Not upheld: chargeback handling and merchant service administration complaint against Barclays Bank Plc trading as Barclaycard

Decision detail

Summary

A limited company complained that Barclaycard unlawfully upheld a chargeback for £426.53, later amending the complaint to allege unfair treatment in administering the merchant acquiring and chargeback service. The merchant provided evidence during the chargeback process which the card issuer rejected, resulting in the chargeback being upheld. The merchant later provided stronger evidence after the process concluded, along with confirmation that the cardholder had apologised and made a separate payment. The ombudsman found Barclaycard did not act wrongly, as it properly notified the merchant, requested evidence, and forwarded it to the card issuer, and evidence provided after the process ended could not be reconsidered.

The Ombudsman's reasoning

Chargebacks are decided based on card scheme rules rather than the merits of the underlying dispute. Barclaycard fulfilled its obligations by notifying the merchant, requesting appropriate evidence, and forwarding it to the card issuer. The card issuer's decision to reject the evidence was not Barclaycard's responsibility. Evidence provided after the chargeback process concluded could not be reconsidered, as the process had already been completed. The temporary crediting of the account during the review period did not create an obligation to reconsider evidence after the process ended.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website