Change of Position and Digital Payments: Rethinking Reliance

Abstract

This comment examines the operation of the change of position defence in the context of modern digital payment systems, where funds are transferred and dissipated with unprecedented speed. It analyses whether traditional reliance-based reasoning remains adequate in cases involving mistaken electronic payments, consumer refunds, and automated transfers. The comment argues that courts face increasing difficulty in identifying meaningful reliance where defendants adjust their financial position through routine digital expenditure rather than conscious decision-making. It evaluates recent judicial approaches and considers whether a recalibration of the defence is required to reflect contemporary payment practices. The comment concludes by suggesting that while flexibility is necessary, the defence must remain anchored in principled reasoning to avoid undermining restitutionary claims for mistake.