04 Aug 2022
Has your wire transfer been recently declined, and you’re looking for a solution to that?
Before using wire transfers to send and receive money worldwide, it is essential to know the process to avoid any hassles in your fund transfers. A wire transfer is an electronic transfer of funds from one bank to another.
Every bank branch requires specific information from the sender to initiate a wire transfer. It is one of the most used international money transfer methods for expats worldwide.
Wire transfers can be domestic or international and can often get costly. Domestic wire transfers can cost anything below fifty pounds. International wire transfers cost you around fifty to sixty pounds, sometimes even more. In addition, the recipient also has to pay a receiving fee, usually less than ten pounds.
How long do international wire transfers take?
Wire transfers can often take longer to reach the recipient. International wire transfers are usually sent in 3 to 5 business days. However, they can be delayed due to several reasons. The processing takes time due to clearances and differences in time zones.
Why is your wire transfer being refused?
Here are a few reasons why the bank can refuse a wire transfer.
The bank’s right to refuse
A recipient bank usually has no reason to refuse the incoming international wire transfer. Yet, a possible explanation for a decline may be that the recipient’s account is usually always overdrawn. However, there are chances of an exception when the recipient’s account is overdrawn by an amount greater than the amount of the incoming wire transfer. The bank has the power to collect overdrafts from the client’s account at any time, so a wire transfer with a tiny amount into an account with a substantial overdraft would result in additional unpaid charges.
Bank’s internal policies
A bank may have specific internal policies that can hinder the way of international wire transfers. These policies are different for different banks. For example, many banks in Muslim countries or Islamic banks specifically do not allow international wire transfers to/from bars, clubs, casinos, and any other gambling locations. Besides, there could be regional restrictions for a bank that may not allow a wire money transfer.
Bank does not deal with the sender’s country.
A widespread reason for rejecting international wire transfers is that the recipient’s bank does not deal with the sender’s country. Suppose there are increased risks of money laundering from a specific area. In that case, the bank may choose not to do any business in that country, including receiving or sending international wire transfers.
Suspicion of fraud
Another reason for wire transfer rejection is when the bank suspects fraud. Research reports have exposed stolen information, and transfer frauds have contributed to losses surpassing billions of pounds in recent years. In such scams, either the sender or recipient’s account suffers. A fraudster would take over the sender’s account. He would utilise it to send money through wire transfers to an international account from a country where the fraudsters have complete control. The fraud detection software of the bank can sense such possibilities of fraud. In such a situation, the bank can rightly refuse the international wire transfer for safety purposes.
Is there any workable solution for these problems?
In this digital era, the wire transfer method is becoming obsolete. People are shifting towards more convenient options such as sending money online to their family and friends. ACE Money Transfer is one of the leading online money transfer companies that offer services in 26 sending and more than 100 receiving countries.
ACE provides safe and smooth online transactions to help you transfer funds swiftly. They provide unmatchable exchange rates with fully secured transactions. You can learn more about their products and services by contacting customer support or using the website: acemoneytransfer.com