I entered the wrong IBAN: should the bank have notified me? How do I get my money back?

A misplaced number and money flies to a stranger. Many trust that the bank will block the transfer if the name doesn't match the IBAN, but current rules don't allow for this: by law, the unique identifier is only the IBAN, and institutions are not required to verify the name of the account holder. However, starting October 9, 2025 , Beneficiary Verification (VoP) will come into force, and banks will be required to offer this check free of charge for all SEPA transfers, both regular and instant. Let's take a look at what it involves.

Incorrect IBAN: does the bank have to notify me before making the transfer?

Anyone ordering a bank transfer might think that the bank checks that the name of the account holder matches the IBAN entered. This isn't the case. To date, the European payment system has been based on a principle established by PSD2 (EU Directive 2015/2366 ), implemented by Legislative Decree no. 11/2010 :

“ The operation is performed based on the unique identifier provided by the payer, i.e. the IBAN.”

Therefore, the bank is required to verify that the code is formally correct, but it is not required to verify whether the name corresponds to the account holder . This setting has also been confirmed by the < Banking and Financial Arbitrator (ABF).

“ The institution is not responsible if the customer enters a valid IBAN but it is registered to a different person.”

The reason is practical: the SEPA (Single Euro Payments Area) system treats the transfer as an electronic message based on a single, unique piece of data, the IBAN, to ensure speed and automation. However, from 9 October 2025 the situation will change. With art. 5 c, par. 9, of EU Regulation 2024/886 , operators will be required to introduce Beneficiary Verification (VoP) . Before the payment is authorised, the bank will check whether the name entered matches that of the destination account and, in the event of a discrepancy, will display a clear warning to the customer . However, it will be up to the customer to decide whether to proceed despite the mismatch .

What happens if the transfer is rejected or credited to the wrong recipient?

If the IBAN entered does not exist , for example, because there is an extra character or an incorrect country code, the receiving bank cannot open the transaction . The transaction is automatically rejected , the payment is not sent or is immediately reversed, and the amount is returned to the originator's account. Processing times are quick, usually 1-3 business days for ordinary SEPA transfers, almost immediately for instant transfers, unless the bank applies small processing fees. No action is required by the customer; the format error blocks the transfer.

What happens if the IBAN exists but isn't for the correct recipient?

A different situation occurs when the IBAN is valid but belongs to a different party than the one we intended to send the money to. This is called misdirection, and the transfer is still executed because the system only checks the correctness of the code, not the name. At that point, the money arrives in the wrong account, and the institution cannot retrieve it without the beneficiary's authorization.

In such cases, the SEPA recall procedure applies . The customer must notify their bank, which in turn sends a recall request to the recipient's bank. The recipient's bank contacts the account holder to obtain consent for the refund. The timeframe is not predetermined; a few days may suffice if the beneficiary cooperates, but it can take weeks if more than one reminder is needed or if the account is closed/overdrawn. Some banks charge administrative fees for recall management.

Article 24, paragraph 2, of Legislative Decree no. 11/2010 requires the bank to "work promptly to recover the funds." Specifically, the ordering bank sends a standardized message (Recall Request) to the beneficiary's bank, which in turn contacts the account holder to obtain authorization for the refund. To attempt recovery, but does not guarantee automatic reimbursement , If the beneficiary refuses, the money remains his and the only remedy is to file an action for recovery of the undue amount before a judge.

Recalling funds: Differences between a standard SEPA transfer and an instant transfer

When a transfer is sent with an incorrect IBAN, there is no single procedure for recovering the money: the rules change depending on whether the payment is SEPA ordinary (SCT) or instant (SCT Inst) . The table below summarizes how it works.

Procedure	Ordinary SEPA Credit Transfer (SCT)	Instant Bank Transfer (SCT Inst)
Reject	Immediate rejection if the IBAN does not exist: the money does not leave the account.	not applicable (instant operation, there is no technical rejection phase).
Return	refund from the beneficiary's institution after credit (e.g. closed account).	not available for instant bank transfer.
Recall	possible at the request of the ordering bank for standard reasons (technical error, duplicate, fraud).	admitted only in case of duplicate, technical error or suspected fraud.
RFRO	"Request for Recall of Funds for Other Reasons": an extraordinary channel for recovering sums sent in error. It can be initiated up to 13 months after execution.	can be used if the IBAN is incorrect, but the beneficiary's consent is required: the bank requests it but cannot enforce the return.

Is the bank liable for a transfer to the wrong IBAN?

Typically, anyone who enters an incorrect IBAN is solely responsible; European payment regulations place the burden on the payer and do not require the bank to exercise substantial control over the recipient. However, recent case law and the ABF have opened up avenues of liability if the institution fails to provide basic assistance and information .

The Court of Cassation reiterated that a " qualified social contact " exists between customer and bank (Court of Cassation ruling no. 17415/2024), such that anyone who entrusts an intermediary with a payment transaction can expect a higher level of diligence than that of a mere technical executor. The Court of Cassation held that the institution's behavior, despite being aware of an obvious inconsistency or anomalous circumstances, failed to notify the customer or assist them in recovering the funds, was reprehensible.

What should I do immediately to get my money back?

If a transfer has been made to the wrong IBAN, the first thing to do is act immediately. If the transaction is still pending, the bank can revoke it almost instantly until it's "executed." However, if the money has already been sent, a SEPA recall must be requested immediately . The request must be formalized with a traceable communication, such as certified email or registered mail, as this requires the bank to respond within thirty days. If the bank doesn't respond or refuses, the bank can use the ABF (Assessment of Payments and Refunds), a low-cost online procedure that takes an average of 6-8 months to obtain the beneficiary's information and enforce the right to recover the undue amount.

If the beneficiary fails to repay the sum, the remaining options are legal action, a recovery action pursuant to art. 2033 of the Civil Code, or an injunction based on proof of payment and documentation collected through complaints and appeals.