When money disappears from a bank account through a digital payment, who has to prove what? A new ruling from the UAE’s financial disputes unit gives a clear answer: the bank.
Sanadak, the banking and insurance disputes settlement unit, said a local bank was obliged to return an amount deducted from a customer’s account through a digital payment service. The bank had failed to give evidence that the customer’s phone was linked to the service or that he agreed to use it.
How the case unfolded
According to the Sanadak description of a similar case, the customer complained of an unauthorised breach of his account, noting that he had not received any notifications on his mobile phone. The team investigated and contacted the customer, and found the money was deducted through a digital payment service.
The financial institution could not provide evidence that the account holder’s phone was linked to the service or that he was authorised to use it. Sanadak therefore deemed the transaction unauthorised and ordered the money returned.
The unit did not name the bank, the amount refunded or the digital payment service involved. Without those details, the ruling is best read as an example of how Sanadak approaches such cases, not as a finding against any specific provider.
Where the burden lies
The principle behind the decision is important. Under anti-fraud rules and financial consumer protection law, the burden of proof in electronic transactions falls on the financial institution. In practice, that means customers do not have to prove that they did not make a payment. The bank has to show that it was properly authorised.
That is a strong protection in an age of mobile wallets, linked phones, one-time passwords and instant transfers. It also gives banks a reason to keep reliable records of how a device was registered, how consent was given and how a payment was authenticated.
What Sanadak is
Sanadak is an independent body set up by the Central Bank of the UAE to settle disputes between consumers and small and medium-sized enterprises on one side, and financial institutions and licensed insurance companies on the other. Its remit covers bank accounts, credit cards, payment services and loans, as well as insurance disputes.
What to do if you see a payment you did not make
The ruling is not a reason to relax. The strongest outcomes still depend on acting quickly and keeping good records. UAE banking guidance generally points to the same steps:
- Contact your bank immediately and ask for a written reference for your complaint.
- Ask the bank to explain how the payment was authorised and which device was used.
- Keep screenshots, notifications and statements.
- If the bank rejects your claim or misses its deadlines, escalate to Sanadak.
- Report suspected fraud through the police channels that serve your emirate.
Customers should also take care of the basics: never share one-time passwords, keep apps up to date, and review linked devices regularly. Those habits do not replace the bank’s duty to prove authorisation, but they lower the risk of the problem arising in the first place.
A signal to the industry
Rulings like this one are usually brief, but they carry weight with lenders. Banks that offer digital payment services will want to be sure that their onboarding and consent records are complete. A gap in the audit trail can turn a disputed payment into a refund.
For consumers, the message is reassuring but practical. If a digital payment looks wrong, say so promptly, and expect the bank to justify its own records. If it cannot, Sanadak has shown that it will order the money returned.
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