Buyer offering direct bank transfer - what are the pitfalls?

Sybarite

I've recently been contacted by a potential buyer offering to pay for a BIN auction using a direct bank transfer. The auction is for a phone, the potential buyer is in Cyprus and has a postive feedback rating of 12 from a range of sellers over a significant period of time. I use internation signed for and additionally insured delivery to minimise risk

I've never used the transfer method before and am sightly cautious about supplying account and sort codes to someone I don't know - a few years ago someone attempted to fraudlently apply for a loan in my name after using this information having gained it by swiping a bank statement in the post.

I'm aware of the scams with cheques and paypal claimbacks - but what's the situation re direct transfers? Can anyone help and has anyone been scammed this way?

Thanks

Mr_T_5

Not sure about accepting foreign bank transfers as I have no experience of this, however domestic transfers are perfectly safe.

The only information needed for a transfer are your bank and sortcode number which are on every cheque you hand out.

soolin

I have had one direct bank transfer from abroad before and as far as I was concerned it seemed to be OK, th emoney took about 6 days to reach my account and the bank assured me it was not reversable as a cheque would be. It did however cost the buyer oodles of money, but then they choose to do it rather than use paypal.

I would think as long as it is a proper bank to bank transfer and doesn't involve Western Union you should be oK. Maybe you could phone your bank and ask them as well?

Soo

xela_17

I fully agree with previous posts-is exactly what I would have said. Bank transfers (domestic anyway) are far safer than Paypal and cheques which can go missing in post. Plus, have no risk of anything 'bouncing'.

Sybarite

Thanks for the responses.

For everyone's information I've talked to my bank (Barclays) since posting the thread - they say that international transfers will take up to 6 days, during which time the sender can cancel the transaction.

After this the sender can request that the transaction is reversed, but my bank would have to inform me before this could take place.

So in some ways the direct transfer is a bit better than a cheque.

Hintza

I think its the best and cheapest way. Saves a fortune in PayPal fees""

biblejohn

I use bank transfer a lot, and dont see what the problem is. People cant withdrawl any cash from your account using your bank details so the information isnt really much use to them. But, i still come accross several ebay sellers who dont want to use bank transfer. Instead prefering me to send them a cheque with my bank details plastered all over it. Doh!!!!

Banktransfers still do take as long as a cheque to clear, unless you are transfering too and from the same bank. An instant alternative is to physically draw the cash out of your bank and physically put it in over the counter at the other bank. But, obviously thats not as convient esp if like in your case the buyer is abroad.

robowen

Again we have another payment method that is not totally acceptable to both parties.

If you are a seller, accepting a bank transfer is great - no chargebacks to deal with.

But if you are the buyer, and have a dispute with the seller, you can't get your cash back.

quoia

robowen wrote:

Again we have another payment method that is not totally acceptable to both parties.........
......................... if you are the buyer, and have a dispute with the seller, you can't get your cash back.

But absolutely no worse than sending cash, or a postal order, or a cheque!
All of which have a greater risk of getting lost or being stolen, and potential add upto 2 weeks before the buyer might get their goods delivered.

Even PayPal has limited call back of a failed/dodgy/fraudulent transaction. I've heard many PayPal "horror" stories.

robowen

quoia wrote:

But absolutely no worse than sending cash, or a postal order, or a cheque!
All of which have a greater risk of getting lost or being stolen, and potential add upto 2 weeks before the buyer might get their goods delivered.

Even PayPal has limited call back of a failed/dodgy/fraudulent transaction. I've heard many PayPal "horror" stories.

that's exactly my point.
sending someone a BT is like sending cash. no comeback.
great for the seller.

quoia

robowen wrote:

that's exactly my point.
sending someone a BT is like sending cash. no comeback.
great for the seller.

But where is any comeback if you send a cheque or a postal order ? ? ? ?