- Original Poster
- #1
A Long-standing customer of mine recently settled an invoice using faster payment.
The funds appeared in my bank on November 23. They then got withdrawn on November 24.
I telephoned my bank to ask what was going on. They told me that according to their records, the sending bank had asked for the funds back as they were remitted in error, and that a letter to this effect was in the post.
My bank told me the only sensible course of action was to talk to my customer and ask them why they had requested the payment back.
I spoke to my customer, who assured me that he had never asked for the funds back, noticed that the payment had been re-credited to his account, and so sent the payment again immediately. I am waiting to see if this one gets reversed as well!
So, under what circumstances can my bank remove cleared funds from my account prior to informing me, or asking my permission to do so?
Has anybody else had this kind of experience of BACS, FP or SWIFT transactions ever being recalled?
This calls into question the safety of accepting bank transfers as a guaranteed payment method, since had the customer not been a good friend and honest, I could have lost money..
I have always assumed that bank transfers were irrevocable, and the receipt of funds in my account in settlement of an invoice meant that they would never be recalled without my prior agreement.
Comments?
The funds appeared in my bank on November 23. They then got withdrawn on November 24.
I telephoned my bank to ask what was going on. They told me that according to their records, the sending bank had asked for the funds back as they were remitted in error, and that a letter to this effect was in the post.
My bank told me the only sensible course of action was to talk to my customer and ask them why they had requested the payment back.
I spoke to my customer, who assured me that he had never asked for the funds back, noticed that the payment had been re-credited to his account, and so sent the payment again immediately. I am waiting to see if this one gets reversed as well!
So, under what circumstances can my bank remove cleared funds from my account prior to informing me, or asking my permission to do so?
Has anybody else had this kind of experience of BACS, FP or SWIFT transactions ever being recalled?
This calls into question the safety of accepting bank transfers as a guaranteed payment method, since had the customer not been a good friend and honest, I could have lost money..
I have always assumed that bank transfers were irrevocable, and the receipt of funds in my account in settlement of an invoice meant that they would never be recalled without my prior agreement.
Comments?
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