Comments:
QUESTION : FORMS OF PAYMENT
hello guys and gals,
This message has been edited by Mostel on 2013-01-31 10:49:00
I have a question about forms of payment between two parties.
The two parties have checked each other's references, but are total strangers otherwise. And one party's references are extremely well known, while the other party's references are essentially not well known, but there are many of them.
Due diligence has been done, but the fact remains, the two parties are complete strangers.
The situation: Payment is sent to seller in the form of an ACH.
I am told that an ACH is reversible.
Would you be concerned receiving payment in the form of an ACH?
I am told that a true wire transfer is not reversible. Hence my question.
If you received payment in the form of an ACH, would you take any precautions?
I have been told to wait 5 working days to ensure against the possibility of a reversal.
Can anyone enlighten me about this general banking arcana?
What is the possibility of reversing the transaction after 5 working days? Is this "worrying too much?"
Thank you!
M
IMHO you should call your bank and ask them...
to explain if in fact ACH payments are reversible and how they handle it, and also to learn if and how much you can rely on them to back your play. On the other hand, why not stick with a traditional wire transfer? Good luck.
I would go for a wire. In any other case I would call my bank and secure the deal with it.
I don't think you are worrying too much
I have been in business for 35 years and have been buying (and sometimes selling) watches for about 12.
I had to look up ACH to understand what it is.
I understand bank wire transfer, and have used it many times, both directions, and without incident . I don't know of any good reason why an alternative electronic version would be preferred. Generally, the buyer remits, and then the seller ships, so it is (as usual) 'buyer beware'.
I had to look up ACH to understand what it is.
I understand bank wire transfer, and have used it many times, both directions, and without incident . I don't know of any good reason why an alternative electronic version would be preferred. Generally, the buyer remits, and then the seller ships, so it is (as usual) 'buyer beware'.
Thanks, some more facts
I should have said that I have ALREADY received the funds, in the form of an ACH. I asked for a wire, but got an ACH.
The buyer has said that he was not aware it was an ach. He did it online, got it done, and that's all.
My simple concern is that if the transaction is in any way shape or form "REVERSIBLE" , there could be a problem.
The other concern is that all banks have different inner policies and tolerances, etc.
I just wish it had been a true wire.
After the fact, the seller put me in touch with the moderator of a major forum on The Other Watch Site, and that moderator emailed me and said the buyer is a good guy. But he also said he'd never met him--just that he was a good guy.
I wasn't sure if I should just say to the buyer that I need a true wire. BUT that would mean refunding the funds, starting over, probably ruining everything.
It comes down to trust, but... based on these facts, what would you do at this point?
Even if I extract the funds and put them in another account--I could still be liable IF buyer were to reverse the transaction.
Again, am I too worried?
What would you do. i was hoping a banker might chime in... or an expert? Of course I do want to keep the funds and sell the item. But...
Thanks very much for replies.
Can't YOUR bank give you more advice?
My understanding of the issue was that the difference between a direct wire and a batched (ACH) transfer was more about the money not reaching the recipient. The wire of course being direct from the buyer to your account while you are there checking all the adress and bank details and therefore more reliable. Seeing as the money has reached your account, I don't think it is any easier (or the process any different) to reverse a wire or an ACH transfer. But can't your bank reassure you of that?
Andrew
Yes, ACH can be reversed for insufficient funds
Your bank conditionally accepts the funds, you wait, you ship, and then your bank may come back after 10-21 days and say insufficient funds - the check didn't clear. They take the money out of your account and you have to chase the buyer.
Don't risk sending the watch until you are certain the money is yours.
This message has been edited by cazalea on 2013-01-31 22:59:46
Even if a wire takes 3-4 days to process (and they may, on international deals), you should get your money. However, it is possible to stop a wire in process, and to reclaim your funds if there are problems with the number of digits or if one is transposed. Especially since the US and Europe use different kinds of wire transfer numbers.
Check and double-check. Everything can go wrong:
1. I waited for money for 90 days when my buyer send funds to Federal Home Loan Bank instead of Home Federal Savings Bank. Very hard to talk the Feds out of money once they have it ...
2. I sent a cashier's check via registered mail and the post office lost it down the back of a cabinet. The watch deal fell apart because the seller thought I was a liar. The bank told me I had to wait 90 days to get my funds released back to my own account! I went to the post office, raised hell, and the check was found and returned to me. The careless postal clerk eventually got fired.
3. I once sent funds to a long-closed bank account whose number was given to me by mistake, by the salesman at a small Swiss watch company. Luckily the wire transfer manager at the receiving bank had gone to elementary school with that salesman (whose name was on the wire instructions). The manager helped straighten things out for us.
4. In the US, Homeland Security has a list of names and companies that they do not want money going to. If you or your sender happen to have the same or similar name to someone on their list, your wire may be delayed or blocked while your bank sorts it out with them.
Don't risk sending the watch until you are certain the money is yours.
Cheers
Cazalea
This message has been edited by cazalea on 2013-01-31 22:59:46