Pay Went to Unintended Recipient Due to Incorrect Bank Account Number Supplied

This is in South Australia in case it makes a difference.

My 16 year old son recently started a part time job. He gave the employer incorrect bank details by adding an extra digit in the middle of his bank account number. The employer entered the 10 digits into their payroll but either their payroll system or their banking software truncated the account number to 9 digits. Unfortunately, this 9 digit number was a valid bank account number at the same BSB.

Two payments went to this unintended recipient of around $350 in total. After we raised this with them, the employer has contacted their bank to initiate a process to get it back but the receiving bank has replied that the unintended recipient has refused to give the money back. Basically, they are saying tough luck.

This was reported to them more than 10 business days after the payments but less than 7 months. The epayments code says that up to 7 months, the receiving bank must take the money from the recipient if they are satisfied that it was not a valid payment. (I think the recipient gets 10 days to prove they are entitled to it). This has not occurred. I'm wondering if the epayments code applied to businesses sending money to other bank accounts or if it is only for consumer to consumer transactions?

If the epayments code does not apply in this case, is there anything similar?

Is there any recourse available to my son? If we wanted to pursue this further how would this work, who would we pursue and how would we get their details if it is the unintended recipient?

What about the employer? Their systems did not send the money to the 10 digit account number that was supplied but sent it to a 9 digit account number. Is there liability there?

I'm tempted to chalk it up to experience as a lesson in double checking numbers but it seems like a harsh punishment for a simple mistake and I wonder whether other checks and balances should have caught this and whether the banks should be doing more.

Any help or guidance would be most appreciated!

Many Thanks

Comments

  • +150

    $350 for a first life lesson about financial management and due diligent seems cheap, let your son be the initiator and learn from it. You're not gonna spoonfed him any longer.

      • +61

        Nah, he was paid.
        Employer paid it to the account supplied by the employee.

        • +69

          "account supplied by the employee."
          Not quite, the money went to a nine digit account when a ten digit number was provided. clearly no cross checking done after data entered
          .

          • +7

            @Nugs: i think this is a valid point to raise

          • -6

            @Nugs: Semantics. Both were wrong.

          • +8

            @Nugs: Its not up to the employer to "cross check" bank account details
            Responsibility falls squarely onto the employee to supply correct details.
            Employer simply plugged in the supplied bank account number.
            No passing the buck here

            • +44

              @HeWhoKnows: “Their systems did not send the money to the 10 digit account number that was supplied but sent it to a 9 digit account number.”

              Sounds like the employer didn’t send it to the account specified.

                • +11

                  @HeWhoKnows: They’re clearly both at fault, the employer didn’t pay to the account that they were provided

                • +5

                  @HeWhoKnows:

                  The supplied number was plugged in correctly.

                  Yes, but it turns out that the employer’s system is a pile of shit that only accepts nine digits.

                  • +5

                    @smartazz104: It would be better if it only accepted nine digits. The issue is that it took ten digits, and only took the first nine. I think a case could be made that the company did not pay the nominated account which would have likely resulted in the payment failing, and the bank account provided was modified by the employer's system.

                    There is clearly fault on both sides, but again, I think the case has some merit.

                • +6

                  @HeWhoKnows: Incorrect!
                  The supplied number was 1234567890
                  Employer entered 123456789
                  Its for them to ensure they accurately enter the account number
                  Responsibility is not that clear cut here

                • +2

                  @HeWhoKnows: No, the plugged number was not plugged correctly as 10 digits were supplied and it was truncated to nine.

            • +9

              @HeWhoKnows: Except they didn't. They plugged in 9 digits of a 10 digit number, and didn't once think to say "well that's weird".

              • +5

                @GrueHunter: Bank account numbers are 6-10 digits depending on the bank. It's very possible that the employer is limited to 9 by their bank, and I can easily see how they might have just typed in the 10 digits without realising that the last digit wasn't entered/saved. Not saying they shouldn't have checked to see that they matched, but I can see how it would happen.

            • @HeWhoKnows: Yeah but they didn’t pay it to the number supplied. They paid it to the first 9 digits of number supplied. If there were too many digits they should have contacted employee to check number

          • @Nugs: he wrote the extra digit…

            employer deposited money as is…

            imo
            employee 90% blame
            bank 10%

            they could've questioned the digit or name not matching…

            they do this with payid/saying you're paying joe bogg is that correct?

              • +5

                @od810: @od810 not sure why you're being so hostile…

                "My 16 year old son recently started a part time job. He gave the employer incorrect bank details by adding an extra digit in the middle of his bank account number. The employer entered the 10 digits into their payroll"

                pretty clear that he wrote an extra digit…

              • +9

                @od810:

                You really have reading comprehension problem

                LMFAO. You played the UNO-reverse card on yourself. What a clown.

              • +7

                @od810: Haha you clown. I think the reading comprehension issue is yours.

      • +8

        LOL He was paid, just gave the WRONG banking details. Not the employers fault.

    • +15

      It might be a good life lesson - but not about financial management. Maybe a little about due diligence but mainly about what arses some people can be. Why wouldn't the unintended recipient just give the money back? It would be the right thing to do.

      The life lesson is: Recognise the value and importance of doing the right thing.

      • +13

        Because if somebody stole $350 of your hard earned after your hopeless HR person typed in 9 digits of what was clearly a 10 digit number you'd walk away, wouldn't you Granddad

          • +5

            @SpotTheOzzie: Part of being an adult is knowing and fighting for your rights.

            If you have the right to dispute the payment and request that the payment is remade, the responsible thing to do is to make sure you get it. I don't know what the law says here, but the argument presented (that they didn't send it to the bank account that was provided) seems pretty compelling to me. Even though it would be frustrating for the employer given the reason they made a mistake was because the OP's son made a mistake first, they still ultimately made a mistake too. Do they not need to be "responsible self-accountable adults"?

            I also don't like the way so many people assume people who make mistakes are brain-dead morons. Do you REALLY believe that if he got the money back, the son would think "well I got the money in the end, that means I don't need to bother making any changes to stop this happening again"? I don't…

        • No one stole the money, OP's son literally gave it away by handing over someone else's bank account number.

          • +4

            @infinite: He did not. He specified an invalid bank account number. Someone in payroll then changed this to a random, but valid bank account number.
            Had they used the specified number instead, the money would have bounced and no harm done.

            Looks pretty clear to me that both made a mistake, but the mistake made by the business is what lead to money going to that account.

            • -2

              @MrTweek:

              No one stole the money, OP's son literally gave it away by handing over someone else's bank account number.

              He did not. He specified an invalid bank account number.

              That's the same thing.

              • @infinite: No, it's not. Had they used the number he provided, then there would not be a problem now.

                • @MrTweek:

                  No, it's not. Had they used the number he provided, then there would not be a problem now.

                  OP already stated that his son provided an incorrect account number to his employer to begin with, which is what caused the problem.

                  From OP himself:

                  He gave the employer incorrect bank details by adding an extra digit in the middle of his bank account number.

          • @infinite: But he didn’t. He gave an extra digit. The babkpaid to a 9 digit number. Did anyone read the actual post fully

      • +10

        It says he's 16 in the first line of the second paragraph. Where did you get 23 from?

      • +2

        Where did 23 come from…?

    • +4

      wouldnt the unintended recepient keeping it knowing it is not theirs is sort of theft ? when we hear stories of people keeping a million dollars when it isnt theirs or going to prison for spending the banks money isnt it the same error ?
      how do you know the other guy really said no and its not the bank employee that cant be ar-sed

      for such an amount i would tell my kid you should be more careful and double check stuff

    • +3

      How is the OP spoonfeeding the kid? Trying to help him get back some lost money is not spoonfeeding lol. If this happened to your kid you wouldn't make any attempts?

    • Its still fraud from recipient. Like the lady who got given a huge amount by the bank and fled the country, if it isnt yours it isnt yours

      • If they even got the letter. For $350 nobody will bother

    • Settle down mate, the kid is only 16.

  • +20

    • Complain to the bank
    • Complain to the Australian Financial Complaints Authority (AFCA)

    • +5

      complain to news.com.au

      • -3

        For what?
        The son made a mistake
        Nobody else is at fault

        • +18

          The son made a mistake
          Nobody else is at fault

          You mustn't read news.com.au

          • +2

            @Baysew: Yup. Those sorry excuses for journalists will publish anything that gets people riled up. A glorified tabloid paparazzi.

        • You do realise that the articles they publish are there to get a response from people, positive or negative.

      • or better 2GB

      • You mean ACA?

    • +7

      Complain to the old lady next door.

      • +14

        Complain to the old lady next door.

        Tracy Grimshaw?

    • whats afca going to do , the recipient bank is declining the return of funds

      "Most banks, credit unions and building societies currently subscribe to the ePayments Code, along with a number of non-banking businesses. The ePayments Code is presently a voluntary code of practice."

      • It's voluntary to subscribe to the code of practice, but if you do subscribe to it you're supposed to follow it.

  • +61

    I recently had 2 random payments totalling about $350 go into my bank account, should I post this as a deal or in the forum's?

    • +3

      I think the son negged you

      • -1

        SO you have a south american bank account but are interested in Australia bargains ? Seems weird.

  • +19

    the unintended recipient has refused to give the money back. Basically, they are saying tough luck.

    Ask the bank to follow this guide

    https://www.afca.org.au/sites/default/files/2020-04/fact-she…

    Basically assuming you are at this step

    Between 10 business days and 7 months: the recipient's bank will freeze the funds. The recipient will then have 10 business days to show they are entitled to the funds. If they do not, the funds will be returned to you.

    So they'll have to prove it was for them.

    I'm tempted to chalk it up to experience as a lesson in double checking numbers

    As shit as it is, basically this if you can't get it back.

    Your son stuffed up, the company paid it to an account that they had been given and it went through.

    • +19

      This is a good advice. Don't make it easy. Go through the process.

      Also, despite the assertion here that the company paid it to an account they had been given, this is NOT true because the moment the digit got truncated, it is not the same as your instruction. Use this opportunity to immediately correct first to stop the bleeding but assert this fact for the foregone payment.

      • Considering bank accounts can be 10 digits long in Australia. I would wager the truncation happened on the bank side and not the company side.

        • -1

          Thats not how bank deposits work.

    • -1

      Incorrect . They paid it to the first 9 digits of number supplied

      • 2023 called to thank you for your crappy comment.

  • +8

    Might be hard to get the police involved/interested because of the low amount, but I believe technically the recipient is breaking at least one or two laws so the police could potentially contact them and convince them to return the money perhaps?

    http://classic.austlii.edu.au/au/legis/sa/consol_act/clca193…

    https://www.theage.com.au/national/victoria/the-10-5m-dilemm…

    • i was waiting for someone to make reference to that crypto thing.

      The difference here is $350 vs $10.5m

      • +21

        I understand people don't sympathize with $350, but stealing is stealing. If stealing is illegal, then there should be an avenue available for OP to recover their funds.

        • There is. Someone else posted what the bank needs to do.

          Life lesson for the kid at least

        • -4

          It's a grey area. If a robber stole some Jewelry ran past you on the street and forcibly handed the jewelry into your hand, then the police chasing the robber arrested you.

          • +8

            @nobro25: What? It's not grey. If you refuse to give the jewellery back then you're be arrested for the offence of receiving stolen goods.

          • +3

            @nobro25: It is NOT a grey area. It is completely illegal, once you are notified of funds you have obtained without any legal right to them you are legally obliged to return them otherwise it is theft and it is absolutely NOTHING like your terrible example you gave.

          • @nobro25: That's not a grey area at all.

            If the person in that scenario attempted to keep or sell the jewelry, then It's referred to under the law as the offence of receiving & in most states it's punishable by up to 10 years in prison.

    • To be honest though, there so many of these pay id scammers floating around these days, if someone rang me and said they were the police and wanted me to authorise a $350 refund I'd be naturally suspicious too.

      • I would assume they would make a house call also.

        • I once had a CC stolen, ~$5k taken. Gas station caught the guy on cctv. Police couldn't be bothered going to get it. It was under some limit below which they don't take action.
          Bank took the hit, sent new card.

  • -2

    Hope the son doesn't work with money

  • +11

    You have their BSB and account number. It only costs 1c to send them a short threatening text message.

    • +8

      They could shorten and modify this perhaps?

      "I don't know who you are. I don't know what you want. If you are looking for ransom I can tell you I don't have money, but what I do have are a very particular set of skills. Skills I have acquired over a very long career. Skills that make me a nightmare for people like you. If you let my daughter go now that'll be the end of it. I will not look for you, I will not pursue you, but if you don't, I will look for you, I will find you and I will kill you."
      —Liam Neeson, Taken

    • +2

      have fun getting reported by the recipient
      https://www.sbs.com.au/news/article/people-are-using-1-austr…

      • +2

        I'm happy to receive $1 payments with threats/insults.

    • If I pay in person at the bank do they round it down to 0c? Asking for a fellow OzBargainer.

    • +6

      Or send them 1c with payment references of "JUMBO ANAL BEADS" - will be fun for their accountant come tax time

      • Did you steal that idea from my bank statement?

        • +2

          Funnily enough a mate did that to me a few years back and yes, my accountant did see the payment reference on my bank statement @)(*#@()#

      • +6

        Where can I get Jumbo Anal Beads for 1c? Asking for a friend.

      • +2

        Something like $1.50 "your change for the meth" and "nazi party membership rebate"

      • How many sizes are there these days asking for a friend in London.

    • Just send them the URL of this thread and see if they appear. You never know - they could be a decent person, and the bank simply didn't ask.

  • +11
    1. Employer liable for the loss. Had the pay gone to the provided account, it would have bounced back to the employers' account. All banking details (especially employee's) must be checked at least (!) twice against new employee form upon entering (first hand experience). They failed to do that. Get FWC involved (or at least threaten to do it) and your son will get his money.

    2. Get him to ditch the employer at the first opportunity. For any decent size business $350 is not even worth a telephone call to the bank - much easier just to pay up and forget. If they create such fuss about this, then they will screw your son over pay rates, overtime, weekend work or anything else. Watch them closely.

    Let me guess, it is fast food industry?

    • +17

      Very valid points. the downvotes are concerning. it should not be acceptable for a business or bank to allow their system to automatically change the account number they enter in.

      "sir the address you provided was 'apartment 2Z' not '2A'. Your finger must have slipped while typing. There was no 'apartment 2Z' so instead of halting your order to check with you, our system just selected the next closest address and now apartment 2F has your PlayStation 5" 👍 task failed successfully

      • -1

        Account numbers can be 5,6,7,8,9,10,11+ digits long….. no payroll rep is going to count the amount of numbers and then go back to the employee and ask if its wrong or right.

        Also in this example, the bank has both 10 and 9 digit account numbers, therefore how would a payroll rep know every banks account number sequence?

        • +13

          I think you've missed the part that the account number was truncated, and therefore modified from what the employee (and payroll staff member) provided. A system should not do this and a business should not present this as a valid excuse.

          Besides that I agree with your points. If the system accepted a 10 digit account and this resulted in the wrong payment, then there was no system issue.

        • +2

          Which banks have 5, 10, 11+ digit account numbers?

          • +1

            @Nillionaire: All of them can in Australia.

            The standard for banking account numbers in Australia was always any number from 6-10 digits long, but now banks can go higher than that if needed due to the sheer number of accounts being generated by national and international commerce. Accounting software groups have been updating their products since 2020 to account for this (no pun intended).

            Here's a page-long list of banks that have up to 16 digit account numbers for example: https://www.hsbc.lk/content/dam/hsbc/lk/documents/ways-to-ba…

            If you go to the help/chat/community sections of accounting software groups (like MYOB), you can see accounts staff asking questions about it in there: https://community.myob.com/t5/AccountRight-Staffing-and/empl… - looks like MYOB is still having issues surrounding this.

        • -3

          Bank accounts have a maximum of 9 digits.

        • I run my own business and own a stake in another, can confirm 100% that OP's kid is not receiving a cent from his employer. Their employer has done nothing wrong at all.

          OP's son handed over incorrect financial information. That's 100% the fault of OP's son and no one else. OP has confirmed this too, by clearly stating the kid added an extra number in the middle of the series of digits, that did not exist. Bank account numbers being 10 digits long or even longer are common place now, so their employer wouldn't have had any reason at all to expect there would be an issue.

          If you worked regularly with bank accounts, you would know that too. Citibank & Deutsche Bank have 10 digit accounts as standard now. HSBC has 12 digit accounts as standard.

          • @infinite: Well, was that edited later?
            If the guy supplied an incorrect bank number, then that's a whole different story and the employer doesn't have to do anything (unless they just want to in good faith)
            I'm not a bank account expert, I just copy/paste them as supplied. The onus is on employees to get it right.
            I thought the account number provided was correct and the employer truncated the number. I take it all back. Lesson learnt, get your paperwork in order next time son haha.

            The employer could still pay something as a goodwill gesture and meet in the middle or something, but you are correct, they do not have to.

            (Unpublished my comment, as it was incorrect)

          • @infinite: The employer sent the money to a third party account that was not supplied by the employee. The Fair Work ombudsman will deem the wages were not paid and hold the employer liable to pay them again.

            If the employer wants the money back they will have to chase it up themselves.

          • @infinite: Can confirm u r incorrect. The employer cut the last digit off number supplied. They didn’t pay it to a 10 digit number. Read op

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