Not upheld: Card / payment disputes complaint against Monzo Bank Limited

Decision detail

Summary

Mrs N booked flights in June 2025 for April 2026 via an online merchant using her Monzo debit card but experienced a booking error where part of her journey disappeared. After the merchant failed to assist, Mrs N resolved the issue herself by contacting the airline directly. In October 2025, she requested a partial refund of £400 from Monzo for the stress and inconvenience caused. Monzo declined, citing that Section 75 protections do not apply to debit cards and that a chargeback would not succeed since the booking had been rectified. The ombudsman upheld Monzo's decision, finding that under Mastercard's chargeback rules, a claim would not have succeeded because the services were ultimately provided correctly and the booking was properly restored before the dispute was raised.

The Ombudsman's reasoning

The ombudsman found that Section 75 of the Consumer Credit Act 1974 does not apply to debit card transactions, only credit cards. Regarding chargebacks, the ombudsman applied Mastercard's specific rules and concluded that a chargeback would not have succeeded under either the 'not as described or defective' or 'not provided' codes because the booking had been rectified by the time Monzo considered the claim, and the flights were correctly booked and scheduled for future travel. The ombudsman noted that chargeback schemes do not award compensation for distress caused by merchants. Monzo's handling of the claim was fair, with clear explanations provided within a reasonable timeframe.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website