Wire transfers don’t always go the way we want them to. Sometimes, they may get delayed to the point that we become worried. And sometimes, they end up not going through. A wire transfer could fail for several reasons. It could be because you entered a wrong account number, your name was flagged, or you misspelled your name when filling out the transfer details. Whichever the case may be, when a transfer goes wrong, you’ll want the issue to be resolved, and your money returned. But how long does the process takes before your money is returned?
Wire transfers are usually final. Once a wire transfer is initiated, and the recipient’s bank receives the funds, recovering the money becomes almost impossible. However, there are a few exceptions. A wire transfer might be reversible if the mistake was from your bank.
It is often advised that you exercise caution when transferring money regardless of the means. However, sometimes you end up making clumsy mistakes that could make your transfer go south. When that happens, what follows? Can your bank recover the money? If yes, how long will it take? I will be providing enough insight into these questions, including the possibility of same-day wire transfer and other important details you need to know about a wire transfer.
What Happens if a Wire Transfer Fails?
How Long Does It Take for a Wire Transfer to Be Returned?
If you intend on making a wire transfer, you must do so without any mistake. A mistake as simple as omitting an alphabet from your name could end up stalling or halting the transfer. Also, in a situation whereby you entered the wrong account details, your funds could be sent to a different person entirely. When this happens, you’ll surely want to recover your money. But is this possible? If it is, how long does the process take?
As we progress, you’ll find out if it’s possible to recover a wire transfer.
How Does a Wire Transfer Work?
When you inform your bank that you want to send a wire to another individual, it will likely ask you for the following details:
- The recipient’s name
- Bank name
- Routing number
- Bank address
- Bank SWIFT code (for international transfers).
As soon as your bank starts the process of sending the funds to the recipient’s bank, it creates what is known as a payment order. The payment order is sent through one or more inter-bank networks to the recipient’s bank. As soon as the recipient’s bank accepts the payment order, the transfer is deemed complete.
It should be noted that failure to initiate a transfer before the wire transfer deadline could lead to a delay. So check in with your bank to determine its cutoff time.
How Long Does a Wire Transfer Take to Complete?
If you and the recipient are using similar accounts within the same bank to initiate the wire transfer, the transfer can occur almost immediately. All the bank has to do is modify the entry for each account, and that’s all; the wire is complete.
On the other hand, if the wire is being sent between two diverse domestic banks, it may take a day or more for the payment order to move from the originating bank to the recipient’s bank. If you are making an international wire transfer, it might take a few days to complete. Have it in mind that a pending wire transfer cannot be canceled. So ensure you get everything right before going ahead with the transfer.
How to Reverse a Wire Transfer?
As soon as the recipient’s bank has approved the payment order, the transfer cannot be altered. Suppose your bank sends a cancelation notice to the recipient bank, and the notice is gotten before the recipient bank accepts the payment order. In that case, the recipient bank will generally reject the payment order.
If you want to revert the wire transfer, you’ll have to be fast (faster than the transfer network between banks) to tender the cancellation notice to the recipient bank before the payment order is accepted.
Can a Wire Transfer Be Reverted After Being Accepted?
Once the recipient’s bank has accepted a wire, there are some circumstances that allow for the reversal of the wire transfer according to the Uniform Commercial Code.
The only available options for reverting a completed transfer are if the sending bank made an error, if the payment order was a duplicate of a previous order, or if the order is for an amount greater than what the sender transferred to the recipient. In those cases, it would be possible to recover the funds wrongly paid to the beneficiary.
Now, to the main question of this article, “How long does it take for a wire transfer to be returned?”
The answer is pretty simple. A wire transfer cannot be returned, especially if the mistake was from the sender. So, if a wire transfer was sent to the wrong account, the chances that you’ll recover the money is slim. However, if the mistake is from your bank, they’ll ensure that you get the money back. The time it’ll take to recover the money in such a case depends on the circumstances surrounding the transfer.
To ensure that you don’t make a silly mistake resulting in losing money meant for a party, make sure you cross-check the details carefully before sending. In addition, to avoid delays of any sort, ensure you make domestic transfers before domestic wire cutoff time.
What Is the Safest Way to Transfer Money From One Bank to Another?
Why Do Wire Transfers Get Returned?
Wire transfer remains one of the most adopted money transfer methods in the United States. It is fast, efficient, and easy to make. However, like a few other money transfer methods, wire transfers aren’t always successful. When you expect a wire transfer to go through, it may end up being delayed or returned. If wired money is returned, you may be anxious to know why.
A wire transfer cannot be returned, especially if the reason for the reverse was the sender’s fault. However, if the bank made a mistake, a wire transfer will be returned.
Since wire transfers are irreversible, ensure you take your time to enter the correct details to avoid losing your money.
