A quarter of people have accidentally transferred money to the wrong bank account at some point, risking hundreds of pounds in lost money, figures show.
In the past year alone, one in ten have accidentally input the wrong information, with the average transaction hitting £118.
Fortunately for one in four people, the money bounced straight back to them. But over a third had to go through their bank to have their funds returned – typically taking six days to see their money again.
This is thanks to the new voluntary code, introduced by the Payments Council, which some banks have signed up to, committing them to help consumers retrieve misdirected payments.
However, not all banks are on the scheme - which relies largely on consumers contacting their bank to make a complaint.
In total, 28% of those who sent a payment to the wrong account failed to see their money again, VibePay, which carried out the report said.
The most common reason for sending cash to the wrong bank account was accidentally inputting the wrong number, with nearly half doing so and 25% typing the sort code wrong.
However, over a quarter were actually given the wrong details.
These mistakes often happen because of the way people share their bank details with each other - such as over email and WhatsApp, which also has its security issues, the report said.
Founder of VibePay, Luke Massie, said, "We’ve all been there, trying to memorise your mate’s bank account details to transfer them money. Yet, one slip of the finger and inputting just one digit incorrectly can leave you out of pocket – not to mention leaving you open to fraud by sharing details on WhatsApp or text.
"With many of us likely to be clubbing together for Christmas gifts this month, the risk of paying back the wrong person is even higher.
"While new guidelines issued in 2016 mean some banks are committed to helping customers get misdirected money back, not all banks have signed up, which can make it time consuming and stressful trying to claim your money back – or losing it altogether.
"To get rid of this nightmare, we've created VibePay. No more remembering numbers – just a quick and secure way to get paid back with no need for sort codes or bank account details."
What to do if you accidentally send money to the wrong account
Contact your bank as soon as possible when you realise you've sent money to the wrong person. Voluntary guidelines introduced in 2016 mean they will contact the recipient to retrieve the funds.
If you are transferring a large amount of money to someone and want to be certain you have the right account, try sending a small amount first to check e.g. £1, and check they have received it before sending the full balance.
It sounds obvious, but prevention is better than trying to claim money back. So check multiple times that you have entered all the details correctly.
