Not upheld: unauthorised transactions / disputed payments complaint against Monzo Bank Limited

Decision detail

Summary

Mr A complained that Monzo Bank Limited should refund four payments totalling £8,896.98 made from his account on 27 September 2025, which he claimed he did not authorise. The payments were made to merchants appearing to be bars or restaurants outside the UK using chip and PIN authentication. Monzo investigated and held Mr A liable, finding the evidence indicated only Mr A could have authorised the payments. The ombudsman upheld Monzo's decision, finding that the payments were authenticated using chip and PIN, Mr A was present at the merchant location (evidenced by a non-disputed transaction 26 minutes earlier), and there was no plausible explanation for third-party access to his card, phone, PIN, and business account. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017, which establish that consumers are usually responsible for authorised payments unless the firm is responsible for unauthorised payments. The ombudsman found the evidence from Monzo's systems persuasive, showing chip and PIN authentication for each disputed transaction. The non-disputed transaction to the same merchant on the same evening placed Mr A at that location. Without a plausible explanation for how a third party could have obtained access to Mr A's card, phone, PIN knowledge, and ability to make transfers from his business account, the ombudsman concluded Monzo acted reasonably in treating the payments as authorised.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website