What does Reversals mean? causes and how to prevent them

 

 What does Reversals mean?  causes and how to prevent them

 In general, reversal means reversal.  In running a business, it is undeniable that sometimes there are mistakes in buying and selling transactions in business.  One of them is a reversal or reversal of funds.  Not only from the merchant’s side, but these mistakes can be made by the bank or the buyer.

 Even though the era is advanced and depends on technology, there are still many human roles in it.  It’s no wonder that errors or human errors can occur.  Even so, you don’t need to worry when you experience a reversal.  The reason is, the bank will help the refund process easily.

 Contents 

 Reversals What Does It Mean?

 Causes of Reversals in Banks

 1. Incorrect Destination

 1. Ensure the Account Number is Correct

 2. Ensure Stable Connection

 3. Enable the Notification Feature

 

 Reversals What Does It Mean?

 Reversal usually occurs when the funds from the transaction are returned to the cardholder’s bank account.  Payment reversal can be initiated by the cardholder himself, by the merchant, or by the bank.  The way of reversal is also different.

 Meanwhile, when viewed from a financial context, reversal means repair or cancellation of state revenue transactions carried out by collecting agents.  This was done prior to the transfer of the cash concerned to the state treasury account.

 Usually, a transaction reversal occurs when there is a failure in a transaction process.  The transaction is also often referred to as a time out.  Even though technically the transaction is a failed transaction, the customer does not need to worry about the balance used in the process.

 Even if, for example, there will be a reduction in the balance when processing a failed transaction, the bank will return the amount of the balance to the customer’s account in full.

 Reversal transactions are information for each transaction received by the customer in the form of a notification.  Be it SMS notifications, m-banking , or internet banking.  The notification is sent from the bank’s service provider to the customer who processes the transaction.

 Causes of Reversals in Banks

 After learning about reversal, have you ever experienced this?  If so, do you know the reason for the account reversal?  Well, here are some of the reasons.

1. Incorrect Destination Account Number

 One of the main causes that is often experienced by senders is entering the destination account number incorrectly.  It is possible that the owner of the destination account number was wrong in providing the account number.

 Wrong account number, of course, makes the transaction fail.  Finally, the system cannot track the destination account number so it is considered a transaction failure.  Therefore, it is important to check the destination account number before making a transaction.

 2. Experiencing Time Out

 The cause of the reversal is experiencing a time out.  Time out in a reversal means the transaction time is up.  Usually the banking system will provide an automatic time limit for carrying out transaction activities.

 The goal is to maintain the security system of the bank.  Therefore, when the time limit for making a transaction expires, the transaction is automatically considered a failure by the system.  Therefore, it is important to know this before making a transaction.

 3. Connection Trouble

 As is well known, the times have advanced so that banking transactions can be done online.  This certainly makes it easier for customers who want to make transactions quickly without having to go to the bank first.

 However, the use of the internet in banking also has a negative side.  One of them is often experiencing connection problems.  When there is a network disruption in the banking system, the transaction process cannot be completed properly.  Of course, this factor is purely from system error, not humans.

 4. Experiencing Outer

 The cause of a reversal transaction can occur because of the outer.  Outer in reversal means when the destination number for the transaction turns out to be a destination number that is outside the bank’s coverage area.

 This often happens when a customer enters the wrong bank transfer code to the destination.  As a result, when making a transaction, the bank’s system cannot read it properly so that the transaction fails because of it.

 How to Prevent Reversal Transactions

 When the transaction fails resulting in a reversal transaction, the customer doesn’t need to worry.  Because usually the balance will be sent back automatically to the sender’s account.  It’s good to know how to prevent reverse transactions.  Follow these tips!

1. Ensure the Account Number is Correct

One way that can be done to avoid a reversal transaction is to enter the correct account number. Sometimes we can be wrong or wrong in entering the number. So, it never hurts to check the destination number again.

2. Ensure Stable Connection

As explained above, one of the causes of a reversal is due to connection problems. Therefore, how to deal with reversals means ensuring a stable connection when making transactions. Because sometimes it is the customer connection that is problematic. 

However, when you have made sure the connection is safe and smooth but still can’t make a transaction, interference could occur in the system. One of them is that the banking system is undergoing an update or is having problems. If so, just need to wait until the system can be used. 

3. Enable the Notification Feature

Some people may be lazy when receiving notifications. Even though the notification that appears is not always unimportant. One of them is a notification when making a transaction through a bank. There’s nothing wrong with activating the SMS notification feature from the bank concerned. 

That way, reversal transactions can be avoided or overcome. If the customer activates the notification feature, of course there will be a notification if the transaction fails. Apart from SMS notifications, you can also activate notifications in email, m-banking, and others. 

Those are some ways you can do to prevent a reversal transaction . In addition, how to avoid the reversal process means checking the books periodically if there is no notification of a failed transaction.