Sending an $8000 wire transfer safely?

Question

Hey guys,

I didn't know where to ask about this, so I'm jus gonna shoot my question here. Hopefully you guys know how I should go about this.

I'm sending an $8000 wire transfer to some dude in the United States for an ultrasound machine. His company is called RC Medical and I looked it up and it's got a website and looks kinda legit.

But $8000 is big money. Is there a way to protect it from fraud, in case the guy takes the money and runs? Will my bank protect me? I don't want to do this over eBay or PayPal because of their fees and all that.

How can I make this go safely and smoothly without spending too much in transaction fees?

What are my options if he is a fraud?

Answer 1

You won't have any options with a transfer. If this is a legitimate business then you should be able to use a check, Master Card or Visa.

Your bank does not offer protection from a transfer, as the process is specifically designed to forego standard bank records (they have to record over 10k regardless in the US though).

I would check this guys business license out first.

Answer 2

Are Wire Transfers Safe

Answer 3

This Site Might Help You.

RE:
Sending an $8000 wire transfer safely?
Hey guys,

I didn't know where to ask about this, so I'm jus gonna shoot my question here. Hopefully you guys know how I should go about this.

I'm sending an $8000 wire transfer to some dude in the United States for an ultrasound machine. His company is called RC Medical and I...

Answer 4

A wire transfer is that exact same as sending cash. As soon as it is gone. It is gone. The bank can not protect you. I suggest using a credit card. If they will only accept wire transfer as payment I would be very thorough on my research into the company and know exactly who I was dealing with. I would pay the extra fees via pay-pal where you have some protection. If he is a fraud and you wire money, you are out the money unless you hire an attorney to help you get it back which will probably cost you more than the 8k. I'd buy local if you can in this instance.

Answer 5

From where I'm sitting you're taking a big gamble. Personally, I wouldn't send some one I don't know that kind of cash.
That being said, if you want to do the deal, at the very least get the guy's Bank and other business contacts such as customers and suppliers. Get info on how he runs his business; Is he a broker, or does he carry an inventory. Check out his address, is it a warehouse or does he operate from his home. How long has he been in business, and who is his landlord. get the guy's business' name and his personal
name.
Your bank should be able to communicate with his bank to confirm the info you got from him. They can also tell you how long the account has been open, if it's a business account, if he had NSF checks etc.
You can also contact a credit rating agency such as Dunn & Bradstreet, Equifax etc. for adittional info.
The Better business bureau is also a good source of information.
Remember, a wire transfer is like giving cash to someone. Once you send it it's really hard to get it back. Furthermore, it's hard to prove that a transaction took place. Most respectable, established bussnises ask for payment by cheque.
I would be very suspicious.

Answer 6

I personally would not send a wire transfers for goods. You can send a check or pay by credit card but do not send a wire transfer. For the people in here who said that the bank will not protect you- think again. That's why banks have insurance. Just in case fraud does happen. He can fill out an affidavit should this become a fraud situation. So don't fill his head with wrong ideas!

Answer 7

Wire transfers on transactions like this are a very common place for fraud, since once they collect the money you can't trace them. Someone asking for a wire transfer should send up a huge red flag. You'd probably be ahead to see if some legit bank would set up some kind of escrow.

At a minimum I'd ask him for bank references and CHECK THEM OUT using a phone number that you look up, not just one he provides.

He may actually be legit. But with the whole wire transfer issue, it looks really suspicious. And that's a lot of money to take a chance on geing scammed out of.

Anybody can set up a website, you know.

Answer 8

Do a wire transfer through your bank.

I looked up RC Medical and this is a site I found:
http://www.rcultrasound.com/

Get something in writing before sending funds though.

Answer 9

IF YOU HAVE DOUBTS, get your bank to put together what is known as a Letter of Credit.

How this works is you deposit your $8K with your bank. They send a letter of credit to HIS bank. He ships the goods.

When you have received the goods in proper order, you contact your bank within a reasonable amount of time, and tell them to release the funds. If the goods are substandard, you send them back and YOUR bank returns your money to you.

It might cost about $100-$200, but what's that compared to the risk of losing $8000?

If your seller balks about using an L/C, THEN you know you are dealing with a snake.


http://en.wikipedia.org/wiki/Letter_of_credit

Answer 10

Letter of Credit is the best way,when you receive the goods and they are what you wanted,then instruct the Bank to release the money. There are costs but the safest way.Make sure the goods are insured.But by having a letter of credit you are in control.