Not upheld: chargeback handling and disputed transaction complaint against Santander UK Plc

Decision detail

Summary

Mr C purchased a train ticket for £18.20 and disputed the transaction because the toilet was not working and there was no air-conditioning. The merchant refused a refund citing its policy. Santander declined to raise a chargeback, stating the dispute concerned service quality which is not covered by MasterCard rules. Mr C complained about the chargeback handling and the service he received from Santander. The ombudsman found that Santander correctly applied the chargeback scheme rules, which require evidence that the service was not as described, and that Mr C provided no such evidence. The complaint was not upheld and no remedy was awarded.

The Ombudsman's reasoning

The ombudsman found that chargeback is governed solely by MasterCard scheme rules, not by statutory law or health and safety regulations. The only potentially applicable dispute code was 'Goods or Services Were Either Not as Described or Defective', which requires evidence that the merchant described the service as including working bathroom facilities and air-conditioning. Mr C provided no such evidence and the merchant's apology was not sufficient evidence of service failure. Santander therefore acted reasonably in declining to raise a chargeback. Regarding service complaints, the ombudsman found no evidence of poor service by Santander, only frustration on Mr C's part.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website