Partially upheld: unauthorised payments dispute complaint against Monzo Bank Ltd
Financial Ombudsman decision DRN-6190861 of 2026-05-06T00:00:00+00:00. unauthorised payments dispute complaint against Monzo Bank Ltd. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6190861 |
|---|---|
| Decision date | 2026-05-06T00:00:00+00:00 |
| Firm | Monzo Bank Ltd |
| Product | current account |
| Claim type | unauthorised payments dispute |
| Outcome | Partially upheld |
| Remedy | Monzo Bank Ltd to pay Mr R £50 further compensation (in addition to £30 already paid) for service failings in handling the complaint. |
Summary
Mr R complained that Monzo Bank Ltd failed to refund two disputed transactions totalling £256.79 and £126.50 to merchant S in July 2025, which he claimed were unauthorised. Monzo investigated and declined to refund, offering £30 compensation for service failings, later increased to £50. The Ombudsman found that Monzo's technical evidence—including 3DS authentication with biometrics, consistent IP address usage, and device history since 2022—supported that the payment was authorised, making Monzo's decision fair and reasonable. The complaint was partially upheld, with the Ombudsman ordering Monzo to pay the £50 compensation already offered for acknowledged service failings in communication.
The Ombudsman's reasoning
The Ombudsman found Monzo's technical evidence more persuasive than Mr R's assertion that he did not authorise the payment. The use of biometrics, consistent IP address, and device history all supported that the payment was authorised. Once a debit card payment is authorised, Monzo has no control over when the merchant collects funds and cannot cancel authorised payments. The payment value and authentication method did not warrant further intervention. However, Monzo's acknowledged service failings in communication justified compensation.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Monzo Bank Ltd, all decisions | 2,799 | 27% |
Source
Read the original decision on the Financial Ombudsman Service website