Not upheld: chargeback refusal and account fees complaint against HSBC UK Bank Plc

Decision detail

Summary

Mrs S complained that HSBC failed to submit chargeback requests for gambling transactions where a website refused to pay her winnings due to UK licensing restrictions, and that HSBC charged excessive fees for processing non-sterling credits. HSBC refused the chargeback requests, citing scheme rules that exclude gambling transactions. The ombudsman upheld HSBC's position, finding that chargeback reason code 13.5 (misrepresentation) does not apply because the merchant was clearly a gambling website and the refusal to pay was based on licensing, not misrepresentation. The ombudsman also found the fees were reasonable and applied in accordance with HSBC's terms and conditions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that chargeback reason code 13.5 (misrepresentation) cannot be applied to Mrs S's situation because the merchant did not misrepresent its services or games; it was clearly a gambling website. The merchant's refusal to provide winnings was based on licensing restrictions for the UK, not misrepresentation of terms of sale. The ombudsman noted that chargeback scheme rules explicitly exclude gambling transactions and that HSBC correctly informed Mrs S of this limitation. Regarding fees, the ombudsman found that applying exchange rates and processing fees to non-sterling credits was reasonable and in line with HSBC's terms and conditions, and there was no evidence of unreasonable or excessive application.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website