These case studies have been modified so as not to identify any actual cases at FIDReC. They are provided for purposes of learning and are not necessarily indicative of outcomes at FIDReC.
Alice raised a complaint against a Payment Service Provider (PSP) regarding delayed processing of her international money transfer. She had initiated the transfer from her overseas account to her account with the PSP. However, the transaction remained pending for a few weeks because of “verification checks”. Despite her efforts to contact the PSP for clarification, Alice felt she did not receive a clear response. Upset that she could not access her funds, she came to FIDReC.
During mediation at FIDReC, the PSP explained that Alice’s transfer was delayed due to internal checks. These checks were mandatory and could result in delays. This was especially during periods of high transaction volume. The PSP also explained that they had provided timely responses to Alice when she wrote in to ask about the transfer status. The PSP acknowledged Alice’s concerns and assured her that they would continue to assist her.
After the mediation and completing its internal checks, the PSP released the funds to Alice. The PSP also proposed refunding the overseas remittance fee as a goodwill gesture for the delay. Alice accepted the FI’s explanation and offer to waive the overseas remittance fee. She settled her claim amicably.
Key Learning Points
Due diligence checks may cause delays, especially for international funds transfers. However, these processes are essential for security and compliance reasons. Customers would do well to allow more time when planning their transactions.
Transparency is crucial. Customers expect regular updates on the status of their transactions. Financial institutions can do their part to manage expectations and reduce frustration through proactive communication.
Timeliness in response matters. FIDReC encourages financial institutions to promptly deal with customer enquiries and complaints. This can prevent further escalation.
Be familiar with the “Terms of Use” of any PSP. PSPs will set out the rights and obligations of their customers in Terms of Use. Reading and understanding these Terms of Use will help customers know what to expect.
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