Does anyone use Paypal Echeck for Large purchases ?

Smittys · March 31, 2009 12:20AM

The total fee is only 5.00 no matter how big the amount.
Makes taking Paypal bearable

coindeuce · March 31, 2009 12:35AM

The fee structure for PayPig e-checks is reasonable, but be aware that receiving an e-check for large monetary amounts can take up to 14 business days to be available. You need to read PayPig's TOS for e-checks very carefully to avoid any surprises or disappointment.

stckplunge · March 31, 2009 12:44AM

I may be totally wrong here but I think you give up a lot of rights by using echeck - like the inability to do a charge back. I personally love it when people use echeck because it means they have no recourse against. Since I only sell graded coins there shouldnt be any recourse as I ship fully insured.signature confirmation, but there are always those that wish to scam.

Jeff

OPA · March 31, 2009 1:12AM

As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal?

jdillane · March 31, 2009 1:15AM

a couple years ago, Paypal would force my large purchases to be paid via echeck instead of instant transfer. I would call and complain to no avail. They said it was anti-fraud. I had a better description.

Smittys · March 31, 2009 1:21AM

<< As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal? >>

I have someone on the boards here that pays me with echeck, safer than mailing a check
cuts down on wait time verses personal check, and gladly accepted since I'm only charged $5.00

coindeuce · March 31, 2009 1:23AM

<< As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal? >>

Is the finance rate on your CC 0% ?? For a buyer to use a CC thru PayPig, the finance rate of their CC still applies. It doesn't take long for finance charges to pile up on a purchase of thousands or tens of thousands at the prevailing rates of most CC companies.

Classof67 · March 31, 2009 1:43AM

<< 

<< As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal? >>

Is the finance rate on your CC 0% ?? For a buyer to use a CC thru PayPig, the finance rate of their CC still applies. It doesn't take long for finance charges to pile up on a purchase of thousands or tens of thousands at the prevailing rates of most CC companies. >>

I pay mine in full each month, there is no finance charge.

ziggy29 · March 31, 2009 1:55AM

<<

Is the finance rate on your CC 0% ?? For a buyer to use a CC thru PayPig, the finance rate of their CC still applies. It doesn't take long for finance charges to pile up on a purchase of thousands or tens of thousands at the prevailing rates of most CC companies. >>

Irrelevant to those who pay the balance in full each month within the grace period.

Coins101 · March 31, 2009 1:59AM

<< 

<< As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal? >>

Is the finance rate on your CC 0% ?? For a buyer to use a CC thru PayPig, the finance rate of their CC still applies. It doesn't take long for finance charges to pile up on a purchase of thousands or tens of thousands at the prevailing rates of most CC companies. >>

If you don't have the $$ to pay with an echeck, then you don't have $$ to pay off your CC unless you live pay check to pay check.

"Sorry kids, no food this week. Daddy has to pay off some coins he bought."

KentuckyJ · March 31, 2009 2:01AM

I'm a buyer who sometimes uses the Paypal Echeck. I do so because I've never linked Paypal to my credit card. I don't keep anything other than a minimal balance in my Paypal account. The Paypal Echeck works just fine for making payments. Paypal hangs onto the money for a few too many hours, IMHO, but overall the Echeck is faster than sending a snail mail check that needs to clear the seller bank before they will ship the item.

notwilight · March 31, 2009 2:06AM

<< As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal? >>

Because as a seller I will give you a lower price for check, MO, or e-check. I don't enjoy sending money to credit card companies that could rest with the seller and the buyer.

I use them all the time for sales under $10K. I have one for $1800 in process now. They seem to never take more than 3 or 4 business days. --Jerry

notwilight · March 31, 2009 2:07AM

<< I'm a buyer who sometimes uses the Paypal Echeck. I do so because I've never linked Paypal to my credit card. I don't keep anything other than a minimal balance in my Paypal account. The Paypal Echeck works just fine for making payments. Paypal hangs onto the money for a few too many hours, IMHO, but overall the Echeck is faster than sending a snail mail check that needs to clear the seller bank before they will ship the item. >>

Us sellers really like you guys who never linked a credit card to your paypal account. Not only do I save on fees but you have demonstrated you are patient and OK with a few days delay so if I ship promptly I know you'll be happy. --Jerry

notwilight · March 31, 2009 2:09AM

<< "Sorry kids, no food this week. Daddy has to pay off some coins he bought."

>>

Most kids in the US are overweight anyway.

--Jerry

ziggy29 · March 31, 2009 2:29AM

<< Because as a seller I will give you a lower price for check, MO, or e-check. I don't enjoy sending money to credit card companies that could rest with the seller and the buyer. >>

Isn't this verboten for eBay sales? Or do you just quietly "rebate" a little bit of the cost difference to the buyer after the fact if they use a "preferred" method?

notwilight · March 31, 2009 2:46AM

<< 

<< Because as a seller I will give you a lower price for check, MO, or e-check. I don't enjoy sending money to credit card companies that could rest with the seller and the buyer. >>

Isn't this verboten for eBay sales? Or do you just quietly "rebate" a little bit of the cost difference to the buyer after the fact if they use a "preferred" method? >>

I'm mostly talking off ebay sales but on ebay it can happen if the buyer offers it. It is amazing how many buyers want to quibble over $20 on a $4000 sale so as we're going back and forth thru the offer/counteroffer process I might say $4250 with a comment "This is the lowest I can go figuring in Ebay and paypal fees" and the buyer may counter $4200 with the comment "Paid by paypal echeck." This is a binding condition of the sale and it is OK with ebay rules so long as the buyer offers it. My statement may have moved into what ebay would consider the gray area by prompting them to think about fees but I did not suggest any other form of payment. I'll wait until ebay calls me on it before I worry about it. Sometimes experienced buyers have been familiar with this and they might add "paid by e-check" as a condition to their first offer. --Jerry

OPA · March 31, 2009 2:47AM

<< 

<< As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal? >>

Is the finance rate on your CC 0% ?? For a buyer to use a CC thru PayPig, the finance rate of their CC still applies. It doesn't take long for finance charges to pile up on a purchase of thousands or tens of thousands at the prevailing rates of most CC companies. >>

Like most of us, I hope, I pay my cc card in full every month. In addition I receive a 1% rebate on purchases made...therefore, I make a minimum of 1% on eBay purchases.

<< Because as a seller I will give you a lower price for check, MO, or e-check. I don't enjoy sending money to credit card companies that could rest with the seller and the buyer.

>>

Yeah, right...just try to pull that trick on eBay.

notwilight · March 31, 2009 2:56AM

<< 

<< 

<< As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal? >>

Is the finance rate on your CC 0% ?? For a buyer to use a CC thru PayPig, the finance rate of their CC still applies. It doesn't take long for finance charges to pile up on a purchase of thousands or tens of thousands at the prevailing rates of most CC companies. >>

Like most of us, I hope, I pay my cc card in full every month. In addition I receive a 1% rebate on purchases made...therefore, I make a minimum of 1% on eBay purchases.

<< Because as a seller I will give you a lower price for check, MO, or e-check. I don't enjoy sending money to credit card companies that could rest with the seller and the buyer. >>

Yeah, right...just try to pull that trick on eBay. >>

You seem a little negative. Did you use the wrong fluid on your breakfast cereal? --Jerry

edit: or do you work for a credit card company?

airplanenut · March 31, 2009 3:04AM

I'm happy to for sellers I know, such as when I'm dealing with board members. I did just sell two UHRs on a best offer on eBay. One of the conditions was that payment had to be by eCheck because I was happy to give the discount such that I'd net about the same amount, and the buyer, not PayPal, would get the extra.

OPA · March 31, 2009 3:06AM

<< 

<< 

<< 

<< As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal? >>

Is the finance rate on your CC 0% ?? For a buyer to use a CC thru PayPig, the finance rate of their CC still applies. It doesn't take long for finance charges to pile up on a purchase of thousands or tens of thousands at the prevailing rates of most CC companies. >>

Like most of us, I hope, I pay my cc card in full every month. In addition I receive a 1% rebate on purchases made...therefore, I make a minimum of 1% on eBay purchases.

<< Because as a seller I will give you a lower price for check, MO, or e-check. I don't enjoy sending money to credit card companies that could rest with the seller and the buyer. >>

Yeah, right...just try to pull that trick on eBay. >>

You seem a little negative. Did you use the wrong fluid on your breakfast cereal? --Jerry

edit: or do you work for a credit card company? >>

Negative? ... Not the least....Just telling you the way it is. BTW just for your info, I'm retired and worked for a living,. however, this mornings coffee may have been on the strong side. What's your excuse?

coindeuce · March 31, 2009 6:01AM

As usual, most here have ignored the point of the OP. We're discussing large purchases, not nickel/dime widgets. Show me a CC company that will let me use thousands of their money for even one day without paying a finance charge. I know Smitty well enough to expect that he intended to discuss the possible merits of a major purchase or sale via e-check.

notwilight · March 31, 2009 6:05AM

<< As usual, most here have ignored the point of the OP. We're discussing large purchases, not nickel/dime widgets. Show me a CC company that will let me use thousands of their money for even one day without paying a finance charge. I know Smitty well enough to expect that he intended to discuss the possible merits of a major purchase or sale via e-check. >>

You can't use paypal for over $10k. That is the paypal limit for any payment, e-check or otherwise. I used $4k for my example but accept e-checks up to $10k. What level did you have in mind? --jerry

BECOKA · March 31, 2009 6:42AM

Did something change?

I have received large sums in pay-pal on both e-check and CC. The fees were the same.

If you have a non business account and stay under a certain limit there is no fee for either.

KentuckyJ · March 31, 2009 6:42AM

> Show me a CC company that will let me use thousands of their money for even one day without paying a finance charge

???

I can go up to my credit limit pay on time as agreed with NO finance charge. I'm talking purchases, not cash advances. I don't think this is the least bit unusual.

OPA · March 31, 2009 6:54AM

<< Show me a CC company that will let me use thousands of their money for even one day without paying a finance charge. >>

I believe they all do, unless it's a cash advance. Using your cc for major coin purchases is not considered a cash advance. In addition in using their $$$$, you are also earning interest on your money, float, waiting for the cc statement. My Chase MC also rebates 1% of the purchase on the next statement. It's a win situation .... but you must have sufficient capital to play that game.

ajbauman · November 4, 2009 6:20AM

I just got off the phone with PayPal "help" and they said that if you have both a CC and a Bank account registred with them that the eCheck option has been turned off.

HOWEVER, they are adding peoples' names to a list for people that want the eCheck option added back to their account.

I imagine that if enough people complain to PayPal that they will add the eCheck option back for all accounts, please call them and voice your opinions.

For those of us who receive large payments through PayPal the eCheck option is often the cheapest and best option!!

AgBlox · November 4, 2009 6:43AM

You can send funds with paypal with Zero fees if you use the New personal option however it offers Zero protection on the buyers side.

greghansen · November 4, 2009 7:12AM

I just got off the phone with PayPal "help" and they said that if you have both a CC and a Bank account registred with them that the eCheck option has been turned off.

Yes, I just spent a very uncomfortable couple of days trying to process a $3K payment via Paypal echeck to another forum member. Received a handful of different explanations, etc. until finally I was advised that the echeck option was no longer available. I was given instructions on how to send payment transaction free via a 'personal payment'.

I did not use echeck in the past, but that is how the forum member wanted to receive payment. I don't think I will be using it in the future. I would rather send a paper check and wait on the coin if avoiding fees is that big of a deal.

JaPa · November 4, 2009 7:59AM

<< Show me a CC company that will let me use thousands of their money for even one day without paying a finance charge. >>

You need to shop around if your CC charges you on normal transactions. I also have a separate bank account into which buyers can wire funds when I am completing a none ebay transaction.

ajbauman · November 4, 2009 8:00AM

<< ... if avoiding fees is that big of a deal. >>

Standard PayPal fees on a $3K payment are $87.30. The eCheck fee is $5.

Which would rather have to pay?

I frequently have requested payment via the eCheck payment because it is so much cheaper on larger dollar amounts, I don't see any reason to pay PayPal any more of my money than is necessary.

derryb · November 4, 2009 8:16AM

Sellers that are knowledgable about echecks welcome them with open arms.

No loss of buyer or seller paypal protection with echeck. funds get transferred from buyer's bank account (money needs to be there) into seller's paypal account. Takes 4 days on average. Seller is instructed by paypal not to ship until transfer complete.

Value of an echeck to a buyer: You can negotiate a lower buy it now price with seller by offering to pay with echeck.

to pay with echeck your paypal account must have a $0 balance and you cannot have a credit card tied to the paypal account (recent change). I keep a paypal account with no credit card just for this purpose.

To pay by echeck: during checkout and after logging into paypal select other funding options. If you have a $0 paypal account balance and no credit card tied to the paypal account you should see an Echeck option. Just select it. total paypal fees to the seller is $5. On a $1500 coin that's a savings of $38.80 in paypal fees. On a $3000 purchase that's a savings of $82.30 in paypal fees.

Unfortunately paypal fees don't drop in percentage as the amount climbs. Flat 2.9% (plus .30) no matter what the hammer price. I'm really surprised paypal hasn't eliminated this money saving feature.

Kameo · November 4, 2009 8:53AM

I bought an item from a friend who I trust, and I used echeck. However, I don't think I would pay someone, who I didn't know, a large amount of money with no recourse.

derryb · November 4, 2009 9:00AM

<< I bought an item from a friend who I trust, and I used echeck. However, I don't think I would pay someone, who I didn't know, a large amount of money with no recourse. >>

You keep paypal buyer protections when you pay by echeck.

greghansen · November 4, 2009 9:03AM

to pay with echeck your paypal account must have a $0 balance and you cannot have a credit card tied to the paypal account (recent change). I keep a paypal account with no credit card just for this purpose.

That's a very helpful recommendation. I just went and created a new account without a credit card link just to have this payment option in the future. Thanks for the 'work around' solution.

BAJJERFAN · November 4, 2009 1:19PM

<< As a buyer, why would I use an echeck, when it cost me nothing to use my cc via PayPal? >>

Because places like Heritage will give you a discount if you pay by echeck.

BAJJERFAN · November 4, 2009 1:26PM

<< I'm a buyer who sometimes uses the Paypal Echeck. I do so because I've never linked Paypal to my credit card. I don't keep anything other than a minimal balance in my Paypal account. The Paypal Echeck works just fine for making payments. Paypal hangs onto the money for a few too many hours, IMHO, but overall the Echeck is faster than sending a snail mail check that needs to clear the seller bank before they will ship the item. >>

If you get involved in a transaction that later turns out to be fraudulent, PP can hardly get the money back if it was an instant transfer and the recipient has already swept it out of his PP account. Kinda works both ways. Have you ever asked PP about why echecks take so long to clear?

Fountainhead · November 4, 2009 1:59PM

How do I set up an eBay auction to accept only Echeck and no other form of Paypal payment?

derryb · November 4, 2009 5:13PM

<< How do I set up an eBay auction to accept only Echeck and no other form of Paypal payment? >>

You can't. The buyer has to make the decision to use echeck and has to choose "other funding options," then "echeck" during paypal checkout. No guarantee the seller will get this from the buyer, you can't require it. Of course, if you word your payment options in your description correctly, you can encourage/entice the buyer to use echeck, but be very careful.

derryb · November 4, 2009 5:15PM

<< 

<< I'm a buyer who sometimes uses the Paypal Echeck. I do so because I've never linked Paypal to my credit card. I don't keep anything other than a minimal balance in my Paypal account. The Paypal Echeck works just fine for making payments. Paypal hangs onto the money for a few too many hours, IMHO, but overall the Echeck is faster than sending a snail mail check that needs to clear the seller bank before they will ship the item. >>

If you get involved in a transaction that later turns out to be fraudulent, PP can hardly get the money back if it was an instant transfer and the recipient has already swept it out of his PP account. Kinda works both ways. Have you ever asked PP about why echecks take so long to clear? >>

Reason for echeck delay: Since there is $0 in your paypal account and there is no credit card tied to paypal account, the funds have to be transferred from buyers bank account to sellers paypal account. No different than when you fund your paypal acount from your own bank account - takes a few days.

derryb · November 4, 2009 5:24PM

<< I just got off the phone with PayPal "help" and they said that if you have both a CC and a Bank account registred with them that the eCheck option has been turned off.

Yes, I just spent a very uncomfortable couple of days trying to process a $3K payment via Paypal echeck to another forum member. Received a handful of different explanations, etc. until finally I was advised that the echeck option was no longer available. I was given instructions on how to send payment transaction free via a 'personal payment'.

I did not use echeck in the past, but that is how the forum member wanted to receive payment. I don't think I will be using it in the future. I would rather send a paper check and wait on the coin if avoiding fees is that big of a deal. >>

Greg, please share with us the instructions on sending paypal payment free via personal payment. Lot of us trade directly with each other and this might be a good payment method.

greghansen · November 4, 2009 6:00PM

Greg, please share with us the instructions on sending paypal payment free via personal payment. Lot of us trade directly with each other and this might be a good payment method.

I was walked through the process by a customer service representative after I made such a fuss over not being able to pay by echeck with my account. (The customer service rep never did say it was because I had a CC linked to my account...they just said the option was no longer offered) But basically, clicking on the 'send money' tab will bring up a new window that has a default tab of 'purchase' options that you can select from, or you can click the 'personal' tab and bring up a new series of options for what the money is being sent for. My transaction was not for an auction, so they let me click the 'payment owed' box and transfer the funds that way. It worked, and my deal was with a trustworthy forum member, but I don't know what the possible downside could be or whether you miss out on any protections. I was just glad to get the guy paid as he had waited for me to try to work with Paypal on the echeck issue for several days.

During that whole time, nobody at Paypal ever suggested "you know, you could just create a new account and link it only to a bank account and regain your ability to send echecks through that new account" Nope. I had to come here to learn that one. So customer service wasn't there to serve this customer...just to try to tamp down my frustration for the benefit of their employer. Man that gets my goat...

FloridaBill · November 4, 2009 7:33PM

This is a very interesting and timely discussion. I have been selling a few items on eBay (but mostly transacted off eBay via direct PayPal invoice) over the past month or so at $3K to $4K each, and in almost all cases we negotiated payment via PayPal eCheck. Just about two weeks ago a buyer reported to me that eCheck was no longer an option to him. He called PayPal and they told him to remove the credit cards from his account and then process the eCheck. After the transaction was completed, the buyer added the credit cards back to his account.

What a lot of hoops to jump through! The buyer did it because it gained him a $50 discount (or maybe I was selling below market?).

Anyway, after that 3 other buyer buyers reported the same problem. I told them about the “delete CC, do eCheck, reinstall CC” workaround, and they all also did it (mmmm…maybe I really am below market???).

I currently have three sales pending (all in the same$3K-$4K range) awaiting for the buyers to do the workaround.

<< "you know, you could just create a new account and link it only to a bank account and regain your ability to send echecks through that new account" >>

I have a question for the wiser old owls here…

If a buyer wanted to establish a new PayPal account not tied to any CC, specifically for the purpose of paying for an already agreed upon transaction, how long would it take for the buyer to actually use that new account for payment? Doesn’t PayPal deposit a couple of small amounts into the account for verification, and then wait for the account holder to verify those amounts.

Thanks

FloridaBill

notwilight · November 4, 2009 8:58PM

Bill,
Yes it would take a couple of days. I've had buyers buy and then create an account before they paid. No big deal.

Greg,
Paypal would like to eliminate the e-check totally. It is too good a deal. I'm sure they don't because there must be some regulation that makes them (just like a regulation keeps ebay from charging FVF on shipping so they push "free" shipping). So they're not going to help you. Every time a $5000 purchase is paid by e-check instead of instant payment they see it as losing $140 instead of making $5. What they don't realize is that many buyers send e-check for $5 because it is more trouble to send a physical check. But they won't just throw away the $140. If they are fee conscious, they'll send the physical check.

--Jerry

Does anyone use Paypal Echeck for Large purchases ?

Comments

Leave a Comment