Overview
What is a Recall?
A recall is the process of requesting the recipient's bank to return funds that were sent by mistake, such as for wrong amounts or duplicate payments. It requires the recipient to authorize a debit from their account so their bank can return the payment to you. Common reasons for initiating a recall include errors like sending the wrong amount or making duplicate payments.
Does PayRecs perform Recalls?
No, we do not perform recalls. While we occasionally receive requests to facilitate a recall, the success rate is extremely low.
Why Not?
Once a wire transfer is sent, a recall cannot stop or intercept the transfer. This is critical to understanding why recalls are ineffective.
A successful recall requires:
The funds to be posted to the recipient's account.
The recipient's bank to receive and process the recall request.
The recipient to authorize a non-standard debit process, which varies by institution and country.
The process could involve 4 to 6 parties, making it slow and ineffective due to the long chain of correspondence.
Solution
Instead, we recommend that the sender directly contacts the recipient to resolve the issue and arrange for the return of the funds. Since the sender and recipient already have a business relationship, they can communicate more effectively. The best approach is for the recipient to send the funds back via SWIFT wire. If the payment was in USD, they could send it directly to your institution. For other currencies, the sender should provide the incoming instructions.