| 4:25 pm on Jul 6, 2011 (gmt 0)|
| 4:29 pm on Jul 6, 2011 (gmt 0)|
Be careful. Wire transfers can be reversed. I don't recall the timeframe, but it's like 30 days or something like that.
| 4:35 pm on Jul 6, 2011 (gmt 0)|
|Be careful. Wire transfers can be reversed. I don't recall the timeframe, but it's like 30 days or something like that. |
Actually no. Direct debits can be reversed, wire transfers not. Once the money is on your account it can't be reversed without your consent. Ask your bank when in doubt however.
It can be reversed BEFORE it has been credited on the recipients account however. So you should always wait until the money is on your account before sending goods.
| 7:04 pm on Jul 6, 2011 (gmt 0)|
My bank (Citizens, one of the largest banks in the world, owned by RBS) told me that a wire transfer can be reversed if it is fraudulent, and if you have already removed the money from your account, the bank will come after you for it. In their words, "The bank will always get paid." They don't go after the bank that sent them the fraudulent wire. My understanding is that the best way to be paid a large sum internationally is a Letter of Credit. This is irrevocable.
| 7:11 pm on Jul 6, 2011 (gmt 0)|
Yeah, the reason I mention the reversal is because I've read accounts where scammers wire money into your account, then 30 days later the money gets reversed. So I don't know specifics, but I suspect a wire transfer isn't as iron clad as one might like.
I know first hand that even postal money orders aren't iron clad. got passed one onetime, it's as good as cash. Unless the money order was printed on stolen blanks - the blanks were real but stolen. Crooks printed a number on them, then bought some stuff from me.
| 7:35 pm on Jul 6, 2011 (gmt 0)|
|Yeah, the reason I mention the reversal is because I've read accounts where scammers wire money into your account, then 30 days later the money gets reversed. |
I had someone wire a larger amount from my bank account to a Bosnian bank-account with a forged signature. He sent an order to transfer the amount by fax to the bank. My bank transfered the amount. I noticed it online and went to my local branch and they were able to reverse the transfer. But not like that - by simply pressing a button on the computer, it involed the police and several phone calls with the recipients bank. And the only reason they were able to do it was because I had caught it early and it had not yet been credited to the recipients account. They told me if the money had already been credited to the other bank account they could not have reversed it and they would have been liable to replace my funds. Another time someone accidently transfered a small amount to my account. Wrong account number. He was not able to reverse the money, actually the bank would not even give him my name and address. All they agreed to was to pass on a message to me where he asked to check my account and transfer the money back to him, which I then did.
From all I have heard from banks so far and from my personal experience wire transfers can not be reversed when the money has been credited to the recipients account. And from what my bank has told me - even if the transaction is fraudulent.
So - of course it is always good to confirm with the bank you are using - but I have never ever heard from a case where a wire transfer was simply reversed AFTER the money had already been credited to the recipients account. Which of course does not exclude the possibility someone can try to sue you to get the money back.
| 10:55 pm on Jul 7, 2011 (gmt 0)|
|...but I have never ever heard from a case where a wire transfer was simply reversed AFTER the money had already been credited to the recipients account. |
Aside from suing, your bank could run to the police and claim that you conspired with the people who sent you the wire transfer to steal money from the bank. That could mean criminal charges could be filed against you too...
| 3:29 am on Jul 8, 2011 (gmt 0)|
jecasc is the one talking sense as he talks from experience. After 15 years selling textiles yarns from India to all major countries in Europe and Africa, I can attest to what he is saying. An LC can always be not paid if documents are discrepent ( or supposedly discrepent). Anyways an LC is not really viable below a couple of thousand dollars.. Just too much work. And how you will create a negotiable transport document for selling small ticket goods is beyond me. And BTW, irrevocable means that the LC can not be cancelled by the one who opens it before expiry. It does not mean that it will definitely get paid. In fact, an LC transaction involves a lot of trust between the exporter and importer and THAT is precisely the issue we are discussing.
Reg. LC.. I have expereinced major fraud in countries such as Bangladesh. From my experience I can tell you that banks in such countries collude with importers and give access to the goods to them without making payment to exporters. After goods are used up, they claim problems with documents etc, and THEN ask you to visit them in Bangladesh to 'negotiate' the problem. My personal experience. Try and get a wire transfer from these guys before shipment and they will balk.. and run and cancel the orders. I have seen this multiple times.
| 3:31 am on Jul 8, 2011 (gmt 0)|
'Aside from suing, your bank could run to the police and claim that you conspired with the people who sent you the wire transfer to steal money from the bank. That could mean criminal charges could be filed against you too... '
Wow ! you have just shaken the foundation of international trade.