How to Get Back the Money Sent to Wrong Overseas Account?

‘Sending money to the wrong person’ is the nightmare of everyone who does outward remittance. At this moment people often panic and lose hope. 

However, one must know that if a mistake occurs on the part of the sender or the sender’s bank, there is a chance to reverse the transaction and get the amount back. This process is called “recall” or “call back.” You can even redirect it to the right receiver by the procedure of “amendment”.

However, the decision to recall an international money transfer is based on the discretion of the sender and beneficiary bank. 

Also Read: How Wire Transfer From India to Abroad Actually Works

How to Reverse International Money Transfer?

1. Contact Your Bank or Money Transfer Agent

The first and foremost step is to visit your bank or transfer service provider as soon as possible. Explain the issue with necessary proof and request wire transfer reversal or redirection. Beneficiary identity and bank documents can be produced as proofs. In case of scams, submit adequate screenshots and other evidence.

2. Wire Trace

A wire trace tracks the status of an international money transfer using a reference number or SWIFT copy. Banks and agents use this method to locate where the transaction request has reached in the banking system.

3. Wire Transfer Recall or Wire Transfer Amendment

After tracing the current status of the wire transfer, a recall request is made by your bank. Wire transfer recall is the process of cancelling and reversing a wrong international money transfer back to your account. 

Wire transfer amendment is the process of editing the transaction details and redirecting the wire transfer from the wrong to the right beneficiary.

Steps to Take Before Wire Transfer Reaches the Wrong Beneficiary

When the outward remittance is initiated from the sender’s bank, it is not sent directly to the beneficiary’s account. The money transfer order is sent to the intermediary bank, further passed on to the beneficiary bank, and finally to the beneficiary’s bank account. So, you can freeze the transfer at any of these stages;

1. Money Transfer is Not Initiated from the Sender Bank: In this case, on your request, the bank shall call back the transaction. After verifying and making the necessary changes, the amount shall be transferred to the right beneficiary.

2. Money Transfer Request Reached the Intermediary Bank:  Upon your bank’s recall request, instructions shall be sent to redirect the payment to the right beneficiary or reverse.

3. Money Transfer Request Reached the Beneficiary Bank: When the transaction request reaches the beneficiary bank, they credit the amount after verifying the details. If there’s a mismatch or the account does not exist, they may hold the transaction. Some banks may contact the sender’s bank, while others won’t. In such a case, if you contact your bank, they will investigate and reverse the transaction.

Steps to Take If the Money Reached the Wrong Beneficiary Account

Even if money is credited to the wrong account, you can request a reversal. The sender’s bank will contact the wrong beneficiary’s bank. The bank will not refund the amount themselves but will contact the wrong beneficiary and ask for consent to debit the amount. If accepted, the amount will be returned to you. If the beneficiary has withdrawn the amount, the bank shall inform them to return the funds. Legal action can be taken if they refuse.

Charges to Reverse a Wrong Wire Transfer

On a recall or amendment, you shall always receive a lesser amount than the amount sent. This is due to several factors:

• Intermediary bank charges of a minimum of $30 is deducted for facilitating the recall or amendment process

• Foreign exchange rates can vary daily. So, when you recall and make an inward remittance, if the rate is lower than the exchange rate when you did the outward remittance, you shall suffer a loss.

Time Taken for International Money Transfer Refund

How long the refund or amendment takes, depends upon the line of procedure and formalities followed by the sender and receiver banks. It usually takes a minimum of 1 week to process the recall query, but it may take anywhere from 1 week to 1 month to complete the process.

When Can I Cancel and Reverse International Bank Transfer?

You can cancel and recall your wire transfer as you wish but be prepared for the possible hassles. The best time to raise a recall request is within 24 hours of the payment. As time passes the process becomes cumbersome. It can even lead to legal battles!

It is not impossible to get your money back after doing a wrong international transaction. However, the process can consume time and money. Therefore, on your part, always double-check the beneficiary details while filling A2 Form. Also, make sure you choose a responsible wire transfer service provider like ExTravelMoney to avoid operational errors.

Also Read: 8 Mistakes To Avoid When Transferring Money From India

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