Safety of online transfer when buying/selling - any bankers out there?

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wbbs

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Just want to check is a bank transfer the safest way to accept payment for goods?

As an example let's say I am selling an item of high enough value 10k+, person looks at item and if satisfied wants to buy by doing a bank transfer on the day. It will be a weekend but both are customers of same Bank, not same branch, but I understand same day transfer will go through if both same Bank.

I understand bank transfer can be done on your phone these days (my phone doesn't even have a camera so am not familiar with that), so if one guy puts through the transfer and the other guy can see it in his bank account is that it? Is there any way this is dodgy or not safe? Can the money be taken back in any way by the purchaser? By the way the bank account details the seller will be using are for a seldom used empty account so no benefit to the purchaser to have them, money will be transferred out of it very smartly by seller.

Is this the safest way? Bank draft has been suggested but I don't think that is any better as they also have to clear and as it is a weekend it is not available anyway.

Thank you.
 
Monies transferred electronically to your bank account are irrevocable under legislation. They can only be reversed with your authorisation. Electronic transfer is more secure, quicker and cheaper than bank draft.
 
I think there's a limit to online transfers of approx €5k per day. Business on line may be different but a good idea to check it out.
A bank draft can only be purchased with cleared funds so it's pre-paid cheque that cannot bounce and cannot be stopped by the purchaser unless it's lost. Your bank may take a few days to clear but generally safe. Why not a mix of both?
 
Get paid electronically into your Bank account, you can check to see when it has arrived by checking online if you have that facility or by calling the Branch.

Bank drafts are less reliable.
 
Haven't there been scams involving stolen drafts being lodged, which show up initially as a credit balance for a day or two, but the credit is reversed when the bank realises it was stolen?
 
wbbs said:
so if one guy puts through the transfer and the other guy can see it in his bank account is that it? Is there any way this is dodgy or not safe? Can the money be taken back in any way by the purchaser?
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Well this is the way the entire system works, has done for years - once you see the money on your account it is there.

wbbs said:
By the way the bank account details the seller will be using are for a seldom used empty account so no benefit to the purchaser to have them, money will be transferred out of it very smartly by seller.
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Not an issue, besides your name, bic and iban gets dispatched to the counter party with every transaction you make in any case...

wbbs said:
Is this the safest way? Bank draft has been suggested but I don't think that is any better as they also have to clear and as it is a weekend it is not available anyway.
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A bank draft is drawn on the bank as opposed to the customer, so yes it is much better than a cheque, assuming it is genuine. But a confirmed transfer is just as good as there is no way for the other party to take it back.
 
Thanks for the info, I thought it was safe but just wanted to be sure. I know there is online limits to transfers alright, think it is around 13k with some banks so will check that out.

Regarding the bank drafts, they are fairly safe unless of course they are stolen/forged or something, unlikely but you never know!
 
Update now is bank says transfer won't appear in account on same day if it is a Saturday transaction but once the funds have left the purchaser's account that it is ok? I don't think I would be as happy about that, bank suggested watching them do the transfer and making sure it went through, bit of scope there though I think, what if they put in a digit wrong and you didn't spot it, it could end up being rejected and bounce back to their account or end up in the wrong account.

Maybe I am just too old and cynical, I see problems everywhere!
 
Unless the money is in your account I would not hand over anything. Why don't you suggest meeting the person on Monday at their branch and taking out a draft and lodging it in the same bank to your account.
I have done this selling a car, stood beside the guy while he ordered the draft and took it from the teller and lodged into my own account. A lot of shenanigans going on out there ! If you feel rushed or pressurised in any way ,walk away.
 
wbbs said:
bank suggested watching them do the transfer and making sure it went through, bit of scope there though I think, what if they put in a digit wrong and you didn't spot it, it could end up being rejected and bounce back to their account or end up in the wrong account.
!
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This sounds like somebody in the bank was trying to give a helpful suggestion off their own bat, rather than an official guideline from the bank. I don't think it would be safe, for the reasons you outlined.
 
As an ex-banker my main problem with the transaction would be that it's at a weekend. If the transfer could be done on the Monday both parties could go into a branch - seeing as they're both the same bank- and do the transfer on the spot. This way an official will be overseeing the transaction. I would be a lot happier with this seeing as it's a substantial sum of money.
There are so many scams out there that even when we feel a person is totally genuine we really have to cover ourselves.
Hope it works out for you.
 
Thanks for all the advice. It's not for me, I'm just trying to make sure someone doesn't make an expensive mistake. I'm afraid I don't own anything of such value to sell! My poor old car is running on borrowed time :)

The going into bank on Monday option doesn't suit as both parties are over 3 hrs apart and can only meet on weekends. Problem seems to have been solved anyway as agreement has been reached that goods will not be parted with until funds are visible in the seller's account.
 
wbbs said:
Problem seems to have been solved anyway as agreement has been reached that goods will not be parted with until funds are visible in the seller's account.
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Just make sure that 'visible in your account' means that funds have permanently cleared. I heard of cases of stolen drafts being lodged, where the credit balance was initially visible, but was then withdrawn by the bank at a later stage.
 
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