A tourist visiting Paris was charged €100 for a short taxi ride and was unable to get a chargeback from Monzo, exposing a loophole in consumer protection for card-present transactions.
Victim Charged Exorbitant Fare
Sarah Johnson, a British tourist, took a taxi from Charles de Gaulle Airport to her hotel in central Paris, a journey that typically costs around €50. The driver demanded €100 in cash, but Johnson did not have enough euros. The driver then swiped her Monzo card on a portable card reader, charging the full amount.
Johnson immediately realised she had been overcharged and contacted Monzo to dispute the transaction. However, the bank refused her chargeback request, stating that the transaction was authorised by her and the card was present.
Monzo's Stance on Card-Present Transactions
Monzo explained that under the Payment Services Regulations, chargeback rights are limited for card-present transactions where the cardholder entered their PIN or authorised the payment. The bank said: "As the transaction was made with your card and PIN, it is considered authorised. We cannot initiate a chargeback in this case."
According to Monzo's terms, chargebacks are typically available for card-not-present transactions (online or phone) where the card was used without the cardholder's knowledge. For in-person transactions, the burden is on the customer to verify the amount before authorising.
Consumer Rights and Chargeback Limitations
Consumer group Which? noted that chargeback is not a legal right but a voluntary scheme operated by card networks. It is often successful for online fraud but less so for in-store disputes. "This case highlights a gap in protection for consumers who are pressured into paying inflated prices in person," said a Which? spokesperson.
The Financial Ombudsman Service confirmed that it can consider complaints about chargeback refusals, but each case is judged on its merits. A spokesperson said: "We would look at whether the bank treated the customer fairly and followed the rules."
How to Avoid Similar Scams
Travel experts advise tourists to agree on a fare before starting a taxi journey or insist on using the meter. In Paris, licensed taxis are required to use a meter, and drivers must display a rate card. Passengers should also check the amount on the card reader before entering their PIN.
If overcharged, consumers should report the incident to the local police and their bank immediately, though as this case shows, a chargeback may not be guaranteed.
