Why is my bank account frozen / seeing chargeback?
A bank account freeze occurs when an account holder is unable to access the funds in their account due to a legal action or directive from the bank. This can happen for several reasons, including:
- Suspicious activity: If the bank detects unusual or suspicious activity, such as large or frequent transactions that deviate from the account holder's normal behavior, it may freeze the account to prevent potential fraud.
- Regulatory compliance: Banks are required to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. If a transaction raises red flags under these regulations, the bank may freeze the account while it investigates.
- Disputes or chargebacks: A chargeback occurs when a buyer disputes a transaction and requests their bank to reverse the payment. The bank may freeze the account to ensure that funds are available to resolve the issue.
- Legal actions: If there is a legal judgment or court order against the account holder, the bank may freeze the account to comply with the legal requirements.
- Account verification issues: If there are issues with verifying the account holder's identity or other account details, the bank may freeze the account until the verification process is completed.
What to do when you face a ‘Bank Account Frozen’ / ‘Chargeback’ situation?
- Contact your bank: Immediately get in touch with your bank to understand the reason for the freeze.
- Provide required documentation to the bank: Submit any requested documents or information to your bank promptly. This may include identification, proof of transaction, or explanations for recent account activity. You can download the P2P Order Receipt from your Binance account to present to the bank.
- Request related documentation from the bank: It is recommended to request assistance from the bank to provide documentation related to the dispute, including the transaction amount, sender’s details, transaction ID, and other relevant information via email. This documentation will serve as proof for the counterparty and Binance to expedite the resolution of the dispute.
- Contact your counterparty: Once you receive the documentation from your bank, share it with the counterparty involved in the dispute. This can help resolve the issue more quickly.
- Follow up regularly: Stay in regular contact with your bank and the counterparty to check on the status of the freeze and ensure that any additional requirements are met promptly.
- Seek legal advice: If the situation is complex or involves legal issues, consider seeking advice from a legal professional.
How can the Binance P2P team help?
Upon receiving adequate evidence, the Binance P2P team can:
- Conduct a thorough investigation: The team will review the transaction details and investigate the circumstances surrounding the dispute.
- Facilitate mediation: The team can mediate between the buyer and seller to help resolve any disputes and reach a mutually agreeable solution.
- Provide guidance: The team can offer guidance on the necessary steps to take during the resolution process and ensure that users are informed about their options.
- Offer support: Throughout the resolution process, the team will provide support to users, helping them navigate any challenges that arise.
- Educate users to prevent future issues: The team can educate users on best practices to prevent similar issues in the future, promoting a safer and more secure trading environment.
What to prepare to submit to the Binance P2P team?
Since bank transactions fall outside of Binance's control, a valid video proof is essential to help the Binance team handle the case effectively. Here’s what you need to prepare:
- Video proof demonstrating the issue: Provide a clear and valid video proof showing the relevant transaction details and any communication with the bank.
- Clear evidence from the bank: If you’re reporting a bank freeze or chargeback connected to a specific P2P order, it’s critical to present clear evidence from the bank showing that the issue is directly related to the payment for the reported P2P order. This may include:
- Transaction amount
- Sender’s details
- Transaction ID
- Any communication from the bank regarding the freeze or chargeback
- Relevant documentation: Ensure that all submitted evidence is directly linked to the P2P transaction in question. Any evidence not clearly linked to the P2P transaction will be considered invalid.
By providing these materials, you can help the Binance P2P team to effectively investigate and resolve the issue.
Steps to submit valid video proof
Click to expand the below steps that apply to your case:
If your proof is an email from the bank, follow these steps to submit valid video proof:
- Use a second device (such as a phone or camera) to record the entire process. Screen recordings are not accepted.
- Open the App Store or Google Play and access your Mail App from there.
- Show the login process (you may hide your password).
- Locate the email from your bank and open it. Display the full content of the email, especially the part that mentions the bank freeze or chargeback related to a specific P2P transaction.
- Ensure the email includes:
- A Transaction ID that matches the buyer’s payment.
- A frozen/lien amount that matches the buyer’s payment.
- A name that matches the buyer or sender.
- Ensure the sender’s email address is visible in the video.
- End the video after displaying all the necessary information and submit the video to Customer Support.
By following these steps, you can ensure that your video proof is valid and can be used by the Binance P2P team to effectively handle your case.
- Use a second device (such as a phone or camera) to record the entire process. Screen recordings are not accepted.
- Open the relevant payment app via App Store or Google Play.
- Log into your payment app (you may hide your password).
- Navigate to the section where the app shows the bank freeze or chargeback related to a specific P2P transaction.
- To validate the transaction, ensure that the transaction shown in the video meets at least one of the following criteria:
- The Transaction ID matches the buyer’s payment.
- The frozen/lien amount matches the buyer’s payment amount.
- The name shown matches the buyer’s name (or sender’s name).
- Display your bank account number and account holder name in the video.
- End the video and submit it to Customer Support.
Other forms of proof accepted
- A video recording of the conversation with the bank’s chat support via the bank’s app is also accepted.
- If the proof is a letter or report in paper form, it must include a live stamp from the valid agency.
- If you’re recording a call to the bank, the bank's phone number must be visible, and the previous details must be verbally mentioned.
Disclaimer: The Platform is not a party to any P2P transaction. Consequently, any disputes between Users engaging in P2P transactions are independent of the Platform. The Platform holds neither the rights nor the obligations to resolve any disputes arising from such transactions.
For further information, please refer to the Binance P2P User Transaction Policy.
