Processing of Payment Transactions
Supplying Incorrect Payee Details & Possible Recovery Charges
Your service provider is required to provide you with a ‘unique identifier’ which is to be used when carrying out a payment transaction.
This is likely to be either the sort code and account number or an IBAN.
As the sender of the payment, you are responsible for providing the correct details of the payee to your service provider.
If the details you provide are incorrect your service provider is required to make reasonable efforts to recover the funds, however, it is not liable for any costs arising out of your error. Additionally, the service provider may charge for this service.
Once instructions have been received and actioned by your service provider a payment transaction cannot be cancelled.
In the case of a direct debit or regular payment, any cancellation needs to be notified to the service provider by the end of the business day prior to the date agreed for debiting the funds.
If you authorise a transaction but the payment service provider makes a mistake in processing the payment e.g. fails to make the payment, debits the incorrect amount, makes the payment late or duplicates the payment, you can challenge the error as soon as you become aware and no later than 13 months after the debit or error took place and obtain rectification.
- The service provider is required to disclose all charges prior to the transaction taking place;
- If the payment does not involve a currency conversion each party to the transaction will pay their own charges;
- In instances where there is a currency conversion, the person sending the payment would incur all the charges.