Upheld: dispute handling and chargeback process failure complaint against Monzo Bank Limited

Decision detail

Summary

Miss A disputed two payments from a food delivery merchant totalling £11.53 each. Monzo successfully handled Dispute 1 through chargeback in October 2025. However, the merchant then charged the same amount again on 15 October 2025 to a second card for the identical September order. Monzo closed Dispute 2 without raising a chargeback, asking Miss A for evidence she hadn't received goods when she had not placed a new order. The ombudsman found Monzo should have recognised the unauthorised nature of the second charge and done more to support Miss A, particularly given her vulnerability. The ombudsman upheld the complaint and ordered Monzo to refund £11.53 with 8% interest and pay £50 compensation, rejecting Miss A's claims of dishonesty and discrimination.

The Ombudsman's reasoning

The ombudsman found that while chargebacks are not guaranteed, Monzo should have done more to support Miss A with Dispute 2. The evidence clearly showed the merchant took the same payment a second time despite losing the chargeback, and there was no authorisation for this second charge. Although the amount was small (£11.53) and Miss A's bank statements did not show severe financial hardship at the time, Monzo's error in handling Dispute 2 and continued requests for evidence Miss A could not provide caused frustration and poor service. The ombudsman rejected Miss A's discrimination claim as there was no evidence of unfair differential treatment, and noted Monzo had offered support which Miss A did not take up.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website