Partially upheld: gambling block circumvention and chargeback handling complaint against Revolut Ltd

Decision detail

Summary

Mr T complained that Revolut allowed gambling transactions to be processed despite an active gambling block on his account, and that Revolut mishandled his chargeback requests for 144 transactions totalling £51,786.20 to unlicensed overseas gambling operators. The transactions were processed using incorrect MCC codes that did not identify them as gambling, which Revolut could not control as the acquiring bank determines the codes. The ombudsman found Revolut did not act unreasonably in allowing the transactions, as it had no way of knowing they were gambling-related. However, Revolut failed to manage Mr T's expectations by not explaining sooner that chargeback rights are very limited for gambling transactions. The ombudsman upheld the complaint in part and ordered Revolut to pay £250 compensation for poor service in handling the chargeback claim.

The Ombudsman's reasoning

Revolut had no way of knowing transactions were gambling-related because the acquiring bank used non-gambling MCC codes, so it was not unreasonable to allow them through. There are no chargeback rights under Visa or Mastercard schemes for gambling transactions or for merchants failing to pay out winnings. However, Revolut should have managed Mr T's expectations better by explaining earlier that chargeback prospects were limited, and some chargebacks were raised where rights likely did not exist. Mr T actually benefited from Revolut raising chargebacks where the right probably did not exist, receiving refunds when merchants did not defend claims.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website