Verify a wire transfer?

[ExtraSlow]

Here's a business banking question. When planning a wire transfer, it's common to get wire instructions in written format, and that should be enough to prevent issues, but it still seems to be an incredibly manual process. Someone types in the numbers, and that person could make a mistake. What happens if the routing or account numbers are entered incorrectly? Is that money just lost? Is there a method to verify the recipient account information matches the business or person you are attempting to send payment to? Is this something you have to phone the local branch to verify, or what?

Also, why is the USA banking system so weird. Seems like even large companies bank at these little local banks that have 5-10 branches, and they are all affiliated to larger banks in some shadowy fashion. Really confusing to a Canadian!

[tonytiger55]

I used to do this all the time for clients. The onus is on the client to make sure the details are correct. When I input the numbers, I turn my screen to face the client and they check. Then a print out is done. The client checks the details and signs. Then send. Yes some mistakes are made, but thats the whole point of making the client check the details. Not the banks problem. In short its your job to make sure the info is correct. The bank cant verify.

If a mistake is made, the money is not really lost. The money sometimes goes through 2-4 banks on the way and might get stuck. Or a delay might happen as its a holiday in that part of the world and the banks are closed. So if a incorrect account number is done. The branch person startsan investigation, this gets routed to a different department that investigates and its a case of doing the chain backwards. The money does come back. It just takes time.

Parts of the US banking system is old and out dated. That makes the process even more weird.

[ExtraSlow]

The USA really doesn't want to modernize anything do they? Fathoms and gallons and that fucked up banking system.

Even banking transfers INSIDE the USA are difficult and can take ages to be verified.

[suntan]

If it's mistyped it may end up in an incorrect account. Ask me how I know.

[ExtraSlow]

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If it's mistyped it may end up in an incorrect account. Ask me how I know.

Yeah that's what I'm asking about. What happens then? It seems crazy to me that when you type in the account number, the account holders name doesn't pop up automatically so you can verify it's going to the right dude. If it's supposed to go to Jimmyco, and the the name comes up Ron's lube emporium llc, then you know you got a typo.

[suntan]

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Yeah that's what I'm asking about. What happens then? It seems crazy to me that when you type in the account number, the account holders name doesn't pop up automatically so you can verify it's going to the right dude. If it's supposed to go to Jimmyco, and the the name comes up Ron's lube emporium llc, then you know you got a typo.

Hopefully somebody notices and then the money gets moved over to the correct account.

It's not finders keepers, I've had it happen a couple of times to me, spending the money is considered embezzling.

The first time though, the bank insisted they made no error and that the money was mine. It was months before the money was moved out. Good jorb RBC.

[ExtraSlow]

I hate the banking system. It seems like such a shitshow and insanely antiquated. 10x worse when it's people in Oklahoma or Missouri from what I can tell.

[suntan]

It is truly unbelievably antiquated. One thing that would totally help would be account numbers that have check digits (like CC numbers), but they're all too fucking stupid to even bother with this.

Want to know why bank drafts take forever to clear? It's because actual bills have to be literally moved over.

[tonytiger55]

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Yeah that's what I'm asking about. What happens then? It seems crazy to me that when you type in the account number, the account holders name doesn't pop up automatically so you can verify it's going to the right dude. If it's supposed to go to Jimmyco, and the the name comes up Ron's lube emporium llc, then you know you got a typo.

Unfortunately the systems are not connected like that. Banks can't access the account of another institution like that.

I liken it to sending a letter to 222B Baker Street London. You can go to the post office and they will transact the envelope. But when it gets to London, the number 222 may not exist. It may be only odd numbers on that street. So the letter will eventually come back. But it will take a while.

If it does go to the wrong account. Then the whole investigation process kicks off and the whole daisy chain route is followed.

[Thaco]

that's why they always ask for a cheque still, it's just a CYA move so they can be 100% they used what was provided.

[ExtraSlow]

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that's why they always ask for a cheque still, it's just a CYA move so they can be 100% they used what was provided.

Who asks for a cheque?

[bjstare]

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Unfortunately the systems are not connected like that. Banks can't access the account of another institution like that.

That's the frustrating part though, it's not like we don't have the technology.

The simple fact that you used a snail mail analogy speaks volumes.

[pheoxs]

Any time I've sent a wire they enter everything in the computer and then print it off and give it to me to review and sign. The onus is on the customer to actually check all the numbers at that point and make sure there isn't any typos.

[you&me]

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The USA really doesn't want to modernize anything do they? Fathoms and gallons and that fucked up banking system.

Even banking transfers INSIDE the USA are difficult and can take ages to be verified.

The US wire infrastructure is far superior to the Canadian one, in my experience (limited to TD in Canada). Domestic US wires are generally processed almost instantaneously (<15 mins), whereas domestic Canadian wires still seem to be a bit of a shot in the dark.

Also, US business banking accounts often allow for user-generated wires, i.e. no visit to the branch, just do it from your laptop. I've had senders do a screen share so I can verify the inputs before they hit send. US banks also seem to allow recipient notifications that a wire is pending... I see no process tracking from TD.

In general, wires suck, but they suck less in the US. ACH FTW.

[ExtraSlow]

You can generate wires from your computer with RBC business banking. No idea what other canandian banks allow.

I think maybe it's different bank to bank in the USA? There are so many smaller or regional banks that seem bad at this.

[you&me]

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You can generate wires from your computer with RBC business banking. No idea what other canandian banks allow.

I think maybe it's different bank to bank in the USA? There are so many smaller or regional banks that seem bad at this.

Damn you TD!

In my experience, even the smaller banks in the US seem to be able to process wires quickly. But I do agree, the whole process is insanely antiquated, so when there's a degree of human involvement, it can be prone to errors and delays...

Unfortunately, there's no viable alternative right now, unless you want to go through the hassle of setting up ACH payments for all of your vendors / clients.

[pheoxs]

I'd rather have the ease of e-transfer in Canada than the US having quicker wire transfers. It's quite rare to have to send more than 3k at once so the small inconvenience to swing by a bank isn't a big deal.

[you&me]

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I'd rather have the ease of e-transfer in Canada than the US having quicker wire transfers. It's quite rare to have to send more than 3k at once so the small inconvenience to swing by a bank isn't a big deal.

In the OP, 'slow mentioned this is for a business transaction, so the amount is likely multiple orders of magnitude beyond the limits of e-transfers.

[ExtraSlow]

Yeah, this was about a business to business transaction. This has been a recurring issue with multiple US banks, and not always small ones.

I'm no banking expert. But we have had multiple issues.