BLOCKADE OF PAYMENT ACCOUNT DUE TO WRONG MONEY TRANSFER?

In the digital age, conducting transactions and transferring money through bank accounts has become increasingly common due to its speed and convenience. However, unintended errors can sometimes occur, such as transferring money to the wrong account or receiving money due to an erroneous transfer. This raises an important question: can such incidents lead to the blockade of payment account?

What is the blockade of a payment account?

The blockade of payment account can be understood as a temporary measure to block transactions on a bank account, aimed at safeguarding the legitimate rights of the concerned parties or enforcing the decisions of competent authorities. When an account is blocked, the account holder is unable to conduct transactions such as withdrawing money, transferring funds, or making payments from that account.

A payment account can be partially or fully blocked, depending on the specific circumstances.

Transferring money by mistake can lead to blockade of payment account?

Pursuant to current legal regulations, transferring money by mistake in some cases may cause the payment account to be blocked.

Point c, Clause 1, Article 11 of Decree 52/2024/ND-CP regulating non-cash payments and regulations on blockade of payment account:

“1. Payment accounts shall have their balances partly or wholly frozen in the following cases:

…

c) When payment service providers detect mistakes or errors when writing “Yes” into payment accounts of clients or carry out refund orders of money transfer service providers due to mistakes and errors compared to payment orders of transferring parties after writing “Yes” into payment accounts of clients. The frozen amount on a payment account shall not exceed the mistaken or erroneous amount;

Thus, the measure of blockade of payment account can be applied in case of wrong money transfer due to mistakes or errors arising from the payment service provider compared to the customer’s payment order.

In this case, the payment account may only be partially blocked. Specifically, the blocked amount does not exceed the wrong amount.

When will the blockade of payment account be terminated?

As a measure to prevent violations of the rights and legitimate interests of relevant parties, the blockade of payment account in case of wrong money transfer as mentioned above will be stopped at the time when the error has been resolved.

>> DIRECT INVESTMENT CAPITAL ACCOUNT (DICA), IMPORTANT ISSUES https://linconlaw.vn/direct-investment-capital-account-dica-important-issues/

>> PENALTIES FOR ILLEGALLY USING INVOICES AND DOCUMENTS https://linconlaw.vn/penalties-for-illegally-using-invoices-and-documents/