How do personal echecks work?

[Vols2604]

I sent a payment to a friend(not a business) and didn’t realize my husband would be making a large withdrawal at the same time. My bank has returned it. What happens next? Will PayPal retry for this payment? Thanks!

[sharpiemarker · Accepted solution]

@Vols2604 

It will just not clear and fail. PayPal will email you about that. The recipient gets an email that the eCheck didn't clear as well. You'll need to send a new payment choosing another funding source or replenish your bank account and perform another eCheck.

Unlike instant transfer method by bank backed with credit card, PayPal will make up to 2 more attempts in the space of 6 days to withdrawal the funds because PayPal pays ahead for you and await for your bank payment to clear.

With eChecks, PayPal does not pay ahead for you. Sender and recipient have to wait until payment clears (or fails).