How Do Buyers and Sellers Use eCheck?
eChecks are the digital counterpoints of the pieces of paper found in a checkbook. Buyers and sellers pay and get paid by eCheck in electronic transactions similar to tradtional banking.
When someone sends you an eCheck as payment, the funds won't be deposited into your account for three or four days (however long it takes for the eCheck to clear).
Buyers paying with eChecks
From the buyer's standpoint, sending an eCheck is advantageous; the funds are left in the buyer's bank account for a few extra days, earning interest, and no credit card debt is incurred. To send an eCheck, in response to an invoice or Money Request, you need to have a bank (checking or savings) account linked to your PayPal account. Here's how to use eCheck to pay for a purchase:
1. When you receive a request for money, click the Pay button to make a payment.
2. On the Pay Money Request page, click the More Funding Options link under the Funding Options section of the page.
3. On the Funding Options page, select the eCheck option and choose which bank account to use.
If necessary, you can link a new bank account to your PayPal account by clicking the Add Bank link.
4. Click the Continue button.
Verify the payment details and click the Send Money link.
Sellers receiving eChecks as payment
If you receive an eCheck payment, you get a PayPal e-mail informing you that "Cash is on the Way!" If you hoped for "Cash is Already Here!" you may feel a little disgruntled, but the good news is that you'll get payment in three or four days.
If you look at the transaction in your PayPal Account Overview, you see a status of Uncleared until the funds are transferred from the buyer's bank account. It's important that you don't mail any items to the buyer until after the payment has cleared.
From a seller's standpoint, there's one big advantage to getting an eCheck. Unlike other PayPal fees, which are charged as a percentage (usually 2.9 percent) of the value of the item, the total fee for an eCheck won't exceed $5.00. If you're selling an item that's valued at over $162, you'll get a break on the transaction fees. If the item is very expensive, you can save a good amount.