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    Paypal Stopped Personal Payment in India

    By in Make Money online

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    While sending payment via Paypal, it has various option like Services, Goods and personal payment option.

    In personal payment option there is no service charge and it was being misused by many people. Even on the client transaction, people prefer making payment under personal payment option.

    paypal reversed thumb Paypal Stopped Personal Payment in India

    Today onwards Paypal has stopped personal payment option for India territory which is a big set back for many. I received 111$ from infolinks 2 days back and paypal has reversed the payment with this note :

    Hello Harsh Agrawal,
    Your payment of  111.84 has been sent back to the sender of the payment.
    We reversed this payment because we have stopped allowing personal payments to be sent to or from India.
    If this was a payment for a purchase of goods or services, and not a personal payment, then you may contact the buyer and have him or her resend the payment as follows:  (a) click the Send Money tab, (b) select “Goods,” and (c) provide a shipping address.
    If this payment was a personal payment such as a gift, then we have requested that the sender find another payment method until we restore personal payments to and from India.
    We are trying to resolve this issue as quickly as possible and we’re sorry for any inconvenience.

    Atleast Paypal should have reminded about it earlier and started this process from the transaction made from today onwards. For me I need to get in touch with infolinks and 2-3 other sender to reissue the check.

    Are you facing any such issue with paypal?

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    { 108 comments… read them below or add one }

    Sarbjit Singh

    Same thing happened to me.

    This is really bad. How could Paypal reverse a payment that has already been credited into an account.

    Reply

    Benjamin

    Two big transactions reversed…..this is really bad. They have to notify this issues before they stop personal payment options. I think its time to look for another money movers like paypal…..

    Reply

    bharat sharma

    Yes same issue to me. Even more I havent recieved an amount in my bank account which I transacted through paypal on 28jan 2010. M losing money instead of earning via paypal. Is there any other payment provider?

    Reply

    Vikas Gupta

    Sometimes, I really hate PayPal. They also recently said they developed some problem with the bank verification process! They make you feel inferior more often than not because you are from India (don’t blame them very much; we have a lot of fraudsters here)! They also don’t accept one word names!

    Reply

    Sourish Nath

    That is bad news , now i need to alert all my clients about payments. Also keep us updated when paypal removes this policy and restores the previous one

    Reply

    Shivendu Madhava

    I also faced the same problem today my one payment reversed back but again I requested to sender of payment to send the payment as Service/Other and finally I got the payment.

    Reply

    Satish Gandham

    What are the best alternates available for receiving payments online?
    Their transaction fee is too high. They do business with the money we keep with them.Instead of giving interest for our money, they charge a hefty transaction fee.
    8$ for 200$, and another 3.5% in converting the $ to rupees.

    Seriously, it’s time to explore other options for receiving payments.

    Reply

    Satish Gandham

    They are also holding the transfer of 50k INR, they have the following explanation. I hope they are telling the truth, and not holding to investigate about the personal payments.
    ————
    Dear *********,

    We are currently experiencing an issue processing withdrawals to Indian bank accounts. As a result, there may be some delay in withdrawals from your PayPal account to your bank account.

    We apologize for any inconvenience this has caused, and are doing all we can to resolve the

    Reply

    M. M.

    It happened to me today too. Stinks. I don’t know why they would reverse completed transactions – they may only want to block future transactions which is fine. But they did not do that, and they did not warn about it too. Hardly professional.

    Reply

    Typhoon

    Yeah Man..I was also surprised today when one of my advertisers payment got reversed back due to this reason..I contacted the advertiser and told him about what has happen and how to make proper repayment so that it doesn’t get reversed back.

    Really a Sad news from PayPal..Will be waiting for their update over this.

    Reply

    Rohit Langde

    What step should one take to get back those payments from the sender say infolinks?

    Reply

    Joseph

    Ask the sender to either use Goods as their payment type, or rather use other means of payment

    Reply

    Benjamin

    I got a info from my customers…..Paypal sent a message to my customer. Here it is “We are sorry after approving the transaction for your RT membership. We had to cancel it because we are temporarily suspending all transactions to India.”

    So i hope this is a temporary suspend of all transactions to India. Anyhow this is my last time to use paypal. I prefer moneybookers is really good and don’t have this kind of problems. Let’ see…..i recently transacted all my money from paypal to my account. Its a huge amount $$$$ so i don’t know what’s going to happen. If they cheat me i will surely put case against Paypal India community. I’m really wondering how they can take money which is already credited in our account. Then they are called as hackers, fraud guys. How dare they are saying secure and safe transactions?….they are thieves. Collecting the customers money for free without any notifications…..

    Reply

    Wicked Sunny

    Its happening with everyone.

    Just make your clients send you payment as service and not personal and that will be fine, I hope they will not ask for shipping address for service option?

    Is that so?

    There are no other reliable payment providers, paypal started this service to India after hell lot of emails and years of requesting.

    We all will be in a soup if paypal stops working properly.

    Reply

    Harsh Agrawal

    Sunny no doubt paypal has become a standard for international transaction, though in Internet world there is nothing static. A wrong move can swap away all the business. I’m sure other competitor of paypal must be planning to take advantage of this and can come up forward to capture India market.

    Reply

    Benjamin

    Here is the update regarding this issue from paypal….

    “Dear Benjamin Samson,

    Thank you for contacting PayPal. Hello my name is XXXXX, I will be happy
    to assist you regarding the payments being reversed.

    I regret to inform you that we have stopped allowing Personal Payments
    to be sent to and from India temporarily. We are trying to resolve this
    as soon as possible and we are sorry for any inconvenience.

    Our technicians are working to resolve this matter. We appreciate your
    patience and understanding.

    Kindly provide the steps below to your customers to re send the payment
    back to your account.

    Log in to your PayPal account.
    Click “Send Money.”
    Enter the email address or mobile phone number of the person you are
    sending the money to.
    Enter the amount of money you wish to send, and choose the currency from
    the list.
    Select “Goods”, “Services”, or “eBay Items”, depending on your purchase.

    Click “Continue.”

    Reply

    PayPal_Anuj

    Personal payments to and from India have been suspended while we
    address some questions from our business partners. You can still make
    commercial payments. We’re trying to resolve the situation as quickly as
    possible and we’re sorry for any inconvenience this may cause.

    Reply

    Harsh Agrawal

    Thanks for your Comment Anuj. Though We failed to understand that why this step has been taken without notifying the paypal users. more over reason for such steps are still undisclosed which is increasing the panic between paypal users. We hope to hear an official announcement from paypal team soon.

    Reply

    Rajat Kumar

    you know Anuj, when you are providing to such a large customer base it becomes a moral responsibility for Paypal to not come up something so ridiculous. if you have an issue release a notice in advance. because of this act so many of us have had to reinitiate payments. imagine the chaos and effort required by companies to send payments again.

    this is definitely gonna be a blow to paypal, big time.

    Reply

    Benjamin

    Hey guys….don’t afraid if you transacted the money from paypal to your bank account during this problem. I started the transaction after i received a reversal notification e-mail. This issue will be solved within 1 week as per a member from paypal spoke with me. Apart from this, I also mail them regarding transaction to my bank account. Here is the message what they said
    “Hello my name is XXXXX. I understand your frustration and concern
    regarding this matter. Let me assist you with that

    The withdrawal from your PayPal account to your bank account should not be affected by the issue regarding Personal payments right now. Please allow 4 business days for this transaction to complete.”…I’m relaxed now…

    Reply

    Benjamin

    Those who are using the infolinks ad network…..hold your payment in infolinks till you get another mail from paypal.

    Reply

    Harsh Agrawal

    Benjamin but the case is Infolinks already issued the payment and paypal has reversed the payment.

    Reply

    Riaz Abdul Majeed

    Is there any hope that paypal will fix this problem soon??? My bro’s payment from Netverdix was reversed. IT was only $2, but it worth him much. :(

    Reply

    Harsh Agrawal

    Riaz for now this problem does not seems to be stopping anywhere. Its been 2 days and I can see a lot of my transaction has been reversed. Ask your brother to send a reminder email to reissue the payment.

    Reply

    Riaz Abdul Majeed

    Thanks Hasrsh Bro for your reply
    me send a support ticket to them, but no good msgs from them

    see what me got from them
    Dear Riaz Abdul Majeed,

    Hello my name is Eduardo. I am sorry to hear about this situation, and
    understand your frustration and concern regarding the reversed payments.

    At this moment we are encouraging the buyers to resend the payments that
    we’re destinated to a purchase.

    If this was a payment for a purchase of goods or services, and not a
    personal payment, then you may contact the buyer and have him or her
    resend the payment as follows: (a) click the Send Money tab, (b) select
    ‘Goods’, and (c) provide a shipping address.

    Thanks for sharing your concerns with us. We value what you have to say,
    and we know situations like this can be difficult. If you have more
    questions, visit our Help Center by clicking “Help” in the top right
    corner of any PayPal page.

    Sincerely,
    Eduardo
    PayPal, an eBay Company

    Reply

    Chaitanya

    Hi Guys,
    This happened to me as well. We had 3 payments from our clients reversed. I dont know how many more are going to be reversed.

    The least Paypal could have done was intimate clients.

    This is so unprofessional.

    Can we file a class action suit against Paypal India?

    Your thoughts?

    Reply

    Harsh Agrawal

    Chaitanya I agree with you, I believe they should have notified us about stopping personal payment and later on any transaction made after notification should be reversed. At the time of writing this comment almost 7 transaction has been reserved from my account.

    Reply

    Typhoon

    I have an update to this news..From few of my sources, I have come to know that this problem have arisen due to recent feature brought by PayPal for Indian Users with the help of which they will be able to verify their Un-Verified paypal account by adding a bank account where they will send two so mall amount and you will have to tell the amount value so as to get verified. Though you will still need to add a credit card as a funding source in case you are purchasing any subscription.

    By problem is; after this feature has been brought some geeky(really bad) things have been happening in the verification process from India. Due to which as a security measure they have taken this step and are currently verifying past 2 weeks records..

    This news is not official but just some guesses by few of my hacker friends..

    Reply

    Harsh Agrawal

    What ever the reason is but Paypal guys are driving me insane. almost 1000$ has been reversed till now and specially payment from Infolinks and Kontera.
    More over my paypal account is verified via credit card almost 9 months back so it should not be an issue here. Lets hope to hear soon from Paypal team or I will better start hunting for another alternative for paypal.

    Reply

    Atul Khandelwal

    Hi, Guess.

    Pls help me, I’m facing same problme here. But they reverse money with Negative Balance, why like this. It’s should come in my account in Positive Balance?

    Reply

    Dev

    Well it happened to me as well. As soon as the first reversal ($225) happened, I withdrawn the balance ($450) thru Xoom service. I ended up loosing few bucks on account of transaction charges but my saved my balance.

    Surprisingly, they have done another reversal and deducted another $200 from account showing negative balance of – $197.

    I am sure they will do another reversal and keep increasing my negative balance.

    I don’t know when this problem will be resolved but they have really messed up our accounts.

    have sent them query, let see what will happen.

    Reply

    Sarfaraz Ansari

    I am also facing the same problem. My balance is showing in negative. Paypal should have informed about this before. VERY UNPROFESSIONAL COMPANY.

    Reply

    Abbas

    I swear this is insane! We have lost over $1500 today and our paypal account shows a negative balance of over $1000.

    In addition to that, we had over 500GBP and since the USD balance ran to zero, they converted the GBP->USD, eventually, we lost another 5% in that transaction.
    Basically, a huge mess!

    Guys.. dont you think it is decency to first inform and then take action?? Especially when they are reversing funds that were sent many days ago?

    My concern is, will they debit our credit cards with the negative balance now?

    I stay in Chennai… The HQ of paypal office in India.. Anyone would like to join for a dharna in front of their office tomorrow morning? ;-)

    Reply

    Wicked Sunny

    I asked my client to resend the payment selecting the service option and I have received the payment in my paypal and has not yet been reversed.

    So just ask your clients and site which pays you to resend your money to paypal selecting the service option. No need running after paypal for this issue.

    This service option will not reverse your payment.

    Also I have just withdrawn all my money through paypal to my bank, so none of the remaining amount will get reversed for some reason.

    Suing Paypal is not going to help us, they have hell lot of money to fight the case plus if they are offended they will just remove the service from India, making our situation worse.

    Be patient and this will get sorted out soon.

    Reply

    Rajat Kumar

    comeon, we aren’t afraid of paypal okay. whatever they have done is wrong and they are answerable for the same. it can definitely be complained against under the law. whether or not they are punished will be decided by the law.

    Reply

    Dev

    Please make sure it is a Goods payment with shipping address. I am pretty sure now that they need us to go for Goods payment only. They have clearly mentioned it in their Reversal notification email –

    If this was a payment for a purchase of goods or services, and not a personal payment, then you may contact the buyer and have him or her resend the payment as follows: (a) click the Send Money tab, (b) select “Goods,” and (c) provide a shipping address.

    Reply

    Hari

    Hi Wicked Sunny,

    So after you received the payment in paypal from your client through ‘service option’ was it possible for you to withdraw the amount to your bank? Is everything working correctly with the withdrawal option?

    Reply

    Wicked Sunny

    Its not about being afraid with paypal.

    Its about doing the right thing in a right manner.

    My last payment which was done under service option was not returned.

    My payment withdrawal has not been stopped.

    This is not a scam.

    They have stopped providing the option personal payment due to various security threats as well as because US citizens were saving tax by sending money using personal payment option.

    Money which was withdrawn from your accounts have been resent to the clients or websites account and is not being used by paypal.

    In my case they clearly showed that they returned the complete amount including their paypal fees back to the client.

    Yes this situation creates a problem for people who are selling something online like Pinaki Da whom I know personally.

    This way the payment is sent back to the customer while they have already payed for the product, making it free of cost.

    Lets see what happens in few days but if customers are approached directly and asked to resend money using goods or service options, I think you will all get your money back.

    Problem is will they pay back?

    Paypal’s sudden change was very unprofessional, no doubt.

    Reply

    mahesh

    My biggest problem is, customers may run away because they may think doing business with us is not easy. There are many clients who pay after several reminders. I really do not know how to chase them again because payments they made, have been reversed now. One of my client went on sailing for next six months after paying. It is really mess. I have issued withdrawal orders on 4th, lets see what happens.
    It is terrible situation, the clients may prefer the people from other countries if the situation remains like this for more days.
    It is huge loss for us.

    Reply

    Saki

    Harsh, Please publish this reply.

    Hello Anuj,

    I am just eagerly waiting to hear something from your end……either positive or negative……..but please say something.

    I have already sent few mails to your ‘RESPECTIVE’ customer care and got the same reply for all of the questions……..What is this man????????????????

    I always pay fees for my money……..and I am your customer……I’m not a beggar that I am asking you something and you people are behaving that there is nothing to hear……….what is this????

    After all it is all about my hard earned money……..sadest thing is that…..I have never received a reply from you……really, very nice customer care……….I must appreciate it.

    At least show slight respect to the brand name and reply here.

    We Indians are just dying for our money……….I have family……..and government don’t sponsor our living…….I have to earn it by working at least 20 hours daily………but work is mine…..money is yours…..this is not a fine equation.

    Hope to hear you soon……at least show us the respect that a customer deserves.

    Reply

    Chaitanya

    Hi guys,
    I spoke to a Paypal rep, and this is what he told me:
    1) As of now, they (the Paypal customer service reps) only have information that they will be reversing payment done in February only. In other words, as of now, Paypal has told its reps that they will only be reversing payments for Feb.
    2) Only payments under “goods” will not be reversed. “Services” WILL be reversed.
    3) If you are in India, he has suggested, please use alternate payment methods (he actually smirked when he said this, so I think Paypal is expecting a backlash and is ready for it). In other words, please do not expect a refund or status quo.
    4) I asked him if Paypal will pull money out of my bank account to recoup the negative balance on Paypal. He said he didn’t know. So this is a big grey area.
    5) On most other questions, his response was : “I don’t know”. This leads me to believe that this was a sudden and reactive decision at Paypal. They themselves do not have a clear policy regarding this situation. However, given their size and legal and financial muscle, they know that they can get away with it.

    My thoughts on this:
    1) Assess your damage, and try to limit it by connecting with your clients asap
    2) Do not expect Paypal to refund your money.
    3) Go for a different provider in the asap since Paypal has shown exemplary unprofessionalism and neglect towards its customers.

    Hope this helps. I know that many of you are small business owners like me, and this has really affected us. Hopefully, the nightmare will end soon.

    Cheers,
    C

    Reply

    Imran Yousaf

    Chaitanya, what are the other substitutes available for paypal?

    Reply

    Chaitanya

    Hi Imran,
    We have a US office as well, so we are requesting our clients to send us checks via Fedex overnite service. If you don’t have an alternative arrangement like that, here are a few other options:
    1) Use a Payoneer card
    2) Try Money Brokers service
    3) If you are facing cash flow issues, and dont have time for (1) or (2), simply tell your client to send the money through Western Union Money Exchange. You can collect the payment from the closest Western Union Broker.

    Hope this helps.

    Cheers,
    C

    Reply

    Imran Yousaf

    Western Union is a solution but i have heard that its very costly. Let me to confirm this.

    Shiva@Netchunks

    This is totally turning out to be a crazy thing that Paypal is doing. Most of the people who use the internet for work and earning money use Paypal as it is the only available option in India. I am not sure about Moneybookers, do they have offices in India. Damn, So we are left completely stranded and helpless. I am really confused to accept work for now or not?

    Reply

    Satish Gandham

    After this insult to Indians and their high transaction fees, I was looking for some alternates.
    I think I’m gonna open a merchant account at icici if that doesn’t work I will go with moneybookers. No more PayPal for me.

    Reply

    ravindra

    Currently i m not facing the problem with paypal which another people facing .. but i think http://www.moneybookers.com .. is of the nice alternative service for paypal.

    Reply

    CA Karan Batra

    THERE MAY BE SEVERAL REASONS FOR THIS, SOME OF THEM INCLUDE:-
    1. TERRORISTS WERE USING PERSONAL PAYMENT METHOD FOR DIVERSION OF MONEY.
    2. THE GOVT. WANTED TO KEEP A CHECK ON THE INFLOW OF CASH SO THAT THEY COULD TAX IT..

    AM NOT SURE BUT THESE MAY BE SOME OF THE REASONS..

    Reply

    Riaz Abdul Majeed

    I am feeling very bad that Paypal made such a thing to all of us. This is very unfortunate in the case of many people I can see here. Let us hope something good will happen soon.

    Reply

    Dev

    We should report this scam to media and press. I have already submitted details to ndtv thru their online contact form.

    We are not capable to wage a legal battle over this but we can publicise this issue as much as we can.

    Reply

    lessirey

    Nice move, paypal virtually cheated their customers with their arrogant and unexpected move. i’ve lost money couple of times with paypal!

    They make their own rules, this time they shouldnt just get away with it like they always do.. atleast everyone should be aware of it. Hope the media picks it up.

    Reply

    Pinaki Ghosh

    Dev I am with you. I want to report this to as many media as possible. I am preparing press release for this. I am going to fight this battle. Let’s stand united.

    Reply

    Dev

    I am with you guys!

    Most of us are web professionals and we can screw them with our blogs, press releases, articles etc.

    Reply

    Chaitanya

    Hi Guys,
    Latest update from me:
    1) I asked all my affected clients to choose the “Goods” option and the payments came through. Also the new payments have not been reversed as yet. So as of now, “Goods” does seem like the best option.
    2) There is a grey area in this though: if your client does a charge back on this payment, I am not too sure if you will be able to contest it, since you have sold him a service and not a good. So given Paypal’s irrational ways, they might actually arbitrate that against you in case of a dispute. But at this point, going the “Goods” route seems like the best option for the time being.

    Hope that helped, and hope that all of you make it through this unscathed.

    Cheers,
    C

    Reply

    bharat sharma

    Its a national issue now …Is there anyone there from media or is a lawyer.. We can file a petition against paypal or can go to media..Is somebody is there who can help us to do the same?

    Reply

    Lagnajit Roy

    Guys,

    Its a bug and not only Personal even my payment that was made for service (I sent invoice selecting service) got reverted, I spoke to PayPal Customer Service and they say the Bug will be fixed by 9th Feb. But you can ask you clients for an alternate option Xoom. Its good and fast and use coupon code “webxoomremit” to get 100% charge waveof. Have fun!!

    Reply

    Kara

    My three payments were reversed. I have written to Paypal yesterday without getting any reply. I also wrote to the party making payment to send the money again using the Goods option but no reply from them either.

    I would like to know whether this reversal is limited to Feb 2010 only that is it won’t be affecting the previous months.

    What happens if my Paypal goes into negative as has happened to some people here?

    Lots of questions. I would be watching this every day to get the latest developments as there is nothing on the Paypal site yes or is there?

    Reply

    Benjamin

    They are getting the money even if i got it via goods or services. They are taking the which is already credited from my account. Now its time for us to reach media persons and newspapers. I hope they become $$$$$ now. They are not reversing the money. They are displaying like that but they are reversing the senders money as well as taking that money from your account also which is already credited. This crazy thing is really affecting my business. They have to stop this otherwise lets all call the media guys and they have to give our money back. They are going to face a tragedy now…..

    Reply

    Purush

    Paypal is not going to restore the payment. They cleveraly planned and made checkmate on indian user.

    Bcoz of this many people was caught in problem. We are the sufferers. Plz join together and fight against the Paypal.

    Paypal made bad impression from Indians.

    Hereafter Paypal wont be secure and safe transaction. They should not use this words again. Idiots they don’t know how to make a move, without any notifications they made this.

    Paypal should face this severe consiquences.

    Reply

    Benjamin

    They are saying Paypal is secure and safe. But it seems, strangers are good and paypal is dangerous. Like “Pinaki Ghosh” asked how they can touch one’s money. They should not take the money once its credited in our account. But they are stealing the money. You know guys they are getting bucks of money for every reversal from your account. The senders is not going to be affected. This is what happening “Suppose if a client is sending $25 USD to a seller as Gift or personal payment, they are reversing the senders payment back to them at the same time they are taking $25 USD from your account in the name of reversal.” So they are getting…. Sender = $25 USD then Paypal = $25 USD and Seller = Negative or zero. Soon within this month they will become Paypal Bill gates.

    Reply

    Dev

    Does anyone know if it is happening with business account as well? Does anyone have a business account here?

    Just wondering if this problem will go after upgrading to business account.

    Reply

    Abbas

    hi Dev.. yes I do have two business paypal accounts and payments amounting to $2000 dollars were reversed :-)

    Best part is, clients were never sent an email informing them of this reversal, and when we explained this to them, they thought “WE” were trying to scam them! … is this the worst part rather?!

    The only way you can prove to your clients that the payment was reversed is, asking them to login to paypal, navigate to the transaction, and click a tiny “+” sign, and the dropdown shows the tiny word “reversal” ! ahh! thats impossible when clients receive hundreds of payments a day!

    Reply

    Benjamin

    Updates….

    Dear ,

    Thank you for contacting PayPal.

    I understand that you want to know why the payment you received for $ USD from is reversed. This payment was sent as Personal. We have stopped allowing Personal Payments to be sent to and from India. We are aware of this issue and I sincerely regret the inconvenience it has caused you. We are trying to resolve this as soon as possible. Below are the details:

    Personal Payment – Send Money for India Accounts

    · India customers are no longer able to see the option to send a Personal payment on the Send Money page · They can continue to use other payment options, such as eBay checkout.

    If this was a payment for a purchase of goods or services, and not a personal payment, then you may contact the buyer and have him or her resend the payment as follows: (a) click the Send Money tab, (b) select ‘Goods’, and (c) provide a shipping address.

    If this payment was a personal payment, such as a gift to a friend or family member, then we request that you find another payment method until we restore personal payments to and from India.

    Although India customers are unable to send Personal payments, they are still receiving Personal payments from Non India customers.

    · In order to stop ALL Personal payments TO and FROM India accounts, we have started reversing Personal payments sent by Non India customers starting today. (the only exception will be in cases where the buyer has included a shipping address – we don’t want to delay any shipment of goods) · Emails will be sent to both sender and recipient to let them know why the money was returned and what options they have to proceed forward. (see attached for examples)

    · We are also in the process of implementing a change on the website to automatically stop the payment from processing, rather than waiting to reverse the payment. We will send you additional updates as soon as we have more details.

    The Personal payment option on the International Send Money page has been updated and India has been removed from the ‘select a country’ drop down list.

    · If the payment was for a purchase of goods or services, and not a personal payment, then the buyer may resend the payment to the seller by following these steps on the PayPal website: (a) click the Send Money tab, (b) select ‘Goods’, and (c) provide a shipping address.

    I’ll be glad to hear from you if you need clarification, please email us again and we will try our best to give you immediate answers. Thank you for choosing PayPal for your online payment needs. We appreciate your business.

    Reply

    Timir Patel

    Paypal canceled my 3 withdrawals (to Bank account) and credited to my account less USD 38 than original amount which is requested to withdraw. and then reversed to senders.

    Even if transactions are not completed (to bank account) they charged currency exchange rate and I got loss of USD 38

    How can paypal do this?

    Everything is possible for paypal.

    Now paypal is not safe way.

    Reply

    Arafat Hossain Piyada

    Due to this recent change I have to delay my hosting fees. They send back my $100+ to sender which is just bad for me. I think we Indian have to create a page on this in Facebook and collect member for that to protest this issue.

    Reply

    Anurag Upadhaya

    I had contacted Paypal customer care about this issue, but still they could not give me a satisfactory answer. After some hours, they sent me a user survey, for which I replied this:

    Before sometime, Paypal used to be my first choice for any type of online transaction and for sending and receiving money.
    But the recent change in policy towards Indian customers from Paypal, has disappointed me a lot.
    It has been over a week (7 working days), since I had withdrawn money from my Paypal account to my Bank account, but still it is not credited to my bank account. On top of it, when I contacted customer care, they have no specific reason about it.

    Also, without any before-hand notification, Paypal stopped personal payments, to and from, Indian accounts. 100′s of people I know personally are suffering from this. Most of the transactions were reversed, and many people are charged money, because of reversed transactions. Without any notice, Paypal had debit amount from their account and their account is in negative balance.
    This is our hard-earned money and you have no rights to touch it, without any previous notice. Indian government doesn’t manage our expenses, we have to pay our bills on own, feed our family and run daily errands with our money.

    India is, one of the largest market for Online transaction. And we are looking at some of the biggest regular customers here, in terms of cash inflow or online transactions. Paypal has disappointed them all.

    These, are the sole reasons that, until Paypal resolves the current situation asap and behaves in a professional way, I will not recommend it to anyone. Further many people, including me, have decided to leave Paypal and move onto other services for our online transactions.

    Reply

    amit

    Here is the link to the blog of paypal.
    https://www.thepaypalblog.com/2010/02/personal-payments-and-local-bank-transfers-in-india/comment-page-1/#comment-7503

    Can try post on this blog & see if Anuj can respond.

    Reply

    raj

    This is the mail we got at 9 AM IST,9th Feb

    Thank you for your patience while we work to address the issue of processing withdrawals to Indian bank accounts.

    We expect to have this issue resolved within the next few days. In the meantime, we’re going to restore the amount of your recent withdrawal into your PayPal balance so that you can know your money is safe in your account. You should see the balance restored within 24 hours. In addition, you will see a reimbursement of any withdrawal fees charged. We will ensure that you are not adversely affected by currency fluctuations during the last week.

    In your transaction log, you will soon see that your PayPal withdrawal request has been reversed. We ask that you wait to submit another bank withdrawal request until we have addressed the processing issue. We will contact you again in a few days with an update and, if the issue is resolved, you can initiate another withdrawal at that time. In the meantime, you will have the ability to spend your balance to purchase goods or services if you choose.

    Again, we apologize for the inconvenience this has caused.

    Reply

    Pinaki Ghosh

    Here is the latest scam from PayPal. They are returning withdrawn money to the accounts of Indian account holders. Count your money. YOU HAVE GOT MUCH LESS THAN WHAT YOU HAD WITHDRAWN. PAYPAL HAS STOLEN YOUR MONEY!

    I am one of the many Indian sufferers of PayPal. I had withdrawn the following amounts recently but have got back $172.52 less today! How did this amount get stolen??? Will PayPal authorities take the trouble of explaining it? Or are they so think skinned that they put petty scammers to shame? Why was I returned $172.52 less than what I withdrew?

    Transaction ID #1P466262YW5334011
    I withdrew on 04-Feb-2010 $459.72 USD
    I was returned on 05-Feb-2010 $430.48 USD (the withdrawal was cancelled by PayPal within 8 hours)

    Transaction ID #2B303386B17653802
    I withdrew on 01-Feb-2010 $460.00 USD
    I was returned on 09-Feb-2010 $426.20 USD

    Transaction ID #0T124177Y4852320H
    I withdrew on 28-Jan-2010 $1,099.44 USD
    I was returned on 09-Feb-2010 $1,018.22 USD

    Transaction ID #4Y143209L0476512N
    I withdrew on 01-Feb-2010 $384.57 USD
    I was returned on 09-Feb-2010 $356.31 USD

    Total withdrawn: $2,403.73
    Total returned to my account: $2,231.21

    Total amount stolen by PayPal from my account: $172.52
    How much has PayPal stolen from you? So it is proven they have stolen. Why wait? Go, complain to the police immediately. Let there be at least 5,000 police cases against PayPal.

    Reply

    Dev

    They have returned funds as per indian currency figure. In dollar terms, I got $461 returned against $500 withdrawn. Even after considering exchange rate fluctuation, the amount returned shoud have been more than that.

    Thieves, cheaters… right words for Paypal.

    Reply

    Pinaki Ghosh

    The exchange rate at which they returned is $1 = Rs 50, which is a fraudulent practice of PayPal. Today’s exchange rate is much less. Besides we should have got back exactly what we withdrew. If this is not stealing (by PayPal), then what is?

    Reply

    Anindya Sundar Mandal

    I agree with Pinaki Ghosh. However, PayPal is responsible for this situation. So they should return all the money people have withdrawn. PayPal should fix the bad situation created by them.

    Reply

    Rally

    Same thing happened to me also….they suppose to charge only Rs.250/- only as per their own rules. They taken out nearly Rs.11500/- now. Whether they are thinking that we don’t check that exchange rate and money? Hey paypal….if you need some money for your company maintenance just ask us as “We need donation and place your own Donate button on your site” We will put you some donation but don’t take our money like this.

    Reply

    Anurag Upadhaya

    Both my payments got reversed today at around 1 am IST.
    For 55$ that I had transferred to bank they refunded 49.8$.
    And for 180$, I got back 166$.

    And according to the log, they did not charged me for reversing. Instead, all the money was lost in their conversion rates.

    I am all clueless, as to what should be done now.

    Reply

    Remesh

    Hopefully we don’t lose the money. Paypal has told me they will correct it soon. I got the following message yesterday night:
    “This negative balance resulted from the difference incur due to currency
    conversion. Please do not worry because PayPal is aware of this issue
    and we are currently working on this. The difference for the currency
    conversion will be reversed as well within 24-72 hours. That reversal
    will automatically fix the negative balance on your account.”

    Reply

    aaslin

    hi,my kontera payment was reversed on feb 5th.I have contacted them for support.But they didnt reply.It is about 5 days now.did you get any reply harsh?

    Reply

    Kumar

    If the paypal is suspending the payments temporarily to bank why the hell it is allowed to place the request and then reverses and due to this we are losing $$ in Exchange rates.No point of that at the end we are losers.Let’s not allow to withdraw until the problem is rectified !!!

    Nearly it is 3 yrs and they ate heavy transaction fee and still it sucks !!!!I will never Use paypal again in Future , it sucks !!!

    Reply

    Leon

    I think we all are sailing in the same boat. Transactions getting reversed and withdrawals not reaching bank accounts.

    I remember last year we also had the same problem around the 26th Jan I think, when withdrawals were delay by 15 days.

    Every year there is some problem and we guys end up paying transaction charges / reversal charges / withdrawal charges.

    Reply

    Remesh

    Per latest news, it may take a few months for personal payments to and from India via PayPal to be reinstated. Therefore, those who depends PayPal for personal payments may start seeking alternatives.

    Reply

    Anurag Upadhaya

    Finally the good news.
    Last night I got all my money restored correctly in my Paypal account.

    Out of my $235 USD, I had got $216 USD by reverse payment.
    Last night in two separate deposists, Paypal returned even the rest of amount that was lost in currency conversion. So, now my account balance in Paypal is $234.99 USD.

    Reply

    Wicked Sunny

    Ok the money I withdrew and which reached my bank , got reversed again.

    But paypal did returned the money which got deducted in currency conversion.

    Though I am not having any other problem with recent payments, I just told them use the service option and the transactions have no problem at all.

    I do not think its a scam, just a wrong decision by paypal at the wrong time.

    They should have notified us before and nobody would have pressed the panic button.

    Reply

    Wicked Sunny

    When can we withdraw our money again? any news on that?

    Reply

    Pinaki Ghosh

    Sunny, I withdrew my PayPal balance using http://www.Xoom.com and it came to my bank without hassle. It did cost me, but I was able to withdraw. You can try the same, because there is not much other options available at this time.

    Reply

    amit

    Hi,

    Can you please tell me as if we are allowed to withdraw payment to local banks in India from our Paypal India account. If so then do we need to transfer it to some other person’s name or can we also to self transfer. Please help . Thanks A

    Reply

    Harsh Agrawal

    Hey Amit
    Right now Withdrawing money from Paypal to Indian banks are on hold.. So I will suggest wait for a while until unless we will hear something officially from Paypal team.

    sansmind

    Pinaki, Is Xoom safe ? How long does it take to transfer the funds to the bank a/c thru xoom ?

    Is it there any way we can withdraw the paypal balance through Western union Money Transfer ??

    Reply

    Pinaki Ghosh

    Xoom is safe. They have been around for several years and got my money transferred without any hassle. Takes 3 working days.
    No, I don’t know of any way to withdraw your money using Western Union.

    Abbas

    A good suggestion to all of you here. The most efficient method of fund withdrawal from paypal is to open a bank account is US. I made several withdrawals to a US bank account in Feb, and they all went fine.

    Oh, I do stay in Chennai. Not is US. Have never been to US in fact :-)

    Yes you can still open a bank account in US as a branch, if you hold an account in India. My suggestion is to go with SBI. If you have an account in SBI, then you can open one in the US, without having to travel there in person. The process is as simple as couriering a few forms to US. The minimum balance is $1000 and they give online banking (view permission only).

    The greatest advantage of having a bank account is US is, you will be saving on withdrawal fees! And there will never be any issues with paypal and US banks!

    When you finally wish to withdraw, you can do a bank transfer to your Indian Bank account!!

    Reply

    Kara

    Hello Abbas,
    This is new! I never knew you could open a bank account in US while being in India. Can you please give the details of the procedure? And is it necessary to have a SBI account? Can one open account with other Indian banks having a branch in the US?

    I am sure your detailed reply will help many of us.
    Thanks in advance

    Reply

    Abbas

    Hi Kara… I too dint know until last year :-)

    I opened our company bank account with SBI, for the only reason that it could be one of the safest and largest banks. With so many banks filing for bankruptcy, we had our doubts to open foreign accounts with any other bank. All I had to do was to fill up a few forms, get them attested from the bank manager (who himself had no clue that this could be done), and courier it to US. In fact, they even supply a cheque book ($100 for a chequebook) for the US account, which means, you can issue cheque payment from US account to Indian account, sitting in India :-)

    Once you courier the docs, they will open your US a/c in 2 weeks, and give you the routing no and A/c no.

    Yes you can open a US account with any Indian bank, as long as they have a branch in US.

    Reply

    kumar

    Hi Abbas .. many thanks for sharing useful tip & suggesstions… same option is available in Citibank ?

    Reply

    Abbas

    Hi Kumar… Yes same option is available with citibank.. but honestly, that is one of the “worst” banks you will ever come across..

    They are not even interested in talking to you unless your monthly transaction is over $100,000

    In fact, they classify $100,000 – $500,000 monthly transaction customers are “small” clients… lol

    Plus, they charge a lot of fees for each transfer and have tonnes of hidden costs. We tried this with citi and finally had to close down the account cos of their hidden costs , which were amount to hundreds of dollars per month!

    Reply

    Dev

    I found one more alternative, pls take a look –

    http://www.icicibankusa.com/remittance_services/individual_remittances.html

    This is International Remittance Transit Account offered by ICICI bank New York

    Does anyone know more about this account?

    Reply

    Abbas

    Yes.. ICICI payments work fine for amounts less then $5000.

    For any transaction amount greater than $3000, it is always advisable to go for a bank transfer. When you do a bank transfer, you can always negotiate the best currency rate with your bank manager, which is not possible with the ICICI a/c, because, they give a fixed rate.

    Plus, the exchange rate they give is never too great nor can you bargain and get a good rate for each remittance. Check out the exchange rate they are offering in that website, and compare it with the current exchange rate… They are offering 80 paisa less for a dollar than the current exchange rate. Thats over 1.7% lost in transaction fees!!!

    And, the card rate of a bank is always higher than the displayed exchange rate. You can avail the card rate only for bank transfers. This mode of ICICI transfer is not actually a wire transfer, but an EFT, meaning, conversion happens even before the amount enters India!

    Plus, ICICI are always known for unreasonable hidden costs!

    Reply

    Wicked Sunny

    Thanks Pinaki Da. I have used Xoom in past, but I prefer paypal. The only thing is money will remain stuck there for some time, its fine with me.

    Regarding International bank account – its a big mess. When paypal was not sending payments to India, I have tried that option.

    Especially after the 9/11 they became very strict.

    You will have to send your original passport and other documents. Some banks even asked to visit US, just so that they can see who we really are – common Indians or a terrorists?.

    Hopefully the SBI process has become much easier.

    Can anyone provide some technical details?

    regards

    Sunny

    Reply

    bharat sharma

    Is there any update on paypal issue. Are we use paypal now?

    Reply

    Sarfaraz Ansari

    Hello Everybody, I’ve transferred the funds from paypal on 4th March 2010 and today. ie. on 8th March, i got my Money… so i now say that the paypal is working absolutely fine.

    Reply

    Tushar

    i dont face this problem .. i got many payments form ptc sites to my india paypal account .. while sending there is option of sending for services

    Reply

    Riaz

    Now all things solved. The paypal amount can be transferred to bank account.

    Reply

    koushik

    hello sir please tell that is it possible to us dollar to indian rupee via a personal paypal account to a savings account in SBI.? if it is done then tell me the details procedure .

    Reply

    Samir

    Paypal money makes some millions of $ by reversing payments,

    I had 900$ in my account when I request for withdraw and on next day I got the notice that payment have been reversed and I lost 44.65$ in reverse transaction because Paypal funded me at Rs. 49.4 and sold dollar back to me at Rs. 47.12,

    Apart from this I request $936 which result me at something $901, because of reverse transaction I stood at 856.35 again Paypal offer almost 3-4% lower rates compare to market or money booker so If we count that in $825..

    Whats the hell..how $936 became $825 with lost of 111$ almost 5772 lost compare to current money booker rate..

    Highly suggest not to use Paypal any more..

    Reply

    Krishna Verma

    Hi Harsh,
    I have a doubt related to paypal. I am currently using personal paypal account. I want to know that how many transactions (and value) are safe with a personal account ? Should I change to business account if I am receiving more that $1000 or so per month ?

    Reply

    Ravi

    Please help me, I am getting error message in paypal “Return to Merchant link”!

    Reply

    Pinaki Ghosh

    Amit, you cannot withdraw your PayPal balance via PayPal as of now. However you can withdraw your balance using http://www.xoom.com. I have successfully transferred all my PayPal balance via Xoom.com recently. It costs you, but your wait ends. Definitely do it if there is considerable amount of cash lying in PayPal.

    Reply

    amit

    Hi Pinaki,

    I initiated the transfer through xoom on 15th & it is showing status as partner processing. Can you please tell me what this status means & when shall I expect funds.

    Thanks buddy
    Amit

    Reply

    Pinaki Ghosh

    It takes about 3 working days form the time you initiate the withdrawal to the time you receive it in your account. Partner Processing suggests the withdrawal is in the 2nd stage and will take 1 more day to reach you.

    Reply

    sansmind

    I transferred few bucks from PayPal through Xoom to my bank a/c but the tracking results still shows “Partner Processing” from last 3 days. I called Xoom and they said that my transaction cannot be completed and the partner company from india has transferred the process.

    The money got deducted from my PayPal A/c but its still not showing in my bank a/c.

    Reply

    Pinaki Ghosh

    Did you give correct bank info? Incorrect bank info may result in your money getting suspended midway.

    Reply

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