Wrong money transfer and Chargeback

Transposed numbers are not uncommon and extremely annoying for transfers. This is even more so after the new guidelines for the banking industry came into effect. Since then, the customer is solely responsible if he makes a mistake with the sort code or account number. Previously banks have matched the name of the account holder with the bank. However now this step is omitted. The money will be transferred without detours on the account that is specified in the transfer form, regardless of whether there is possibly a faulty transfer or not.

React immediately with a false transfer

The sooner you react in such a wrong transfer, the better. If the error is noticed shortly after the transfer was made, online or with a bank transfer form, the probability is high that the process can not be stopped. This may include a call from your bank. If the transfer is not completed, the bank sees to it that the recipient account is reverted.

Ask for chargeback

Clearly problematic is a false transfer, which has already been executed and credited to the recipient’s account. The bank can not simply return the book as money. It requires an agreement by the payee. Without this consent, the only way a lawyer in the worst case. For purely legal perspective, the recipient unjustly enriched and is therefore obliged to accept the chargeback. In addition, the following applies: Bank customers are required to check their bank statements and responding to accounting errors. Our tip: To save yourself trouble, should be checked twice and three times at each transfer account number and sort code of the recipient. Might otherwise threatens anger of the person who actually had the money to get.

Incorrect or unauthorized withdrawals from checking account that were made by direct debit, can be undone. The method is simply called a chargeback. For example, if your account was deducted 1,200 euros instead of 120 euros due to a computer glitch by the insurance company or if you have been cheated by someone, the money is not lost. 

However, you should hurry. Although the law provides, quite generous withdrawal periods depending on the reason for the chargeback, the sooner the error is cleared out, the better it is.

Cancellation period for chargeback in Germany

Most of the time customers can instruct the bank for a chargeback if the money has been debited without their consent. For example when no instruction was issued for the direct debit before. This is for example the case when cheaters using the bank data for debits. This must not necessarily be large amounts. It is therefore important to look at each transaction on the bank statement. If there is actually an unauthorized debit, the withdrawal period is 13 months. If the debit is based on a direct debit authorization issued as an online retailer, the withdrawal period remain six weeks. The time limit begins when the bank statement or the accounts of the Bank is present. In SDD (SEPA Direct Debit), the time window for the revocation closes after eight weeks.

• Chargeback period in case of  Unauthorised Debit – 13 months
• Chargeback period in case of Authorized Debit by online Retailer – 6 weeks
• Chargeback period in case of debit by SEPA Direct Debit – 8 weeks

The correct procedure for initiating chargeback in Germany

If there is a transaction which can not be assigned to any action or is just simply a wrong amount, the bank must be informed immediately. In case you have a local bank branch, take it to the employee and inform them. You might have to inform them in writing if it was a fraudulent transfer, and sometimes a police complaint must also be made in case of transfer by lost card. In the direct banks chargeback can naturally only be ordered by phone or, if by e-mail, and it is always better to speak personally with one of the clerks.

The cost of a cancelling the debit

Since the process is linked to banks with a certain effort, fees are applicable and is invoiced always to the one who initiated the debit. This sometimes leads to the fact that the payee the amount reclaimed by the account holder. If the chargeback initiated causes a lack of funds in the bank account, it leads to a penalty.

If the direct debit is disputed, the creditor must prove that a debit authorization has been granted, or the debtor must prove that the direct debit authorization has been revoked.