Not upheld: refusal to raise chargeback for gambling transactions and account suspension complaint against eToro Money UK Ltd

Decision detail

Summary

Mr A complained that eToro Money UK Ltd rejected his claim for a refund of 27 payments made to an offshore gambling operator between January and July 2025, and that eToro failed to properly contact him when suspending his account on 18 July 2025, leaving him without access to funds. eToro explained it could not raise a chargeback because all transactions were authenticated and authorised, and Visa's rules prohibit chargebacks for gambling transactions. The ombudsman found that eToro had no obligation to raise a chargeback under Visa's rules, was unaware of Mr A's vulnerability, and acted reasonably in suspending the account for his protection. Although the failed phone call was regrettable, the ombudsman noted Mr A had another bank account and the eToro account was not used for everyday spending. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that eToro had no obligation to raise a chargeback because Visa's rules explicitly prohibit chargebacks for gambling transactions where the cardholder is unable to access winnings or make withdrawals. eToro was unaware of Mr A's vulnerability and had no basis for stopping the payments he had authorised. While the failed phone call and account suspension caused inconvenience, the ombudsman noted that Mr A had another bank account and the eToro account was not used for everyday spending, so eToro would not have foreseen the difficulties caused by the suspension.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website