topic Re: What is eCheque? How does it work? in Buying

What is eCheque? How does it work?

hoa.truong1974h — Sun, 25 May 2014 14:25:12 GMT

Hi just wondering what eCheque is, i just purchased an item with eCheque (FYI: i had no money in my debitcard/paypal, so i expected it to overdraft or something) but using eCheque will it still overdraft? (i'm not worried about it overdrafting i just want to know)

Re: What is eCheque? How does it work?

davewil1964 — Sun, 25 May 2014 14:30:39 GMT

An eCheque is a Paypal payment funded through a non-linked bank account. It takes as long to clear as a paper cheque.

The same rules apply. If you don't have the funds in your account it will bounce and you will, hopefully, get hit with a bank fee. if it does bounce you will also have a less than happy seller.

Why would you buy something if you don't have the funds to pay for it? It's not a game, you know.

Re: What is eCheque? How does it work?

hoa.truong1974h — Sun, 25 May 2014 14:38:09 GMT

Hi, thanks so it does overdraft? 🙂 and i usually pay later on since i get paid anyway.

Re: What is eCheque? How does it work?

cq_tech — Sun, 25 May 2014 15:11:11 GMT

Doesn't Paypal issue the seller an eCheque when the buyer has an attached bank account but no linked credit card? Because it takes a few days to finalise a bank transfer, the eCheque clears when the transfer is completed, but if the account has insufficient funds and no overdraft facility, the eCheque will bounce.

It sounds to me like the OP's bank account debit card probably does have an overdraft facility as many do these days, so the eCheque should clear in a few days as per normal.

Re: What is eCheque? How does it work?

hoa.truong1974h — Sun, 25 May 2014 15:28:39 GMT

So this will process and cause an overdraft am i correct?

Re: What is eCheque? How does it work?

cq_tech — Sun, 25 May 2014 15:33:08 GMT

Only if you have an overdraft facility with your bank account. Otherwise, it will bounce.

Re: What is eCheque? How does it work?

hoa.truong1974h — Sun, 25 May 2014 16:06:36 GMT

I'm with commonwealth bank and my card has been over drafted before, so should work i assume. What do you mean by bounce?

Re: What is eCheque? How does it work?

cq_tech — Sun, 25 May 2014 16:16:25 GMT

Bounce = dishonoured. IOW, not paid, and a dishonour fee is usually charged.

If you check your Comm Netbank account details, it will tell you if your bank account has an overdraft. For example, mine is $1,000 so it tells me that my balance is $1,000 more than I really have in cash. If yours doesn't say that, then you don't have an overdraft.

Re: What is eCheque? How does it work?

hoa.truong1974h — Sun, 25 May 2014 16:31:00 GMT

Wouldn't the overdraft happen after a few business days? it's currently on positive balance.

Re: What is eCheque? How does it work?

cq_tech — Mon, 26 May 2014 00:29:47 GMT

As I said above, if your bank account has an overdraft facility any withdrawals actioned which take you below zero balance will be automatically honoured and paid as normal, except you will be charged interest on the overdraft amount. However, I can't tell you if you have an overdraft or not, only you would know that. If you don't know then check your account online or give your bank a call and ask them.

Re: What is eCheque? How does it work?

patchoo78 — Mon, 26 May 2014 04:34:36 GMT

@davewil1964 wrote:
An eCheque is a Paypal payment funded through a non-linked bank account. It takes as long to clear as a paper cheque.

The same rules apply. If you don't have the funds in your account it will bounce and you will, hopefully, get hit with a bank fee. if it does bounce you will also have a less than happy seller.

Why would you buy something if you don't have the funds to pay for it? It's not a game, you know.

It depends on the bank.. Commonwealth Bank will still take the money out (to a certain amount) if there are no funds in your account, and will charge you a $10 dishonour fee for the convenience..

Sometimes I pay for things if I will be going to the bank the next day as it takes a couple of days for the money to actually leave my account after I've paid thrugh PayPal

Re: What is eCheque? How does it work?

patchoo78 — Mon, 26 May 2014 04:37:41 GMT

@hoa.truong1974h wrote:
I'm with commonwealth bank and my card has been over drafted before, so should work i assume. What do you mean by bounce?

If you are with Commonwealth the money should still come out anyway... I only say should as I don't know what kind of account you have I have had money taken out of my account when there isn't any in there and I get charged a $10 dishonour fee..

Re: What is eCheque? How does it work?

patchoo78 — Mon, 26 May 2014 04:39:15 GMT

@cq_tech wrote:
As I said above, if your bank account has an overdraft facility any withdrawals actioned which take you below zero balance will be automatically honoured and paid as normal, except you will be charged interest on the overdraft amount. However, I can't tell you if you have an overdraft or not, only you would know that. If you don't know then check your account online or give your bank a call and ask them.

You don't need to have an overdraft facility with Commonwealth Bank.. I am pretty sure I don't have such an agreement and money comes out of my account when there isn't any in there and I get slapped with a $10 fee

Re: What is eCheque? How does it work?

imastawka — Mon, 26 May 2014 05:02:57 GMT

This from Paypal - hope it covers all questions

What is an eCheque?
An eCheque is a payment that you make directly from your bank account. You can only send an eCheque if your bank account is the only payment method attached to your bank account, and you don't have a credit or debit card as a back-up payment method. If you have a back-up payment method you will not be able to send eCheques.

What is a chargeback fee?
PayPal charges a fee to the seller when a buyer files a chargeback with his or her credit card issuer. If you and your buyer resolve a dispute through PayPal's Dispute Resolution, you could be protected against any chargeback the buyer later files for that transaction.

How do I send an eCheque?
If you have linked your bank account but not a credit card, you can send money using your PayPal balance or an eCheque . If you have both a bank account and credit card linked to your account, your payments will be sent via Instant Bank Transfer.

What are the fees for receiving money?
PayPal charges the recipient a low transaction fee for each payment they receive. Additional fees may apply for cross-border transactions, foreign currency conversions and other transactions.

Are fees different for each account type?
The fees for sending and receiving money are the same for all accounts – Personal, Premier and Business. micropayment rate If you have a Premier or a Business account, you can apply for the merchant rate or the .

What are the fees for requesting money and invoicing?
There’s no fee to send an invoice or money request. You pay a fee when a customer sends you money.

How do I find the fees I am being charged?
You can find the fees you've been charged in your transaction history. Here's how: Log in to your PayPal account.

What are the fees for sending money or receiving money?
The fees for sending and receiving money depend on the type of payment: Purchase/Sale: PayPal doesn't charge a fee when you make a purchase.

Re: What is eCheque? How does it work?

cq_tech — Mon, 26 May 2014 07:11:15 GMT

@patchoo78 wrote:
@cq_tech wrote:
As I said above, if your bank account has an overdraft facility any withdrawals actioned which take you below zero balance will be automatically honoured and paid as normal, except you will be charged interest on the overdraft amount. However, I can't tell you if you have an overdraft or not, only you would know that. If you don't know then check your account online or give your bank a call and ask them.
You don't need to have an overdraft facility with Commonwealth Bank.. I am pretty sure I don't have such an agreement and money comes out of my account when there isn't any in there and I get slapped with a $10 fee

Hi Patch. The CBA account which I use for eBay transactions didn't have an overdraft facility by default but some time ago they asked me if I wanted one and I said OK, but although I've never dropped below zero balance, if I did, instead of honouring the withdrawal and charging me a $10 fee, they simply allow the withdrawal to go through as normal, but they do charge interest on any "negative" balance up to the limit of the overdraft, which in my case is $1000, as you can see from the image below.

edit: Oops, I forgot to remove the a/c number but it doesn't matter as the only thing you can do with it is deposit money. 😉

Re: What is eCheque? How does it work?

2106greencat — Mon, 26 May 2014 07:24:42 GMT

You need to apply and be approved for an overdraft facitlity with most banks.

OP - I have to agree with dave - if you did not have the funds available you should have waited.

An echeque can take between 3 and 10 days to clear at the best of times, and if it is unsuccesful (and by the sounds of it, you don't seem sure whether or not it will be) the seller has wasted all that time for no good reason.

eCheques are fine, but should not be used on the 'off chance' you need to be sure you have funds to cover what you buy.