Can Bank Transfers Be Reversed

Nebulous2

In the MSE world people promote bank transfers, but where I live a significant proportion of second-hand car sales are still cash only. I've never sold a car of that value for cash, but I have sold and bought objects at high four figures in cash. 

In addition to the risk of getting the payment reversed, there is also a risk that the payment comes from a compromised account, not the buyers own account, in which case you could be open to a whole world of pain, including a CIFAS marker, and getting your bank account closed. 

GeoffTF

Is there anything wrong with the old fashioned method of a banker's draft or building society cheque, where you see the cheque being issued over the counter?

LunaLater

If they were to tell their bank that they were the victim of fraud then it’s conceivable that the transfer could be returned.

If you have a signed receipt though, picture of their ID and photograph of them with their new car it’s not conceivable that a fraud claim would be entertained.

A bank transfer with these things is about as safe as any method can be.

wmb194

GeoffTF said:

Is there anything wrong with the old fashioned method of a banker's draft or building society cheque, where you see the cheque being issued over the counter?

They went out of fashion years ago when lots of counterfeits began turning up.

boingy

So the question is, what is the safest way of accepting a payment of that size when selling a car privately?

robatwork

boingy said:

So the question is, what is the safest way of accepting a payment of that size when selling a car privately?

100% safe?  There isn't one. 
Cash is still the way to go as long as you have some way of detecting forgeries, and even then you won't easily be able to pay it in anywhere. Going to the bank with the buyer and doing a CHAPs transfer would seem as safe, but not exactly convenient.

km1500

seems really strange that in this day and age there is no 100% safe way of paying someone! 

jbuchanangb

The only time I sold a car for cash, I went with the buyer and the cash to the Post Office to deposit the cash in my bank account, the cashier counted the cash and checked each note was OK. I also obtained a signed receipt from the buyer. Then I handed over the car.

born_again

If it's not showing in your account. Car does not leave. 
There is a scam where they show it has left their account (fake bank account) & they drive off into the sunset as people believe it.

TojoRalph

Yes. A relative recently accepted a bank transfer to their TSB account as payment for goods. My relative got a call from TSB asking what the payment was for. The relative explained and offered to provide the receipt of sale if needed and assumed that was that. The next day TSB reversed the transaction as "Fraud Recovery" and closed their account.

With TSB's fraud guarantee, it seems to be that any claim of "fraud" is taken as gospel without any meaningful investigation and the transaction reversed.