Not upheld: scam/fraud reimbursement and account closure complaint against AMERICAN EXPRESS SERVICES EUROPE LIMITED

Decision detail

Summary

Mr O purchased a pet through platform P using his Amex card but was scammed by a breeder who failed to deliver after Mr O confirmed receipt and released payment. Amex raised a chargeback dispute but declined to pursue it after P provided evidence of warning screens and Mr O's confirmation of collection. Mr O also complained that Amex closed his account with two months' notice. The ombudsman found that while Mr O was likely scammed, he authorised the payment and the scam was perpetrated by a third party, not P itself. The chargeback was appropriately declined based on P's robust defence, and the account closure was within Amex's contractual terms. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr O authorised the payment, making him presumed liable under the PSRs. The scam was perpetrated by a third party using P as a platform, not by P itself. The chargeback scheme is decided on card scheme rules rather than relative merits of disputes. P's robust defence, including clear warning screens, meant Amex acted fairly in declining to pursue the chargeback. Amex's account closure was within its contractual terms and conditions, which permitted closure with two months' notice without requiring a reason.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website