Not upheld: chargeback handling and dispute resolution complaint against Monzo Bank Limited

Decision detail

Summary

Miss G purchased eight theme park tickets for £392 using her Monzo Mastercard but was refused entry by the merchant. Monzo raised a chargeback claim on her behalf, but the merchant defended it with evidence that the tickets were issued but not used. When Monzo requested documentary evidence from Miss G to pursue the claim further, she provided only testimony and declined to provide documentary evidence of the dispute raised with the merchant. Monzo concluded there was insufficient evidence for a reasonable chance of success at arbitration and did not pursue the claim further. The ombudsman found Monzo's decision reasonable, as chargeback is an evidence-based process and Miss G had failed to provide the necessary documentary support. Monzo's refund of incorrectly charged interest and waiver of further interest was deemed a fair remedy.

The Ombudsman's reasoning

The ombudsman found that Monzo acted reasonably in raising the chargeback claim as it appeared to meet MasterCard's conditions. However, when the merchant provided robust evidence that tickets were issued but not used, and Miss G failed to provide documentary evidence to counter this despite being asked, Monzo reasonably concluded the claim would not have a reasonable chance of success at arbitration. The ombudsman noted that chargeback is an evidence-based process bound by card scheme rules, and it was Miss G's responsibility to provide supporting evidence. The ombudsman also found Monzo's handling of the interest issue was reasonable, as it refunded incorrectly charged interest and waived further interest as promised.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website