CommonCentsMom.com is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. The contents of the CommonCentsMom.com website, such as text, graphics, images, and other material contained on this site (“Content”) are for informational purposes only. The Content is not intended to be a substitute for professional financial or legal advice. Always seek the advice of your Financial Advisor, CPA and Lawyer with any questions you may have regarding your situation. Never disregard professional advice or delay in seeking it because of something you have read on this website!
Wire transfers are a common way to transfer money from one person to another. They're fast, secure, and convenient. But there are many things you need to know about wire transfers before you send money abroad.
The most annoying thing that can happen in the middle of a wire transfer is finding out that the bank has blocked it. But how come the bank can block a wire transfer? Is it legal? What are the reasons why a bank may block a wire transfer? This article will attempt to answer all your burning questions on this matter.
What is a Wire Transfer?
A wire transfer is a payment that is sent from one bank to another bank. The receiving bank will usually receive the funds immediately, while the sending bank will usually receive the funds within a few days. Wire transfers are convenient because they're fast and secure. They're also very easy to use, and most people can easily understand how to use them.
These wire transfers can be separated into two categories: domestic and international. Domestic wire transfers are those that are sent from one bank to another bank in the same country. International wire transfers are those that are sent from one bank to another bank in a different country.
Why Would a Bank Block a Wire Transfer?
A bank can block a wire transfer for many reasons. For example, the bank may determine that your account does not have enough funds to accept the payment. Or the bank may have a policy that only allows it to receive certain types of payments. In addition, the receiving bank may also require a few days to verify the payment and prepare it for processing.
The most common reason for a wire transfer getting blocked is due to suspicious activities. Fraud, for example, is a very common reason for a bank to block a wire transfer. If you send money abroad and the bank finds out that the funds are suspicious, it will likely block the transfer. This usually happens when your account is seen trying to make wire transfers of large amounts of money to the same recipient over and over again. Your bank has reasonable cause for concern that someone else may have gained access to your account and is trying to move your funds to theirs.
What to Do if Your Wire Transfer is Being Blocked
If your wire transfer is being blocked, there are several things you can do. First, contact the bank and ask them to unblock the transfer. If they don't unblock it, you may need to dispute the transaction with your bank. If you can't reach the bank or it won't unblock the transfer, you may need to contact a lawyer for help.
Usually, the bank will go through a reviewing process before it unblocks the transfer. This process is called the clearing process. The bank will usually notify you of the date and time that the transfer will be cleared. You can also give them documents such as invoices, information on the parties involved in the transaction, and more. This'll help convince them that it was simply a false alarm.