Bouncing Payments!

[thegreatcanadiannorthernstar]

I recently found out that payments can bounce through Paypal, three days after payment. I found out by accident when paying a seller $1750.00 US for ebay items.

When making the Payment I accidently checked the bank account box, and I did not have $1750.00 in there at the time. Seller shipped rather fast and my payment bounced back three days later.

Fortunate that my CC works as an auto backup so payment did go through, but this experience would lead me to recommend to all, if your item has significant value, you may want to delay the fast shipping your so proud of providing all the time.

[u-deserv-it]

...interesting..i guess there was no other back up source? so what the heck would happen in that case? i thought instant payments meant cleared payments?? who would eat that loss?

[futuretech_liquidations]

According to PAYPAL they are responsible for insuring that the CREDIT CARD payment is legit and so they would be liable and not the SELLER.

I asked her to send me an email to confirm this in writing and the CUSTOMER REP said no need since it is in the PAYPAL USER AGREEMENT.

I have not read it to see if her comments were accurate or whether she was just blowing smoke.

FTL

[u-deserv-it]

..yes.. but greatcanadian is saying he checked off his bank account for payment, not credit card, and that they accepted payment, and then later bounced?

[zarzuella]

According to PAYPAL they are responsible for insuring that the CREDIT CARD payment is legit and so they would be liable and not the SELLER.

I don't understand - I often see threads on the US board about PP clawing back funds due to 'unauthorized use of card'. If PP accepts responsibility for checking the card at the time of purchase, that should not happen.

[treasure-pot]

I recently found out that payments can bounce through Paypal, three days after payment.

If paid by echeck it stands to reason that there is a few days delay while the e-check is being processed. When found to bounce for insufficient funds, Paypal took it upon themselves to run it through an alternate funding source (the scary part).

That the seller shipped prior to notification of a cleared e-check is foolish.

If the seller received notice from Paypal of e-check clearing and then, three days later, was advised that the payment was bouncing but, not to worry, we can get the money another way, it is really frightening.

Bill treasure-pot

[jakeeangel]

PayPal doesn't take responsibility for anyting. If someone does a chargeback or someone uses a stolen credit card, PayPal takes the money out of the seller's account. PayPal looks after PayPal nobody else.

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[whoscloset]

Sad but true. Too bad Google Checkout isn't taking Canadian accounts yet. :(
Monique

Himalayan Salt Lamps - A Guide to Purchasing

[thegreatcanadiannorthernstar]

Actually I never checked the echeck box, I usually always pay with a credit card.

What i did is make a normal bank account payment by accident. This did cost me a hefty charge when the funds were not in my account, and the payment subsequently bounced 3 days later.(are bank account payments automatically echeck?)

The payment then automatically went through my CC, as the CC is auto selected as a back up source for my bank account payments if they get denied. Just I found it weird it took three days for this to happen.

So if a US buyer pays me by bank account payment and does not have the funds maybe this too will cause his payment to bounce back three days later, and if no other funding source is selected as backup, no money maybe?

[thegreatcanadiannorthernstar]

I was paying a US seller, don't know if this makes a difference in the bounce delay.

[jakeeangel]

"So if a US buyer pays me by bank account payment and does not have the funds maybe this too will cause his payment to bounce back three days later, and if no other funding source is selected as backup, no money maybe?"

Yep! I've had that happen a couple of times. One time I never got a payment and the other the person apologized profusely and repaid. That time it didn't bounce.

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[u-deserv-it]

am i missing something here? i don't understand...i thought if payment was through bank account, it was 'held' until cleared-i've had many of those...but if it was through credit card and accepted...then payment was instant and cleared...what the heck..you mean everytime we get an instant payment into our paypal account..it may still come back??? and if so...WE lose it???

[thegreatcanadiannorthernstar]

Yep, this is what i think i found out by accident. So if we ship right away we may get screwed. Thanks for the clarification Jake.

[bestshowtime]

So if we ship right away we may get screwed
Yes, it is correct. Never ship any items before you see money on your bank account. Doesn't matter what method of payment buyers use. I saw on Canadian sellers listening notice that paypal payment takes up to 7 days to clear money and this is right.

[katiusciav]

well geez...imagine if we waited even longer to ship an item out to the states expedited...i can't imagine tacking on another week to the already 4 weeks it takes canada post in some cases to deliver a parcel...X-(