Paypal Echeques - Big Problem

Hi Tim,
Is there a way on our end to either:
-refuse payment via Paypal eCheque
OR
-make any payment by eCheque PENDING until the payment goes through. I've had this happen a couple of times now:

Customer pays by Paypal eCheque and order goes through as normal. Customer gets instant access to digital file downloads.

Paypal sends me the following email:

Dear SARAH,
Jane Doe (jane.doe@gmail.com) has sent you an eCheque payment of $199.00 AUD. This is not an instant payment.
You should receive the money in about 3-5 business days (estimated:29/07/2020 - 31/07/2020) depending on your bank. We recommend that you wait until the money is deposited into your bank account before posting items. We’ll email you when this eCheque payment has been deposited into your account.

Then a few days later I get this from Paypal:

Dear SARAH,
The payment from Jane Doe wasn't processed successfully.
If this is a sales transaction, please don't ship or deliver the sold items or services as the payment isn't complete. If you've shipped or delivered the items or services, you may want to contact Jane Doe to request the payment again.

But they already downloaded the files when the placed the order and are now not returning emails. Nothing I can do...

Edited Thu Jul 30, 20 11:13 AM by Sarah MacKenzie

Disable eChecks in PayPal

PayPal -> Account Settings -> Payment Preferences -> Block Payments -> Block the following payments: Pay with eCheck transfer for all website payments except eBay.

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Wow, that's huge. Thank you for Sharing that Sarah.

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Fantastic.
Thanks so much Tim!!

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Thanks Sarah/Tim .. are e-cheques new or something then? I've never had this problem, but have followed the instructions to ensure I dont!

Cheers!

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I'm not sure - I've never had them before and have now had 2 in as many weeks.

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I bet someone's discovered a loophole and is passing it on to other scamsters .. glad we got it sorted - thanks for passing on x

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Sorry for updating an olde worlde thread, but only just learnt about e-cheques through paypal after receiving my first ever e-cheque payments in the last few days and doing a search. Up to three all of a sudden, which raises multiple red flags in my mind. Don't think any photographer can afford to wait several weeks for a payment to clear.

Recommend everybody turns off e-cheque payments if using Paypal integration. Tim, I think it would be useful if you recommended turning off e-cheque payments in the paypal integration notes.

Sigh, yet another reason to leave Paypal.

Edited Mon Apr 18, 22 1:50 AM by Trailboy

Trailboy, why would you not want to give your customers another way to feel comfortable paying on line? It only takes a day or two to clear, customer does not get order until it clears, i see no issue here.

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Nope, paypal says it's not expected to clear until the 26-27/04/22, which is ten days from payment. Sytist doesn't appear to have converted it into an order anyway, so perhaps the IPN isn't sent until after clearance. Ten days from now is well past the deadline date for the entire school gallery, and I'm not withholding product return delivery for an entire school for one payment that is still waiting to clear and may never even clear. Schools will prints distribute once only. Might reconsider if they pay for home delivery and are willing to wait, but they didn't and my time's too precious to chase it. I learnt that lesson a long time ago with rubber cheques from a normal bank account via traditional paper orders.

It's not really another way to pay either, it means that the user has a paypal account that does not have a card registered to it and has insufficient funds in their paypal account to clear the payment. And even if it clears, I've read stories online that e-cheque payments have been pulled even several weeks after payment apparently clears.

As I said, too many red flags - not worth the hassle.

Edited Mon Apr 18, 22 7:56 AM by Trailboy

Several weeks? It takes 3-5 business days. I agree with Vance, the more options you have the better.

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Hmmmnm.

Not in the UK, by the looks of it. And this paypal email was received late 16th. Gallery closes 24th, will be delivered to the school probably 26th. If they pay close to the deadline date and the IPN hasn't been sent before the deadline, their orders wont be created in time for our automated backend and they start rampaging that their orders have not been delivered to the school even though they've 'ordered' within the deadline. Just easier, for me at least, to turn off e-cheque payments and avoid the hassle all round.

---

Hi xxx,


It usually takes about 7 days for you to receive the money (estimated: 26/04/2022 - 27/04/2022). We recommend that you wait until the money arrives before shipping the items. We'll email you when this eCheque payment has been deposited into your PayPal account.

-------------------------------------------------------------
Payment details
-------------------------------------------------------------

Total amount: £43.00 GBP
Currency: British pound

Edited Wed Apr 20, 22 1:44 AM by Trailboy

I see, well then the option to turn it off is good. But just so you know even if someone uses a credit card or paypal account, if they file a grievance of any type that money will be retracted from you. Be glad you were not in business in the 80's-90's we use to have to slide a credit card and copy it onto a paper carbon copy then mail it to the respective credit card company, then wait weeks to get paid. That last transaction for 43.00 would not make or break a house or car payment, add a couple zeros on that and that would be a concern. I still have many customers that do not trust online payments, i still take mail in checks. But of course i use mobile banking and funds are transferred quickly.

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Hi Vance.

Yeah, I know about chargebacks, but touch wood, I have never once had a customer make a chargeback claim. Which is good, as Paypal charge £15 (I think) for a chargeback. I know Square have free chargebacks, which is another reason why I am hopefully moving to them soon. Here's hoping I never have a chargeback claim.

I remember well the credit card swipers when I were a lad! Just shows you how much the banking system is now geared towards virtual rather than physical payment types.

In 2017 or so, when I used to happily receive manual paper orders with paper cheques, I received two payments via cheque for £6 each. Both rubber cheques bounced after several weeks. I was then charged almost £15 each for the cheque bounce fee by my bank. In the meantime, the orders have gone out and customers have received their orders. I'm down £42+ (£1 cheque deposit fees, £30 in cheque bounce fees, £12 in order costs plus the actual item costs) and the customer has received their orders. Was it worth chasing people to try to reclaim £12 and probably damage my reputation? Since then, no more cheque payments at all with us. We live and learn I suppose.

Parents are still not allowed on school premises whatsoever in the UK since the start of the pandemic; hence I've used 100% online payments only (no paper orders and cash) since 2020 and my turnover hasn't suffered one bit.

Edited Wed Apr 20, 22 1:48 AM by Trailboy

echeque payments still haven't cleared after 12 days, customers not responding and trying to get hold of a homo sapien at paypal is impossible so I'm cancelling their orders.

Really glad I turned off echeque payments now.

As I said, live and learn.

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