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
When selling online, an overpayment scam works by sending you a cheque or payment for more than the asking price, then asking you to refund the difference before the payment has actually cleared. Once your bank discovers the cheque is fraudulent, you have lost both the item and the money you wired.
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
Decline the overpayment, ask the buyer to send only the correct amount, and use a payment method that confirms cleared funds before you ship. If a cheque has already been deposited and a refund requested, pause and call your bank immediately.
Frequently asked questions
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.