Not upheld: chargeback handling and refund dispute complaint against AMERICAN EXPRESS SERVICES EUROPE LIMITED

Decision detail

Summary

Mr F complained that AMEX failed to pursue a chargeback for a hotel deposit he believed was refundable. AMEX declined the chargeback, determining it had insufficient prospect of success. Mr F's evidence consisted of verbal assurances from the hotel rather than written documentation confirming the refund obligation. The ombudsman found that AMEX's assessment was reasonable, as chargeback rules require explicit merchant confirmation or refund notice. Although AMEX acknowledged minor administrative errors and communication breakdowns, these did not cause Mr F financial loss. The complaint was not upheld and no compensation was awarded.

The Ombudsman's reasoning

The ombudsman found that while AMEX could have contacted the merchant, the chargeback rules require explicit merchant confirmation or a refund notice to succeed. Mr F's evidence consisted only of verbal assurances without written documentation. Without such evidence, the chargeback had little prospect of success under the applicable rules. Similarly, a Section 75 claim would likely fail as there was no evidence of breach of contract or misrepresentation. Although AMEX's administration could have been better, this did not cause Mr F financial loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website