PayPal is a convenient platform that acts as a payment gateway for millions of consumers. Small businesses can use their accounts to set up payment buttons on websites to conduct business.
People can use PayPal to send money to others, often without fees. Even when a business transaction occurs, the fee structure is highly competitive for merchants without requiring a separate agreement with another bank.
One of the ways people can pay for goods through PayPal is by initiating an eCheck. This process is an ACH transaction similar to paying with a debit card.
If a buyer wants a refund, a seller can issue an eCheck to cover that amount.
Since this process can get somewhat complicated, especially if a refund request isn’t approved, it helps to know what steps to follow to ensure your money is where it needs to be.
PayPal eCheck Refund
After paying by eCheck, request refunds from the person or business to whom the PayPal funds were sent. If the seller or recipient agrees to send the money back, PayPal redeposits the funds into the designated PayPal-associated account. The digital provider will not transfer money back to a bank account.
Anyone can request a refund for any reason when using PayPal as a purchasing platform. It is important to remember that asking for one doesn’t mean that you’ll get the funds returned.
The person who received the money, including a business, is the one who decides to return the funds. PayPal isn’t part of this initial decision.
Here are the steps to follow so that you can initiate a refund request on an eCheck transaction.
- Go to the home page for PayPal on your computer or mobile device. Enter your email address and password, then click the button to log into the account. If you have biometrics on a smartphone or tablet, your face or fingerprint can act as your password.
- Click on the “History” link from your main dashboard.
- Choose the “Details” link located to the right of the specific transaction that requires refund attention.
- Look under the contact information subsection of the transaction. You should see an email link there.
- Enter the reason for your refund request. Click the “Send” button.
- If the business or individual agrees to process the refund, the funds from your eCheck will appear in your PayPal balance for use after initiating the return.
Refunds can only be sent with a PayPal balance or an eCheck from the seller’s connected bank account.
If you receive a PayPal eCheck refund, the amount is always for the total transaction. It isn’t possible to partially process one from multiple funding sources.
The issue with an eCheck is that it must clear the bank before being credited to you. This process takes up to six business days, creating a delay from when the refund process starts to when it completes.
What Is an eCheck?
An eCheck is an electronic payment. It’s funded by the buyer’s bank account, or in the case of a refund, the seller.
It follows the same process as a paper check that someone uses to pay for goods or services. Although the information allows the transaction to proceed, it is a trust-based system. There must be funds in the account to cover the amount on the check, or it will bounce. Additional fees are charged when that issue occurs.
The full amount is always requested by PayPal. If there aren’t enough funds available for an eCheck, the request will occur a second time.
Anyone who wants to cancel an eCheck after issuing one must contact their bank. The only way to stop this transaction after it clears is to speak with the seller or recipient for a refund request.
PayPal doesn’t allow you to send eChecks if an instant transfer option is available.
How to Dispute Charges on PayPal
The online transaction process says that customers pay in full before items are received. You cut an eCheck, then expect the seller to follow through with their side of the deal. What happens when this doesn’t happen, and you don’t have anything to show for it?
PayPal provides an option where you can dispute charges when you don’t receive items or services as expected in return.
The first step to resolving an issue like this is to contact the seller directly. Ask them for a refund and request it through PayPal whenever possible. If you have any follow-up correspondence, keep a copy of it available to send with your eventual dispute.
From your home screen, you’ll see a list of your recent activity. Scroll through the list to find the transaction that requires your attention.
Each transaction has a link that you can click. Once you do, you’ll be taken to the details screen for that specific seller.
From the top down, you’ll see where the eCheck was sent, the date and time of the transaction, an ID number, and the gross amount.
The transaction screen has a payment status indicator and a payment type.
Each transaction has specific updates. If multiple activities are part of the process, you’ll see them outlined in the primary body of the invoice. Underneath those actions are the payments and contact information associated with them.
Beneath the contact info, you’ll see the funding details for the transaction.
At the bottom of the page, you’ll see a “Need Help?” section. It says, “Go to the Resolution Center for help with this transaction, to settle a dispute, or to open a claim.”
Click on the link to go to the Resolution Center.
You’ll Be Taken to the Resolution Center Wizard
After clicking on the link within the problematic transaction, you’ll be taken to a screen that says, “Report a Problem.” There is a box that shows the transaction amount and the seller. Underneath that is a large subheading that says, “Let’s get you started.”
You’ll need to choose the reason why you want to dispute the transaction to get your refund. Four primary categories are available to consider.
- Issues with the Purchase. You can choose options here for not receiving the item or service, getting one that is significantly different than what you ordered or not as described, or a refund for some or all the things in the order.
- Billing Errors or Subscription Issues. If you have a problem with a recurring payment or a subscription, choose this option in the Resolution Center to start disputing the charges.
- Transaction Error. If your receipt says one amount, but the PayPal transaction charged you something else, select this option to dispute the charge. You have the chance to fight the entire amount or the difference of an overpayment.
- Unauthorized Activity. When you see a transaction that isn’t something you authorized, select this category in the Resolution Center. You can tell Paypal that you think the account is being used by someone else, that you need to report a lost or stolen card, or that a recurring payment wasn’t authorized.
Once you choose the appropriate setting, you’ll be asked to list the items that you want to report.
If you have an itemized receipt, you can include any or all the items on it to tell the seller that the products aren’t as requested. You’ll need to have the item name, type, and category for PayPal to investigate the dispute. Keep adding items until everything that is missing or not up to your standards is included.
Continue answering the questions that PayPal asks until you reach the point where you can submit the dispute. You will be asked to provide evidence of asking for a resolution or a refund before disputing the charge.
After submitting the dispute, PayPal will investigate the matter. It usually takes three or four business days before getting an answer, but some issues can take much longer to research. There is nothing else you can do at this point except wait for the platform’s decision.
If PayPal finds it in your favor, an eCheck payment will be refunded as part of your PayPal balance. For those who paid with a credit card, the amount should return to the account used to pay for the transaction.
PayPal might find in favor of the seller. If they can prove that they offered services or sent products as required, you might not receive a refund – even if you feel that the seller is in the wrong. This finding can happen if someone signed for a package, when evidence of delivery occurred, or other factors that provide direct evidence of transaction compliance.
The Dispute Center can handle multiple currencies in the countries where PayPal currently operates.
What Happens If I Need to Change My PayPal Dispute?
PayPal offers a process where the dispute lifecycle can reset if actions dictate a change in the request. The most common reason for this step is when someone doesn’t receive an item, then they do, and it arrives broken or in an unacceptable condition.
In most cases, the value of the request moves from the initial inquiry to a chargeback. If a seller disputes this finding, it goes to pre-arbitration. The last step is arbitration before a final order is set.
Customers have the right to change their dispute status based on the circumstances they face. Here are some other examples of when this issue might need to be addressed.
- There is an external case with a credit card or bank issuer to dispute a transaction where PayPal served as the payment gateway.
- The customer needs to update the status of their dispute to another reason because the circumstances have changed.
- A partial refund was offered, but it is not for the amount requested in the chargeback.
Imagine that you pay $60 for a necklace, but the clasp arrives broken. You contact the seller, and they agree to a partial refund. They’ll cover the product amount, but they want you to be responsible for some of the shipping charges.
You tell them that’s not part of the deal. They shipped you the incorrect merchandise, so you want a full refund. They refuse, and now they say that you’re stuck with the item and that no reimbursement is coming.
These messages can be saved and submitted through PayPal’s Resolution Center as evidence that you’re trying to resolve the issue.
Once you get the final answer from the seller, you can initiate a chargeback if the product or service isn’t delivered or provided as described. Take pictures of the problem to submit for the investigation.
After completing all the information items in the Resolution Center, you’ll submit the documentation and wait for PayPal’s answer.
Is It Worth Trying to Get a PayPal eCheck Refund?
If someone has a PayPal account, it makes sense to have the funds returned to their balance instead of waiting for an eCheck. Reversing the transaction tract is fast and virtually effortless. When an eCheck is necessary, be prepared to wait for several days to ensure the funds clear before they’re distributed.
I ordered Christmas presents for everyone using PayPal this year. Since I have a business debit Mastercard associated with my account, it’s super easy to pay for everything in-person or online.
One of the items didn’t ship as expected. When I followed up with the merchant, I got a standard “we’ll be back with you soon” response. No one ever got back to me, even after sending two additional follow-up requests.
That’s when I went to the Resolution Center to manage the transaction. I supplied all the information to PayPal for the chargeback. It took about five minutes to complete everything, including the screenshot uploads of my email attempts.
PayPal got back to me in less than three business days, telling me that I’d won the case. The funds were available right away so that I could purchase a replacement gift.
A PayPal eCheck refund is a little inconvenient because it lands in your balance. If you have a debit card associated with the account, you can use those funds like any other. If not, it takes between 3-5 business days to transfer that cash to your preferred bank.
