Real Seller Refund vs Overpayment and Fake-Cheque Scam
How to tell a genuine buyer refund from an overpayment scam in which a fake cheque or inflated payment is used to trick you into wiring money back.
Last reviewed: 1 June 2026
Most people who reply to your listing simply want the item. Overpayment fraud looks like an unusually easy version of that: a keen buyer, no haggling, payment arriving faster than expected, and then an apologetic message about an error. Too much has been sent, or extra was included to cover a courier, and could you please return the difference. It works because your bank shows the money in your balance, which almost everyone reads as final, and because the request feels like ordinary decency rather than a transaction. Weeks later the cheque or payment is reversed, and the refund you sent was your own money. The distinction that matters most is that funds appearing in your balance are not the same as funds that have cleared and can no longer be recalled.
Side-by-side comparison
| Genuine refund | Overpayment / fake-cheque scam | |
|---|---|---|
| Payment amount | Matches the agreed price exactly | Significantly exceeds the asking price with an explanation — 'my assistant made an error' |
| Refund request | No request to wire money back to the buyer | Buyer urgently asks you to wire the overpaid portion to a third party before the cheque clears |
| Payment instrument | Bank transfer, verified PayPal Goods & Services, or payment platform with clear confirmation | Cashier's cheque, money order, or PayPal Friends & Family payment that cannot be disputed |
| Cheque clearing time | Funds are genuinely available only after full bank verification | Bank shows funds as 'available' within days but reverses weeks later after discovering fraud |
| Buyer communication style | Asks reasonable questions about the item; willing to meet locally or use a standard platform | Asks few questions about the item; focused on payment logistics and the refund |
| Shipping instructions | Ships to a verifiable local address or picks up in person | Asks you to ship to a distant address before the payment dispute is resolved |
Common red flags
- Buyer sends a payment larger than the asking price
- Buyer asks you to wire the overpaid portion to a different person or account
- Payment is by cashier's cheque, money order, or PayPal Friends & Family
- Buyer is very eager and asks few questions about the item itself
- Buyer asks you to ship before you can verify funds have fully cleared
Verification steps
- Wait for your bank to fully confirm a cheque has cleared — not just shown as available balance — before shipping or refunding
- Call your bank directly using the number on their official website to confirm cheque validity
- Only accept payment methods that do not allow late reversal for goods-and-services sales: bank transfer from a verified account or a platform payment that shows confirmed completion
What not to do
- Do not wire a 'refund' before a cheque has fully and irrevocably cleared
- Do not accept cashier's cheques or money orders for online marketplace sales
- Do not ship the item until payment is confirmed as genuinely received
A safe response
Do not send anything back. Reply that you will return the whole payment by the same route it arrived once your bank confirms it has fully cleared, and that you cannot send a partial refund by any other method. That single sentence ends most of these approaches. Ring your bank on the number from your card or their own site, say a payment may be fraudulent, and ask when it is irrevocably cleared rather than merely available. Do not post the item until then. If you have already wired a refund, contact your bank immediately to try to recall it, report it to your national fraud reporting service, and keep every message and receipt.
Frequently asked questions
The buyer says the extra covers their shipping agent. Is that ever genuine?
It is one of the standard scripts rather than a real arrangement. Genuine buyers pay their own courier directly and never route that money through a seller account. Once you forward it, you have sent your own funds on behalf of a payment that can still be reversed weeks later. Keep the rule simple: accept the exact agreed price and nothing more, and either arrange shipping yourself or let the buyer book a collection in their own name.
The bank showed the funds as available — isn't that proof they cleared?
No. Banks provisionally make cheque funds available before verification is complete. A fraudulent cheque can take two to three weeks to be returned, long after you have sent a refund.
Can this happen with PayPal?
Yes. Scammers use PayPal Friends & Family (which cannot be disputed as a goods sale) or stolen accounts that result in chargebacks later. Always use Goods & Services and meet the full price.