Not upheld: Card / payment disputes complaint against MONZO BANK LIMITED

Decision detail

Summary

Ms S complained that MONZO authorised gambling payments totalling over £4,400 between August and October 2025, despite her having registered a third-party gambling restriction. MONZO argued the merchant did not use the correct gambling code and that Ms S had authorised the payments. The ombudsman found that the merchant's failure to use the correct code was beyond MONZO's control, the payments were authorised, and MONZO had no prior knowledge of Ms S's gambling issues. The complaint was not upheld, though MONZO's £50 compensation offer for failing to assist once Ms S disclosed her gambling issue was deemed fair and reasonable.

The Ombudsman's reasoning

The ombudsman held that MONZO could not be held responsible for the gambling merchant's failure to use the correct merchant code, as this was beyond MONZO's control and prevented the third-party gambling restrictions from functioning. The payments were authorised by Ms S, and without prior notification of gambling issues, MONZO had no obligation to proactively monitor spending or place gambling blocks. The ombudsman rejected the suggestion that MONZO should monitor individual customer spending patterns.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website