reverse wire transfers

Posted By: calamityj455

reverse wire transfers - 08/05/08 04:05 PM

We're beginning to get a few requests to do reverse wire transfers. I'm wondering if anyone has experience with these. If so, have you encountered any problems, fraud? Do you have a specific agreement with your customer to authorize? Any help will be appreciated.
Posted By: silverliner

Re: reverse wire transfers - 08/09/08 03:27 PM

I never heard of a reverse wire transfer. Once a wire is sent out it is final. You can request the funds back but the bene bank does not have to send the funds back.
Posted By: John Burnett

Re: reverse wire transfers - 08/11/08 02:12 PM

Calamity455: Can you describe what you mean by "reverse wire transfer"? I have this uncomfortable feeling that you're not talking about reversing a previously received wire.
Posted By: ItNeverEnds CRCM

Re: reverse wire transfers - 08/11/08 03:04 PM

We've had one request - I too couldn't find any information on them except that the way it works is the company sends a debit through a wire instead of a credit to your customer. The request we had for this was from a business customer and they were looking at a new payroll service who wanted to use the "reverse wire" to debit the business. Reading through the contract we were very uncomfortable with it because it seemed that if they send the debit through the wire transfer system, there was no way to return it if the customer didn't have any funds. Second, how were we going to know the dollar amount was correct each time, what if they sent the wrong amount. Talking with the company that wanted our customer to do this they made a big deal about why we wouldn't do it and kept trying to say other banks do it all the time. We weren't going to budge, we said do it ACH or we're not doing it at all. If anyone has any experience with these, I'd love to hear about it as well.
Posted By: calamityj455

Re: reverse wire transfers - 08/11/08 06:42 PM

This is sometimes referred to as a 1030 draw down request and as with the last commenter, it is a payroll processor putting the pressure on. ACH is not an option in this case because it is an international situation.
Posted By: calamityj455

Re: reverse wire transfers - 08/11/08 07:04 PM

Actually, it is a 1031 draw down request ("reverse wire").
Posted By: rmold524

Re: reverse wire transfers - 03/15/10 04:32 PM

Any more information out there on this topic. I recently had the same request and am wondering what my options are.

What things do we need to be concerned about? What should be in our procedures/policies? Do we have the option to not participate in this type of transaction? What are the drawbacks? What are the compliance/regulatory issues?
Posted By: Always In Training

Re: reverse wire transfers - 03/23/10 05:19 PM

We don't do these. We do however, wire out to temp agencies and payroll processors following our customers written authorization. Our customers originate the wires. The payroll processors are the beneficiaries/reciepients.