Upheld: Service failures generally complaint against Sumup Payments Limited

Decision detail

Summary

A charity (E) complained that SumUp's payment processing system failed during its June 2022 event, causing approximately £7,500 in lost revenue from perishable goods. The failure occurred because E's account had not been manually verified, a requirement E was unaware of despite multiple conversations with SumUp staff in May 2022. SumUp's finance manager (Mrs H) was not a trustee or director, so manual verification was always required, but SumUp failed to adequately explain this to E. Although SumUp sent a verification email on 19 May 2022, the ombudsman found this insufficient and concluded SumUp should have explained verification requirements during the sales process. The ombudsman upheld the complaint and ordered SumUp to pay £8,000 (£7,500 for lost revenue and £500 for non-financial losses).

The Ombudsman's reasoning

The ombudsman found that SumUp failed to adequately communicate its verification requirements to E despite having multiple opportunities to do so during May 2022. Although SumUp sent a verification email on 19 May 2022, the ombudsman concluded this single email was insufficient given E's structure, business model, and the critical importance of the June event. The ombudsman noted that E's representatives acted quickly once they understood verification was needed, suggesting they would have complied earlier if properly informed. The ombudsman rejected SumUp's reliance on regulatory compliance as justification, distinguishing between the requirement to verify (which is legitimate) and the failure to adequately communicate those requirements. The ombudsman found it unlikely that E's representatives knew about verification requirements before the event, given the speed with which they gathered documentation once aware.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website