Paypal question

[leatherman]

Normally I try to find the answers to questions like this myself, but as Paypal's site (along with Beckett, seriously) is very difficult to navigate when looking for answers, I thought I would see if someone here knew the reason for this...

I recently saw this line from a seller on ebay:

PayPal e-checks are preferred on sales over $500.


Anyone know the reason why someone would prefer an e-check?


David

 

[KandKCards]

I'm not sure, but I would guess that because you wait a few days for an e-check to clear, it comes directly from the buyer's account and is already cleared. With an instant transfer, I think it's more like paypal gives a temporary loan to you, so to speak, and has to wait a few days for your bank account to clear, though the seller gets the money immediately. Therefore, if your account doesn't clear, paypal might reverse the instant payment to save their money. I'm not sure this is how it works, and I've never had any issues with this in 2000 transactions, but that's all I could think of.

 

[pujolsthomefan33]

If I remember correctly it is because there are NO FEES associated with an e-check if I remember correctly.........and once it clears and is associated with a confirmed address, seller is 100% protected as with any other form of payment.


TK

 

[JVC]

Maximum fee on an e-check is $5. Technically, any payment over $200 would result in a higher net for the seller with an e-check.

 

[pujolsthomefan33]

Maximum fee on an e-check is $5. Technically, any payment over $200 would results in a higher net for the seller with an e-check.

Thanks, I knew it was something like that...


TK

 

[leatherman]

Re: Paypal question (edited now with a Poll!!!)

Maximum fee on an e-check is $5. Technically, any payment over $200 would result in a higher net for the seller with an e-check.

Thank you, I had no idea.

As Paypal takes 2.9% and 30 cents per transaction, any charge over $162.24 results in a fee higher than $5.00. On a $500 instant payment, Paypal takes $14.80, so you are basically saving $10 by getting an e-check.

So, if you are receiving $500 via Paypal, would you rather:

A. Get $485.20 instantly, or
B. Get $495 in 5 days via e-check


David

 

[George_Calfas]

If both parties dont mind the 5 days I would do the eCheck, $10 is $10

 

[Penno]

I'd wait for the extra $10. Not that long a wait, plus it's not like I'd need it right then anyway.