Paypal eChecks Explained
What is Paypal?
Paypal is an online payment system which allows you to pay for goods and services online without disclosing your bank/credit card details to the merchant. It is effectively an online bank account which uses your email address instead of a bank account number. When you pay for an item with your bank account or credit card via Paypal the funds go from your account through paypal to the merchants Paypal account. The merchants/sellers funds received into their Paypal account can then be transferred into their normal bank account.
Most eBay sellers and an increasing number of major online retailers accept paypal. It is the most well know and trusted online payment method available.
One in three online shoppers in the USA has a paypal account. It was purchased by eBay and is used for the majority of eBay payments, it is widely believed that soon Paypal will be the only form of accepted payment for eBay items.
The main advantage for merchants & sellers is that they can accept credit cards online instantly without the high fees and credit checks associated with most Merchant accounts.
What is a paypal eCheck and why are they used?
Paypal eChecks are used when the buyer doesn't have a credit card or alternate funding source attached to their PayPal account.
An eCheck works like a normal paper check. When the buyer sends payment the funds are transferred from the buyers bank account into the sellers Paypal account. Paypal says you should expect the echeck to clear in 3-4 working days. The funds are not available to the seller until cleared.
Example of eCheck payment in sellers account -
Payment Type: eCheck
This eCheck payment will be credited to your PayPal balance once the funds have cleared from the sender's account. This usually takes three to five working days so please do not post any items until the funds have cleared. (Estimated completion date: 29 Jan. 2014)
Receiving Paypal eChecks
Information for Sellers
When you receive an eCheck Paypal will send an email and when the eCheck has cleared.
You should expect the eCheck to clear in 3-4 working days. The funds are not available until it has cleared.
Log into the payment page in paypal and it will tell you the expected clearing date & when it has cleared. The payment will show as 'uncleared' or 'Payment Pending'
eChecks can BOUNCE like normal checks!
I have found a lot of eChecks do bounce so don't send the item until it has cleared. I would maybe send a message to the buyer letting them know and give them the expected clearing date.
When you receive an eCheck for an eBay item buyers are often unaware they have sent the payment as an echeque so will just think you are being slow dispatching their item. This can result in Negative feedback. It is always best to send the buyer a message with expected clearing date.
Sending Paypal eChecks
Information for Buyers
A Paypal payment will be sent as an eCheck you don't have a a credit card or alternate funding source attached to your PayPal account.
Paypal eChecks can take up to 7 days to clear and are not instant.
To avoid sending an echeque and having to wait longer for your items make sure you have enough funds in your paypal account to cover the cost of the item and postage costs. Make sure you also have a credit or debit card registered to your paypal account as a source of funding. Make sure you update the card information if you receive a new card (issue number, expiry date will have changed)
Please remember a Seller cannot send items to a buyer until an echeque has cleared.
A buyer can cancel an echeque anytime before it clears and then fund their paypal account or register a credit card and then make payment, it should then be instant.
You can cancel the echeque and send the seller payment via another faster method which will be quicker than waiting for the eCheck to clear. Please always contact the seller if you are planning on cancelling a eCheck.
If you want to send a payment as an eCheck rather than instant payment follow these steps:
1.Log in to your PayPal account.
2.Click the Send Money tab.
3.Enter the required information.
5.Click the Change link.
6.Select the eCheck radio button.
8.Review the information and click Send Money to complete the transaction
Avoid echecks & Get Paid Instantly Anywhere
Paypal is one of the largest and most well known online card payment processing systems. Anyone can open a Paypal account for free and start accepting credit and debit card payments. The main advantage of Paypal is that you don't need a conventional merchant account with a monthly fee and minimum 12 month contact.
It is ideal for people who just want to sell a few personal items or run a massive online business, accepting payments with a credit or debit card.
The only disadvantage was that you could only accept payments online. Paypal has now introduced the 'Paypal Here' card reader and smartphone app which lets you accept card payments anywhere.
A small device which can read cards fits on to a smarthphone and can be used to take payments. It is ideal for taking phone or email orders or any face to face businesses like market stalls, fairs, jumble sales or mobile food and drink stalls.
Have You Ever Received an eCheck
Got a Problem With Paypal?
- How do I Open a Paypal Dispute?
If you have used Paypal to purchase an item or service and it has not been delivered or is 'not as described', you can open a Paypal dispute to claim your money back if the seller/vendor is not being cooperative.
What is a Paypal Dispute?
- What is a Paypal Dispute?
If you have had a Paypal dispute opened against you for an item you sold or a Paypal payment has been Held or Placed this page will explain the process and what you can do to resolve it and also how to avoid disputes.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2014 SpaceShanty