Monzo Explains 'Automatic Blocks' Policy for Payments
Monzo has clarified its payment policies after a customer alleged that a transaction was incorrectly declined. A mother contacted the bank via social media after her daughter was unable to complete a purchase at a chip shop. The transaction was blocked because the shop's name included the word 'bar', triggering an automatic block on the Under 16s account.
The mother inquired whether there was a way to 'update an establishment' in the system. Monzo responded with an apology and asked if the daughter held an Under 16s account, which the mother confirmed. She explained: 'It is a chip shop, but the shop name has a bar in it, so I think that's where the problem falls. I was hoping if I flagged it you can correct it on your system.'
Cannot Update in App
In reply, Monzo stated: 'Occasionally, we may mistakenly block a payment due to how the merchant has set up their business. We're afraid there isn't a way to update this in the app, but we kindly ask you to chat with us in the Monzo app to feed the example back.' The bank clarified that blocks are based on the Merchant Category Code (MCC), a standard industry classification, rather than the business name itself.
For Under 16s accounts, any businesses categorised as drinking places or selling age-restricted products or services are blocked by default. Monzo's website states: 'Under 16s have automatic blocks on certain merchant categories that aren't for children, such as betting and gambling.' It adds: 'Occasionally we may not block a transaction, or mistakenly block one, due to how the merchant has set up their business. We won't be liable, but we do our best to make sure it doesn't happen.'
Check Blocked Categories
Customers can check which categories are blocked via the Monzo app by navigating to the Under 16s account, tapping the three dots on the card, and selecting 'blocked categories'. These restrictions cannot be overridden by the customer. If a retailer believes they have been incorrectly categorised, they should contact the bank accepting the payment to rectify the issue. Otherwise, the customer will need to use an alternative payment method.
