The eCheck's in the E-Mail

You sent a request for money to someone and the payment came back in the form of an eCheck. What is an eCheck, and how does it differ from an instant PayPal payment?

In the same way that Quasi-cash is the equivalent of cash in the physical (as opposed to online) world, eChecks are the digital counterpoints of the pieces of paper found in a checkbook. 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).

eChecks from the buyer's point of view

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:

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.

eChecks from the seller's point of view

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.

Refunding eChecks

It came happen: A red-faced seller might actually admit that the item description wasn't an accurate representation of the item, and offer to refund your payment. If you paid via eCheck, the seller could have issued a refund. Like other PayPal payments, the seller could not have initiated the refund until the funds had been deposited into his or her PayPal account.

Comments (3)

Posted by How to Get Six Pack Fast APRIL 15, 2009 | 09:39AM
This topic is quite trendy in the net right now. What do you pay attention to while choosing what to write ?

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Posted by Clay Dennis APRIL 30, 2009 | 09:18PM
I'm an old fart. I don't know what e-check is, but I want smokes at a good price. I have several very good credit cards. What the hell?

(Report comment)
Posted by Sue AUGUST 11, 2009 | 09:08AM
By issuing an e-check the whole process goes a lot quicker and more convenient than a customer issuing a physical check through the mail and then having them wait additionally for the check to clear before releasing the merchandise. Thanks for the info.

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