Not upheld: payment processing and card restrictions complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

Mr L complained that NatWest stopped him from using his debit card abroad by declining his Brazilian retail transactions in March 2025. NatWest explained the declines were due to an internal bank policy to protect accounts and comply with regulations, and paid £20 compensation. The ombudsman found that NatWest was entitled to decline the transactions under the account terms and conditions, that no bank error occurred, and that the bank reasonably refused to disclose further policy details. The complaint was not upheld, and the £20 compensation already paid was deemed appropriate.

The Ombudsman's reasoning

The ombudsman concluded that NatWest was entitled to decline the payments under the account terms and conditions, which explicitly allow banks to refuse payment instructions based on risk and regulatory requirements. The customer was sufficiently warned of this possibility in the terms. The ombudsman found no evidence of bank error or that the account was blocked, and determined that NatWest acted reasonably in refusing to disclose further policy details as this could jeopardise their protective measures. The £20 compensation already paid was deemed appropriate as the declined transactions were not due to bank error.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website