Not upheld: processing of gambling payments in breach of government ban complaint against MBNA Limited

Decision detail

Summary

Mr A complained that MBNA processed gambling payments to overseas merchants between November 2023 and July 2025 despite a UK government ban on credit card gambling payments and despite his September 2024 GamStop self-exclusion registration. MBNA explained the payments were processed using merchant codes classified as retail (5816, 8299, 7994) rather than the gambling code (7995), meaning they had no indication the payments were to gambling merchants. The ombudsman found MBNA acted reasonably in processing the payments, as they relied on merchant codes and had no other indicators of vulnerability or financial difficulty. The ombudsman declined to address Mr A's broader concerns about merchant code effectiveness, stating this falls outside the ombudsman's remit and should be considered by the Financial Conduct Authority.

The Ombudsman's reasoning

The ombudsman found that MBNA processed the payments appropriately because the merchant codes used did not indicate gambling transactions. The ombudsman noted that MBNA relies on merchant codes to categorise payments and the codes provided were classified as retail. The ombudsman also found that MBNA had no indication Mr A was vulnerable or struggling, and was not automatically notified of his GamStop registration. The ombudsman acknowledged Mr A's concerns about merchant code effectiveness but stated this falls outside the ombudsman's remit and should be considered by the Financial Conduct Authority.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website