Court orders Absa to pay customer Sh 1.8 million after Visa decline

Absa Bank headquarters along Waiyaki Way in Nairobi. [Wilberforce Okwiri, Standard]

A bank will pay its customer Sh1.8 million after a failed Visa Card transaction was declined abroad.

High Court Judge Hedwig Ong'udi agreed with the magistrate's court that Absa had inconvenienced Robert Mochache when his prepaid debit card issued by the lender was declined by an airline when he was paying for an air ticket.

She however reduced the amount awarded by the lower court from Sh3 million after finding that it was high.

According to her, Mochache did not provide evidence on whether he reached out to Absa on the material day to express his experience with the Visa card.

She noted that he did not also tell the court what the bank's response was.

"I do find the sum of Sh1.8 million to be sufficient for the disappointment, inconvenience, etc that the respondent went through. No evidence was adduced to show any loss of business and amenities by the respondent," ruled Justice Ong'udi.

In the case, Mochache sued the lender seeking damages for alleged breach of contract, and professional negligence.

At the same time, he complained that the card's failure to function had caused physical and emotional pain.

He also asked the court to order the bank to pay him the cost of the case and interest.

In his case, Mochache stated that on November 17, 2018, while in the USA he attempted to use the prepaid debit card issued by Absa for payment of airline ticket. However, he narrated that the payment was declined.

Mochache further said that he severally attempted to pay knowing that the pre-paid card had sufficient funds but all transactions were declined.

He argued that the failed transaction caused him to miss his desired flight and left him stranded.

The man claimed that the bank was negligent and breached its end of the bargain.

Absa and Mochache battled before the magistrate's court. After hearing rival submissions, magistrate Daniel Mburu found that the bank had failed its client.

He awarded Mochache Sh 500,000 compensation for breach of contract and Sh 2.5 million for the pain and ridicule caused by the card's failure to work.

Aggrieved, Absa escalated the case to the High Court. It raised six issues. In its appeal, the argued that the magistrate erred by finding that it had failed its duty to Mochache.

According to the lender, the Visa card issued was functional. It argued that he had managed to use it for other transactions.

Absa distanced itself from the failure stating that it was caused by Spirit Air's failure to properly configure their machines.

Absa argued that no evidence had been led by the respondent attributing the declined transaction.

It argued that if the visa card was faulty, one would expect all transactions to fail. The lender submitted that in the instant case, all transactions on the card were successful save for the Spirit Air transaction.

On the Sh500,000, the bank stated that there was no evidence to show that Mochache suffered any loss. On the Sh 2.5 million, it asserted that he did not produce any proof to support his claim on the alleged loss of business or pain caused.

On his end, he argued that there was a relationship between him and the bank. According to him, the bank acts as an agent of the customer. He asserted that the bank ought to have been diligent to ensure that the Visa worked.

He argued that there was evidence of emotional distress subjected to him while on the trip.

In his further submissions, Mochache said he was a person of both local and international repute and it was humiliating and demoralizing for him to be subjected to such a scenario.