Not upheld: unauthorised payments / chargeback refusal complaint against Wise Payments Limited

Decision detail

Summary

Mr G, representing limited company C, complained that Wise Payments Limited refused to refund or raise a chargeback for 15 disputed payments totalling around £1,100 made to merchant A between 12 and 24 November 2024. Mr G claimed the payments were unauthorised, but Wise declined to treat them as such. The ombudsman found that the evidence more likely supported Mr G's involvement in the payments, noting previous transactions to the same merchant in 2023, the modest spending pattern over two weeks (inconsistent with typical fraud), and Mr G's failure to dispute a transfer made on 21 November 2024 despite earlier payments being visible. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017, which place responsibility on the user for authorised payments and on the firm for unauthorised payments. The key question was whether Mr G had involvement in the payments. The ombudsman found the pattern of spending (modest amounts over two weeks) inconsistent with typical unauthorised card use, which usually involves maximised benefit in a short period. The ombudsman noted that Mr G had made previous payments to the same merchant in 2023, had not provided requested documentation, and had failed to dispute a transfer made on 21 November 2024 despite payments being visible from 12 November 2024. On balance, the ombudsman concluded it was more likely than not that Mr G either made or consented to the payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website