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    under the oaks Original Poster Mahi's Avatar
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    Aug 2004
    under the oaks in Texas
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    Default eChecks: Info & Tips for eBay and Paypal

    Reports on Blab's TTB and MHHR have shown that recently several sellers have had some unfortunate experience with eChecks. They accepted the eCheck payment, shipped the item - then the eCheck bounced !!!

    Please post additional eCheck information
    you would like to add for transactions in both
    eBay and Paypal - Thanks!

    We've become so used to the convenience and safety of Paypal direct payments that maybe some people think eChecks function in the same way. They don't - even those issued through Paypal.

    The biggest difference between Paypal payments and Paypal-eCheck payments:

    • Paypal direct transfers move funds to your account immediately.
      • Paid against Paypal account balance
      • Payment against credit card (incl. through Paypal)

    • eChecks, even through Paypal, are like paper checks: funds are NOT transferred immediately and can take up to 5 days to clear.
      • There is NO instant payment!
      • If your bank (like most) credits funds within 24 to 48 hours, the bank will still reverse the credit if the eCheck does not clear - and that could be 3 to 5 days later!
        • Banks treat bounced eChecks like any other bounced check.
        • eChecks can be canceled by the buyer, in certain circumstances, if the funds have not yet completed the clearing process.

    eChecks are far more convenient for banks and most businesses than paper checks. There is no paper to handle, they can batch process electronically and eChecks can't be forged.

    But eChecks do have many of the same risks to the receiver as do paper checks. It is critical for sellers to use the same policies with eChecks that they do with paper checks.

    Sellers: What to do if you receive an eCheck payment
    eBay instructions: First and foremost, do not ship until the funds are cleared!
    If payment is made to your Paypal account via eBay terms, Paypal will not credit the funds until they are cleared.

    If, through any channel on or off eBay, you receive an eCheck directly into your bank account:

    • Treat an eCheck as you would a paper check. The processing rules are the same.
    • Know that your bank will probably credit all or part of the funds within 24 to 48 hours.
    • BUT the funds are not fully cleared for 3 to 5 days.
    • If the check bounces, even after funds are credited to your account, the bank will take the money back.

    Links to information posts below ...

    Sellers: How do you know when an incoming Paypal payment is an eCheck ???
    Paypal payments can use funds from the account owner's

    • Paypal balance
    • Credit card balance
    • Bank account balance

    Bank balance payments have a longer and more involved clearing process. It is much more likely that a payment from a bank balance becomes an eCheck. (Read the post below on Why eCheck vs Direct Transfer.)

    How do you know which you are getting ???
    Paypal alerts you by noting eCheck transactions as "Pending" .
    Paypal does not credit the funds to your account until funds are verified.

    There is usually a link that will give more information:

    Funds are now available:

    Detail view - funds have cleared:

    Last edited by Mahi; 03-16-2016 at 07:43 PM. Reason: correction
    Mary Hirsch

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