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Monzo has explained its rules after a customer claimed that a payment was mistakenly blocked. A person contacted the bank after an everyday payment was blocked at a retailer.

A mum contacted Monzo over social media, asking if there was a way to "update an establishment" after her daughter had been unable to make a payment. She claimed her daughter had tried to pay for something at a chip shop, but because it had the word 'bar' in its name, the payment had been blocked.

Monzo responded to apologise for the payment problem. The group asked if the daughter had an Under 16s account, with the mum confirming that she did.

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."

In response, Monzo said: "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."

Monzo was asked for further guidance about when it will block payments. The bank confirmed that it can block payments depending on how a retailer is categorised, based on their Merchant Category Code (MCC).

This is a standard industry classification. Any merchants categorised as drinking places, or as selling other age-restricted products or services, are blocked by default for the Under 16s account.

Any blocks that are applied to a payment are based on this MCC rather than the business' name. Guidance on the Monzo website explains: "Under 16s have automatic blocks on certain merchant categories that aren't for children, such as betting and gambling."

The advice also states: "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."

You can view what the blocked categories are in the Monzo app, by going to the Under 16s account. Then tapp the three dots on the card and go to 'blocked categories'.

These blocks cannot be overridden by the customer. If a seller believes they are in the wrong category, they should contact the bank the accepts the payment to get this corrected.

Otherwise the customer will need to find another way to pay for the item.