If you don’t know much about electronic payments, you must be confused with the various terms you come across. One of them is eCheck – do you know what it is? If you’re using PayPal, you might also wonder – what is eCheck on PayPal?
An eCheck on PayPal is an electronic version of a paper check. When you make a payment using an eCheck, the money is transferred from your bank account to the recipient’s PayPal account. The transaction will take a few days to process, which is similar to how a paper check works.
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What Is eCheck on PayPal?
Online banking and platforms such as Paypal have made our lives way easier than they used to be, but there is no denying it – sometimes, you can run into a few complicated terms that make no sense to you. If an eCheck is one of those terms, you’re in luck – you’re in the right place. I will resolve all your dilemmas about this topic and help you use PayPal more effectively. Let’s talk about eChecks – you will quickly see that they are simple to understand and use.
What Exactly Is an eCheck?
eCheck is nothing complicated – it’s actually just a regular check, but in an electronic form instead of a paper one. This is a type of electronic payment that you fund or receive, and it takes a bit of time to clear, just like a traditional check. If you know how to use regular checks, this shouldn’t be any problem for you – it will make your life easier because you will be able to send transfers or receive payments online through your PayPal account.
How Does the Concept of eChecks Work?
Before the recipient gets their payments from you, they need to gain authorization. This can be done via an online payment form that you will fill out, a recorded phone call, or a signed order form. Once that is done, PayPal will add the payment information to an online payment processing software and submit it. Then, the ACH transaction process begins. ACH is short for the automated clearing house, and it’s an electronic network used in the US to provide infrastructure for payment processing companies.
How Do You Send an eCheck Through PayPal?
On your end, things are much simpler – all you need to do is click a few things on your PayPal account. Once you enter the account, look for the “send money” option. Fill out the information the same way as you always would, and tap the “continue” button.
Then, you will see the option that says “change” – click that, and look for an eCheck button. Obviously, you will choose that and then just continue with the payment. Double-check all the information you entered, and click “send money” to finish the transaction. It’s as simple as that – way less complicated than sending a paper check. Plus, you will save some paper.
What Kind of Payments Can You Make With eChecks?
PayPal eChecks are an excellent choice if you don’t have any credit card attached to your PayPal account, but you can use them even if you do. Theoretically, you can pay for whatever you want with an eCheck, but it’s most commonly used for sending larger amounts of money. Fees for eCheck payments are smaller than those for credit card payments, which is why it suits merchants to accept eChecks for high-cost transactions.
They are also really popular for sending recurring transactions. It just makes it easier – you don’t have to think about the payment every month since you have the option of adding a recurring schedule before submitting the eCheck. Here are some other examples of payments you can take care of with an eCheck.
- High-cost items,
- Mortgage,
- Rent,
- Car payments,
- Monthly fees.
How Long Does It Take for an eCheck to Clear?
As with any other check, the payment won’t be cleared the moment you send it, but the benefit of sending eChecks as opposed to regular paper checks is that eCheck takes less time to clear. It often takes a few business days for the transaction to be done, and that varies depending on the provider. For PayPal, it’s expected to have your eCheck cleared in less than a week – it usually takes up to 6 days. Keep in mind that it can be cleared only on business days, which can be a reason for the delay if you sent an eCheck on Friday, for example.
Can You Cancel an eCheck?
Fortunately, you can cancel your eCheck whenever you want – before it gets cleared. So, you will usually have a few days to change your mind about the transaction. However, don’t forget that you need to contact the seller you intended to send an eCheck to and update them on the status of a transaction. Of course, you can always send them the payment via credit card to make it faster if you don’t have time to wait for the eCheck to clear.
Can Your eCheck Bounce?
If you don’t have enough balance on your account, it’s only logical that your check, whether an electronic or a paper one, would bounce. Still, the good thing about eChecks is that they are always verified within 24-48 hours after you send the payment. That means you will know pretty soon if your eCheck is about to bounce, so you can find an alternative method to complete the transaction.
Sending eChecks Through PayPal Is a Simple and Efficient Way to Handle Your Bigger Transactions
As you can see, eChecks are a very simple and efficient method you can use to handle many of your monthly transactions and large payments. Sending an eCheck through PayPal takes only a minute or two, and you can cancel it later if you think of a better way to send your money to the recipient. Hopefully, my text explained everything you needed to know about this topic – now, you can make your online banking experience better when using PayPal.