Why Your Beneficiary Details Matter More Than You Think

A Report by CYS Global Remit Digital Media Marketing Team

One small mistake can delay an international payment. And sometimes, the consequences are much bigger than the mistake itself.

Imagine this. Your company needs to pay an overseas supplier. The invoice has been checked. The amount is correct. The exchange rate has been agreed. The payment is submitted. You receive confirmation that the money has been sent. Everything appears to be in order. 

Except for one thing: One digit in the beneficiary's account number is wrong.

Suddenly, a routine supplier payment isn't routine anymore. The payment may be held for investigation. It may be rejected. It may eventually be returned. Someone may need to contact the bank or payment provider. The beneficiary may have to confirm their information again.

Meanwhile, the supplier is waiting. Perhaps the goods are waiting too. And what began as one incorrect digit has become a much bigger business problem.

When we make an international payment, we naturally pay attention to the big things:

• How much are we sending?

• What exchange rate are we getting?

• What are the fees?

Beneficiary details can seem like the administrative part at the bottom of the form. But those details are not merely paperwork. They are the instructions telling your money where to go.

The Smallest Detail Can Stop the Biggest Payment

International payments can require considerably more information than a simple domestic transfer. Depending on the country and payment method, you may need the beneficiary's full name, account number, bank and branch information, SWIFT/BIC code and other local banking details.

Every piece of information has a purpose. Think of it rather like addressing an important parcel. The parcel itself can be perfectly legitimate. The contents can be correct. The postage can be paid. But if the address is wrong, it may not reach the person waiting for it.

Money can face a similar problem. The payment itself may be perfectly valid. It simply doesn't have the correct instructions to get where it needs to go.

A Name Isn't Always Just a Name

Names can be another source of difficulty. Imagine that you have always known your overseas business contact as “Tony Lim.” But the name registered on his company's receiving bank account is different. Perhaps it contains his full legal name. Perhaps there is an additional surname. Perhaps the order of the names is different.

For certain payment corridors, beneficiary information may need to correspond with bank records or identification information. Even seemingly minor differences can potentially cause additional checks, depending on the receiving institution and payment requirements.

That's why familiarity shouldn't replace accuracy. You may have known Tony for 15 years. The payment system only knows what you entered.

The Real Cost May Not Be the Fee

Suppose an incorrect detail causes a payment to be delayed. Perhaps there is an amendment charge. Perhaps the transaction has to be returned and sent again.Those costs can be frustrating. But often, the bigger cost is time.

Imagine a Singapore importer whose overseas supplier will release a shipment only after receiving payment. The goods are ready. The logistics have been arranged. Customers in Singapore are waiting. But the supplier hasn't received the funds.

Or imagine a property buyer facing a contractual payment deadline. Or a company paying overseas employees or business partners who are expecting their money on a particular date.

A delayed payment can therefore become much more than a banking inconvenience. It can affect shipments, deadlines, cash flow, operations and business relationships. All because of something that may have taken only a second to mistype.

But What If the Details Suddenly Change?

There is another situation where beneficiary details deserve even greater attention. Suppose you regularly pay the same supplier. You've used the same bank account for years. Then, shortly before the next payment is due, you receive a message: “Please note that our bank details have changed. Kindly remit all future payments to this new account.”

It may be completely legitimate. But don't assume it is. The original article rightly advises senders to take extra care when a beneficiary has recently changed bank or payment details, and to verify unexpected differences through an appropriate channel before proceeding.

That is worth emphasising. Rather than relying solely on the message containing the new details, verify the change through an appropriate, trusted channel. The principle is simple:

• Accuracy protects the payment.

• Verification protects the payer.

• Old Payment? Check Again.

Another common temptation is to copy the beneficiary details from a previous payment.  After all, if they worked last time, why wouldn't they work again?  Often they will. But circumstances can change.

A beneficiary may move to another bank. An account may be replaced. Payment instructions may change. Different currencies or payment routes may require different information.

The original article therefore makes a useful point: copying information from an old payment without checking it again may not always be the safest approach.  A few seconds of checking before pressing [Send] may save considerably more time afterwards.

The 30-Second Check

Before submitting an international payment, pause.  Look at the beneficiary information one more time.

• Is the beneficiary's full name correct?

• Is the account or wallet number correct?

• Is the bank correct?

• Are the branch details required?

• Is the SWIFT/BIC or other bank code correct?

• Are the destination country and currency correct?

• Does this particular payment corridor require any additional information?

These are the core checks recommended in the original article. It may take only half a minute. But compare those 30 seconds with the time required to trace, amend, investigate or resend a payment. Suddenly, checking doesn't seem inconvenient at all.

Before You Press [Send]

Technology has made international payments much easier to initiate.  A few clicks can move money from one country to another. But technology still depends on the information we give it. The exchange rate determines how one currency converts into another. Fees affect the cost. The payment route determines how the money travels.

But the beneficiary details answer the most basic question of all:  Where is this money supposed to go?  That's why those boxes asking for names, numbers and bank codes aren't simply administrative formalities. They are part of the payment itself. 

So the next time you're preparing an international transfer, don't rush through the beneficiary section because you've already checked the amount and exchange rate.

• Pause.

• Read the name.

• Check the account number.

• Look at those digits one more time.

Because in cross-border payments, sometimes the difference between a payment arriving smoothly and a payment going nowhere... is just one wrong digit!