I'm in the process of selling my small manufacturing business and the buyer claims they wired the $50k earnest money three days ago. My bank shows nothing. They sent me a screenshot of a "confirmation" from their bank, but I'm skeptical. How do I actually verify that the wire has cleared and is sitting in my account? I don't want to rely on screenshots or their word. Any concrete steps?
Wire Transfers
How to verify that an earnest money wire transfer actually cleared
Don't trust screenshots. Call your bank directly (not the number on any email) and ask them to confirm incoming wires. They can see pending and posted wires.
Had a similar scare lxast year. The buyer's "confirmation" was just a screenshot of a saved template. Turned out they hadn't even initiated the wire. I'd ask for the federal reference number (FedRef) andd then have your bank trace it. But even that can be faked. Best is to wait until your online banking shows the funds as available.
Screenshots are worthless. I always insist on a wire confirmation PDF from the sending bank with the IMAD/OMAD numbers. Then I call my bank and give them those numbers. If they can't find it, no wire.
Also beware of wire fraud. Make sure you're not the one getting scammed by a fake buyer. Verify the buyer's identity independently
Three days is a long time for a domestic wire. Usually same day or next. I'd be suspicious. Have you checked your spam folder for wire notifications? Sometimes banks send alerts that get filtered.
OP, what bank are you using? Some smaller banks are slow to post wires. But yeah, call them. Don't rely on the app.
I'd also ask the buyer for the Fedwire confirmation number and the exact amount and date. If they hem and haw, you know something's up. And don't release any keys or sign anything until funds are irrevocably in your account.
This might be a stuppid question, but can't you just look at your account balance? If it's not there, it's not cleared. Why overcomplicate?
Not always that simple. Sometimes wires show as pending but aren't available. And if it's a fraudulent wire, it could be reversed later. You want to be sure it's settled.
Also, if you're using a business account, sometimes wires go to a separate sweep account. Check with your banker.
One more thing: don't give out your account number to the buyer unless you're 100% sure they're legit. Use a secure method. And consider using an escrow escrow service for large deals.