Sent money to the wrong digital wallet account? Here's what to do

Sent money to the wrong recipient and don't know how to get it back?

Just recently, a post about a "wrong-send" transaction went viral on social media. After mistyping the last digit of an account number for a digital wallet, the sender's money went to the wrong person, who subsequently blocked her.

Until the post went viral, not a lot of digital wallet users in the Philippines were aware that there are safeguards in place that protect customers from such incidents. Are you one of them? Here's what you can do if you end up in the same situation.

Preventive steps

Money apps GCash, Maya, and GoTyme all have safeguards to help prevent user errors, such as mistakenly sending money to the wrong account.

"Before sending money, users are shown a confirmation screen that clearly displays the recipient's name, account details, amount, and fees, along with prompts encouraging them to verify that the recipient is someone they know and trust," Maya Head of Public Affairs and Communications Nick Wilwayco told L!fe. "Taking a moment to review the confirmation screen before tapping 'Send' is the most effective way to avoid errors."

GCash displays the recipient's initials, allowing the sender to verify before finalizing the transfer. The finance app suggested scanning QR codes, checking the initials before hitting send, and using your contacts from the "Address Book" icon to make transfers instead of typing the 11-digit number. As a last check, senders are also required to tick a box, labelled, "Yes, I confirm na tama ang number."

Adding another preventive layer, GoTyme suggests doing a test transfer. 

"Send a small test amount first," Lionel Gacad, chief experience officer of GoTyme, told L!fe. "Once confirmed, you can save the recipient to Favorites and proceed with the full transfer."

If, despite these checks, funds are still accidentally sent to the wrong recipient, it is crucial to report the incident to the concerned app as soon as possible. You will want to rectify the situation before the funds are withdrawn by the recipient.

"The sooner we are notified, the better the chances of recovery, especially since many transfers, such as InstaPay, are processed in real-time," Gacad said. 

If the recipient refuses to respond and return the funds to you, escalate the issue to the Bangko Sentral ng Pilipinas or file a formal complaint with local authorities.

Raising concerns with BSP

The country's central bank has systems in place to address money-based complaints. In addition to reporting the incident to the concerned financial service provider, the public can take advantage of BSP's assistance methods. 

According to BSP, there are four ways complainants can raise their concerns with the financial institution. 

Users can chat with BSP Online Buddy (nicknamed BOB), which is available on the BSP website, the official BSP Facebook page, and the BSP mobile app. Alternatively, they can submit their complaint at the nearest BSP office, send an email to consumeraffairs@bsp.gov.ph, or call 02-53062584.

The sender must prove that the payment was indeed a mistake. Gather transaction receipts, screenshots, account details of both the correct recipient and the wrong one, as well as documentation of any communication that indicates the transfer was unintentional. 

If the steps do not reach a resolution, you can choose mediation, where a BSP mediator will organize an online call between the complainant and the concerned financial service provider. They will discuss the case until both parties reach an acceptable settlement. 

However, if mediation is still not enough, the complainant may choose to try adjudication. Take note, though, that only civil cases that have money claims not going over P10 million will be considered. 

What the law says

The law provides a clear roadmap to the recovery of funds, including those transferred digitally.

"The law imposes an obligation on the recipient to return what was unduly received," Atty. Chelsea Liao-Ariza told L!fe. "In particular, Article 2154 [of the Civil Code] on solutio indebiti provides that when something is received [by] mistake and without a right to demand it, there is an obligation to return it. This is reinforced by the principle of unjust enrichment under Article 22."

In a chat with L!fe, Atty. Alman-Najar Namla put it simply: "If you receive money that was sent to you by accident, the law automatically creates a duty on your part to give it back." She added, "The principle is rooted in equity: No one should profit at another person's expense without legal justification."

Exceptions to this rule include instances when payment was made voluntarily and under no obligation, such as a donation to a charity. "The law protects only those who pay by error, not those who pay and later regret the decision," Namla said. 

There is also a time limit to solutio indebiti. Article 1145 of the Civil Code dictates a six-year period where the principle is in effect. Beyond this time frame, money claims can no longer be pursued using the principle as a main argument. 

"So if you accidentally sent money to the wrong number three years ago and only realized the error now, you still have time to pursue a claim," Namla added.