Paypal Payments to India?

I'm not sure what you mean?

All I did was send the payment as normal and it was refunded, would they not have taken their cut from the payment sent as per normal?

I am a premier customer and all my payments have been reversed. Even those I made to the warrior forum. Why is that?

Do you know when this is going to be sorted out? What is the way out of this?

I am In India currently. All payments made by a few of my clients and some payments from some sources that pay for links on my blog have been reversed. Also, the payment I made to WF for "warriors for hire"thing got reversed back to me. Paypal isn't allowing me to send money out too.

My paypal account is having negative balance. Paypal reversed 2 payments those sent as affiliate commissions. I think Paypal considering mass payment to affiliates as personal payment.

This is not encouraging for affiliates in india. It seems like paypal has some technical issues in their system. Hopefully they will correct it as early as possible.

I have a premier account and one of my clients was unable to transfer the payment to me but when he sent them a mail saying

I am trying to send money to someone but I am getting an error that says
that my transaction limit has been reached and that I must check my View
Limits in the Accounts Overview page.

Their response was :-

Also, when a payment is
blocked, it is merely an indication that the individual transaction fits
a pattern that is out of the ordinary and observed in the past to have a
high risk of failure. We are in no way insinuating that there is a
problem with the funding source being denied and this is in no way a
judgment of you or your credit worthiness.

He then calls them up and he gets the response saying "My Email id is deemed Unsafe"

I call them up now and apparently there is some issue India-wide where personal payments are getting reversed all over and this particular issue doesn't have anything to do with your account or the validity of your account but some issue between Paypal and the Banks. They don't have a timeline on this and asked to call back on Monday to check up on the progress.

My question is, Is there any workaround to this currently?

Another bad news is that Indian users who have money in their Paypal accounts cannot transfer it to their local banks.. A lot of companies / users are going to be affected by this sudden move from Paypal...

I think currently they are only allowing payments for "Goods"... It is best to create Buy button for the amount that you are expecting and use the goods option... This way the payments won't be reversed if your buyers choose services by mistake while sending you payment... You must also ask your customers to add shipping address while sending you payments..

Does paypal considers the affiliate commissions as personal payment those sent using mass payment?

Guys,

I just checked my paypal account and they have credited
the currency conversion deduction made during bank transaction
reversal.

You're right on one point but paypal did lot more than that.

I'm publisher of infolinks and got my payments reversed, why is that ? I never asked infolinks to pay as personal payments. Like me many other publishers on popular services (be it kontera, infolinks, elance, etc) never asked those services to pay as personal payment,they just wanted the money for their work. But even these type of payments got reversed. They were sleeping when they noticed mass personal payments(without fees) ? And just cause of some account issues they're going to bar service for whole country ? Is this how business is operated ? Let's admit it paypal has lot of flaws and instead of accepting that they are taking advantage of "convenience",charging us and kicking us whensoever they want. Today they sued indian accounts, tomorrow will be some another country with vague excuses.

Absolutely, if someone is trying to circumvent the fees, they ought to take action. But that's not why they stopped payments. They stopped because there is an issue between Paypal and India's Central bank(RBI) wherein RBI wants Paypal to comply to some kind of regulations to stop money laundering, for quite some time. Paypal made a knee jerk reaction with stopping all personal payments irrespective of the fact that a lot of them come from freelancing sites which are clearly not personal payments.

While I understand that its a business decision, Paypal simply screwed us and themselves to an extent (by losing a lot of business to their competitors) by not bothering to announce this decision in advance. They simply waited for people to see their payments reversed and then informing when it was queried thru their helpdesk. Also, they never notified that bank withdrawals too would be stalled for some time (by this time, people had already used the withdrawal transaction only to see no money reaching their bank)

Consequently, there are sellers (think Ebay India) who got their payments reversed after they shipped the items. How much, do you think, are the customers inclined to pay after receiving the items. Same goes for service providers.

Ironically, all this while, Paypal kept sending notifications of their latest advertisements.

The Reserve Bank of India had given prior notification to Paypal and other such companies. Paypal simply failed to comply to the regulations. But yeah, I agree both the entities could have resolved this much better.

Absolutely agreed.

Ken, simply ask your Indian clients to pay using Send Money-Goods-Shipping Address option (if I read you correctly). This should work, but you can check with Paypal to confirm. Only personal payments to/from India have been blocked

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India constitutes a very small business for Paypal yet. Their biggest business from the Asia-Pacific region is from Australia.