal. It offers cardholders up to 4per cent cashback on fuel and 0.5per cent on all other non-fuel spending, as well as other benefits for both AA members and non-members. However there is a fee – of £3.50 a month.

The AA has also launched a balance transfer card charging 0 per cent for 22 months on transfers and three months on purchases, and a low rate card at 6.9 per cent. Both cards offer 40per cent off European breakdown cover.

But Nicolas Frankcom, money expert at, says: “The days of the lucrative reward card may be numbered.” Tesco credit card rewards for Clubcard purchases outside Tesco are being halved in value next month, following the capping by the EU of commissions earned by retailers. “The good news is that there are still great rewards cards out there, but you have to act sooner rather than later to snap up the best deals. American Express Platinum Cashback Everyday credit card offers 5per cent cashback in your first three months (up to £100) and up to 1.25per cent cashback thereafter. Sainsbury’s Nectar Balance Transfer Credit Card is also a strong contender with an offering of two Nectar points per £1 spent on Sainsbury's shopping and fuel plus one Nectar point for every £5 spent on your card elsewhere.”