Media release: 8 December 2025
A New Zealand couple’s Miami getaway turned into a financial hangover when a day club overcharged them US$4,500, after they handed their non-bank credit card to the bar for a drinks tab while entertaining friends.
Elijah* and Olivia* left the club after several hours, collecting their card on their way out, minus the receipt. They expected a bill of US$3,000 to match what they had ordered. Days later, they found the club had charged them US$7,500. Their attempts to get an itemised bill from the club went nowhere, so they applied for a chargeback from their card provider. The provider reversed the transaction until the club produced signed receipts and evidence that the card was present, prompting the issuer to charge the full amount to the couple’s account.
Insisting the signatures on the receipts were not theirs, the couple said they had been charged for items they didn’t authorise. Financial Ombudsman Service, Financial Services Complaints Ltd (FSCL) reviewed the case and the credit card terms and conditions. By allowing staff to hold their card behind the bar for hours, the couple had unintentionally breached those terms and conditions. Because of this breach, FSCL found that the card provider was entitled to charge them the full amount of US$7,500.
Financial Ombudsman, Susan Taylor, says this case is a timely warning for travellers and party-goers. “With the holiday season upon us, people may be tempted to leave a card behind the bar when hosting parties.
“It might feel normal to let a venue ‘babysit’ your card to keep a tab running, but that convenience can come at a high price,” she says. “If you hand your card over and walk away, you are risking someone using your card and charging items to it without your knowledge.
“Your credit card is effectively a direct line to your money. You’re responsible for all the charges, even those made without your authority, if you’ve breached the terms and conditions,” Ms Taylor says. “Keeping it in your hands is the simplest way to stop a fun night out from turning into a very expensive one. Remember to get a receipt for the items you’ve bought and check statements promptly so any surprises are picked up early.”
Ends
Notes to Editors
*Names have been changed for privacy
Read the case note: https://fscl.org.nz/case-studies/credit-card-dispute-after-miami-day-club-overcharge/
