Some shoppers are losing out on hundreds of pounds each year because they have been caught out by unscrupulous internet retailers, companies going bust or just plain poor service.

Consumer Focus, the Government’s consumer watchdog, said these shoppers could avoid being out of pocket if they used credit cards, but many shoppers do not like buying goods on credit. And the only way to pay for goods bought over the internet, if you do not like using credit cards, is with a debit card.

The Government has now hinted that it might tighten the rules to give greater protection to those shoppers that use debit cards, as part of a shake-up of the card industry.

The Government is reviewing the industry and Tuesday 19 January was the deadline for parties to submit their ideas of how to improve credit cards. Any changes accepted by the Government are likely to be announced next month.

A spokesman for the Department for Business, Innovation and Skills said: “We are aware consumers have concerns about their rights when using different types of cards. That is why we are looking at this issue very carefully and will be announcing our views in the New Year.”

Any change would be a major victory for consumers.

According to Consumer Focus, over the last year, one in ten consumers has been failed to get something they had paid for in advance – with less than half of the people not getting their money back. Those that have been ripped off have been out of pocket to the tune of £242, on average.

Under the 1976 Consumer Credit Act, the credit card company is jointly responsible – along with the retailer – for the quality of goods and services. This means anything between £100 to £30,000 will be covered by the credit card company if it arrives faulty or fails to arrive.

However, people buying goods on debit cards enjoy none of these rights and are left in a particularly weak position if an internet retailer goes bust.

Banks argue that it would be very expensive to offer consumers the same rights with debit cards. Credit card providers can only afford to cover the value of faulty goods up to £30,000 because they charge customers a large annual percentage rate. Debit cards are free in the great majority of cases.