Upheld: disputed cash withdrawal / failed transaction complaint against TSB Bank plc

Decision detail

Summary

Mr T complained that TSB Bank plc held him liable for a failed £170 ATM cash withdrawal on 17 September 2025, which he claims was retracted back into the machine. TSB initially refunded the amount but re-debited it after the ATM owner provided evidence showing no discrepancies. The ombudsman upheld the complaint, finding that TSB failed to meet its regulatory burden under the Payment Service Regulations 2017 to prove the transaction was correctly executed. The evidence provided by the ATM owner was insufficient as it did not account for retracted cash and contained no error messages, while Mr T's conduct of attempting a second withdrawal was consistent with not receiving the first amount. TSB was ordered to refund £170 plus 8% simple interest.

The Ombudsman's reasoning

Under the Payment Service Regulations 2017, the burden is on TSB as the payment service provider to prove the transaction was correctly executed. While TSB followed its standard process for disputing ATM withdrawals, the evidence obtained from the ATM owner was insufficient to demonstrate Mr T received the £170. The technical data showed no error messages and Mr T's conduct of attempting a second withdrawal is consistent with not receiving the first amount. The evidence did not account for cash that may have been retracted into purge boxes. Mr T's significant account balance and history of regular withdrawals without dispute support his credibility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website