95% of bank transfer reversals are due to three reasons, causes that are easy to avoid.
Popular methods to transfer funds to-and-from your Payza account is by bank wires and bank transfers. On rare occasions–though still common enough–we are unable to complete a bank withdrawal or deposit request and must reverse a transaction. A reversed bank transaction is more than inconvenient: it can result in you paying a costly fee, similar to that of a bounced check. We want our customers to avoid unnecessary fees and ensure their bank transactions occur as planned. Find out the three main causes of bank transfer reversals and how you can avoid them.
1) Insufficient funds: This party needs more people
Payza can process a transaction only if you have sufficient funds in your bank account (for deposits to Payza) or your Payza account (for withdrawals to your bank). If your funds are insufficient at the time you make your transaction request, your transaction will “bounce”, as is the case when a customer attempts a debit or check payment that is greater than the funds they have in their checking account.
Since bank wires and transfers require, on average, two to four business days to complete, we noticed that some customers mistakenly think they can make a transaction request and then add funds the next day so that their account has a sufficient balance for the future transaction.
Before making a transaction request, be certain that you have enough money in the originating account when you make your request; this amount must include the cost of transaction fees. If we reversed a transaction due to insufficient funds, you may add funds now and repeat your transaction request.
2) Account closed: Ghosts are not the best banking partners
With time, comes change, and we noticed that some long-time Payza customers have bank accounts linked with Payza that, over time, were closed or are no longer in service–what we call a “ghost account”. It should come as no surprise that we must reverse a transaction linked to a ghost account.
In this situation, simply add another bank account to your Payza account and then repeat your transaction request. You may need to open a new account with your bank.
3) Incorrect banking information: Your money is stuck in transit
Financial transactions share similarities to making a phone call: in order to connect with the right person and transmit your message, you need to dial the exact phone number; otherwise, your phone call will connect with the wrong person or receive a “dead air” dial tone. Money transfers also use numbers to connect accounts and inform financial businesses how to send your money to the appropriate destination.
These numbers are complex, which makes entering them prone to error when setting up an account or requesting a money transfer. To elaborate, North America uses 9 digit Automated Clearing House [ACH] number, the International Bank Account Number [IBAN] is 34 digits long, and the Society for Worldwide Interbank Financial Telecommunication [SWIFT] number has eight or 11 digits.
A single error in the account number, transit number, or bank number in your file will reverse your bank transaction request. Not to worry, in this situation, your money is not lost, it is merely “stuck in transit” and Payza or your bank can retrieve them once we identify where they got stuck.
Before connecting your personal bank account to Payza or making your first bank transfer or wire transaction, we recommend that you contact your branch and have an employee provide you with your exact account information needed to make these specific financial transactions.
- Note that occasionally these numbers may be different from the account numbers displayed on your checks or monthly bank statements.
- Pay close attention to the SWIFT number you have on file; we reverse several bank transactions because we are missing the last three characters of the SWIFT code, which indicates the exact location of your branch.
Once you have the correct banking numbers on file for your Payza account and your bank account, we can ensure transferring money between Payza and your bank will happen with ease. If we reversed a transaction because of an error in your banking numbers, simply contact your bank to obtain the right numbers for your account and update this information for your Payza account.