Not upheld: Card / payment disputes complaint against National Westminster Bank Public Limited Company

Decision detail

Summary

Mr S complained that NW unfairly declined to raise a chargeback after he accidentally overpaid merchant T by approximately £495 due to a keying error. NW declined the chargeback under Visa reason code 12.5 because Mr S could not provide the required receipt showing the correct transaction amount, despite NW's clear request for this evidence. Mr S, who identified as a vulnerable customer and carer experiencing financial hardship, argued NW should have pursued the chargeback regardless. The ombudsman found NW acted fairly and reasonably by applying Visa's strict scheme rules, providing appropriate support and signposting to Mr S, and noting that Mr S ultimately suffered no loss as the merchant confirmed it would process the refund. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that NW correctly applied Visa's strict evidential requirements for reason code 12.5 chargebacks. While sympathetic to Mr S's difficulties, the ombudsman determined that without the specific receipt showing the correct transaction amount, the chargeback had no reasonable prospect of success under Visa rules. NW was entitled to rely on these scheme rules and acted fairly in requesting the required evidence. Additionally, NW provided appropriate support and signposting given Mr S's stated vulnerabilities, and Mr S ultimately suffered no loss as T confirmed it would process the refund.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website