Not upheld: payment processing failure / funds transfer complaint against Monzo Bank Limited

Decision detail

Summary

Mr K complained on behalf of business A that Monzo accepted payments via a card reader terminal on 9 June 2025 but failed to credit the funds to A's account. Monzo stated it had no evidence of payment issues and that it deposits all funds as soon as received. The ombudsman reviewed the terminal provider's notifications provided by Mr K, which showed no transactions were processed on 9 June 2025, and Monzo's records confirmed no payment issues on that date. The ombudsman concluded that since payments must first be processed by the terminal provider, any missing payments would be the terminal provider's responsibility, not Monzo's. The complaint was not upheld due to insufficient evidence of Monzo's error and no compensation was awarded.

The Ombudsman's reasoning

The ombudsman determined that for payments to reach A's Monzo account, they must first be processed by the terminal provider. The terminal provider's notifications provided by Mr K showed no transactions were processed on 9 June 2025. Monzo's records also showed no evidence of payment issues on that date. Therefore, if payments were missing, the issue lay with the terminal provider, not Monzo. The complaint lacked sufficient evidence of what payments were not processed or credited, and there was no indication that Monzo made an error.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website