Not upheld: exchange rate difference on international payment refund complaint against Santander UK Plc

Decision detail

Summary

Ms M complained that she received £693 instead of £741 when a 825 Euro payment she made was refunded, with the £48 difference attributed to exchange rate changes. She argued Santander should have warned her about the potential difference when she called to enquire about the refund's whereabouts. Santander explained the difference was due to exchange rate fluctuations outside its control and that Ms M did not ask about the amount during the call. The ombudsman did not uphold the complaint, finding that Ms M authorised both transactions without Santander's advice, the exchange rate difference was beyond the firm's control, and Santander's terms and conditions adequately disclosed such possibilities.

The Ombudsman's reasoning

The ombudsman found that Ms M authorised both transactions (the initial payment and acceptance of the refund) without Santander's involvement or advice. The exchange rate difference was outside Santander's control, as the firm was merely converting Euros back to GBP as required by the account structure. Santander could not have known Ms M expected the same amount back, and the transaction could not have been stopped as suggested since the refund had already been sent. The account terms and conditions adequately disclosed the possibility of exchange rate differences.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website