Not upheld: APP scam refund claim / irresponsible payment processing complaint against Monzo Bank Limited

Decision detail

Summary

Ms C, on behalf of W, complained that Monzo refused to refund two international payments (£129.27 and £2,707.25) made to what she believed was a custom card company but which resulted in incomplete and damaged goods. Monzo initially refunded the first payment with a £100 excess deduction but refused the second, later clarifying both fell outside the Reimbursement Rules as international payments. The ombudsman determined this was a buyer/seller dispute rather than an APP scam because Ms C received some items and maintained seller contact—both inconsistent with fraud. The complaint was not upheld, and Monzo's apology for conflicting information was deemed sufficient remedy.

The Ombudsman's reasoning

The ombudsman concluded this was not an APP scam but a buyer/seller dispute because: (1) Ms C received some items, which is atypical of fraud where fraudsters typically send nothing; (2) Ms C maintained contact with the seller, whereas fraudsters typically become uncontactable after payment; and (3) international payments fall outside the Reimbursement Rules scope. Even if it were a scam, Monzo had no obligation to intervene as the payment amounts and international nature were not sufficiently unusual to warrant additional checks.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website