Money transfer frequently asked questions

Wire transfers move money electronically from one bank account to another. They can be domestic (between two U.S. accounts) or between a U.S. and international account.

A wire transfer is a common way to electronically move money from one person to another. The two main types of wire transfers are international and domestic.

In general, the majority of wire transfers made by consumers from the United States to other countries are "remittance transfers" under federal law and come with certain consumer protections if you send them through remittance-transfer providers.

When you transfer money from one bank or credit union account to another within the United States, it’s likely done through a domestic wire transfer.

If you have a problem with your wire transfer, contact the company right away and explain the issue. You can also submit a complaint to the CFPB.

An ACH is an electronic fund transfer made between banks and credit unions across what is called the Automated Clearing House network.

ACH is used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments. Merchants often enable consumers to pay bills via ACH by providing an account number and bank routing number. A number of online payment services also conduct transactions via ACH, including most banks and credit unions’ online bill payment services.

While many ACH payments clear quickly, because of the way in which an ACH is processed and precautions against fraud and money laundering, transactions can sometimes take several days to complete.

ACH transactions can trigger a return notification if there are insufficient funds in the account.

You may be able to cancel a money transfer but it depends on the circumstances. If you would like to cancel a transfer, review your contract and receipt, and contact the company immediately.

If you sent money internationally, you have the right to cancel the transfer at no cost if it meets certain conditions:

• You used a remittance transfer provider to send a remittance transfer, as defined under federal law.
• The money hasn’t been deposited or picked up by the recipient, and you paid for the transfer less than 30 minutes ago. Or, if you scheduled the transfer in advance, you can cancel the transfer up to three business days before it is made.

In some cases, state law or the transfer provider’s own rules may give you more time to cancel a transaction.

If you received a receipt for your transfer, it should generally state what your cancellation period is.

If you think there was a mistake with your remittance transfer, contact the company that sent the money right away. The sooner you notify the company, the sooner your issue can be resolved.

Federal law requires remittance transfer providers to correct certain errors when making a money transfer, such as a failure to deliver the correct amount of money or to deliver the funds by the date the money is supposed to be available. You have 180 days from the date the money is supposed to be available to contact the provider and report the error. This date of availability is printed on your money transfer receipt, but don’t delay. Usually, the sooner you start the process, the sooner the error can get fixed.

The remittance provider must investigate and determine whether an error occurred within 90 days after it receives your notice of error, and then tell you about their findings within three business days after completing the investigation.

Mistakes a remittance transfer provider is responsible for correcting

Generally, mistakes a remittance transfer provider is responsible for correcting include:

• An incorrect amount paid by the sender
• Computational or bookkeeping errors
• Delivery of an incorrect amount of money
• Failure to deliver funds by the date that the money is supposed to be available or to deliver the funds at all
• Delivery of funds to the wrong recipient

Information to include when submitting your error notice

When submitting your error notice, give the remittance transfer provider as much information about the money transfer as you can, in addition to explaining why you believe a mistake was made. There is information you must include, such as:

• Your name and telephone number or address
• The name and telephone number or address of the person to whom you sent the transfer
• The dollar amount of the transfer
• Why you believe an error occurred

There is other information you should give to the provider if you know it, but is not mandatory. This includes:

• Your email address and other identifying information used in sending the transfer
• Any email address or other identifying information of the person you sent the transfer to
• The confirmation code if you have one
• The date the transfer was requested
• The destination of the transfer
• Any other information that could help the provider identify the transfer

Requirements for receiving a refund or resending the money

For many types of mistakes, such as if the money never arrives, you may be able to get a refund or have the remittance transfer sent again. If the mistake occurred because you gave the remittance transfer provider an incorrect account number or routing number and the provider took certain actions, then they’re not required to refund or resend the money. These certain actions include using reasonably available means to verify that the routing number corresponded to the recipient institution name you provided before sending the transfer and using reasonable efforts to retrieve the funds from the wrong recipient in a quick manner.

If you’re not satisfied with the company’s response, you can submit a complaint to the CFPB. In addition, a remittance transfer receipt must list the transfer provider’s phone number, a phone number for the CFPB, and, in some cases, a phone number for a state regulator for questions or complaints about the remittance transfer provider.

View a sample remittance transfer receipt.

Separate state law protections may be available to you, depending on how you send the money (for example, through wire transfer, electronic payment, etc.). Contact your state attorney general  or state financial regulator for more information about your state’s laws.

Tip

Didn’t use a remittance transfer provider? If you transferred money and didn’t use a remittance transfer provider that was covered under federal law, contact the company anyway. The company may be able to help, and other state laws and protections may still apply.