What are the reasons for cross-border transfer failures and how to ensure successful remittance?

Cross-border transfers play an important role in the globalized economy, but in the actual operation process, it is not uncommon for transfers to be rejected. Many friends are usually confused and do not know how to deal with this situation. This article will introduce in detail the common reasons for cross-border transfer rejection and provide some reference solutions to solve this problem.

Common causes

Generally speaking, there are several reasons why cross-border transfers are rejected, which may be overlooked by everyone.

1. Payee information is incorrect

If there are errors in the information provided, such as the payee’s name, account number, bank name, or SWIFT code, the remittance is likely to be returned. Therefore, before initiating the remittance, please carefully check all the payee’s information.

2. Unknown source of funds

Banks usually require remitters to provide clear proof of the source of funds. If clear and reasonable proof of the source of funds cannot be provided, the remittance may be rejected.

3. Credit limit

Some banks or financial institutions have a limit on the amount of cross-border remittances. If the remittance amount exceeds this limit, the remittance request may be rejected.

4. Issues of compliance

Cross-border transfers are subject to regulations such as Anti Money Laundering (AML) and Counter Terrorism Financing (CFT). Banks or Financial Institutions have the right to refuse processing if the remittance involves suspicious activities.

5. Incomplete or incorrect documentation

Cross-border transfers usually require a series of documents to support them, such as remittance application forms, identification documents , commercial invoices, etc. If these documents are missing, incomplete or do not meet the requirements, the remittance may be returned.

6. System or operating errors

Internal system errors or operational errors at banks or financial institutions can sometimes result in rejections.

7. Foreign exchange control policy

Different countries have different control policies on foreign exchange flows. If the remittance does not meet the requirements of the recipient bank , it may be returned.

8. The receiving bank refuses to accept

Even if the original remitting bank has sent the remittance, the receiving bank may refuse to accept it for various reasons.

Solution

1. Offline bank counter

If it is the first time to handle cross-border remittance, you usually don’t know how to deal with a bunch of materials. It is recommended to choose to go to the bank counter and let the bank professional guide you to complete the remittance.

In addition, for businesses involving important payments, strict requirements for remittance timeliness, or special need to retain remittance vouchers, it is also recommended to handle them at offline bank counters.

If you have some understanding of cross-border transfers but still don’t know how to operate independently, you can also choose to complete the operation on smart devices under the guidance of bank employees.

With the accumulation of experience, these smart devices can be operated independently.

2. Online banking/ mobile banking APP

For customers who are already proficient in cross-border transfer operations, they can directly use online banking or mobile banking apps for remittance. After the first operation, most banks provide the function of saving remittance templates, which will record the remittance information and make it easier to remit to the same account next time.

Cross-border transfer requires the sender to provide information including: payee name, payee bank name, payee account number, payee bank address, payee residential address, SwiftCode ( bank international code ), these information should be carefully checked. If it is a regular transfer to the same payee, you can set up a transfer template in the bank system to avoid errors every time you enter it.

3. Remittance tool

In addition to the banks listed above for cross-border transfer services, you can also choose other remittance tools. They simplify the corresponding process and make the operation more convenient and secure. This feature can to some extent reduce the possibility of rejection.

BiyaPay, it is an international wallet for global multi-asset transactions, including global payments and international remittances, as well as major investment services such as US/Hong Kong stocks, options, and digital currencies. Its most notable feature is that it supports real-time exchange rate queries and exchanges for more than 20 legal currencies and more than 200 digital currencies. It can make large remittances anytime and anywhere in most countries or regions around the world, with fast arrival speed, low handling fees, and unlimited amount.

In summary, if you want to effectively reduce the rejection of cross-border transfers, in addition to paying attention to relevant issues in the transfer methods mentioned above, you should also have a deep understanding and compliance with the relevant laws and regulations of the country where the recipient is located, etc., to ensure the legal compliance of the transaction process.

Finally, I hope this article is helpful to everyone, and everyone can smoothly realize cross-border transfers.