2016 - 2017
Mr G operated accounts with several online binary options trading companies. Trading in binary options is high risk - you either win as a result of your trade or you get nothing from it. Mr G traded on whether the value of stocks and currency would increase or decrease. He made several deposits to his trading accounts, providing his credit card details so the merchants could charge his card. Mr G’s trades were unsuccessful and he lost most of his money.
He contacted his bank to dispute the charges on his credit card from two separate merchants. He alleged the charges by the first merchant were unauthorised, and that the second merchant hadn’t provided the services he had paid for.
The bank initiated the chargeback process but both merchants disputed the chargebacks. The first merchant provided a signed authorisation form and the second merchant provided a screenshot showing Mr G had engaged in numerous trades using money he had deposited to his online account. Therefore the bank couldn’t chargeback the transactions. Mr G didn’t accept this and complained to our office.
We looked at whether the bank followed the chargeback process appropriately and whether it had correctly assessed each merchant’s response. The first merchant’s authorisation form clearly showed Mr G had authorised all deposits he disputed. The account screenshot the second merchant provided showed Mr G had engaged in numerous online trades which was the service the merchant provided.
We were satisfied the bank was unable to chargeback the transactions and advised Mr G that we were unable to assist him further.
More information about binary options can be found here.