As a seller I sometimes receive payments by eCheque and I am often asked by buyers what these are as they did not elect to pay by this method. I hope you will find this explanation useful.
Q. What is an eCheque?
A. An eCheque is a type of electronic transfer that withdraws money directly from your bank account by direct debit. They are just like paper cheque's only they are electronic.
Q. Why does my payment go by eCheque when I normally pay straight away via PayPal using my Credit/Debit card.
A. If you normally pay straight away for your items and these payments are funded from your Credit/Debit card, the most likely cause, is that your Credit/Debit card has expired and you do not have sufficient cleared funds in your PayPal account to complete the payment process. To complete the process, PayPal revert to taking the funds directly from your bank account by direct debit. Alternatively you may have also elected to pay by eCheque when completing the payment process by mistake.
Q. How long does it take an ECheque to clear?
A. PayPal state that when sending a payment via ECheque, the transaction will be held as pending for between seven to nine working days, until such time as the funds transfer has cleared your bank.
Q. Does this mean I won't get my purchases straight away?
A. This depends on the seller. PayPal advise sellers not to post items until the eCheque clears, since if you have insufficient funds in your bank account the eCheque will bounce just like a normal cheque. Therefore most sellers will not despatch goods until cleared payment has been received.
Q. I have a pending eCheque payment, but I now want to pay by PayPal funded from a valid Credit/Debit card. Can the eCheque be cancelled?
A. Yes, while the eCheque is 'pending', the seller can refund the eCheque payment to you which cancels the transaction. Once the eCheque is cancelled, you can then pay by whatever method you choose. If you pay by normal cheque, the seller may still wait for payment to clear before despatching the goods.
Q. What happens if my eCheque bounces due to insufficient funds in my bank account?
A. The seller may put the item into dispute, so that they can reclaim their selling fees from Ebay. If you are unable to reach agreement with the seller for the purchase of the goods, the seller has the right to reclaim their Ebay fees which may result in you receiving a non-payment strike.