Monzo users double-charged at Tesco after technical error - but you can reverse the transaction
Monzo users shopping at Tesco stores across the country may have been charged twice after a technical error. Tesco says it is investigating and adds that it aims to reverse duplicate transactions within a day. Affected Monzo customers can also reverse payments via its banking app. Here's what's happened.
MoneySavingExpert.com has seen around 40 complaints over the past week, including today, on both social media and via email from shoppers who say they have been charged twice while using their Monzo card in a Tesco store. Issues have been reported across the country in areas such as County Durham, Lincoln, London, and Wigan.
Monzo has confirmed it is aware of a problem affecting a very small number of Tesco transactions. It believes the issue is with the payment system Tesco uses, although it's unclear how many users are impacted or if it's a problem at every Tesco store. It is also unclear what's caused the issue or when it will be resolved.
In the meantime, it's best to keep an eye on your bank account or card statement to see if you're double-charged. Monzo had almost 4 million customers in 2020, according to its latest financial results.
See our Supermarket Shopping Tips guide for full help on cutting the cost of buying groceries.
'I have been charged twice for the same transaction at Tesco'
Here are just a few complaints we've seen on social media:
Tesco will automatically refund duplicate charges - but you can also reverse payments via the Monzo app
If you have a duplicate transaction showing on your account after using your Monzo card in a Tesco store, the second payment will likely be detailed as a "pending payment". This means the transaction has not been fully debited and can either be reversed by you, or it will be automatically debited back into your account.
Tesco told us it has an automated system in place that recognises duplicate transactions and it aims to refund them within a day - however, some banks may take longer. It adds that while more than one pending transaction can appear temporarily, you will only ever be charged once.
Monzo will also reverse the payment automatically within eight calendar days if Tesco doesn't do so. Alternatively, you can reverse the payment immediately yourself via Monzo's banking app. To do this, you need to:
- Click on the original payment (not the duplicate) in your transactions feed in the app.
- Scroll down to the bottom of the payment information and select 'Something Wrong? Get Help'.
- Scroll down and select 'Question this payment'.
- Select the option listed to reverse the payment.
If this doesn't not work, you can get in touch with Monzo to request a reversal of the payment.
Contact Tesco or Monzo if you've incurred bank charges
If the double payment has fully debited from your account or the pending transaction means you've incurred bank charges as a result of the error, complain to Tesco or to Monzo. These could have been incurred if the double payment pushed you into your overdraft or above your agreed overdraft limit, for example.
If this happened, contact Tesco's customer services team on 0800 505 555. Tesco says it'll deal with requests for refunds of these charges on a case-by-case basis. Make sure you provide evidence of the charge, such as a letter from your bank or a bank statement.
Alternatively, complain to Monzo - it told us it will cover overdraft charges for those who have been forced into an unarranged overdraft as a result of the mishap. As Monzo is a bank, if you're unhappy with how it deals with your complaint you can take it to the free Financial Ombudsman Service.
If you were charged bank fees, your credit file may also have been hit – but you can correct it. You can view your credit file for free via the free MSE Credit Club. Marks can take two to eight weeks to appear though, so you may need to keep checking over the coming weeks. If you do end up with a mark, you may be able to get it removed – see our Boost Your Credit Score guide for full help.