Not upheld: chargeback eligibility and refund handling complaint against Santander UK Plc

Decision detail

Summary

Miss L deposited £2,000 across 10 transactions to an online gambling website after being promised bonuses that were never provided. She requested Santander to raise chargebacks to recover her deposits, claiming she had been misled. Santander initially misunderstood the dispute and requested unnecessary information before closing the claim and offering £75 compensation. The ombudsman found that card scheme rules prohibit chargebacks on gambling transactions unless deposited funds fail to appear in the gambling account. Since Miss L's funds appeared in her account and she authorised the transactions, no valid chargeback could be raised. The ombudsman upheld Santander's position and found the £75 compensation fair, declining to direct further action.

The Ombudsman's reasoning

The ombudsman determined that card scheme rules explicitly prohibit chargebacks on gambling transactions unless funds fail to appear in the gambling account. Since Miss L's funds did appear in her gambling account and she authorised the transactions, no valid chargeback reason code applied. Although Santander made a procedural error in initially misunderstanding the dispute and requesting unnecessary information, this error did not prevent the fundamental legal barrier to raising a chargeback. The £75 compensation already paid was considered fair recognition of the inconvenience caused by the mistake.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website