Not upheld: disputed transaction - alleged fraud/overcharging complaint against J.P. Morgan Europe Limited trading as Chase

Decision detail

Summary

Mr S was overcharged by a street vendor whilst overseas, paying £430.74 instead of approximately £43 for an item. He reported the transaction to Chase as fraud, but Chase declined to refund it, citing lack of supporting documentation required under card scheme dispute procedures. Mr S complained that Chase's fraud detection systems should have flagged the transaction and that the £50 compensation offered was insufficient. The ombudsman found that Mr S had authorised the payment himself despite being deceived about the amount, and that under the Payment Services Regulations 2017, Chase had no obligation to refund authorised payments. The ombudsman upheld Chase's position and found the £50 compensation for service failures to be fair and reasonable.

The Ombudsman's reasoning

The ombudsman found that Mr S authorised the payment himself by completing the correct contactless payment steps and consenting to a transaction, even though he was deceived about the amount. Under the Payment Services Regulations 2017, authorisation depends on correct authentication and consent, not on whether the customer was deceived about the purpose or amount. The transaction was not so unusual that Chase should have intervened. Once authorised, Chase could not cancel the pending payment as only the merchant can do so. Chase correctly requested further information to pursue the dispute under card scheme requirements, and the £50 compensation for service failures was reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website