Paying foreign bills is not an everyday activity for most of us, and therefore many questions arise around this topic. What types of international payments are there and how do they differ from traditional payments? And what to do if you send a higher amount than you intended or get one number wrong in the recipient’s bank account? Find out in this article.
A foreign payment is not so different from a traditional one. The main difference is that you need to provide some extra information and pay a fee. The amount depends on where you send the payment or where you receive it from. The so-called SWIFT payment is used for international payments. But if you need to make a payment in euros within the European Economic Area, you can use SEPA payment. This has a number of advantages over the traditional international SWIFT payment :
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Have you been a victim of fraud or sent money to the wrong account and the owner refuses to pay you back? We will be happy to help you! We will conduct a careful analysis of your case and take care of preparing a pre-suit notice, lawsuit, appeal or straight to representing you in court, where we will strongly enforce your rights.
A payment abroad must contain the classic details as any other payment. But in addition, it must also contain other details specific to foreign payments. For a SWIFT payment, you must not miss the IBAN and the SWIFT/BIC code, whereas for a SEPA payment, the IBAN is sufficient. Let’s take a look at what these abbreviations mean.
IBAN, or International Bank Account Number, is a standardized international account number format designed to improve the accuracy of money transfers across borders. IBAN facilitates and automates the processing of international payments by reducing errors in entering account numbers.
IBAN structure:
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The SWIFT/BIC code is a standardised international code used to identify banks and their branches in international financial transactions. The acronym SWIFT stands for “Society for Worldwide Interbank Financial Telecommunication”, which is the name of the organisation that provides a global network for financial communication between banks and other financial institutions. BIC stands for ‘Bank Identifier Code’ and thus refers to the code itself used to uniquely identify the bank receiving the payment.
SWIFT/BIC code structure:
In addition to direct bill payment, there are other alternatives to make a foreign payment. One of the most common alternatives is to use PayPal. This is an electronic payment service that allows users to make online transactions. The service basically works like a digital wallet where you store your bank or credit card details and then use it to pay for goods and services online or to receive money, including foreign payments. It offers a number of advantages over SWIFT and SEPO payments:
Tip: PayPal is used by many people for payments in various Chinese e-shops. Read also how customs duty and VAT work when buying from China.
Whichever way you choose to make a foreign payment, you may make a mistake. For example, you send a higher amount than you intended or you mix up one number in the recipient’s bank account. So how do I cancel the payment in this case?
First of all, contact the bank from which you sent the payment as soon as possible. It is usually possible to cancel a payment before the due date of the payment order you entered. In some cases, however, cancellation is also possible after the due date. However, you should take into account that you will probably only have a few minutes, or at most hours, to do this. At the same time, it should be mentioned that cancellation of payment is usually subject to a fee.
If the money has already left, there is still hope. In this case, you need to work with your bank to send a reminder to the payee to return the money. They are obliged to return the money to you. However, it is possible that this will not happen. In this case, you should contact your bank again, which must give you the identification details of the owner of the account.
This will enable you to contact the account holder yourself and, in the event of non-cooperation, send them a pre-action notice and, if necessary, take legal action for unjust enrichment. The good news is that in most cases, the pre-action notice alone will work and if it doesn’t, it will ensure that you will most likely succeed in court.
Tip: We will be happy to help you with a pre-suit notice and a lawsuit. We will conduct a careful analysis of the case and take care of the preparation of the pre-suit notice, the lawsuit, the appeal, or even the representation in court, where we will vigorously enforce your rights.
It’s possible that you may find yourself on the other side of the barricade and an unknown payment lands on your account. At this point, it’s not a time to celebrate, but to immediately return it to the account it was sent from. If you keep the money, you will have been unjustly enriched. Otherwise, you could face legal action and interest.
Tip: Learn when it is unjust enrichment and how to claim the benefit back.
Thanks to modern payment methods such as SWIFT and SEPA, cross-border payments are an efficient and secure way to send money across borders. However, it’s important to remember that in the event of a payment error, it’s important to act quickly and work with your bank to take matters into your own hands if necessary. However, you are never without options and with legal help you can handle anything.
We will stand up for you if someone violates your rights. We’ll complete a pre-suit notice and make sure you get back what’s owed to you. We will handle the matter quickly, flawlessly and professionally. You can only pay after the service has been provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
Buying from China, especially through popular e-shops such as Aliexpress, has become a common practice for many people. With this trend, however, comes the responsibilities associated with paying DPH and customs declaration. Therefore, it pays to inform yourself thoroughly before ordering such goods to avoid unpleasant surprises and problems with customs.
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