Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Apr 9 2013 22:44:42

eBay Forces eChecks Payments, Buyers Beyond Irked

By: Ina Steiner

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If you're an eBay seller wondering why you're suddenly receiving an increase in the number of e-check funded payments via PayPal, it appears that PayPal is experiencing a glitch that started last month. The eBay boards are full of frustrated buyers and sellers, and it's not just an issue of inconvenience.

(See update below.)

Buyers who think they are paying with their credit card on file get several nasty surprises - PayPal withdraws the funds from their bank account instead of pinging their credit card, and paying with eChecks slows down delivery time.

PayPal explains, "an eCheck is a payment that you make directly from your bank account. Just like a regular check, it usually takes between 3 and 5 business days for an eCheck to clear and the money to appear in the recipient's PayPal account."

And therein lies the problem - many sellers won't send items until the e-check clears - wrote one seller, "Some buyers will not realize how they're paying, delivery times will suffer, then I will suffer. But Paypal keeps nearly all the fees, no cc company to share it with."

Many sellers used to block e-checks until eBay took away that ability in 2008, much to sellers' consternation.

I asked PayPal about the e-check issue on March 29, they have yet to provide an answer, Cappnonymous reported the problem on April 2nd.

Here are some of the threads in which buyers and sellers are reporting the problem.

TROUBLE WITH PAYPAL (PayPal Board)

E-checks (eBay Stores Board)

You Might Check Your Paypal Profile (Seller Central)

SERIOUS PROBLEMS WITH USING PAYPAL FOR 3 WEEKS still (Checkout Board)

Update 4/10/13: PayPal provided the following statement on Wednesday evening:

"We are aware of an issue where some of our customers are intermittently directed to purchase items with an eCheck via PayPal as the only payment option. We apologize for the inconvenience this has caused for both our buyers and merchants. We are working to resolve the issue as quickly as possible. We encourage any affected customers to contact Customer Service with any concerns."

Asked if Customer Service could help a buyer change their funding source, a spokesperson responded, "We don't have a workaround for the issue at this time. We are working to get this issue resolved quickly. We apologize for the inconvenience this has caused for our customers."

She confirmed the problem is happening on and off eBay.




Comments (32) | Leave Comment | Permalink

Readers Comments

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

This user has validated their user name. by: Ed Gadfly

Wed Apr 10 08:14:24 2013

PayPal has an obligation to their shareholders. You are allowed to do business with PayPal in order to enrich the shareholders.

PayPal is not a bank. PayPal answers to its Board of Directors.

PayPal is not your pal.

When someone has to brag about how much they are loved, that shows how insecure they are.

You realize, this is not going to have a good ending for you, right?

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

This user has validated their user name. by: Anonymous Annie

Wed Apr 10 08:29:49 2013

I think it's CHEAPER for PP to do an ACH withdrawal from someone's checking account... so naturally, this would be the method that PP prefers. --- PP still gets their transaction fees for the full amount, but they don't have to share/split the fees with the credit card issuer (because there IS NO credit card involved.)

It makes sense... but it's sneaky and underhanded and dishonest.

No surprise there.

Another ''glitch'' that screws the customer and enriches PP. --- It's not a one-time, one-off, or infrequent thing. They do this type of thing CONSTANTLY!

Totally incompetent!

It's yet ANOTHER REASON that I refuse to offer PP on my website.

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: innerpuppie This user has validated their user name.

Wed Apr 10 09:00:52 2013

They've tried that with me and I slowly and carefully look for the 'hidden' link where I can change from an eCheck back to my CC. If they can 'float' my money for days when I make a withdrawal I get a little vengeance by sticking them with a card fee.

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: Sierra This user has validated their user name.

Wed Apr 10 09:05:42 2013

Who's going to cover all the fees when buyers' scheduled auto-payments for their utilities, mortgage, etc. start bouncing because eBay has chosen to do something which is, once again, illegal?

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: Overlandgadgets This user has validated their user name.
Web Site

Wed Apr 10 09:22:20 2013

Give it up.  Get away from Ebay.  No..RUN away from Ebay.  I was scared and confused but in the past three months I have almost completely weaned my way off Ebay.  I now only use the fifty free listings and only for high dollar amount that just don't work on Amazon or unusual items.  It's also a good way to capture email addresses.  I have been on Amazon since mid-January and, even though they have issues, like Ebay, I have tripled my sales since then.  I also started selling craft and vintage items on ETSY.  Etsy isn't comparable to the volume of either Ebay or Amazon BUT, they don't charge you a fee on shipping.  I have started developing my own site and having a ball doing it and even with less than 200 listing on it, I have started making sales and tomorrow I add my credit card processing to my site and Bye Bye PreyPal.  Believe me, there is life after Ebay AND it's a much more relaxed life.

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: Small Guy This user has validated their user name.

Wed Apr 10 09:23:01 2013

Because they can!

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

This user has validated their user name. by: Nolle

Wed Apr 10 09:43:25 2013

@sierra what's illegal?

also, far as i know, immediate payment blocks all e-checks

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: Henry This user has validated their user name.

Wed Apr 10 09:44:07 2013

I have not had this experience with PayPal. If it is their standard policy to process payments as eChecks rather than CCs then the buyers are the ones who will get mad and leave eBay.

What happened to PayPal allowing you to set a specified payment method as ones primary payment method?

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: FREDDY This user has validated their user name.

Wed Apr 10 09:52:43 2013

@ Sierra - agree 110% with you. paypal should be forced to pay the fees. But of course they would have to say the problem is in their system, which would cost them money. So the attitude is ''take ebay to court''. Of course now, that would be mediation in their court room.
Why doesn't the government step in? They step in with all kinds of regulations for every other financial institution. paypal not a financial institution? right. and the Pope isn't Catholic.  Sounds to me that congress plus other DC idiots are getting paid to look the other way?????? That is the only conclusion I can think of. H... even the payday stores are more regulated.

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: LaLaLa123 This user has validated their user name.

Wed Apr 10 10:13:30 2013

Classic!  LOL.  So glad we aren't on eBay anymore.  Watching these threads is now amusing rather than terrifying.

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

This user has validated their user name. by: elpereles

Wed Apr 10 10:18:57 2013

Yeah, right. A "glicth". Jajajaja!

The question is easy. From the PP point of view. What is more easy to fight in a dispute ACH withdrawal or a CC payment?  

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

This user has validated their user name. by: Ric

Wed Apr 10 11:56:44 2013

Obviously, PayPal has found a convenient new "glitch" which enables them to hold funds in their accounts to generate interest.

Little wonder eBay and PayPal revised their User Agreement to prevent most users from initiating law suits for practices like this.

Their reprehensible underhanded profit grabbing tactics are worthy of Class Action status, however, it is likely now that there there are not enough users who opted out to comprise a class.

With the threat of litigation sufficiently mitigated, eBay and PayPal customers should fully expect an increase in the number of convenient "glitches" that just happen to benefit this company's bottom line at the expense and inconvenience of the users.

Buyers and sellers are considered by this company to be collateral damage in their quest to grow their bottom line by any and all underhanded means.



Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

This user has validated their user name. by: iheartjacksparrow

Wed Apr 10 12:01:30 2013

I have never understood the concept of eChecks. If you're paying from your bank account, the money is either there, or it isn't.  

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: comet This user has validated their user name.

Wed Apr 10 12:37:02 2013

@IHEARTJACKSPARROW--

That is indeed the HEART of the matter

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

This user has validated their user name. by: bitbybit

Wed Apr 10 13:53:47 2013

Recently had a buyer contact me about a payment she made and couldn't understand why it was an echeck. She didn't change her payment method and she told me she had plenty of money in her account. I think she said her Paypal account but I can't recall. Long story short I couldn't ship until the echeck cleared due to seller protection when printing label. She was a frequent buyer from her feedback with no indications of any problem transactions. Paypal just randomly picked this out to do an echeck which really stinks since buyers have to wait so long to receive their items.

I would think buyers will stop making purchases if this keeps happening.

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: ruthie This user has validated their user name.

Wed Apr 10 14:28:55 2013

''And therein lies the problem - many sellers won't send items until the e-check clears''

Don't forget, PP tells sellers NOT to ship till the e-check clears ...it could bounce.

On another note, another PP glitch ...as a buyer, I recently had 2 payments (less than $20.00 each) process as Bill Me Later, when I had, without doubt, checked off my Visa cc as the payment method.

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

This user has validated their user name. by: iheartjacksparrow

Wed Apr 10 15:24:53 2013

@ruthie

A couple of months ago I bought something on eBay that was under $10 and I was asked if I wanted to use "Bill Me Later." All I could think of was, 'If I don't have $10 in my bank account I'm in real trouble." I wondered why eBay would even ask that for such a small amount of money.

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: mimi51 This user has validated their user name.

Wed Apr 10 15:37:34 2013

I just had this happen to me.  I made several purchases and paid via PayPal one day and one of the payments showed pending 3 days later.  All the others show paid but this one shows pending in my e-Bay.  I cancelled the payment today and made it again.  Still shows pending.  I've already received some of the other orders from that day.  Very frustrating.

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

by: Bloggo This user has validated their user name.

Wed Apr 10 15:53:46 2013

"Note: eChecks work like paper checks and take your bank several business days to process."

My bank says that this isn't true. Funds are credited to an account the instant they arrive. Your bank is not the one floating your money

Perminate Link for eBay Forces eChecks Payments, Buyers Beyond Irked   eBay Forces eChecks Payments, Buyers Beyond Irked

This user has validated their user name. by: Ming the Merciless

Wed Apr 10 18:30:01 2013

@Ina

Why do you constantly refer to these anti non corporate American seller theft schemes as "glitches?"

If the ebafia/PreyPal cabal refers to them as "glitches," then why not state, "Ebay/PayPal CLAIMS this is a glitch," but it's the just the latest of alleged "glitches" that makes more money for PayPal.

Calling the continued abuse of sellers "glitches" without qualifiers semantically lends credence to these outrageous "glitch" claims.

@bloggo

You and your bank are spot on.

Further, transfers typically are done in 24 hours NOT the 3-5 days PreyPal claims.

PreyPal is illegally holding the sellers' e-check payments to earn interest.

These criminals don't miss a trick.

It is beyond ludicruous that ebafia demands such a high standard of ethics and performance from small American sellers when they steal money from these same small American sellers while performing little or nothing for us.

Call your state's bank regulating agency and COMPLAIN! Or better stiull, write an actual snail mail letter.

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