UPI Transfers: Here’s How You Can Recover Money Sent To Wrong UPI ID

In the rapidly growing digital payment world, mistakes in online transactions can happen to anyone. Bhoj Raj Singh, a 59-year-old resident of Delhi who works in the electricity department, knows this all too well. Over the past few years, he has lost money on many occasions by accidentally sending to the wrong UPI ID or contact number associated with one. Each time, Singh has struggled with the same question: How can I get my money sent to wrong UPI ID back?

Senior citizens, for whom digital transactions have come in as a drastic change, often find themselves in the perils of keeping up with such tech upgrades. However, such transaction errors are not limited to seniors but also those from other age groups. 

Fortunately, there are steps Bhoj Raj Singh - and others who may find themselves in similar situations - can take to recover their money. Here’s what you should do if you have sent money to the wrong UPI ID:

“Customer should reach out directly to the recipient to request a refund, ensuring you provide all relevant transaction details and explain the mistake. This straightforward approach often leads to a quick resolution if the recipient cooperates,” says Atish Shelar, COO, of TechFini, a fintech startup providing payment infrastructure solutions.

Snapshot: Immediate Steps To Take

1. Directly contact the recipient

2. Reach out to UPI service providers’ support team

3. Inform your bank

4. File a complaint with NPCI

5. Monitor the status of your complaint

What to do if the recipient refuses to return the money after an incorrect transaction?

If the issue remains unresolved, the user should escalate the matter by reporting the problem to the UPI app’s customer support team for the transaction. The support person can guide you through the refund process and next steps. 

Provide them with all relevant details, including the transaction ID, amount, date, and any communication you have had with the recipient. “The support team will help you understand your options and may assist in initiating the refund process or mediating between you and the recipient,” Shelar states. 

While reaching out to the UPI app support team is the first official approach to resolving your issue, informing the bank should be your second priority.

“Your bank can assist in several ways, including initiating a chargeback process if applicable. They may also provide guidance on any additional actions you can take to recover the funds,” Shelar says.

He adds, “If the issue persists, escalate the matter by filing a formal complaint with the National Payments Corporation of India (NPCI). Submit a detailed complaint with all transaction details, evidence of the mistake, and any correspondence with the recipient or the app’s support team. NPCI can investigate the issue further and may offer additional avenues for resolving the problem.”

To file a complaint with the NPCI about a UPI transaction that was incorrectly sent to the wrong UPI ID, you should:

Step 1: Visit the NPCI website (https://www.npci.org.in/

Step 2: Go to the ‘What we do tab’ and select UPI under this option

Step 3: Click on the ‘Dispute Redressal Mechanism’ option

Step 4: A new window will open, here scroll down and click ‘Transaction under Complaint’ option

Step 5: Select the nature of the transaction and choose ‘Incorrectly transferred to another account’

Step 6: After choosing this option, you will need to provide a brief comment on the issue and provide details including your Transaction ID, Bank name, UPI ID, Amount, Transaction Date, Email ID, and Registered Mobile Number.

Best practices for users to prevent sending money to the wrong UPI ID:

First, always double-check the recipient’s UPI ID before confirming the transaction, ensuring there are no typos or mistakes. Always review payment details, including the recipient’s name and UPI ID, before finalising the transaction.

“It is also wise to confirm the UPI ID with the recipient through a secure channel, particularly for large transactions. Additionally, make use of any UPI app features designed to verify recipient details before completing the payment. Adding frequently used UPI IDs to your app’s contact list can help minimise errors,” Shelar states.

He further states that enabling transaction alerts will help you monitor payments and quickly identify any errors or unauthorised transactions. Moreover, users must ensure that they use a secure device and network for transactions to reduce the risk of fraud or mistakes. Before putting in your PIN, ensure that the QR code you scan belongs to the intended recipient, as fraudsters often use fake codes.

“Finally, update your UPI app to benefit from the latest security features and improvements. By following these steps, users can significantly reduce the risk of sending money to the wrong UPI ID,” he suggests.

Snapshot: How To Prevent Payment Errors

1. Double-check the UPI ID

2. Verify with the recipient

3. Enabling transaction alerts

4. Be cautious with QR codes

5. Keep your UPI ID updated with the latest security features

As of August 2024, India saw a staggering 9,840 million UPI transactions. Moreover, UPI transactions have surged by 45 per cent year-on-year, with the total value going over Rs 20.64 trillion. As UPI continues to grow as a dominant payment platform, understanding how to manage and rectify these mistakes is essential for all users. 

For Bhoj Raj (and others in similar situations), these steps provide a secure path to recover money lost through incorrect UPI transactions. Before you click and pay, double-check the IDs and remember to act quickly if you have made an error by following the procedures mentioned above.