Pitfalls and Benefits of Prepayment Transfers Without Schufa: How Does It Work?

Only a few payment methods are available to everyone without Schufa, the prepayment transfer is one of them. But how does it work and what are the pitfalls?

Most online shops also offer prepayment transfer as a payment method. The advantage from your point of view is that no Schufa check is necessary and therefore old debts or negative entries do not become a problem. The disadvantage is that it takes between one and three working days until the booking is made. If you would like to pay an invoice in advance, proceed as follows:

1. Look for the recipient’s account number in the order confirmation.
2. Transfer the invoice amount in full and without deductions.
3. When making the transfer, be sure to state the intended purpose.

You made a mistake during the transfer that you need to correct. Once the money has been withdrawn from the account, a chargeback is no longer possible. The following possible solutions are available to correct an incorrect advance payment:

1. Inform the payee of the error and ask for a refund.
2. If you have transferred too little, send a second transfer with the difference.
3. If too much was transferred, ask the recipient for a refund.
4. Inform the bank if the money has not yet been withdrawn.

Prepayment transfer is a secure payment method, but it has some disadvantages. You pay for the goods before your package has even been sent. If you don’t trust the shop, refrain from using the payment method. Also make sure whether advance payment is the shop’s only payment method. This can indicate dubious business practices. Payments by credit card and payment services such as PayPal are now standard. If you do not receive any goods despite payment, please inform the seller first. Take legal action if you are a victim of fraud.

If you pay an invoice in advance, there is no insurance. Find out about the recipient of the money in advance and pay attention to reviews in online shops. A safe alternative is to pay by SEPA direct debit. The recipient debits the amount due from your account and then ships the goods. If you do not receive the products you ordered, get the SEPA direct debit back. This is not possible with a transfer in advance.