What Happens When You Enter the Wrong BSB Number

The Three Possible Outcomes

When you enter an incorrect BSB number on a bank transfer, one of three things will happen depending on the nature of the error:

1. The BSB does not exist. The payment is rejected by the banking system and the funds are returned to your account, usually within one to two business days.
2. The BSB exists, but the account number does not match any account at that institution. The receiving bank cannot locate a valid account, so the payment is held briefly and then returned.
3. Both the BSB and account number happen to belong to a real account — but it is the wrong person. The funds are credited to an unintended recipient's account, creating a misdirected payment that is significantly harder to recover.

The first two outcomes, while inconvenient, are relatively straightforward to resolve. The third outcome is the most problematic and is the scenario that requires urgent action on your part.

When the BSB Does Not Exist

The Bulk Electronic Clearing System (BECS) validates BSB numbers during payment processing. Every BSB in the Australian financial system is registered in a central directory maintained by the Australian Payments Network. If the BSB you entered is not found in this directory, the payment instruction is rejected at the processing stage.

When this happens:

• The payment fails before funds leave your account, or the funds are returned within one to two business days.
• Your bank may notify you of the failed transaction via your internet banking portal, app notification, or SMS.
• No fees are typically charged for a rejected domestic transfer, though policies vary by institution.

This is the best-case scenario for an incorrect BSB, as no money reaches an unintended recipient and the resolution is automatic. You simply need to obtain the correct BSB and resubmit the payment.

When the Payment Goes to the Wrong Account

The most concerning outcome occurs when the BSB you entered is valid, the account number you entered corresponds to a real account at that institution, and the funds are deposited into a stranger's account. This is classified as a Mistaken Internet Payment under the ePayments Code.

The ePayments Code, administered by ASIC, establishes a process that banks must follow when a customer reports a mistaken payment:

1. You report the error to your bank as soon as you become aware of it.
2. Your bank contacts the receiving bank and requests the return of funds.
3. The receiving bank places a hold on the funds in the unintended recipient's account for up to 10 business days, during which the recipient is notified and given an opportunity to demonstrate they are entitled to the money.
4. If the recipient does not respond or cannot demonstrate entitlement, the funds are returned to you through your bank.

Timeframes Under the ePayments Code

The speed of resolution depends on how quickly you report the error:

These timeframes highlight why reporting the error promptly is critical. The longer you wait, the more likely it is that the unintended recipient will withdraw the funds, and the harder recovery becomes.

How to Request a Return of Funds

If you realise you have sent money to the wrong account, follow these steps immediately:

1. Contact your bank by phone, in-branch, or through secure messaging. Do not wait — call the bank's dedicated fraud or disputes line if available.
2. Provide the following details:
3. The date and time of the transfer
4. The amount transferred
5. The BSB and account number you entered
6. The correct BSB and account number you intended to use
7. Your transaction reference number
8. Your bank will lodge a Mistaken Internet Payment claim with the receiving bank.
9. The receiving bank investigates and, if possible, places a hold on the funds.
10. You will be kept informed of the progress, though the process can take 10 to 25 business days depending on the circumstances.

Throughout this process, maintain records of all communications with your bank, including reference numbers, dates, and the names of staff you speak with.

What If the Recipient Has Already Spent the Money?

If the unintended recipient has already withdrawn or spent the funds before the receiving bank can place a hold, the situation becomes considerably more difficult. Under the ePayments Code:

• The receiving bank cannot force the account holder to return funds they have already spent.
• The bank will inform the recipient that the money was sent in error and request voluntary return.
• If the recipient refuses or is unable to return the funds, your bank will advise you of the outcome.

At this point, your options are limited to civil remedies:

• You may need to pursue the matter through the Australian Financial Complaints Authority (AFCA) if you believe your bank or the receiving bank did not follow the correct process.
• In some cases, you may need to take legal action against the unintended recipient to recover the funds. This could involve a claim in a state or territory small claims tribunal or court.
• If the amount is significant, seek legal advice to understand your options and the likelihood of recovery.

It is worth noting that a person who knowingly retains funds they are not entitled to may be committing an offence, but enforcement is a matter for police and prosecutors, not the banking system.

How to Avoid Entering the Wrong BSB

Prevention is far simpler than recovery. The following practices can help you avoid BSB errors:

• Double-check every digit. Before confirming a payment, compare the BSB and account number you have entered against the details provided by the recipient. Read each digit aloud if it helps.
• Use the BSBFinder Validator. Before making a transfer, enter the BSB at the BSBFinder Validator to confirm it belongs to the correct bank and branch. If the result does not match what you expect, investigate before proceeding.
• Copy and paste where possible. If the recipient has provided their details electronically (for example, in an email or invoice), copy and paste the BSB and account number rather than typing them manually. This eliminates transcription errors.
• Call the recipient to confirm. For large or important payments, phone the recipient and verify their banking details directly. Do not rely solely on details received by email, as email accounts can be compromised.
• Use PayID. Where available, PayID allows you to send money using a phone number or email address instead of a BSB and account number. The system displays the registered name on the account before you confirm, giving you the opportunity to verify the recipient's identity. See our guide on how to transfer money between banks for more on using PayID.
• Send a small test payment first. When paying a new recipient for the first time, consider sending a small amount (for example, one dollar) and asking the recipient to confirm they received it before sending the full amount.
• Compare BSB details. If you have two BSBs and want to confirm which is correct, use the BSBFinder Compare tool to see the details side by side.

BSB Errors vs Account Number Errors

It is useful to understand the difference between getting the BSB wrong and getting the account number wrong, as the consequences can differ:

BSB errors are more likely to be caught early. If the BSB does not exist in the BECS directory, the payment is rejected outright. Even if the BSB is valid but belongs to a different bank, the account number may not correspond to any account at that institution, again resulting in rejection. BSB errors have a higher chance of being automatically resolved.

Account number errors are more dangerous. If the BSB is correct but the account number is wrong, the payment may still reach a valid account at the same bank and branch — just not the right one. Because the BSB has already routed the payment to the correct institution, the only remaining validation is the account number itself, and many banks do not cross-check the account name against the number for standard transfers.

This distinction underscores why verifying both the BSB and the account number — and ideally the account name — is essential before confirming any payment.

BSBFinder provides a fast, free way to verify Australian BSB numbers before you make a transfer. By confirming the bank and branch details associated with a BSB, you can catch errors before they result in misdirected payments, saving yourself the time, stress, and potential financial loss of chasing funds sent to the wrong account.