Not upheld: unauthorized transactions / disputed payments complaint against Vanquis Bank Limited

Decision detail

Summary

Mrs V complained to Vanquis Bank about two unauthorized transactions (£1,999 and £85.21) made via Apple Pay on her credit card in October 2024. She maintained she did not authorize the transactions, her card was secure, and she was away when the first transaction occurred. Vanquis explained both transactions were made through an Apple Pay token set up in July 2024 using a one-time passcode sent to Mrs V's genuine phone number. The ombudsman found that although Mrs V did not physically make the payments, she must have shared the OTP with a third party, thereby authorizing the Apple Pay setup and enabling the transactions. The complaint was not upheld, and no refund was ordered.

The Ombudsman's reasoning

The ombudsman concluded that although Mrs V did not physically make the transactions and was away when they occurred, she must have shared the OTP with a third party, either intentionally or inadvertently. Since the OTP was sent to her genuine phone number and was essential to set up the Apple Pay token, the ombudsman found it more likely than not that Mrs V disclosed this information, thereby authorizing the transactions. The ombudsman noted the unusual timing (three-month gap between token setup and use) and transaction patterns but determined these did not overcome the fact that Mrs V must have facilitated the Apple Pay setup by sharing the OTP.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website