How does Paypal E-cheque work?

Shop Talk
1

Hi, I’ve just sold 2 items (yay) the buyer is paying by E-cheque, so do I just wait until payment is confirmed (it says I have to wait 5 - 7 days) Thanks, Liz

2

Yes, you must wait for the funds to clear. I had one of these payments via PayPal and I just let the customer know that there would be a delay in posting his/her item. Pay Pal will let you know when you can post the item out. Congratulations on your sales! I hope this helps Maureen x

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3

Thanks Maureen, it’s great to get a sale! I’ll send an email to the customer. Liz x

4

Just be aware they can take quite a while to “clear” the customer can change payment to normal paypal.

5

Hi Liz, very good advice you have already received from Maureen and Rachel - just a few comments to add. In many cases the buyer is unaware they have paid by e-cheque - it’s not really a choice they make, it happens when they do not have sufficient funds within their PayPal account, and do not have the account backed by a credit card. For instance they may not realise that a credit card linked to their PP account has expired.

In such a case PayPal requests the funds to come from the buyer’s bank account, so that’s why it’s like writing a cheque, it takes a while to process. Then of course, should there not be sufficient funds in the bank account the e-cheque will bounce just as a paper cheque would. I’ve had several occasions when the buyer had no knowledge of this at all, believing they had paid by “normal PayPal”. I’ve not had an e-cheque for a while, they used to take up to 3 weeks to clear (!) but transfers happen much faster these days so hopefully the 5-7 should be accurate. And yes I’ve had a few e-cheques over the years that ultimately bounced, so it’s vital not to send the goods before clearance.

You may find the buyer wishes to cancel and pay by an alternate method if they are in a hurry, and if you are agreeable. In this case I believe it’s the seller who cancels the echeque payment, I don’t think the buyer can cancel it.

Hope it all goes through ok!
Julie

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Hi Julie, thanks for the explanation, I’ve never encountered this before. I will keep an eye on it. Liz x

7

Thanks for your advice, but I lost the much needed sale (2 items). Does anyone know if this is a problem with Paypal, or Paypal and Folksy. The buyer said she had used Paypal elsewhere with no problems. I cancelled the order (on her request), she ordered again and the same thing happened. Who should I complain to? Thanks, Liz x

8

So sorry about the lost sales Liz. It’s a problem with the buyer’s PayPal account or bank account, can’t see how it can be anything to do with Folksy. I’d like to bet it’s an expired credit card - PayPal wouldn’t raise an e-cheque unless they were unable to charge to her card.

9

Thanks Julie, it’s so frustrating, it didn’t help that she tried to put a second order through before I had cancelled the first! (and it was close to midnight!) Ah well, I did have another sale yesterday, the customer was lovely and she had no problems buying.

10

My heart always sinks when I see an e-cheque transaction coming through - it’s NEVER a pleasant experience for either buyer or seller, and we poor sellers always get the blame for the hassle, when in fact it’s always an issue that starts at the buyer’s end. PayPal could probably help by being a bit more informative to their customers - as I said previously, the buyer almost always doesn’t know that it hasn’t gone through as an instant payment.

Congrats on the happy sale!
Julie x

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