Not upheld: Card / payment disputes complaint against Nationwide Building Society

Decision detail

Summary

Mr A complained that Nationwide refused to refund approximately £1,800 in transactions to gambling merchant S that he claimed were fraudulent and unauthorized. Nationwide investigated and determined Mr A was liable for the transactions. The ombudsman examined evidence including the S account registration at Mr A's address, the IP address matching his mobile banking location, and the return of £400 in winnings to his account. Finding no plausible explanation for unauthorized access and noting the unusual circumstances of an unauthorized party conducting gambling transactions, the ombudsman concluded the transactions were likely authorized by Mr A and upheld Nationwide's decision not to refund them. The £25 compensation Nationwide paid for providing incorrect information about temporary credit was deemed fair.

The Ombudsman's reasoning

The ombudsman found that while the S account was not in Mr A's name, this alone did not prove unauthorized transactions without a plausible explanation for card compromise. The combination of factors—account registered at Mr A's address, transactions from his usual IP address, winnings returned to his account, and lack of any credible explanation for unauthorized access—indicated Mr A likely authorized the transactions. The ombudsman rejected arguments that the name mismatch, absence of SCA, or returned credit proved fraud, finding these circumstances consistent with authorized gambling activity rather than unauthorized use.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website