Not upheld: chargeback / refund dispute handling complaint against Monzo Bank Limited

Decision detail

Summary

Mr M complained that Monzo Bank Limited failed to adequately assist him in obtaining a refund for a payment made via debit card to an online platform (E) that he claimed did not perform as expected. Monzo declined to raise a chargeback, requesting further evidence before proceeding. The ombudsman found that Monzo was reasonable in its decision, as the evidence provided did not meet the specific Mastercard chargeback scheme rules, particularly because E contradicted Mr M's claims and no documentary evidence of what was promised at the point of sale was provided. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that Monzo was reasonable in declining to raise a chargeback because the evidence did not meet the specific conditions required by the Mastercard scheme rules. Although Mr M provided detailed submissions, E's contradictory assertion that the service was performing as expected, combined with the absence of documentary evidence (such as contract or terms and conditions) showing what was promised at the point of sale, meant the chargeback would be unlikely to succeed. The ombudsman noted that chargeback is a scheme-rule-based process with little room for discretion and is not designed to settle complex disputes or consider broader legal protections.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website