What would happen if I made an online transfer but the money
didn’t arrive in the other account? This is usually the situation that
confronts many customers in this era of digital/electronic banking
In this age of online banking, transferring money between
accounts is as simple and every day as paying in a shop. What makes it all the
more troubling is that, sometimes, bank transfers can go wrong.
According to www.choose.net, when transfers go wrong, these
are possibly the reasons:
Wrong account number/sort code
Human error is an inevitable part of life, and is especially
prevalent when we’re required to type in meaningless strings of numbers, such
as sort codes and account numbers.
If we mistakenly enter a wrong digit, then the money can go
to the wrong party.
If this is the case, we need to contact our own bank as soon
as possible. They can’t stop a payment that’s already been made, but most will
act on our behalf in trying to track it down and recover it.
Bank error
Even if the sort code and account number have been entered
correctly, a bank error can result in the transfer not being made. In that
case, the first step is to ask the sending bank to provide evidence that they
have made the transfer. If the bank can show that they did indeed make the
payment, then they should also carry out an investigation and try to recover
the missing money.
Technical failure
Sometimes, it could be the technological platform,
infrastructure or telecommunications/Internet service provider that may be the
problem. It can be traced to the issue of down time.
Recovering incorrect transfers
However it happens, when an incorrect transfer has been
made, reporting the error is the first order of business.
While the money still legally belongs to the person making
the payment, there are plenty of stories attesting to the fact that recovering
it often isn’t easy or guaranteed.
As soon as we let our bank know we’ve made a mistake with a
payment, whether it’s just after we hit “send” or sometime later, the
regulations state that they have two working days to act.
This usually means getting in touch with the receiving bank
to see what’s happened. The Central Bank of Nigeria is currently working on a
draft rule that will compel your bank to ensure that (if there is clear
evidence of a genuine mistake) the receiver does not spend the money by
mistake.
The receiving bank will then contact the person whose
account stands to gain from the error, to give them the chance to dispute that
the payment was made by mistake.
Frightening as this may sound, we’re relying on a stranger
to be honest, most claims are undisputed, and the money should be returned in
days.
Problems with recovery typically arise when the owner of the
receiving account disputes the claim. In some cases this is deliberate, while
in others, it’s because they’re unaware of a problem, say, if the account is
unused for some reason.
Before the introduction of the draft rule that the CBN is
working on, customers have faced serious problems when they send money into
other accounts wrongly.
By this new rule, the banks must do everything to ensure
that the money is recovered as soon as possible.
How to prevent transfer disasters
As so often in life, prevention is better than cure. It is
better to prevent funds transfer problems than carelessly allow the mistake to
happen and then face the hassles of recovery.
According to www.choose.net, here are some tips to avoid
transfer problems or error:
Check the recipient details
It’s vital to double check the sort code and account number
before sending a payment; payments are processed only using these numbers.
Banks advise anyone making a transfer to double and triple
check the recipient’s sort code and account number before hitting “send,” and
they provide a sort code checker to help with the first part.
It can’t tell if a sort code is for the “right” account
(i.e. it can’t give any details about the name of the account holder, or of the
account itself), but it can confirm whether the account is suitable for the type
of transfer.
Most banks in Nigeria don’t reckon with sort code as such.
We should also check the amount and make sure to include a
payment reference if one is required; this is often found when making payment
to utility companies.
For payments from one person to another, say to a friend; it
can be worthwhile making a much smaller test payment of N500 or less before
transferring the full amount.
As well as making sure the details are correct, it’ll give
both parties a feel for how long it’ll take; and if something goes wrong, it’s
much less traumatic.
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