Not upheld: scam - unauthorised payments to unlicenced gambling websites; payment processor liability complaint against Kalpixpay Limited

Decision detail

Summary

Mr B complained that Kalpixpay Limited should refund losses of nearly £70,000 he incurred through payments made to unlicenced gambling websites between October and November 2024. The payments were routed through Kalpixpay's infrastructure to a Canadian-regulated entity (F) and its end users. Kalpixpay declined to provide redress, stating their role was limited to payment processing infrastructure. The ombudsman did not uphold the complaint, finding that Kalpixpay's involvement was appropriately limited to processing payments for a regulated Canadian corporate client, that the payments did not meet PSR reimbursement scheme requirements, and that no reasonable level of oversight would have prevented Mr B's losses.

The Ombudsman's reasoning

The ombudsman found that Kalpixpay's role was limited to providing payment processing infrastructure to a regulated Canadian entity (F) and that they were not responsible for F's end-user relationships or activities. The payments did not meet the definition of 'Relevant Account' under PSR reimbursement rules as they ended up outside the UK with F's clients. Kalpixpay's regulated status (Money Remittance only) and F's separate Canadian regulation meant that Kalpixpay had no obligation to oversee F's end-user relationships, and no reasonable level of oversight would have prevented Mr B's losses.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website