Not upheld: chargeback dispute handling and account closure complaint against Monzo Bank Limited

Decision detail

Summary

Miss R purchased goods from abroad totalling £492.12 plus £198 in customs fees, but claimed the parcel arrived ripped and empty. After failing to resolve the matter with the merchant and courier, she requested Monzo raise a chargeback dispute. Monzo declined, citing that the circumstances did not meet chargeback criteria, and subsequently closed her account. The ombudsman found Monzo acted fairly in applying Mastercard's chargeback rules, as the courier's signed proof of delivery provided strong evidence that goods were delivered, making a successful chargeback unlikely. The account closure was also found to be fair as Monzo provided the required two months' notice in accordance with their terms and conditions.

The Ombudsman's reasoning

Monzo fairly applied Mastercard's chargeback rules when deciding not to pursue a dispute. The courier's signed proof of delivery provided strong evidence that goods were delivered, which the merchant could use to defend against a chargeback claim under the 'Goods or Services Not Provided' reason code. The customs fees dispute was also not eligible for chargeback under scheme rules. Regarding account closure, Monzo was entitled to end the relationship and provided the required two months' notice as per their terms and conditions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website