Not upheld: failure to block gambling transactions complaint against Capital One (Europe) plc

Decision detail

Summary

Mr C complained that Capital One failed to block three gambling transactions made on his credit card in October 2025, arguing that Capital One had a regulatory duty under the Gambling Commission ban (effective April 2020) to prevent such transactions. The ombudsman found that the Gambling Commission's ban applies only to licensed gambling merchants, not to credit card providers, and there is no FCA obligation on credit providers to prevent gambling transactions. Capital One's gambling block only functions when merchants use correct category codes; the merchant in this case used an incorrect code ('gaming/digital services'), so the block could not identify the transactions. The ombudsman concluded Capital One acted fairly and had no obligation to do more, particularly as there were no signs of financial difficulty or vulnerability on the account.

The Ombudsman's reasoning

The Gambling Commission's ban on credit card payments for gambling applies only to licensed gambling merchants, not to credit card providers. There is no regulatory obligation on credit card providers such as Capital One to prevent gambling transactions. Capital One's gambling block can only function when merchants use correct category codes; where merchants use incorrect codes, there is no obligation on the credit provider to identify this through other means. Capital One would only be expected to take action if there were signs of financial difficulty or vulnerability on the account, which were not present here. Capital One took reasonable steps to verify the transactions were genuine.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website