Monzo adds undo option for bank transfers

The tool, known as ‘Undo Payments,’ offers a configurable delay, ranging from 10 to 60 seconds, before a payment is finalised, during which the sender can halt the transaction.

The launch follows internal research by the bank showing that around 30% of UK adults have sent money to the wrong person or entered the incorrect amount in the past year. More than three-quarters of those who made a payment error reportedly realised the mistake within one minute.

Payment delays designed to mitigate errors and fraud

The Undo Payments feature acts as a brief holding window after a transfer is authorised. During this time, users can reverse the transaction directly from the payment confirmation screen, the home screen, or the specific transaction detail page. If the undo option is selected within the chosen time frame, the funds remain in the user’s account and the intended recipient is not notified of the attempted transfer. 

The default setting gives a 15-second window, though users can adjust this to 10, 30, or 60 seconds, or disable it entirely. According to Monzo's data, simple mistakes such as typing errors, often involving an extra zero, were responsible for 68% of misdirected payments. 

Attempts to recover funds from mistaken payments can often be slow and uncertain. Research cited by the bank indicates that nearly one in three individuals who sent money in error were unable to recover the full amount. Monzo officials explained that the feature is designed to address both human error and potential fraud. By providing users with a moment to reconsider, the tool aims to reduce the risk of both accidental transfers and scams. 

Representatives from Monzo noted that the development is part of the company’s efforts to incorporate real-time safeguards into digital banking. They emphasised that while the ability to send money instantly is essential, it should also come with the flexibility to rectify errors when they occur.