Not upheld: disputed transactions / alleged overcharging / chargeback process complaint against National Westminster Bank Public Limited Company
Financial Ombudsman decision DRN-6409866 of 2026-06-05T00:00:00+00:00. disputed transactions / alleged overcharging / chargeback process complaint against National Westminster Bank Public Limited Company. Outcome: Not upheld.
Decision detail
| Reference | DRN-6409866 |
|---|---|
| Decision date | 2026-06-05T00:00:00+00:00 |
| Firm | National Westminster Bank Public Limited Company |
| Product | Current account |
| Claim type | disputed transactions / alleged overcharging / chargeback process |
| Outcome | Not upheld |
| Remedy | £225 total compensation for trouble and upset caused by poor customer service (long hold times, multiple branch visits, delayed complaint responses). This amount was already paid to Ms R by NatWest. |
Summary
Ms R complained that NatWest incorrectly charged her €430 and €250 for market stall purchases she believed cost €43 and €25 respectively whilst overseas on 3 May 2025. She requested a refund of the €612 difference, but NatWest declined without supporting documentation for a chargeback. The ombudsman found that Ms R authorised both transactions by using her PIN, and under the Payment Services Regulations 2017, she remained liable despite believing the amounts were smaller. NatWest's system records confirmed the payment requests were for the higher amounts, suggesting merchant fraud rather than a bank error. However, the ombudsman upheld the complaint regarding poor customer service and confirmed £225 compensation was appropriate for long hold times, multiple branch visits, and delayed responses.
The Ombudsman's reasoning
Under the Payment Services Regulations 2017, a consumer is liable for authorised payments. Although Ms R believed she was authorising smaller amounts, authorisation is a formal concept that is completed when the agreed procedure is followed - in this case, contactless payment followed by PIN entry. The ombudsman found that NatWest's system records confirmed the payment requests were for €430 and €250, not because of any NatWest error but likely due to merchant overcharging. Without documentary evidence of the correct amounts, a chargeback would have had no reasonable prospect of success under Mastercard rules. However, the ombudsman upheld the complaint regarding customer service failures.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank Public Limited Company, all decisions | 1,179 | 14% |
| Current account, all decisions | 45,590 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website