Can a wire transfer reversed? Understanding your options

Canada By Serra Pinto Avimlah June 5, 2024

A wire transfer is one of the most secure ways to send or receive money.

In this piece, we will answer the question “Can a wire transfer be reversed?”

We will discuss:

  1. What you need to reverse a wire transfer
  2. The process of reversing a wire transfer
  3. Why you’d reverse a wire transfer
  4. The challenges and the costs associated with reversing a wire transfer.

Let’s get started!

Rules on Wire Transfer Reversibility in Canada

There isn’t a straightforward answer to the question “Can you cancel a wire transfer?”

The cancellation timing and financial institution policies are among the factors that are influencing.

You need to remember that wire transfers are meant to be irreversible. Once you send the funds, the transfer is complete and can’t be changed.

However, you might be able to reverse your transfer if you:

  1. Act quickly:
    You need to contact your bank immediately after you have made the transfer. If you’re sending an international wire, you might have a 30-minute window to cancel the transfer after you have initiated it. However, it might depend on the specific circumstances and the banks involved.
  2. Cancel the request on the same day as the transfer:
    This is true for domestic transfers within Canada
  3. Suspect fraudulent activity:
    If you think your transfer was fraudulent, contact your bank immediately so you can recover the funds.
  4.  Get assistance from the recipient:
    If you accidentally and have sent money to the wrong party, you might need to contact them and request they return the funds.

You should keep in mind that even if you initiate a cancellation request, you get no guarantees that you’ll get your funds back.

The point of wire transfers is sending/receiving money quickly and irreversibly, so your best strategy is to avoid making mistakes in the first place.

The Process of Reversing a Wire Transfer

Here’s a step-by-step guide you can follow to try and reverse a wire transfer:

Contact Your Bank 

If you want to reverse a wire transfer, you need to act  quickly. As soon as you realize that you need to cancel the wire, contact your bank.

Tell them that you want to initiate a “SWIFT recall” on the wire transfer you just sent. Then, give them all the details you have about the transaction which includes:

  1. The recipient’s name
  2. Bank account number
  3. The amount you transferred

After that, you’ll need to give your bank a reason for the request.

Here are a few valid reasons:

  1. Sending the incorrect amount of funds
  2. Providing the wrong account number
  3. Duplicated transaction
  4. Suspecting fraud

You need to be able to support your reason with evidence like screenshots or transaction receipts.

Ask Your Bank to Contact The Receiving Bank 

If you suspect that you’re being scammed, it’s important you should ask your bank to contact the receiving bank to freeze the funds in the recipient’s account.

You can also ask your bank to trace where your money was sent and contact that bank as well.

Follow Up With Your Bank

Follow up with your bank to track the status of your reversal request. Keep a record of the people you spoke with, the dates, and any timelines they provided.

Reasons for Reversing a Wire Transfer

While there may be many reasons to reverse a wire transfer, you need a solid one to execute one.

Here are a few valid reasons you can use to reverse a wire transfer:

  1. Incorrect details:
    If you have entered the wrong account number, or recipient name or sent more money than intended, you’d want to reverse your wire transfer. Make sure you reach out to your bank as soon as possible and let them know that you made a mistake.
  2. Duplicate transactions:
    No system is perfect, so if you notice a duplicate transaction, you’d want to reverse one of them, so you don’t overpay.
  3. Fraudulent transactions:
    As soon as you notice a fraudulent transaction that someone initiated without your consent, contact your bank immediately. In the majority of  cases, your account  will be  frozen  until they determine if you were hacked or scammed.

Challenges and Costs of Reversing a Wire Transfer

There are many challenges you will experience if you want to reverse a wire transfer.

If the transfer is completed and the recipient receives the funds, it’s almost impossible to reverse the transaction.

Wire transfers are popular payment methods because banks process them quickly which makes them difficult to reverse.

If the transaction was fraudulent or unauthorized, you’ll have a better chance of reversing it if you can prove that someone initiated it without your consent.

This would be a long and drawn-out process that will involve both banks but you still have no guarantee that you’ll get your money back.

Keep in mind that reversing a wire transfer can be expensive because some banks might charge fees for initiating the reversal.

Whether it’s through our website, mobile app, or in-person at an agent location, sending money is straightforward and accessible.

Whether it’s through our website or through our mobileWestern Union allowsyou to track your transactions online, which is a great alternative to wire transfers.

You’ll receive notifications every step of the transaction, so you can have peace of mind.