Money Transfers - NO REPROACH?

Bille

There seems to be a loophole when it comes to protecting bank customers, as Money Transfers (namely Internet banking) appear to hold no means of reproach.

ONCE the money has left the account IT IS GONE!!! Even if someone got a digit wrong keying in details or sent it to the wrong PAYEE!

HOW CAN THAT BE?

You are protected for cheques, bank cards, credit cards, PAYPAL, but not for Bank Transfers?

Does anyone else think this is wrong?

opinions4u

Bille wrote: »

There seems to be a loophole when it comes to protecting bank customers, as Money Transfers (namely Internet banking) appear to hold no means of reproach.

ONCE the money has left the account IT IS GONE!!! Even if someone got a digit wrong keying in details or sent it to the wrong PAYEE!

HOW CAN THAT BE?

You are protected for cheques, bank cards, credit cards, PAYPAL, but not for Bank Transfers?

Does anyone else think this is wrong?

If you make a cheque payable to the wrong person, and the wrong person banks it, there is no comeback.

If you give an instruction to your bank and the act on it, why should the bank lose out because of your mistake?

A £1 test transaction is often a wise insurance against personal error.

Gromitt

You have no more protection from Paypal than you do from your bank.

If you visit the Paypal forums you see this asked occasionally. Here is one such example:

Does anyone know if it is possible to cancel a completed transaction?!!!!!!

Basically I have accidentally transfered 131 euros to the wrong person!

Hi helen12345,

Welcome to the PayPal community forum.

Once a payment is showing as completed it can not be cancelled. I would recommend that you contact the company directly and explain what happened and request that they provide a refund.

p00hsticks

Bille wrote: »

You are protected for cheques, bank cards, credit cards, PAYPAL, but not for Bank Transfers?

Does anyone else think this is wrong?

I'm not quite sure what the banks could realistically do though - After all, it's not as if they can somehow know who you actually meant to send the money to and correct you if you put in a different number ? The only possibility would be to change the system to include the account name, but if you did that it;s likely that large numbers of payments woudl end up beind valid becuase of some discrepancy in spelling or writing the name (Mr Smith, John Smith, Mr J Smith, Mr John Smith , Mr Smyth etc... )

rb10

Bille wrote: »

ONCE the money has left the account IT IS GONE!!! Even if someone got a digit wrong keying in details or sent it to the wrong PAYEE!

This is incorrect - bank account numbers use a 'check digit' (Google it), which means that changing one digit of a bank account number results in the payment bouncing back to your account.

In most situations this will happen in real time.

stclair

Its looks like the industry maybe looking at things to possibly to protect the consumer. It may be a case of watch this space.

http://www.paymentscouncil.org.uk/-/page/tellus/

YorkshireBoy

Bille wrote: »

HOW CAN THAT BE?

Because they ask you to confirm the transaction?

They reasonably expect you to have done so before you press the button!

If you don't check it when prompted, then that's hardly the bank's fault is it?

Bille

Thanks all for your feedback :T

I'm quite confused about the stance on it though. In Germany we have something whereby if you find an error with a payment within a certain window, your bank can recall it for you, which makes sense.

If it was a transaction the banks were liable for the amount (i.e. in certain fraud situations), they would VERY EASILY and QUICKLY be able to TRACE MONEY and would contact any other bank without hesitation provided it is detected quickly. So why can't they do that for their customers?

Somehow I don't believe ANY of us are beyond ever making a mistake?

YorkshireBoy

Bille wrote: »

Somehow I don't believe ANY of us are beyond ever making a mistake?

As 04u says above, a £1 test payment (where this is possible) is a good move just in case.

I agree, though, that entering the wrong digits once could be termed a mistake. But confirming them as true, when asked/prompted to check, is an even bigger one...bordering on negligence even?

innovate

rb10 wrote: »

This is incorrect - bank account numbers use a 'check digit' (Google it), which means that changing one digit of a bank account number results in the payment bouncing back to your account.

In most situations this will happen in real time.

I still don't understand why they need check digits and modulus checking and complex sounding things, when uncle Tom Cobbly can get a sort code/bank account number verified, based on data that has been made available by the banks. Why don't they just check whether the combination of numbers exists, yes/no?
http://www.postcodeanywhere.co.uk/bank-account-validation/

Of course, this would not prohibit customers from sending a payment to the wrong set of numbers. Just like we aren't prohibited / protected from dialling a wrong phone number.

innovate

Bille wrote: »

Somehow I don't believe ANY of us are beyond ever making a mistake?

Of course nobody is, but you can reasonably be expected to assume responsibility for your own mistakes.