Not upheld: Card / payment disputes complaint against Curve UK Limited

Decision detail

Summary

Mr T paid a £500 non-refundable deposit for a kitchen via his Curve debit card, then requested cancellation and a refund. The merchant refused, citing the non-refundable deposit terms in the signed agreement. Curve pursued a chargeback request but the merchant rejected it twice based on the clear contractual terms. Mr T complained that Curve failed to properly investigate and should have considered whether the terms were fair. The ombudsman upheld Curve's decision, finding that the merchant agreement clearly disclosed the non-refundable nature of the deposit in legible print, a survey had been conducted before cancellation, and under Mastercard scheme rules such terms are valid and determinative, meaning the chargeback had no reasonable prospect of success.

The Ombudsman's reasoning

Chargebacks are governed by voluntary card scheme rules rather than statutory rights. Mastercard rules explicitly permit merchants to impose 'no refund' terms provided they are clearly disclosed in legible print. The merchant agreement in this case clearly stated the deposit was non-refundable both prominently and in detailed contractual terms. Additionally, a survey had been conducted before cancellation was requested, which under the agreement's terms meant no refund was permissible. Therefore, the chargeback had no reasonable prospect of success under the scheme rules, and Curve acted reasonably in not pursuing it further. The ombudsman rejected arguments that Curve should have considered fairness of terms or other grounds, as these are matters for potential claims against the merchant directly, not relevant to the chargeback decision which must follow scheme rules.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website