Money transfers can take various forms including checks, wire transfers and peer-to-peer payments. Depending on the method, some can be processed instantly while others may take several days.
The Receiving Bank
When a payment is sent to a recipient bank, it is often passed through several intermediaries before being finally credited into the beneficiary’s account. That’s why it’s a good idea to always use trusted intermediaries like banks, credit unions, or money transfer services.
Unfortunately, there are times when payments can get lost in a transfer. Usually, this is due to human error, such as when a digit is keyed in wrong, or the transfer is set up for August 2005 by mistake.
When this happens, it’s the sending bank’s responsibility to trace and re-issue the missing payment. But, as you can imagine, this is a fairly challenging task. In any case, the odds of having a misdirected transfer returned to you are pretty low.
The Sending Bank
When sending a wire transfer, it is important to make sure that the bank details are correct. Otherwise, the funds may be returned to your account or lost entirely. If you notice that your money isn’t arriving as expected, it’s best to lodge a claim with the provider. In most cases, they’ll help you track down the missing payment and provide a refund if needed.
If you’ve contacted the provider but haven’t heard back, it might be time to contact your bank directly. Depending on the location of your bank and the receiving bank, they might be able to assist you with tracking down the missing payment. However, bear in mind that it will take longer than if you had used a reputable IMT specialist like TransferWise. This is because of the complex rules governing international money transfers. It’s also worth noting that banks may charge tracking, investigation or amendment fees in some cases. These will vary from institution to institution.
The Recipient’s Bank
Sometimes a transfer will fail to reach its destination and get lost in the system. This can happen for a number of reasons. It could be a simple human error, such as a digit being keyed in incorrectly, or the recipient’s bank could simply forget to credit the funds.
In these instances, it is up to the sending bank to trace and re-issue the payment. This is in line with EU regulations and makes sense, as they are the ones who have initiated the transfer.
Getting a lost wire transfer back is challenging, but not impossible. It can be retrieved on a best-efforts basis if it is reversed before the funds end up in the wrong account. This is a good reason why it’s important to double-check the recipient details on every transfer you make.
The Third Party
A third party is an entity or person that has a role in an interaction between two primary parties. Examples of third parties include escrow companies in real estate transactions, credit card payment processors, and collection agencies. Third parties operate across multiple industries that involve frequent negotiations and transactions, such as finance, real estate, and e-commerce.
It is important to be aware of how third parties can get involved in your interactions with others. If you are not careful, you may unknowingly allow a third party to access your personal information or money. The most common example is when a third party intercepts your conversation with another individual through a chat application. Other common scenarios involve a third party using your credit card or bank account without your knowledge. Make sure you have the correct bank details for your recipient when making a transfer to avoid these issues.