TL;DR Revolut is not complying with regulations pertaining to fraudulent transactions. At best, it’s making it difficult to file chargebacks. At worst, you may never see your money again.
I had a sterling transaction on my account from a merchant with whom I have (and never have had) a relationship. It was a UK insurance company.
I immediately blocked the card, only to see two further transactions (from different insurers) being declined within 90 minutes.
When I eventually got through to support, I was asked to complete a ‘chargeback request’ which I did immediately.
Today, over a week later, I was contacted via the app and asked to contact the merchant myself to request a refund. This goes against my experience of UK banks’ fraud handling, where they will take responsibility for initiating a chargeback (if they deem it justified) and place the onus on the merchant to prove it was legitimate.
I called the merchant, which verified that the policy purchased is not in my name nor is it at my address - but that was as far as they would go (for data protection reasons). I was told to contact the ‘bank’ to initiate a ‘callback or indemnity claim’. So I was back at square one.
Revolut’s support person - who was still on chat - had no idea how to proceed and could not even find out how to complain. I had requested a complaint form via Twitter, so lodged a formal complaint and told him so. His response: “You will get our final decision by end July”.
I checked with the Financial Ombudsman Service whether there is a material regulatory difference between a prepaid card (like Revolut) and a debit card. There is not. I then spoke to the Financial Conduct Authority and it confirmed that Revolut is covered by The Payment Services Regulations 2009 which, inter alia, state:
"Payment service provider’s liability for unauthorised payment transactions
61. Subject to regulations 59 and 60, where an executed payment transaction was not authorised in accordance with regulation 55, the payment service provider must immediately—
(a)refund the amount of the unauthorised payment transaction to the payer; and
(b)where applicable, restore the debited payment account to the state it would have been in had the unauthorised payment transaction not taken place."
Revolut is not complying with this and needs to have pressure put on it to act responsibly. I use the service frequently and like it, but it’s not enough to be “warm-and-fuzzy”. If Revolut has ambitions to be a bank it needs significantly to up its game when helping customers deal with fraud.