Scam Checker
Back to Guides

Payment Platform Scams: Overpayment Fraud on PayID, Zelle and Similar Services

Updated 26 January 2026

Got a suspicious PayID message?

Paste it into our checker to see if it matches known scam patterns.

Check It Now →

PayID scams have become the go-to method for ripping off people selling items online. The scam sounds convincing and many sellers fall for it, losing hundreds or thousands of dollars.

Quick Verdict

What it usually is: Fake "overpayment" claims or fake "business account upgrade" fees designed to get you to send money to scammers.

Who gets targeted: Anyone selling items on Facebook Marketplace, Gumtree, or similar platforms.

How the Scam Works

You're selling something online. A buyer contacts you and seems keen. Then one of these scenarios unfolds:

Scenario 1: The Overpayment

"I accidentally paid you $2,500 instead of $250 for your item. Can you refund the extra $2,250 to this account?"

Reality: You never received any payment. The fake "payment confirmation" email is spoofed. If you "refund" the overpayment, you're sending your own money to a scammer.

Scenario 2: The Business Account Upgrade

"I tried to pay but your account can't receive business payments. You need to upgrade to a PayID Business Account. Pay the $99 upgrade fee and I'll add it to my payment for the item."

Reality: There's no such thing as a "PayID Business Account upgrade fee". PayID is a free service from your bank.

Red Flags to Look For

  • "I accidentally paid too much" — This almost never happens legitimately.
  • Payment confirmations via email — Real payments show in your banking app, not just emails.
  • "Upgrade your account" — PayID doesn't have paid tiers or upgrades.
  • Wants you to pay fees — Legitimate buyers don't ask sellers to pay anything.
  • Unusually eager buyer — Agrees to your price immediately, no negotiation.
  • Can't meet in person — Always has an excuse to avoid face-to-face.
  • Pressure and urgency — "I need it shipped today" or "Refund now or I'll report you".

Realistic Examples

Fake Email Confirmation

You receive an email: "PayID Payment Confirmation - You have received $2,500.00 from John Smith. This payment is pending due to your account limits. Contact the sender for further action."

Reality: This email is fake. Real PayID payments appear instantly in your banking app. No email confirmations, no pending status for standard amounts.

The Upgrade Fee Script

"Your PayID is registered as a personal account. To receive my business payment, you'll need to upgrade. Transfer $99 to this BSB/Account and send me the receipt. I'll add it to my payment."

Reality: Complete fiction. PayID works the same for personal and business payments. There's no upgrade. You'd be sending $99 to a scammer.

What to Do Next

  1. Only check your actual banking app — Not emails, not screenshots. Log into your real bank.
  2. There's no such thing as a PayID upgrade fee — Anyone asking for one is a scammer.
  3. Never refund "overpayments" — If you didn't see cash in your bank account, it didn't happen.
  4. Meet in person when possible — Cash deals at police stations are safest.
  5. Report the scammer — To the platform and to Scamwatch.

If You've Sent Money

  • Contact your bank immediately — Some transfers can be stopped or recalled if fast enough.
  • Report to police — Via ReportCyber (cyber.gov.au)
  • Report to the platform — Facebook, Gumtree, etc. will ban the account.
  • Keep all evidence — Screenshots of conversations, emails, any details.

Frequently Asked Questions

Is PayID itself safe?

Yes, PayID is a legitimate, secure service from Australian banks. The scam exploits social engineering, not PayID's technology.

Can someone steal money knowing my PayID?

No. PayID only allows people to send you money. They can't withdraw or access your account. It's like giving someone your email — they can send to you, not access you.

What if I got a real overpayment?

Genuinely rare, but if it happens: wait several days for the payment to fully clear, then contact your bank directly. Never refund to a different account than the payment came from.

Related Guides

Marketplace Scams: Fraud on Facebook, eBay and Classified Sites

Fake payment emails, courier pickup scams, and payment platform pending tricks.

Bank Impersonation Scams: How Fraudsters Pose as Financial Institutions

Fake bank calls, texts, and spoofed caller IDs explained.

Scam Text Message Examples: SMS Fraud Patterns Explained

Real SMS scam templates: parcel delivery, bank alerts, and urgency tactics used worldwide.

Suspicious about a message you received?

Don't guess. Check it instantly with our free tool.

Check for Scam