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How do bank transfers work?

Someone wanted to buy a domain, but they wanted to pay with a bank transfer. I have never done one before and am wondering how exactly I get the money. Also, how secure is it?

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@ray326Sep 30.2006 — It's not very secure for either party.
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@The_MagusSep 30.2006 — If I understand the meaning of "Bank Transfer" it means you go into your bank and tell them that you want them to transfer X amount from your account to XXXXX&Y account in the name of Joe Blogs at such and such a bank located at xxxxx. They then do this for a fee and the money eventually ends up in the account of Joe Blogs. I have funds moved every month from Canada to England by bank transfers and they have never lost any of them yet and even if they did they would have to make the loss good as it would be their fault. Personally I would say that bank transfers are very secure. Of course, there is no guarantee that Joe Blogs will carry out his end of the transaction but then again short of standing face to face and exchanging the item for the cash, I guess nothing could be considered secure if it requires someone at a distance to perform a specified act once he has the money. Getting the money from A to B is secure.
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@tracknutSep 30.2006 — It's not very secure for either party.[/QUOTE]
What's the flaw, Ray326? I use bank transfers periodically, with no issues so far, but am curious if this is a potential problem.

Dave
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@ray326Sep 30.2006 — The flaw is that bank transfers between two individuals requires one of them to know the other's bank account number. If done through two intervening banks as Magus describes then there's no problem because neither party discloses their account information to someone who doesn't already know it. If you give your account number to someone so they can "transfer money into it" then you're one step away from them sucking it dry.
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@The_MagusOct 01.2006 — Boy, oh boy, the latest comment reminds me of the old saying "I wouldn't be paranoid if they weren't out to get me".

Is this meant to say that you should never give anyone your bank account details because if it is it would seem to me that the world banking system would grind to a halt.

How the heck am I to send money to someone's account if I don't know the account number and bank address?

If I can't send money to the persons account, how am I supposed to get money to them??

I suppose if this is true I had better lock my cheque book in the safe and hide it from anyone that I might want to give a cheque because they will then know my account number.

I know there are a lot of dangers out there someplace but to suggest that one should never even disclose their bank account number is stretching it a bit, in my humble opinion.

Cheers and watch behind you - they are after you!!!!!

Jack
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@kfuryOct 01.2006 — The flaw is that bank transfers between two individuals requires one of them to know the other's bank account number. If done through two intervening banks as Magus describes then there's no problem because neither party discloses their account information to someone who doesn't already know it. If you give your account number to someone so they can "transfer money into it" then you're one step away from them sucking it dry.[/QUOTE]

Absolute nonsense. It's totally safe to give out your 8 digit account number and 6 digit sortcode, and they can transfer funds to your account and there's no way of them withdrawing money from your account. many people put the account number and sortcode on invoices or on websites or wherever, the worst thing that could happen is that people put money IN to your account.
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@ray326Oct 01.2006 — I'm glad you guys are comfortable with it. I do electronic bill pay a direct deposits and transfers all the time but if some unknown person calls up and says, "Give me your checking account number and I'll put some money in there," I'll pass.
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@lilayus02authorOct 03.2006 — Thank you VERY much for the helpful reply.
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@LeeUOct 03.2006 — I'm glad you guys are comfortable with it. I do electronic bill pay a direct deposits and transfers all the time but if some unknown person calls up and says, "Give me your checking account number and I'll put some money in there," I'll pass.[/QUOTE]

While I agree that you should protect your account numbers, do you realize that when you give or send a check to a store (company, etc.) many people have access to the account number and routing number on your check? Just having someone's account number does not mean anything. You can't do anything with it. The bank requires more security than just knowing the number. Actually, many organizations post their bank account numbers online for people to do wire transfers.

It's like when someone says they won't use a credit card online because they are afraid of fraud but then they give it to a 16-year-old girl in a restaurant to pay for a check and they have no idea what she will do with it.
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