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#2206810 - 02/22/19 04:02 PM P2P Transfer
Bankwoman1 Offline
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Joined: Dec 2015
Posts: 1,046
Midwest
We have a customer who had a P2P transfer initiated to someone in California. The transfer was scheduled for next day. The funds were deposited into the receiving customers account prior to us rejecting the transaction for insufficient funds. Our P2P vendor is trying to collect the funds from the bank the funds were transferred too, however, if the funds have since been withdrawn then we become responsible for it. We were also notified by our fraud department that this is possible fraud, but have not been able to verify this with the customer. On another note - we were notified after opening our customers account that she now has a Chex Systems record of a charged off account with another bank. Which now is making us suspicious of our customer. My question is - we were notified by our vendor that we will know within 45 days whether the funds were able to be collected from the receiving bank or not. If not then we are responsible. We are wanting to freeze what funds our customer currently has in her account until we are notified. Can we freeze funds for this reason? And how long can we do this for? I ask because we had a similar situation last year in May. Because we had not heard anything about this other transfer within 45 days, we thought it had been taken care of. Imagine our surprise in January of this year when we received a $2000 bill from the vendor for this transaction that happened last May!

Thanks in advance!

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eBanking / Technology
#2206860 - 02/22/19 06:08 PM Re: P2P Transfer Bankwoman1
Tesla Offline
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#2206958 - 02/25/19 01:52 PM Re: P2P Transfer Bankwoman1
Bankwoman1 Offline
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Joined: Dec 2015
Posts: 1,046
Midwest
Bump. Anyone have a thought on freezing an account in this situation?

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#2206959 - 02/25/19 02:08 PM Re: P2P Transfer Bankwoman1
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Freeze what funds in the account? I thought you said it overdrew the account? I would close the account and if there is money in the account, mail them a check. If they are still overdrawn, charge it off and start your collection process. If they later claim the transfer was unauthorized, deal with it then.
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#2206961 - 02/25/19 02:31 PM Re: P2P Transfer Bankwoman1
Bankwoman1 Offline
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Joined: Dec 2015
Posts: 1,046
Midwest
Randy - the account wasn't overdrawn - there just wasn't enough funds for the transfer. The transfer was for around $1200 and there is only $500+ in the account. The transfer was completed by the vendor who is now working to get the funds back from the receiving bank. If the funds are no longer available to be returned then we will become responsible. We would like to freeze what funds are available in her account before she takes it. I mean ultimately she is responsible because she processed the transfer as far as we know. So we just weren't sure whether we can freeze the account until we hear back from the vendor or not, which could take up to 45 days or longer.....

Personally I don't like the way P2P transfers work. Funds should be verified before being sent - but apparently this is not how P2P works.....

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#2206963 - 02/25/19 02:38 PM Re: P2P Transfer Bankwoman1
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Process the transfer and over draw her account. You completed the transfer did you not? Why would you be trying to get the money back if it was not a fraudulent transfer? If it was fraudulent, you are going to eat it anyway. It sounds like you have a real problem with your P2P process to me, if money is delivered before it is removed from the sending account.
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#2206981 - 02/25/19 03:43 PM Re: P2P Transfer Bankwoman1
Bankwoman1 Offline
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Joined: Dec 2015
Posts: 1,046
Midwest
Unfortunately, this is the way that next day P2P transfers work. The transfer was initiated on the 14th and sent on the 15th. After the transfer was sent, then they tried to pull the funds from the customers account which could not happen because the full amount of funds were not there. So now the vendor is investigating whether there is any type of fraud involved. We have since talked to our customer who stated that she did process the transfer, but then wanted to stop it. However, it was not stopped in time. So, we know it was our customer who initiated it. After talking with our eBranch manager, I think we will probably charge it back to the customer and close her account. She offered to write us a check to cover it but didn't want us to deposit the check until Friday. I have a bad feeling we will not be getting our money back.

I've questioned why we even offer next day P2P transfers if this is the process. I'm not sure why we would want to take such a risk. I will be bringing this up to my supervisor.

Thanks for your help.

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