What is a paypal eCheck and why are they used? Paypal eChecks are used when the buyer doesn't have a a credit card or alternate funding source attached to their PayPal account. An eCheck works like a normal paper check. 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 echeck to clear in 3-4 working days. The funds are not available to the seller until cleared. A echeck is just like writing a paper check and has to wait til it clears. Now this is still a problem with first time sellers and even sellers who been selling for a number a years. The Problem is alot of Buyers buy the Item and pay with a echeck knowing they have no money in there Checking account, they are hoping somebody mails the item that how's no idea what a echeck is. When Paypal first started many people including me had no idea what a echeck was and just mailed the item, then a few days later getting a e-mail from Paypal saying the echeck did not clear, and that meant the seller was screwed, and as of today Paypal and ebay still gets thousands of complaints every month about this. And this problem really gets bad around Christmas as alot of first time buyers sign up on Ebay and win the item and pay with a echeck and have no idea they have to wait 3-5 days for it to clear, when you email them and tell them them go insane, giving you there word the check will clear, and if you don't mail it right away I will leave you negative feedback, just be sure you save that e-mail to show to ebay in case they do it. So if you are checking all your ebay and paypal transactions you probably no what is what, but for one reason or another your wife,son or whoever is doing it for you that day or week etc, they will most likely see the Paypal saying you just got $150 for the Lego set, showing all the shipping info but did not read the small print on do not mail item until the echeck clears. And once you mail the item and if the echeck does not clear unless the buyer is a good guy and really pays you well you are screwed, Like I said the complaint rate on this is about 25% and goes up to about 35% or so in December.

I have only received one of these so far, and thankfully I read a little bit more about the process before shipping the item...Great info for those that have never dealt with them.

I had one not too long ago. Seems pretty clearly stated to me when I got the email from Paypal. They tell you to not ship the item until it clears.

And on your sold items screen the paid indicator shows you that the payment hasn't cleared yet.

Never send an item until the PayPal details page says "OK to Ship". When an eCheck payment is still in progress this is indicated on the details page, plus your seller page on eBay gives an indication that the payment is not yet complete if an eCheck hasn't cleared, as Mos indicated above. Sometimes it can take a week or longer for an eCheck to clear.

Like I said the complaint rate on this is about 25% and goes up to about 35% or so in December.

Where do you get these figures?

I know the Paypal Email states all the info, But people who just sign up to sell or buy don't always understand and read everything, Plus when somebody pays with a echeck they get a email saying the same info that the seller got about having to wait til the check clears, but everybody thats paid me with a echeck over the years when i email them back saying I can't mail the item until the echeck clears they have no idea what i am talking about, Like I said this info is for a newcomer just starting to sell on ebay. And how I got these % numbers since i been a powerseller for a long time I been to a couple E-bay seminars in NJ and in VA, They try and get 50% Sellers and the rest buyers with people from ebay and paypal and its a good 8 hour thing, the Top thing that is complained about the most is the Feedback System and E-bay fees keep rising, Etc. And about the echeck a spokesman says so many first time sellers sign up in December and have never heard of a echeck so as soon as they see You have money from Paypal they write the shipping info down and don't read all the info.