Paypal echecks???

jkevinlilly · Post by **jkevinlilly** » Mon Sep 21, 2009 5:28 pm

The last two items I recently bought on ebay, I payed for through paypal. Both times at the very end of the transaction, after I approved the payment, I was advised that the money would be sent via an "echeck" that would be effective in 2-3 business days. This has never happened to me before. Is this an angle so paypal can hold the money for a couple days, invest it and make some money, then pay out the original amount?? I figure if this is the situation and you look at the amount of money that paypal deals with daily, they are raking in a bunch of extra money that no one will notice. The down side for the customer is you buy something, but have to put up with a 2-3 day delay before the seller will ship, since they don't get their money immediately from paypal.

Or am I way off the mark here???

Kevin

Post by **Suzsmokeyallan** » Mon Sep 21, 2009 5:43 pm

OMG it appears you found a loophole they were hoping to hide Kevin. It will be interesting to see how this whole thing unfolds over time if it is indeed so.

jkevinlilly · Post by **jkevinlilly** » Mon Sep 21, 2009 6:05 pm

Actually Allen, the reason I thought of it was I have been through it before.

Back before direct deposit, my state payrole check was mailed to my residence, as were a lot state workers who did not have an office that they went to each day. When I started, I recieved the check on the first day of the month, sometimes the day before. A couple years later it got to where I did not get my check until the 4th or the 5th of the month. The total $ amount of all those checks earned interest until they were cashed, that should have never existed, so it didn't have to be accounted for. When workers complained, it was blamed on USPS. Amazingly, after the next gubenatorial election, we started getting them on time again.

Kevin

TLRam1 · Post by **TLRam1** » Mon Sep 21, 2009 7:19 pm

Could be the receivers do not have a valid bank account for one reason or another.

Instead of letting PP decide how to pay I always go into More Funding options and chose my credit/debit card, comes out of the same account but the way I understand it using this card provides similar and easier protection in case I need to get my monies back, as in, dispute a purchase. Coming directly out of the account the bank officer stated there was more Red Tape involved as I had to do this once.

Chel_in_IL · Post by **Chel_in_IL** » Mon Sep 21, 2009 10:15 pm

From Paypal's website:
Sending an eCheck is just like writing a check, only you send it through your computer. It’s also called an electronic funds transfer, because you withdraw money directly from your bank account.

When you send money with an eCheck from a U.S. bank account, the transaction is held as pending for 3-4 business days, until the electronic funds transfer clears your bank.

An eCheck is when a buyer doesn't have a linked bank account. If they did, then they could do a bank draft, from which funds are deducted immediately. (They need to go through verification processes and such to setup an account to be linked.)

jkevinlilly · Post by **jkevinlilly** » Tue Sep 22, 2009 5:13 am

Thanks for the clarification Chel. I just had never seen it before, an then had it happen twice in a weeks time.

Kevin

Chel_in_IL · Post by **Chel_in_IL** » Tue Sep 22, 2009 7:24 am

I sell on ebay quite a bit, but I don't see e-checks very often either. Maybe 6 times in several hundred transactions.

johnakay · Post by **johnakay** » Tue Sep 22, 2009 8:23 am

this has happened to me twice. no problem to me they don't get the stuff till it clears.just got one now but I trust the guy as he's a well known member on here,so I wont hang on to it, I will post tomorrow.

johnakay · Post by **johnakay** » Wed Sep 23, 2009 3:15 am

this is what I recieve this morning regarding Echeque's

You've just received an eCheque payment through PayPal.

eCheques can take around nine working days to complete, so don't send the item to your buyer until you've confirmed that the payment has completed.

What is an eCheque?

eCheques are payments from buyers who have added bank details to their PayPal account, but have yet to provide a backup source such as a debit or credit card.

Think of these payments as bank transfers. But because they are processed by PayPal, you and your buyer won't need to share your financial details.

Buyers often don't realise they've paid for an item via eCheque

eCheques often occur because a buyer's backup card has expired. We've sent your buyer an email to let them know that their payment won't complete for around nine working days. It's still a good idea to contact your buyer directly and let them know that you'll be posting the item as soon as the payment completes.

What happens next?
Contact your buyer and let them know that you've received an eCheque and that you'll be posting the item as soon as the payment completes. Your buyer may be surprised to learn they've paid by eCheque so feel free to explain that this happens often when a card has expired
Check your PayPal account in around nine working days and confirm that the payment has completed. You can do this by looking for "Completed" under the Status column for the payment you've received
Post the item to your buyer once you've confirmed that the payment has completed
Happy selling,
paypal team

jkevinlilly · Post by **jkevinlilly** » Wed Sep 23, 2009 7:04 am

Thanks Johnny, that's a help. Maybe the credit card I have listed with paypal as a backup to the bank account has expired? I'll have to check. I have several, all with zero balances, and never use them, so it could have expired without me realizing it.

Kevin

Buffalo-guy · Post by **Buffalo-guy** » Wed Sep 23, 2009 8:58 am

My paypal account is backed up only by a credit card, with a set limit to keep my enthusiasm in check. I don't like the idea of them having access to my main bank account. Not them so much, as the ingenious hackers out there. Funny thing,when my credit card was due to expire soon, Ebay sent me a reminder to the fact. Doesn't everyone get this? Cheers
Fred

TLRam1 · Post by **TLRam1** » Wed Sep 23, 2009 9:20 am

Buffalo-guy wrote:My paypal account is backed up only by a credit card, with a set limit to keep my enthusiasm in check. I don't like the idea of them having access to my main bank account. Not them so much, as the ingenious hackers out there. Funny thing,when my credit card was due to expire soon, Ebay sent me a reminder to the fact. Doesn't everyone get this? Cheers
Fred

I do much the same Fred. I have an account just for PP transactions and my CC/Debit card which pulls from the same bank account is my backup which is really no backup and they have sent my a notice of the same IIRC if the number has expired or maybe it's posted as an alert on my PP account when I log in.

diamondj · Post by **diamondj** » Wed Sep 23, 2009 9:58 am

Part of it is, Ebay and Paypal have quietly removed money orders as an option forcing you to use Paypal to pay for auctions. Since there are folks out there who have turned away from credit card for various financial reasons, I guess they added echecks as a means of keeping these folks in the ebay "family"? Plus they get to collect interest for a or so. This is almost a crafty as the higher exchange rates they force you to use when you paypal money in a different currency..... And since Ebay is pretty much a monopoly, they can get away with it...