Not upheld: chargeback handling and dispute resolution complaint against Barclays Bank UK PLC (trading as Tesco Bank)

Decision detail

Summary

Mr B disputed in-game purchases totalling £1,109.80 made with online gaming merchant S between 21-29 September 2025, claiming the digital goods were not as expected or not received. He requested Tesco Bank raise chargebacks to recover the funds. Tesco declined, noting the merchant confirmed goods were received and used, and that individual transactions fell below Section 75 thresholds. The ombudsman found Tesco acted fairly because chargeback is discretionary (not a legal right), the merchant's evidence of delivery and use was stronger than Mr B's evidence of non-delivery, and the contractual terms clearly stated digital goods were non-refundable once used. The complaint was not upheld, though the ombudsman noted Mr B may have potential claims under consumer rights law.

The Ombudsman's reasoning

The ombudsman found that chargeback is not a legal right but a discretionary mechanism governed by card scheme rules. While good practice would suggest raising chargebacks where there is reasonable prospect of success, Tesco was not unreasonable in concluding there was insufficient prospect of success here. The merchant had provided evidence (receipts and logs) that goods were delivered and used, Mr B's own evidence did not demonstrate non-delivery, and the terms clearly stated digital goods were non-refundable once used. The ombudsman noted that chargeback is limited to determining whether goods were received and whether a refund is due under scheme rules, not a forum for challenging the legal validity of contractual waivers under consumer law.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website