Not upheld: Card / payment disputes complaint against Sumup Payments Limited

Decision detail

Summary

Mr B, a sole trader, complained that SumUp Payments Limited made disproportionate and intrusive requests for customer data on five transactions between June 2024 and March 2025, and reversed the transactions when he declined to provide the information. Mr B argued he was not informed during onboarding about these requirements and that the requests were excessive for his low-risk business. The ombudsman found the requests reasonable and proportionate, noting that financial businesses must conduct ongoing monitoring for regulatory compliance. The ombudsman rejected Mr B's claim that he could not provide customer names and addresses, finding it unlikely given the nature of his business where services were provided at customer premises. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that financial businesses are strictly regulated and must conduct ongoing monitoring. SumUp's contractual terms permitted it to request information and reverse transactions for non-compliance. The questions asked were not unreasonable or excessive. While Mr B claimed he could not provide full customer names and addresses due to his industry practices, the ombudsman found this unconvincing given that Mr B would necessarily have had addresses where services were provided and would know the names of customers paying by card. SumUp was not required to answer all of Mr B's questions about the precise legal basis for its requests.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website