Not upheld: failure to process chargeback requests; alleged irresponsible lending/payment processing in relation to gambling transactions complaint against Revolut Ltd

Decision detail

Summary

Mrs G complained that Revolut failed to process multiple chargeback requests relating to gambling transactions made between February and March 2025, claiming the merchants used incorrect Merchant Category Codes (MCC) to bypass gambling blocks. Revolut declined the chargebacks, stating insufficient information was provided. The ombudsman found that Mrs G could not meet the legal criteria required for successful chargebacks under Visa scheme rule 12.7, as she could not prove the merchants used fundamentally incorrect codes or that correct codes would have prevented the transactions (particularly since Revolut had no knowledge of her gambling addiction at the time). The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman applied the Visa scheme rule 12.7 criteria for chargebacks based on incorrect MCC codes. The ombudsman found that Mrs G could not meet the required evidential tests: (1) there was insufficient evidence the merchants were using fundamentally incorrect codes, as they may have offered multiple services; (2) there was no evidence that correct codes would have prevented the transactions, as Revolut had no knowledge of her gambling addiction and no block was in place at the time; and (3) Mrs G had not provided evidence proving the transactions were misrepresented. Without meeting these criteria, the chargebacks would not have been successful, so Revolut acted reasonably in not processing them. Additionally, the payment velocity and value did not appear unusual or suspicious, so Revolut had no reason to intervene.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website