Not upheld: currency conversion and refund processing error complaint against Monzo bank

Decision detail

Summary

Mrs N complained that Monzo credited her account with £53 less than expected after receiving a VAT refund in a different currency, and that Monzo refused to investigate. Monzo explained it received the credit already converted to GBP from Mastercard, applied no fees, and correctly processed the transaction. The ombudsman found Monzo's response fair and reasonable, as it had conclusively shown it made no error and the shortfall occurred in the upstream payment journey before reaching Monzo. The ombudsman determined Monzo could not be held responsible for investigating matters outside its control where it had demonstrated no error on its part. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Monzo had conclusively demonstrated it made no error in processing the transaction. The funds were received already converted to GBP, no fees were applied, and the full amount was credited to Mrs N's account. While the shortfall occurred, it arose in the upstream payment journey before reaching Monzo, for which Monzo cannot be held responsible. The ombudsman can only review Monzo's acts and omissions, not those of the merchant or its bank, and found no requirement for Monzo to investigate matters outside its control where it has demonstrated no error.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website