Not upheld: Card / payment disputes complaint against Santander UK Plc

Decision detail

Summary

Mr T complained that Santander UK Plc refused to refund disputed transactions made from his account after his card was stolen at an event. Santander refunded contactless payments but declined to refund ATM and point of sale transactions made with the genuine card and correct PIN. The ombudsman examined technical evidence showing the card's chip was read and the correct PIN was entered on the first attempt with no failed attempts. After considering various scenarios for how the PIN could have been compromised, the ombudsman found none plausible given the timeline and the unusual pattern of card usage after theft. The ombudsman concluded that Santander was reasonable in holding Mr T liable for the transactions, either because he authorised them or acted with gross negligence, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied the Payment Service Regulations 2017 to determine whether the transactions were authorised. The technical evidence showed Mr T's genuine card and correct PIN were used with no failed attempts. Given there are 10,000 possible four-digit PIN combinations, guessing the correct PIN on the first attempt was unlikely. The ombudsman considered various scenarios for PIN compromise (observation at event, knowledge by someone at event) but found them implausible given the timeline and Mr T's own confirmation they were unlikely. The unusual pattern of card usage after theft—no further attempts after blocking despite available funds and no balance check—suggested the user was aware the card had no further use, indicating knowledge of the card's status. The ombudsman concluded that either Mr T authorised the transactions or acted with gross negligence by storing his PIN with his card, making it reasonable for Santander to hold him liable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website