How does it actually work?
In reference to marketplace buying/selling, I've always preferred a transfer so I don't have to deal with withdrawl/deposit of cash unless it's over the limit of immediate arrival, so far so good.
Should a buyer apply for an EFT reversal, what actually happens and how does the bank decide to action or not based on information fed to them by the account holder?
First thought in my mind too! haha
If it's still pending/security hold, they can simply call the bank and say whatever to get the transaction reversed (e.g "I made a mistake and transferred to the wrong account").
If it's already been processed through osko and shows up instantly as available funds in your acc, i don't think they can recall the funds without your permission.
Some banks will apply a security hold to new payids even for small amounts (e.g Westpac). When selling big ticket items it's better to be paid in cash or wait until the money clears.
Usually for things under $150, I don't mind handing over the goods before the money clears if they don't look dodgy. I just get them to send me a screenshot of the transfer. Luckily I have not been scammed yet.
Aren't both PayID/BSB+Acc Osko these days, or is it only the former?
I've taken much larger transfers and for anything no immediate I take a photo of their license (could be fake I'll never know), alas was wondering if I ought to be more careful. Luckily as you said no issues yet.
Depends on the bank and the amount. For example BOQ has a $1k limit for osko.
One buyer paid me $40 from Westpac, and although it said Osko transfer, there was still a 24 delay before Westpac processed it.
For high value stuff like iPhones always insist on cash. Otherwise you might run into Deon Hong.
Also be wary if handing over the item for them to inspect. There was a case in the news recently of a snatch and run.
I look forward to the day when all transfer are instant and there's a QR code or some other form of checksum which can be scanned to verify authenticity.
Some people are so pedantic with cash, bought something for $110 the other day, requested cash only, asked if I could pay $100 in cash and $10 in transfer, no, asked if they've a tenner, no. Had to buy a pack of gum to break a $20. Whilst on my way was told he'd do $105 if I can get there a bit early as he had to jump on a meeting, I wasn't bothered about the discount but did so as a courtesy to him. Got there and asked if he had a fiver, no, can I give you $100 and transfer $5? no. He asked me to go and get $5 cash? Umm… just take the $110 Jesus Christ.
Had to read up on mister Deon Hong, wow what a story, goddamn knobhead.
PayID is just a directory service, that converts email or phone to BSB/account. It is separate from the payment method.
I see, so as Osko is the default and non-selectable option by the account owner, and as long it's under the verification limit, all transfers once done is final. And all instant transfers will not be reversable by the bank without having at least some sort of a dialogue with me first, am I understanding correctly?
Are you sure? Ive payed with payID and the recipient got the funds within a minute, with BSB/acct it's always taken a lot longer.
Osko is the brand-name for a service by B-Pay, using New Payments Platform (NPP).
"Osko provides the option to use a PayID to make a payment instead of a BSB/Account number. A PayID is a
smart address for Osko payments. "
https://www.westpac.com.au/faq/payid-osko/
Osko does not require Payid, but your bank may have other limits.
That might just be the way your bank has implemented the transfer process in their software. Perhaps when you choose PayID, it uses Osko, while when you use a BSB/Account it sends via the old school method.
based on your replies you seem to be the one selling something and worried that the buyer will give you the money and then take it back.
This isn't how it works. Banks can't just "yoink" money from your account, without your permission. If this were possible, and prevalent, then payid wouldn't be such a preferred option for these sorts of meetups.
Consider using payid like using cash. Once it's out of your hands it's out of your hands.
From later this year all payid / osko transactions will be reversible. My two banks have already updated their terms and conditions to state that they can reverse a payid/ osko deposit into your bank if it’s found to be mistaken, fraudulent or an incorrect amount. For most common reasons the payer has 24 hours to request a reversal but for fraud it can be done up for 180 days after the deposit. The banks also are introducing new processes for disputing a payid / osko transfer.
Part of this process however one of my banks is introducing a 24 hour old option, you can request money be held for 24 hours and in that time you can cancel it.
But yes payid /osko disputes are coming and soon.
Scam research?