Those of you who uses eCheck with PayPal should know how the transaction works because we had a customer who insisted that we pay for his NSF.
We have spoken with PayPal Merchant Solution about this issue and we feel that everyone should be aware of how the eCheck works with PayPal.
So this is what thet have informed use...
The moment you accept to transmit the payment to us, it is an instant transaction with PayPal. Even if we denied the payment 0.1 second after, it is too late. The transaction submit to the bank have already been started for the withdraw of the funds from your account. This is an automated process for eCheck.
We have done everything correct by denying the payment, so we will never receive your payments. The only option that we have are to accept or deny the eCheck. There is no option for us to cancel the eCheck.
PayPal also informed us that we cannot stop the transaction because we do not own that account. It is owner of the account who can cancel the transaction, so it is important that you contact the bank and inform them not to process the eCheck.