Bank transfers have become increasingly fast, with instant transfers allowing money to reach the recipient in up to 10 seconds. According to the Bank of Portugal, a transfer becomes, as a rule, irrevocable after the order is received by the bank, with no general right to cancel a transfer after it has been ordered. The only important exception applies to transfers scheduled for a future date, which can be revoked until the end of the business day before the agreed date.
If the client provides a wrong IBAN, the bank is not responsible for the transfer if it has executed it according to the data received. However, the law obliges the ordering bank to make reasonable efforts to recover the funds, in collaboration with the bank that received the money. If recovery is not possible, the bank must provide the client, upon written request, with the relevant information to proceed with a possible legal action. This process may have associated costs.
In instant transfers, the time available to react is particularly short, making it essential to contact the bank immediately after detecting the error to initiate recovery procedures. The situation is different when the transfer is not executed correctly due to the bank's own responsibility, cases in which the client is entitled to reimbursement of the amount without unjustified delays, and may also be entitled to compensation for charges and interest.
To reduce the risk of errors, banks provide mechanisms that allow confirming who is associated with the destination account before the transfer, such as displaying the account holder's name associated with the IBAN and beneficiary verification services. The Banking Customer Portal recommends that, if the name displayed does not match the person or company to whom you intend to send money, the safest option is not to proceed with the operation.
