Is it safe to accept an overpayment from someone buying something I am selling?
Overpayment scams are a well-established fraud. A buyer sends more than the asking price and asks you to refund the difference — but the original payment is fraudulent and will be reversed, leaving you out of pocket.
Last reviewed: 10 June 2026
Explanation
The overpayment scam works with consistent mechanics: you list an item for sale, a buyer contacts you, sends payment that exceeds the agreed price, and explains the overpayment as a mistake — perhaps they included shipping costs by accident, a third party transferred the wrong amount, or they had leftover credit on a platform. They ask you to forward the excess amount by bank transfer, gift card, or money transfer service.
The initial payment appears in your account — it looks real and your bank may even show a provisional credit. You send the refund out of your own funds. Days or weeks later, the original payment is reversed: it was a bounced cheque, a fraudulent card charge, or a bank recall. You lose both the item (already shipped) and the refunded amount.
This scam works because the reversal is delayed. Banks sometimes show credits before they are fully cleared, creating a false sense of security. The key principle is never to send any money to a buyer — under any circumstances — and to wait for payments to fully clear (typically 5-10 business days for cheques) before shipping physical goods or delivering services.
Anyone who insists on paying more than the asking price and asks for a refund is almost certainly running this scam. A genuine buyer who overpays by mistake would ask you to send the item and keep the extra, or would simply send the correct amount. The request for a cash-out refund is the tell.
Common red flags
- Buyer sends more than the asking price and requests you refund the difference
- Buyer insists the overpayment was accidental and urgently requests you transfer back the excess
- Payment arrives by cheque, bank transfer from an unfamiliar institution, or an unfamiliar payment platform
- Buyer is reluctant to simply cancel and resend the correct amount
- Buyer suggests refunding via a different method than the original payment — gift cards, wire transfer
- Communication style is generic, impersonal, or shows signs of a scripted approach
What to do now
- Do not send any money — the overpayment refund is the scam itself
- Do not ship any goods until the original payment is confirmed fully cleared by your bank (not just provisionally credited)
- Contact your bank and explain the situation — ask specifically whether the payment is truly cleared or still reversible
- If you already sent a refund and the original payment was reversed, report to your bank immediately as a fraud victim
- Report the incident to your national fraud authority and the platform where the listing appeared
- Block the buyer and document all communication
Frequently asked questions
My bank said the payment cleared — does that mean I am safe to refund?
Not necessarily. 'Cleared' in banking has a specific meaning that varies by payment type. Cheques and some bank transfers can still be reversed for several days after appearing cleared. Ask your bank explicitly whether the funds are fully irrevocable before sending anything.
Can the same overpayment scam happen on large platforms like eBay or Facebook Marketplace?
Yes. The scam is not limited to private listings and occurs on major marketplace platforms. Platforms may offer buyer protection but seller protection against fraudulent chargebacks is often limited. The same caution applies regardless of the platform.