Not upheld: disputed transaction / unauthorised payment claim complaint against Santander UK Plc

Decision detail

Summary

Mr Z complained that Santander refused to refund a disputed credit card transaction of £1,273.15 that he claimed he had not authorised. Mr Z reported that his cards had been stolen from his wallet by a man in his shop on 16 October 2025, and the disputed transaction occurred approximately 22 minutes later. Santander declined the claim because the transaction was authenticated using Mr Z's correct PIN and the genuine chip was read. The ombudsman found that while Mr Z provided CCTV footage and a police crime reference number, there was no plausible explanation for how an unknown third party could have obtained both the physical card and the correct PIN, which Mr Z stated he had not written down or disclosed to anyone. The ombudsman upheld Santander's decision and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that the technical evidence conclusively showed the disputed transaction was made using Mr Z's genuine card and correct PIN. The critical issue was how an unknown third party could have obtained both the physical card and the correct PIN. Mr Z stated he had not written down the PIN or disclosed it to anyone, and there were 10,000 possible combinations making guessing implausible. The CCTV, while showing the alleged theft, did not explain PIN compromise. The ombudsman also had doubts about the CCTV's authenticity, noting Mr Z's lack of reaction and the implausibility of a thief returning the wallet. The ombudsman concluded it was more likely than not that Mr Z or someone authorised by him made the transaction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website