Bank transfers can fail, get delayed, or result in lost funds due to incorrect recipient information (IBAN/account number), insufficient funds, or fraud. Common issues include, but are not limited to, misspelled recipient names, invalid SWIFT/BIC codes, bank system maintenance,, or security freezes due to suspicious activity. Once sent, transfers are often irreversible.
Risks associated with wire transfers
Irreversibility: Once funds are sent via wire transfer, recovering them is difficult. If you make a mistake entering the recipient's details or transfer funds following a scam, it's often irreversible.
Bank transfers offer less protection
If someone is asking you to pay by bank transfer, it could be a sign that it's a scam. It's a lot safer to use a payment method with built-in protection, such as credit cards.
Double check the account numbers before you send a transfer.
You could lose your money if you mistakenly provide wrong account or routing numbers. If the money does not go to the account you intended, you may not be able to get it back.
Are bank transfers safe? Bank transfers are usually a very safe way to accept payment from customers, with less risk for businesses compared to credit card payments. On the customer side, however, there's a risk of wire transfer fraud.
If your UPI payment is deducted but not received: Wait for 48 hours for automatic reversal. Raise a complaint via your UPI app. Contact your bank with transaction details.
To request a refund of an unauthorised transaction:
Tell them that there is an unauthorised transaction on your account. Put a 'stop' on your account (for example, cancelling the card or disabling internet banking or online money transfers) to prevent more loss.
Wire Transfers
A wire transfer is another name for a bank-to-bank transfer. This is the most common way of making a transfer especially if the amount is large, or it is an international transfer. A wire transfer is a secure option as your bank or financial institution verifies that the funds are available to be sent.
Here are some of the most secure payment methods available online:
As a result, most bank transfers are instantaneous, although in some cases, payment can take up to two hours. It's important to remember that while Faster Payments aims to provide you with these types of bank transfer times, there's no guarantee that your payment will be cleared on the same day.
If the payment or transfer you have made left your account immediately you will see the transaction in your list of most recent transactions. If you have scheduled a payment or transfer for a date in the future you will be able to check online that it has been created successfully.
If your transfer is unsuccessful
If unsuccessful, it could be because: You entered an invalid account number or sort code for your recipient. You didn't have the necessary funds in your account.
If you transfer or receive more than $10,000, the bank automatically files a Currency Transaction Report (CTR) with the government. ¹ This doesn't mean you owe taxes — it's simply a reporting requirement.
Requests for funds to be transferred - always check the bank account details are legitimate and verify it directly with the financial institution before making any payment. You can use NameCheck to check for incorrect payment details.
What are the risks of a bank transfer? The biggest risk to a bank transfer is transferring to the wrong person. Due to how airtight and one-way a bank transfer is, once the money has been sent, it cannot be reversed. Therefore, it's crucial that you make sure that your details are correct before sending anything.
No, someone cannot directly withdraw money from your account with just your account number. The account number alone doesn't provide enough access for someone to withdraw funds. Additional information, like security codes or personal details, is required to authorize withdrawals.
Let your bank know about the mistake. It can't reverse the transaction, but it can help try to get your money back.
Contact your bank and report the fraudulent transfer. Ask them to reverse the wire transfer and give you your money back. Did you send money through a money transfer app? Report the fraudulent transaction to the company behind the money transfer app and ask them to reverse the payment.
Failed Transaction: Main Reasons
The receiving bank is still processing the money
But some banks are slower than others — they might take up to 1 working day for them to release the money. So your money's safely on its way, but the recipient bank is still processing it. Your recipient can ask their bank to speed this up.
Typical refund timelines: 5–10 business days for cards; 2–3 days for UPI/wallets. RBI mandates timely refunds; delays may attract penal interest on late processing.