What are my rights if my bank refuses to refund an unauthorised transaction?
In most countries, banks are legally required to refund genuinely unauthorised transactions unless they can show you acted fraudulently or with gross negligence — if your bank refuses, you have escalation options including the financial ombudsman.
Last reviewed: 10 June 2026
Explanation
Under UK Payment Services Regulations and similar frameworks in the EU and many other countries, your bank must refund an unauthorised payment — one made without your knowledge or consent — unless it can demonstrate that you were grossly negligent or acted fraudulently. 'Gross negligence' is a high bar: simply being deceived does not automatically disqualify you from a refund.
If your bank refuses your chargeback or refund request, ask them to give their refusal in writing, citing the specific rule or exception they are relying on. This written explanation is important for any appeal or ombudsman complaint. Keep all correspondence.
The next step is usually the financial ombudsman service in your country (the Financial Ombudsman Service in the UK, the CFPB complaints process in the US, or equivalent bodies elsewhere). These services are free for consumers and the bank must comply with binding decisions. Many disputes that banks initially refuse are upheld at ombudsman level.
This is general information and does not constitute personalised legal or financial advice. The exact rules depend on your country and the type of payment involved, so consulting a consumer rights adviser is recommended for your specific case.
Common red flags
- Bank refuses in writing without citing a specific rule or regulation
- Bank claims you 'authorised' the transaction when you did not
- Bank delays beyond the statutory investigation period
- Refusal letter uses vague language like 'your account was used'
- Bank does not acknowledge your complaint within the required timeframe
What to do now
- Request the bank's refusal in writing with specific regulatory justification
- Submit a formal written complaint to the bank's complaints department
- Escalate to your national financial ombudsman if the bank does not resolve within 8 weeks
- Gather all evidence of the unauthorised transaction: transaction records, communication logs
- Check your country's payment services regulations to understand your legal entitlements
- Consider consulting a consumer law adviser or citizens advice bureau for your specific situation
Frequently asked questions
What is the difference between an unauthorised and an authorised push payment?
An unauthorised transaction is one you did not approve at all — such as a card used fraudulently after theft. An authorised push payment (APP) is one where you were tricked into sending the money yourself. The legal protections differ, though many countries are extending APP fraud reimbursement obligations to banks.
How long does my bank have to investigate?
Under UK rules, banks must respond to payment disputes within prescribed timeframes and must refund provisionally while investigating in many cases. Timescales vary by jurisdiction — check your national regulator's guidance.