What is eCheque? How does it work?

[hoa.truong1974h]

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)

[davewil1964]

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.

[hoa.truong1974h]

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

[cq_tech]

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.

[hoa.truong1974h]

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

[cq_tech]

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

[hoa.truong1974h]

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

[cq_tech]

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.

[hoa.truong1974h]

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

[cq_tech]

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.