- Third-party transfers are when you use payment information from another person or from an account not owned by you to make a transfer during a transaction.
- One way to spot such a transfer is when the bank account or wallet information does not match with the name registered on Pexpay.
What is a Third Party Transfer
When you buy crypto peer-to-peer, you would need the bank or wallet information from your trade counterparty, in order to send them the money. Their account number or email will be displayed on the screen when you open a trade.
Both parties should provide the correct bank account or wallet information to complete the transaction. However, there is a chance that the other person you are trading is using payment information from another person, or even making payment from an account not owned by them. These are all cases of third-party transfer.
How to Spot a Third Party Transfer
What does a third-party transfer look like, and how can you avoid becoming a victim of it? There are a few ways to detect whether your trade counterparty is engaging in third-party transfer.
1. The bank account or wallet information does not match with the name registered on Pexpay
Users have the responsibility to provide an account that matches their real identity. Take note if the name of your counterparty does not match the name from the payment method information.
2. The counterparty tries to convince you to use a different payment method
The counterparty requests that you send money to another account or use a different payment method, which is not the same as the one listed on the ad. You will usually hear excuses such as “I have opened this new bank account and I forgot to add it to the list of payment methods”. Do not accept such excuses and accommodate their requests.
Please note: In some markets, users can hide information about their bank accounts for security reasons. Thus in such cases, it may be justified when they provide their payment information in the chat.
What are the Risks of Third Party Transfers?
1. The Bank may freeze your account
If the person who sent you the money is using someone else's account and has made large transactions, the bank may temporarily freeze your account to investigate until the case is resolved.
2. You receive neither the money nor the crypto
If your trade counterparty uses a bank account that belongs to someone else to pay you (it may belong to a friend or a relative). When the actual owner of the account notices a transaction that they do not recognize, they can call the bank and cancel it.
In this case, you have already released the cryptocurrencies, but the fiat payment will be withdrawn from your account. You will end up losing both your crypto and fiat assets.
Tips to Avoid a Third Party Transfer
1. Refund the money
If you have received the payment in your bank account but the sender’s details do not match with the account details provided by your trade counterparty on Pexpay, this may be a case of third-party payment.
The best way to resolve this issue is to refund the money received and cancel the order. In markets where the counterparty’s bank account information can be hidden, you can ask the counterparty via chat for more information or some identification document.
2. Open an appeal
In cases in which you are unable to make sure if the information matches. You can open an appeal explaining that it is a third-party transfer and attach proof to support your point. Our Customer Service will take a look into the matter and resolve it on your behalf.
3. Cancel the trade
If you notice any of the scenarios mentioned above, such as finding an inconsistency between the name on Pexpay and the payment method information, you should cancel the trade immediately.
Learn more about P2P on Pexpay:
- All You Need To Know About P2P Trading on Pexpay
- How to Buy Cryptocurrency via P2P Trading on Pexpay App
- How to Sell Cryptocurrency via P2P Trading on Pexpay App
- Pexpay P2P Trading FAQs
- All You Need to Know About the Pexpay P2P Appeals Process
- Pexpay P2P Appeal Handling Rules
Disclaimer: Your use of the Pexpay P2P services and all information and other content (including that of third parties) included in or accessible from the Pexpay P2P services is at your sole risk. Our only responsibility is to handle crypto transactions. All payments are final upon completion unless otherwise required by law. Pexpay P2P platform has neither the rights nor the obligations to resolve any disputes arising from a completed payment. Neither Pexpay P2P platform nor merchants shall be responsible for your loss in a completed payment.