Sellers
Why you should never refund a buyer’s “overpayment”
How overpayment scams work with checks and payment apps, why the money can look real for days, and the simple rule that stops them.
ContactCheckup editorial · Updated · 4 minute read
How overpayment scams work
A buyer agrees to purchase your item and pays more than the price, by check, money order or a payment app. They have a story: it was a mistake, the extra covers a mover or shipping company, or it’s for a relative. They ask you to send back the difference, often through a wire transfer, gift cards or another app.
The FTC describes the pattern plainly: buyers “accidentally” send a check for too much and ask you to refund the balance, and that’s a scam.
Why the money looks real
Banks have to make deposited funds available quickly, so a fake check can appear in your balance within days. The FTC warns that seeing the funds in your account doesn’t mean the check is good. Fake checks can take weeks to be discovered, and by then you owe the bank the full amount.
App versions work in a similar way. A payment sent from a stolen account may arrive and then be reversed, leaving you short the refund you sent.
The simple rule
Don’t accept a payment for more than your selling price. If a buyer overpays, ask them to cancel and send the correct amount, or return the payment through the same method, never by wire, gift card or crypto. The FTC advises never using money from a check to send gift cards, money orders, cryptocurrency or wire transfers to anyone who asks.
If you already sent money back
Act quickly. Contact the wire transfer company, gift card issuer, payment app or bank you used, report the fraud and ask whether the transfer can be stopped or reversed. Report the scam to the FTC at ReportFraud.ftc.gov and to the marketplace where you met the buyer.