PayPal eCheques, Payment Pending, Uncleared
A Guide for Buyers & Sellers
Occasionally when payments are sent using paypal the payment is sent as an 'echeque' rather than as an instant payment. This can cause problems for buyers and sellers as it can take up to 9 working days to clear
The buyer believes they have paid instantly and becomes concerned when the seller does not send the item immediately. Often the buyer is not aware they have sent an echeque. The seller can experience negative feedback/low DSR score because the buyer believes the seller has not posted their item.
An echeque works like a normal paper cheque. When the buyer sends payment the funds are transferred from the buyers bank account into the sellers paypal account. Paypal says you should expect the echeque to clear in 5-9 working days (13 days including weekends). The funds are not available to the seller until cleared.
Example from paypal payment page: (In sellers account)
This eCheque payment will be credited to your PayPal balance once the funds have cleared from the sender's account. This usually takes three to five working days so please do not post any items until the funds have cleared. (Estimated completion date: 25 Sep. 2008) "
There are a number of reasons for payments being sent as echeques
The buyer does not have enough funds in their paypal account and/or does not have a credit card registered as a funding source so the funds have to come from the buyers bank account.
If you don't have to have a credit card or alternative funding source attached to your PayPal account.
The buyer has mistakenly or deliberately selected 'echeque' as a source of funds
If the buyers credit card has expired or been renewed and the information has changed (valid from/to date, expiry date) the funding source may revert to bank account.
Info for buyers
To avoid sending an echeque and having to wait longer for your items make sure you have enough funds in your paypal account to cover the cost of the item and postage costs.
Make sure you have a credit or debit card registered to your paypal account as a source of funding. Make sure you update the card information if you receive a new card (issue number, expiry date will have changed)
Please remember a Seller cannot send items to a buyer until an echeque has cleared.
A buyer can cancel an echeque anytime before it clears and then fund their paypal or register a credit card and then make payment, it should then be instant. (I think!)
You can cancel the echeque and send the seller a postal order which will be quicker than waiting for the echeque to clear.
Info for sellers
eCheques can BOUNCE like normal cheques!!! Log into the payment page in paypal and it will tell you the expected clearing date & when it has cleared.
I have found a lot of echeques do bounce so don't send the item until it has cleared. I would maybe send a message to the buyer letting them know and give them the expected clearing date.
Often buyers are unaware they have sent the payment as an echeque so will just think you are being slow in posting their item. This can result in low DSR ratings and/or Negative feedback. The new Feedback system/DSR's have a 'dispatch time' rating which directly affects your search result position and seller discounts.