Paypal India Users - *NEW* Paypal Rules! | Warrior Forum - The #1 Digital Marketing Forum & Marketplace

13 years ago

Paypal has always had problems with India. I am an Indian but I am not in India anymore.

Yes you are right, unless you verify your CC, you wont be able to use your "Paypal Balance"..

I think RBI is being very strict on Paypal now. Just around 6 months back, they had stopped electronic transfers !!

Indian users really need to look for an alternative.

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webfighter

13 years ago

I am confused too.

Unfortunately, we will not allow customers in India to send money from their PayPal account balance starting 1 March, 2011.

Okay, I get that.

But, how does the above statement imply:

This means that your customers will need to link a credit card to their account in before sending you money with PayPal.

:confused:

EDIT: Okay, I get it now. This implies for Indian customers.

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apoorv.parijat

13 years ago

Originally Posted by schwarzes

Paypal has always had problems with India. I am an Indian but I am not in India anymore.

Yes you are right, unless you verify your CC, you wont be able to use your "Paypal Balance"..

I think RBI is being very strict on Paypal now. Just around 6 months back, they had stopped electronic transfers !!

Indian users really need to look for an alternative.

The other things aren't really that big a problem but that you can't send payments (or so it sounds) IS a big deal.

Originally Posted by webfighter

I am confused too.

Okay, I get that.

But, how does the above statement imply:

:confused:

Exactly! I'm confused on the same.

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Patrick

13 years ago

Originally Posted by apoorv.parijat

The other things aren't really that big a problem but that you can't send payments (or so it sounds) IS a big deal.

Exactly! I'm confused on the same.

The other things are a big problem as well. If paypal stops electronic funds transfer to India, just imagine the consequences.

You have to withdraw by cheque then, which usually takes around 2 MONTHS !! And the cheques are sent by normal post and not special ! Since you are in India, you must be knowing the postal service there and how "dedicted" they are towards their work.

Other than this, if there is a dispute or if your customer asks for a refund, then your WHOLE payment is stopped, and then add another month to it for dispute clearance, and another two for the next REVISED cheque ..

So you will be getting your cash after around 5 months and you say its not a big problem lol...

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apoorv.parijat

13 years ago

Originally Posted by schwarzes

The other things are a big problem as well. If paypal stops electronic funds transfer to India, just imagine the consequences.

You have to withdraw by cheque then, which usually takes around 2 MONTHS !! And the cheques are sent by normal post and not special ! Since you are in India, you must be knowing the postal service there and how "dedicted" they are towards their work.

Other than this, if there is a dispute or if your customer asks for a refund, then your WHOLE payment is stopped, and then add another month to it for dispute clearance, and another two for the next REVISED cheque ..

So you will be getting your cash after around 5 months and you say its not a big problem lol...

No, I was referring to the other things as in the ones mentioned in the current update. Not the NEFT transfers mess... I thought that was cleared last time around. If that happens, yes, that is indeed a big problem.

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Ronak Shah

13 years ago

Hey guys,

I received this email from PayPal:

Code:

Dear Ronak Shah,

As part of our commitment to provide a high level of customer service, we would like to give you a 30-day advance notice on changes to our user agreement for India.

With effect from 1 March 2011, you are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways ("RBI Guidelines").

In order to comply with the RBI Guidelines, our user agreement in India will be amended for the following services as follows:
Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and

Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
We seek your understanding as we continue to employ our best efforts to comply with the RBI Guidelines in a timely manner.

We regret any inconvenience caused to you and hope the advance notice will enable you to plan your future use of our services accordingly. For further information, click here.

If you have any questions, please contact PayPal customer support by logging into your PayPal account and clicking on 'contact us' at the bottom of the page. We sincerely thank you for your patience and continued support.

Sincerely,

The PayPal Team

Ridiculous! RBI is really killing our business. I hate it!

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iuditg

13 years ago

Just got an email to. Even I am confused with the new guide lines. What if I don't withdraw within 7 days ? Also what if I have less then 7000 Rs. while withdrawing will the fees still apply ?

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Patrick

13 years ago

Originally Posted by iuditg

Just got an email to. Even I am confused with the new guide lines. What if I don't withdraw within 7 days ? Also what if I have less then 7000 Rs. while withdrawing will the fees still apply ?

Dont worry about the 7 days thing. Earlier they had a 30 days limit where it was mentioned that you have to withdraw your funds within 30 days, but it was not true. I had called paypal to ask about this too, and they said nothing will happen if you dont withdraw.

Just feel lucky that they are allowing electronic funds transfer, which only takes around 3-4 days

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AaRGeE

Banned 13 years ago

Everything was just fine, I dont have a problem withdrawing my money within 7 days but I do have a problem about $500 limit.

this sucks...

Well atleast they give us a 30 days time before implanting this..!

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apoorv.parijat

13 years ago

Originally Posted by AaRGeE

Everything was just fine, I dont have a problem withdrawing my money within 7 days but I do have a problem about $500 limit.

this sucks...

Well atleast they give us a 30 days time before implanting this..!

Hopefully it gets sorted out like the last time.

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raj5151

13 years ago

Originally Posted by AaRGeE

Everything was just fine, I dont have a problem withdrawing my money within 7 days but I do have a problem about $500 limit.

this sucks...

Well atleast they give us a 30 days time before implanting this..!

Withdrew in 7 days ok, but $500 limit is bad :-(

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iuditg

13 years ago

Same kinda thing happened a year ago to in feb and now same stuff again

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Patrick

13 years ago

It is just one of the ways RBI babus can shell out some cash from Paypal.

They are desperately trying to develop some kind of rules or regulations, so that Paypal has to bend down in front of them.

I wonder why RBI does not take any action against other services like xoom.com and why only Paypal is the troubled one.

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seasoned

13 years ago

Obviously, the indian government wants ALL control of indian money, and Paypal is a major player that has denied them that. They WANT paypal to pay them though!

SO, *****ALL***** money in india, INCLUDING what paypal brings in, they want ASAP! Since that would prevent paypal from bringing money IN from elsewhere, they allow THAT to take 7 days!

If you think like a greedy bureaucrat, it makes PERFECT sense! Indians can't buy using paypal, because the government loses control, so paypal can only use credit cards. And indians have to shift money from the american paypal into the indian banks in 7 days. This ALSO means that indian banks make more money, and get advantage of the float. ALSO, if it is indian bank to indian bank, the money stays in indian hands throughout.

Paypal USUALLY transfers money NOW, and basically holds money, so they can use it LATER! These RBI actions ALSO mean that paypal's costs will go UP for indian accounts! They may end up raising prices! If they do, you can blame the RBI!

Steve

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princesolo 13 years ago

paypal india users, thank GOD THAT YOU ARE STILL GIVING THE OPPORTUNITY TO OWN AN ACCOUNT, A LOT OF ACCOUNT HAS BEEN FROZEN WITHOUT REASONS AND A LOT OF COUNTRY HAS BEEN EXEMPTED FROM USING THE SERVICE
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entry 13 years ago

Why does paypal have issues with India?
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- iuditg 13 years ago
  
  Originally Posted by entry
  
  Why does paypal have issues with India?
  
  Paypal doesn't have issues with India, it's RBI who has issues with paypal and Indian freelancers !!
  
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drmani

13 years ago

Originally Posted by seasoned

Obviously, the indian government wants ALL control of indian money

Steve, the Indian Government, as a policy, has always insisted
on having rather more control over foreign exchange (in and out)
than many liberal economies. It has served the nation well in
the past, during the early era of liberalization and might now
be becoming a relic that hangs on the neck of a growing capitalist
marketplace like a deadweight.

Interesting reading is Gurcharan Das' "India Unbound"

They WANT paypal to pay them though!

More to the point, they want all PayPal USERS to pay them - and
this brings all this forex income into the tax net.

Indians can't buy using paypal, because the government loses control, so paypal can only use credit cards.

Right. But that's always been economic policy. In 1995, there
was a ceiling of an individual spending $10,000 per year in total,
which would be endorsed on one's passport!

Today, the limit is higher (not sure just how much), but still
exists. It's different for individuals vs businesses. And
there are a gazillion laws and regulations, which only a specialist
accountant can afford to stay on top of. Which is why any Indian
business or freelancer even would be well advised to consult with
such a specialist asap.

And indians have to shift money from the american paypal

Actually, Indian PayPal users are governed by the subsidiary that's
based in Singapore. AFAIK, it's a unique entity from PayPal USA.

into the indian banks in 7 days. This ALSO means that indian banks make more money, and get advantage of the float.

Nothing to do with the float. If at all, PP gains from the float
as the withdrawals are debited to the user's account INSTANTLY,
but will be deposited in a bank account in anywhere upto 10
business days.

And the deposit is done in Indian rupees only, at the prevailing
exchange rate. So the Indian banks don't hold cash in abeyance
for any length of time, once again that's as far as I know from
my own bank withdrawals from PP.

Paypal USUALLY transfers money NOW, and basically holds money, so they can use it LATER! These RBI actions ALSO mean that paypal's costs will go UP for indian accounts! They may end up raising prices! If they do, you can blame the RBI!

And absolve PayPal who has always benefited from the interest
and income on their MASSIVE float, Steve?

I take your point, though, about costs going up. The company
has to find another way to cover that 'loss', after all!

All success
Dr.Mani

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Deepak Media

13 years ago

Originally Posted by drmani

Steve, the Indian Government, as a policy, has always insisted
on having rather more control over foreign exchange (in and out)
than many liberal economies. It has served the nation well in
the past, during the early era of liberalization and might now
be becoming a relic that hangs on the neck of a growing capitalist
marketplace like a deadweight.

Interesting reading is Gurcharan Das' "India Unbound"

More to the point, they want all PayPal USERS to pay them - and
this brings all this forex income into the tax net.

Right. But that's always been economic policy. In 1995, there
was a ceiling of an individual spending $10,000 per year in total,
which would be endorsed on one's passport!

Today, the limit is higher (not sure just how much), but still
exists. It's different for individuals vs businesses. And
there are a gazillion laws and regulations, which only a specialist
accountant can afford to stay on top of. Which is why any Indian
business or freelancer even would be well advised to consult with
such a specialist asap.

Actually, Indian PayPal users are governed by the subsidiary that's
based in Singapore. AFAIK, it's a unique entity from PayPal USA.

Nothing to do with the float. If at all, PP gains from the float
as the withdrawals are debited to the user's account INSTANTLY,
but will be deposited in a bank account in anywhere upto 10
business days.

And the deposit is done in Indian rupees only, at the prevailing
exchange rate. So the Indian banks don't hold cash in abeyance
for any length of time, once again that's as far as I know from
my own bank withdrawals from PP.

And absolve PayPal who has always benefited from the interest
and income on their MASSIVE float, Steve?

I take your point, though, about costs going up. The company
has to find another way to cover that 'loss', after all!

All success
Dr.Mani

Just bought India Unbound from flipkart.com... let's see what it has.

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seasoned

13 years ago

Originally Posted by drmani

More to the point, they want all PayPal USERS to pay them - and
this brings all this forex income into the tax net.

But the paypal users CAN'T just simply pay them. The money has to somehow get from one account to another. GRANTED, the government caan TRY to change that, but they have no control over the current standard. and switching to another probably won't be adopted.

Originally Posted by drmani

Right. But that's always been economic policy. In 1995, there
was a ceiling of an individual spending $10,000 per year in total,
which would be endorsed on one's passport!

THAT is different. The US does that SAME sort of thing now with THEIR citizens, regarding export of funds and transactions, although the total is often just tracked and by transaction, in the name of fighting the drug war and money laundering.

Originally Posted by drmani

Actually, Indian PayPal users are governed by the subsidiary that's
based in Singapore. AFAIK, it's a unique entity from PayPal USA.

STILL, the result is the same.

Originally Posted by drmani

Nothing to do with the float. If at all, PP gains from the float
as the withdrawals are debited to the user's account INSTANTLY,
but will be deposited in a bank account in anywhere upto 10
business days.

And the deposit is done in Indian rupees only, at the prevailing
exchange rate. So the Indian banks don't hold cash in abeyance
for any length of time, once again that's as far as I know from
my own bank withdrawals from PP.

Again, Same result. The bank DOES benefit from A float, and gets benefit EVEN when it is in your account and you can use it. In fact, banks generally DON'T have enough to cover deposits. The laws even allow it. THAT is why runs on banks are so devastating.

Originally Posted by drmani

And absolve PayPal who has always benefited from the interest
and income on their MASSIVE float, Steve?

I take your point, though, about costs going up. The company
has to find another way to cover that 'loss', after all!

All success
Dr.Mani

My point was that paypal DOES benefit from the float and ALSO can reduce costs, by limiting 3rd party transactions. The RBI laws reduce the float and effectively increase costs with 3rd party transactions.

Steve

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Patrick

13 years ago

RBI is a corrupt kid.

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iuditg 13 years ago

Originally Posted by schwarzes

RBI is a corrupt kid.

lol !! I agree

They are bunch of losers nothing else !!
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drmani

13 years ago

Originally Posted by apoorv.parijat

New rules: https://www.paypal-apac.com/india/

Forex laws in India have remained pretty much constant
over the last 15 years in respect of what Indian citizens
are permitted to send out of (and bring into) the country.

One significant change has been the taxability of the in-
coming forex, which prior to 2001 or so was 100% tax-exempt,
then became partially taxed, and is now (to my best
knowledge - and I am NOT a tax advisor, consultant, attorney
or accountant) fully taxable as income.

Until now, PayPal has been pretty lax about complying with
these regulations, to the point many relatively new users
of PayPal for online business assume that this is a change
in basic laws and forex regulations.

The recent directive makes sure PayPal is in compliance
with the broad guidelines that have always been in effect
since I first started working online. It may be worth
studying documents pertaining to FEMA and FCRA (if you're
a non-profit entity, especially) before 'blaming' PP or
any other organization for these "new" rules.

If all online processors become equally effective in their
implementation of these rules, then things should get quite
interesting, quite fast!

Disclaimer: All of this is OPINION. Not recommendation or
even 'proven' knowledge. Take it for what it is - a
comment on a discussion forum - and do your own due
diligence. After all, it's YOUR business!

All success
Dr.Mani

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Shardul Doshi

13 years ago

Argh. I guess this means that we can't even bump threads here as we can't send money.

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Shardul Doshi

13 years ago

This means that your customers will need to link a credit card to their account in before sending you money with PayPal.

I guess this means that customers will also not be able to send us money from their paypal balance. They should have a cc linked.

Can we accept $450 from the same client, twice?

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Shardul Doshi

13 years ago

Can we use 2checkout instead? I am not sure about how it works, but they do accept paypal payments. I am so irritated with all this. *researching more*...

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FredJones

13 years ago

Oh I just launched another thread, didn't see this one (just woke up and got this terrific news so)...

But do you realize, it is again Paypal who is at fault and not RBI?

Here's why: link.

Unfortunately, we are dealing with a toy merchant in Paypal, not a company that really talks serious business. They want to be a financial body but don't want to go by the regulations. So the blame unfrtunately lies with Paypal.

If you are too lazy to read the link, the problem is NOT that RBI has got partial against Paypal and not letting them do transactions bigger than $500.

It is that Paypal is expected to officially report any transaction that's worth more than $500 and that's what it is avoiding, and passing the buck to RBI. Shame on Paypal for this.

Further, they would need a "bank" designation if they want to hold money for more than 7 days. Absolutely, makes sense. What stops Paypal from investing and gathering interest out of innocent users' money? If they had been diligent enough to apply for a "bank" designation (which they would do if they were serious about running a money holding business as they do of now), then this would have never happened.

Yes, I believe 2CO and similar organizations would also have an option to accept Paypal. The same should apply to Clickbank too.

Does anyone know, can one run a service using Clickbank as a payment processor? I was thinking about this last night (incidentally, before I had received Paypal notification), simply because Paypal is too much of a headache - accounts get blocked for no reason all the time.

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Patrick

13 years ago

Originally Posted by FredJones

Unfortunately, we are dealing with a toy merchant in Paypal, not a company that really talks serious business. They want to be a financial body but don't want to go by the regulations. So the blame unfrtunately lies with Paypal.

Why should Paypal report to the RBI ? I know they just want to get a report out of them, but this can also be done by RBI by monitoring our accounts, since we have to enter the PAN Card numbers these days. I dont know if this can be done, but maybe possible.

Secondly, if Paypal is creating so much of a problem for RBI, why dont they come to a conclusion once and for all. Why every year something or the other happens and the users are the ones who suffer.

About getting control of Paypal, I am sure RBI's intention to keep Paypal under their power and fish out money from so that they can create a lot of "commonWealth"

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FredJones

13 years ago

Yes, you enter PAN in Paypal's account. But why? To ensure that when Paypal reports to RBI, Paypal reports with the right PAN. RBI or anyone else can never magically figure out who did the transaction in Paypal just because Paypal knows their PAN, unless Paypal also tells RBI who (which person with the given PAN) is doing the transaction.

Further, why should RBI sit with Paypal? It is Paypal who needs to solve it once and for all, not RBI. RBI has their standard procedure of letting financial institutions operate in India and every single institution that operates in India today adheres to that. Why in the world should Paypal be an exception?

RBI does not want anyone to be "in their power" but it would certainly want to keep financial bodies operating in India to remain within the legal regulations.

Name 1 single country in the entire world where that does not happen? I would be blown away if you could name a country where performing monetary transactions are legal if done without adhering to the financial constitution of a country.

About "monitoring our accounts", that's exactly what RBI is asking for. Read carefully, they have no problem to let Paypal operate on transactions over $500. They want the reports to arrive to them so that they can monitor our accounts. And it is Paypal that's playing with the law in this case. In other words, it is Paypal who is pretending that there is no way that RBI could let them do transactions over $500, which is a complete lie to say the least.

Originally Posted by schwarzes

Why should Paypal report to the RBI ? I know they just want to get a report out of them, but this can also be done by RBI by monitoring our accounts, since we have to enter the PAN Card numbers these days. I dont know if this can be done, but maybe possible.

Secondly, if Paypal is creating so much of a problem for RBI, why dont they come to a conclusion once and for all. Why every year something or the other happens and the users are the ones who suffer.

About getting control of Paypal, I am sure RBI's intention to keep Paypal under their power and fish out money from so that they can create a lot of "commonWealth"

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Patrick

13 years ago

Originally Posted by FredJones

Yes, you enter PAN in Paypal's account. But why? To ensure that when Paypal reports to RBI, Paypal reports with the right PAN. RBI or anyone else can never magically figure out who did the transaction in Paypal just because Paypal knows their PAN, unless Paypal also tells RBI who (which person with the given PAN) is doing the transaction.

Further, why should RBI sit with Paypal? It is Paypal who needs to solve it once and for all, not RBI. RBI has their standard procedure of letting financial institutions operate in India and every single institution that operates in India today adheres to that. Why in the world should Paypal be an exception?

RBI does not want anyone to be "in their power" but it would certainly want to keep financial bodies operating in India to remain within the legal regulations.

Name 1 single country in the entire world where that does not happen? I would be blown away if you could name a country where performing monetary transactions are legal if done without adhering to the financial constitution of a country.

About "monitoring our accounts", that's exactly what RBI is asking for. Read carefully, they have no problem to let Paypal operate on transactions over $500. They want the reports to arrive to them so that they can monitor our accounts. And it is Paypal that's playing with the law in this case. In other words, it is Paypal who is pretending that there is no way that RBI could let them do transactions over $500, which is a complete lie to say the least.

Well first of all, Paypal is NOT a bank. Paypal is a money transfer service which you can use to accept international payments into your bank. So why should Paypal be treated as a BANK.

Paypal amounts are withdrawn to the bank who report to the RBI, doesnt this solve the problem of knowing how much one made this month through Paypal ?

However, I think this step by Paypal will stop RBI from whining anymore, because you have to transfer money within 7 days and you cant send payments. So your bank will know how much you got in the CURRENT month.

So its not Paypal, its just the RBI guidelines which Paypal is following now. This is just a step to stop black money coming into India.

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donhx

13 years ago

Originally Posted by FredJones

Oh I just launched another thread, didn't see this one (just woke up and got this terrific news so)...

But do you realize, it is again Paypal who is at fault and not RBI?

Here's why: link.

I'm not sure this is a helpful link or analysis. The Indian Warriors here probably have a better handle on it rather than someone who worked for RBI seven years ago.

The fact is, PayPal went through these headaches with several states in the US back in the late 1990s. They banned PayPal because they were acting like a financial institution, but were not registered as a bank. Fortunately, the laws in the US were amended so PayPal could act as a money transfer company without being a bank.

PayPal is facing the same issue in India all these years later. As you see from these posts, India is very strict about foreign exchange, and Americans are not used to that concept. I once lived in a foreign country where you had to get permission from the government if you wanted to buy a subscription to a foreign magazine...they just didn't want to let money out of the country.

People love to blame PayPal. It seems to be an obsession for some. However, this really does look like it relates to India's foreign exchange policy. PayPal does not want to become a bank, and that's their right. The RBI seems to be forcing the issue like some states did here a dozen years ago, and it's unfortunate that people get caught on the middle. PayPal could just stop service to India as it does to many other countries. At least PayPal is trying to play by the rules set up by the RBI. That is to PayPal's credit.

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FredJones

13 years ago

Playing to RBI's rules is certainly going to be Paypal's credit going forward.

But Paypal is still not a money transfer company - since they hold the money for an undefined duration. RBI's policy is going to define that.

Plus, any high-value transfer (whether $500 is high or not is a different matter altogether) of International currency is accounted for anywhere. I mean, don't you have to declare the foreign currency you are carrying into the USA is that is more than a certain amount, if you are traveling into the USA?

Again, other money transfer services like Western Union etc work perfectly well in India. I'm not saying that RBI should not amend their rules, but that has to follow a process.

Hope that happens... India, after all, is a progressive country that's rising.

Originally Posted by donhx

I'm not sure this is a helpful link or analysis. The Indian Warriors here probably have a better handle on it rather than someone who worked for RBI seven years ago.

The fact is, PayPal went through these headaches with several states in the US back in the late 1990s. They banned PayPal because they were acting like a financial institution, but were not registered as a bank. Fortunately, the laws in the US were amended so PayPal could act as a money transfer company without being a bank.

PayPal is facing the same issue in India all these years later. As you see from these posts, India is very strict about foreign exchange, and Americans are not used to that concept. I once lived in a foreign country where you had to get permission from the government if you wanted to buy a subscription to a foreign magazine...they just didn't want to let money out of the country.

People love to blame PayPal. It seems to be an obsession for some. However, this really does look like it relates to India's foreign exchange policy. PayPal does not want to become a bank, and that's their right. The RBI seems to be forcing the issue like some states did here a dozen years ago, and it's unfortunate that people get caught on the middle. PayPal could just stop service to India as it does to many other countries. At least PayPal is trying to play by the rules set up by the RBI. That is to PayPal's credit.

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SamirSM

13 years ago

Originally Posted by donhx

I'm not sure this is a helpful link or analysis. The Indian Warriors here probably have a better handle on it rather than someone who worked for RBI seven years ago.

The fact is, PayPal went through these headaches with several states in the US back in the late 1990s. They banned PayPal because they were acting like a financial institution, but were not registered as a bank. Fortunately, the laws in the US were amended so PayPal could act as a money transfer company without being a bank.

PayPal is facing the same issue in India all these years later. As you see from these posts, India is very strict about foreign exchange, and Americans are not used to that concept. I once lived in a foreign country where you had to get permission from the government if you wanted to buy a subscription to a foreign magazine...they just didn't want to let money out of the country.

People love to blame PayPal. It seems to be an obsession for some. However, this really does look like it relates to India's foreign exchange policy. PayPal does not want to become a bank, and that's their right. The RBI seems to be forcing the issue like some states did here a dozen years ago, and it's unfortunate that people get caught on the middle. PayPal could just stop service to India as it does to many other countries. At least PayPal is trying to play by the rules set up by the RBI. That is to PayPal's credit.

Oh please!

No country in the world should follow the US monetary and fiscal policies!

Do you never realize your mistakes?

Having control over financial transactions is to prevent financial nightmares which could and do cause a domino effect throughout the economy and related economies.

Paypal carries out transactions in billions of dollars, and doesn't want to be held accountable for it, just for the purpose of Tax Evasion!

If nothing shady is going on, what is the purpose of not disclosing transaction details?

When you hold forex belonging to another country without reporting it accurately to the country's financial regulators, is it not fraud?

Paypal's current policies are purely their choice, and that is in no way arguable in a court of law.

It is up to us Indians to decide whether or not to use Paypal, and we can't force them to change their policies.

Thanks
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SamirSM 13 years ago

The most sensible things to do now would be to

1.Seriously start looking for other money transfer alternatives

2.Pay for all domains and web hosting for as long as possible

3.Get credit cards if we don't have any currently

4.Start looking for debit cards that allow electronic transfers.

Let us not forget that Paypal is an ALTERNATIVE to credit and debit cards.

So, why the fuss?
- Thanks
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Patrick

13 years ago

Originally Posted by indihow

Oh please!

No country in the world should follow the US monetary and fiscal policies!

Do you never realize your mistakes?

Having control over financial transactions is to prevent financial nightmares which could and do cause a domino effect throughout the economy and related economies.

Paypal carries out transactions in billions of dollars, and doesn't want to be held accountable for it, just for the purpose of Tax Evasion!

If nothing shady is going on, what is the purpose of not disclosing transaction details?

When you hold forex belonging to another country without reporting it accurately to the country's financial regulators, is it not fraud?

Paypal's current policies are purely their choice, and that is in no way arguable in a court of law.

It is up to us Indians to decide whether or not to use Paypal, and we can't force them to change their policies.

If this was the issue, then Paypal would have problems with ALL the countries. Why does Paypal have an issue ONLY with India and that too in frequent intervals.

Once again, note this, Paypal is a money transfer service and NOT a bank, there is a huge difference between the two.

Thanks
1 reply

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SamirSM

13 years ago

Originally Posted by schwarzes

If this was the issue, then Paypal would have problems with ALL the countries. Why does Paypal have an issue ONLY with India and that too in frequent intervals.

Once again, note this, Paypal is a money transfer service and NOT a bank, there is a huge difference between the two.

Well if it is not a bank, it shouldn't hold the money!

Then even 7 days is not a valid holding time!

Thanks
2 replies

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Patrick 13 years ago

Originally Posted by indihow

Well if it is not a bank, it shouldn't hold the money!

Then even 7 days is not a valid holding time!

Its the PEOPLE who are holding money. Paypal transfers the money INSTANTLY. Paypal doesnt say we keep your money for 10 days and then send it to you.
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- SamirSM 13 years ago
  
  Originally Posted by schwarzes
  
  Its the PEOPLE who are holding money. Paypal transfers the money INSTANTLY. Paypal doesnt say we keep your money for 10 days and then send it to you.
  
  Do you understand what a bank is?
  
  The PEOPLE are holding money because they are being allowed to.
  
  That allowance is permitted only for BANKS!
  
  Thanks
  
  1 reply
  
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  FredJones 13 years ago
  
  Good to see someone talking sense here.
  
  Paypal is pretending not to be a bank but doing everything that a bank is authorized to do in this case. I understand RBI's standpoiint but not Paypal's.
  
  And by the way, Paypal makes a good cut also on the Forex (beside the normal transaction charges). The difference in the Forex daily value and Paypal value on that Forex is significant on every single day. This of course means that they are working as a Forex Brokerage Agency (and remember, they do the Forex thing, and do not ever show any proof of working with any other Forex partner so it is Paypal's responsibility only and no-one else's) - which simply can not hold money because of the fact that if they hold the money then base price of the buying and selling of the dollar shift with time. Hence forget 7 days, they should not hold it for a single moment. They have the bank account details, heck, why not transfer to the banks on the same day automatically? If they do not want to become a bank, that's what they should do. I still feel they are in grace if they can hold the money for 7 days if they are complying with a bank license. Govt of India is giving them a grace as I see it, which they need not have given is my understanding.
  
  Originally Posted by indihow
  
  Do you understand what a bank is?
  
  The PEOPLE are holding money because they are being allowed to.
  
  That allowance is permitted only for BANKS!
  
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SamirSM 13 years ago

The current financial meltdown in the US is a result of the bending of rules by the regulatory authorities to fund wars.

Unless there is a change in policies, this will keep on happening time and again.

Playing by the rules might be inconvenient but it won't allow you to keep piling maxed out cards without any responsibility.

Paypal behaves like a bank and to prevent appropriate regulation and taxation, claims it is not!
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iuditg

13 years ago

Paypal is so widely recognized that even boycotting them won't solve our problem. Most people uses paypal and we got very few people who actually uses other services like alertpay or moneybookers so this is surely gonna be mess the workflow for most of the service provider -.-

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Karan Goel

13 years ago

Apparently, RBI is starting to hate Indians.

Karan

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tritrain

13 years ago

What is RBI?

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Patrick 13 years ago

RBI is the Reserve Bank of India...which controls all the banks within India..
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SamirSM 13 years ago

Originally Posted by tritrain

What is RBI?

Oh come on! Google is not just for getting traffic! []

Reserve Bank of India

Like the Federal Reserve of the US, the apex financial institution regulating all others.
- Thanks
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Patrick

13 years ago

Well it is international money and I have the full right to withdraw it when I want. No one can force me to withdraw the money that I earn.

If for example, you work for a client and he says that he will pay after 10 days who is living in the USA or Canada. This way he is also holding your money. Will you call him a BANK too ?? LOL

Thanks
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SamirSM

13 years ago

Originally Posted by schwarzes

Well it is international money and I have the full right to withdraw it when I want. No one can force me to withdraw the money that I earn.

If for example, you work for a client and he says that he will pay after 10 days who is living in the USA or Canada. This way he is also holding your money. Will you call him a BANK too ?? LOL

You seriously need to learn some definitions!

The money not yet paid is debt, if you've fulfilled the service or transferred the product.

You could also charge interest if you wish to!

No one can force you to withdraw the money you earn only if you live in an island with your own government.

Do you realize how people could live through Paypal without paying a single penny in taxes?

Thanks
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Shynash21 13 years ago

Do you realize how people could live through Paypal without paying a single penny in taxes?

what more tax you want us to pay...we got income tax,sales tax,entertainment tax,service tax,gift tax and blah blah blah just to fill the greedy rbi's stomachs

and like someone said here before this is international money...the government has no right to intefere

so what if paypal allows users to hold funds...paypal understands which apparently rbi do not that if i get money through my hard earned work i have the right to do whatever i want with it
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Patrick

13 years ago

I dont understand why you are blowing it all on Paypal, when you know that Paypal is the most popular and secured platform for online transactions.

Just consider this scenario.

You offer a product with a 30 day money back guarantee. Your customer pays you the money and the money transferred to your bank. You have to pay the tax for that income. After 20 days the customer asks for a refund. You pay him by CC, which would include many other charges.

So you will be paying taxes, plus credit card charges for something which you have not even EARNED.

Thanks
1 reply

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SamirSM

13 years ago

Originally Posted by schwarzes

I dont understand why you are blowing it all on Paypal, when you know that Paypal is the most popular and secured platform for online transactions.

Just consider this scenario.

You offer a product with a 30 day money back guarantee. Your customer pays you the money and the money transferred to your bank. You have to pay the tax for that income. After 20 days the customer asks for a refund. You pay him by CC, which would include many other charges.

So you will be paying taxes, plus credit card charges for something which you have not even EARNED.

This is exactly why the US is in a financial meltdown.

You are only thinking from your point of view, and that too without any future considerations.

When the government fails to regulate the cash flow and debt in any country, leading to a breakdown in the economy, we blame the government and no one else.

When we max out our credit cards and have mortgaged all our properties we blame the government and ask for unemployment money.

You don't want to pay appropriate taxes, you don't want to be responsible for your Taxable income declaration and want shortcuts in every single activity, you get what you deserve.

No one is blowing it all out on Paypal.

At least I'm not. All I'm saying is that the RBI's standpoint is valid. And so is Paypal's pseudo-logically, but not legally.

Rather than complaining about fees and charges think for a second whether Paypal, holding billions of dollars each day, should be regulated or not.

Whether you want to be protected from a Paypal fraud or not.

If not, it's your funeral. If yes, stop whining.

Thanks
1 reply

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Patrick

13 years ago

Rather than complaining about fees and charges think for a second whether Paypal, holding billions of dollars each day, should be regulated or not.

HAHA..Now you have a problem with Paypal earning billions ! LOL...

When the government fails to regulate the cash flow and debt in any country, leading to a breakdown in the economy, we blame the government and no one else.

Another joke ! People in so many countries use Paypal. Why have they not suffered like USA ??

Whether you want to be protected from a Paypal fraud or not.

If not, it's your funeral.

HAHA..Do you use Paypal ? I am sure you do and I am sure you are ENJOYING their service.

Oh! And I also see a blog post about paypal in your website. Why are you promoting paypal in your blog if you think they are fraud ?

If yes, stop whining.

lol...its you who is whining about paypal mate..

Thanks
3 replies

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SamirSM

13 years ago

Originally Posted by schwarzes

HAHA..Now you have a problem with Paypal earning billions ! LOL...

Another joke ! People in so many countries use Paypal. Why have they not suffered like USA ??

HAHA..Do you use Paypal ? I am sure you do and I am sure you are ENJOYING their service.

Oh! And I also see a blog post about paypal in your website. Why are you promoting paypal in your blog if you think they are fraud ?

lol...its you who is whining about paypal mate..

Dude I'm not out to condemn Paypal or Advertise RBI.

What I'm saying is RBI needs to monitor and regulate Paypal transactions to prevent possible Tax and Forex frauds.

I'm happy that Paypal holds billions of dollars, because it reflects how much it helps people.

Again, holding billions of dollars without being transparent about the transactions may possibly lead to fraud.

Paypal didn't lead to financial meltdown. It is the bending of rules by the US financial regulators that did.

I'm not whining about Paypal. I'm saying that what is happening right now is Paypal's attempt to strip down services to avoid monitoring and regulation.

I do understand that Paypal is a business out there for profit, and it will definitely try to gain from forex transactions and avoid paying taxes as far as possible, but such a company isn't the most reliable.

Lack of knowledge is not a justifiable reason for arbitrary accusations AND/OR getting defrauded.

I am using Paypal and will keep using it, but won't mortgage my intelligence

[ 2 ] Thanks
1 reply

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FredJones

13 years ago

Could not be more in sync with you on this matter. Perfect said there. Paypal is not realiable and lacks transparency, and that's the bottom line of the whole story.

Originally Posted by indihow

I do understand that Paypal is a business out there for profit, and it will definitely try to gain from forex transactions and avoid paying taxes as far as possible, but such a company isn't the most reliable.

Lack of knowledge is not a justifiable reason for arbitrary accusations AND/OR getting defrauded.

I am using Paypal and will keep using it, but won't mortgage my intelligence

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FredJones 13 years ago

Please read carefully, he never had a problem with Paypal earning. He is talking about Paypal holding money. Do you realize that these two are different?

Originally Posted by schwarzes

HAHA..Now you have a problem with Paypal earning billions ! LOL...
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- Patrick 13 years ago
  
  Originally Posted by FredJones
  
  Please read carefully, he never had a problem with Paypal earning. He is talking about Paypal holding money. Do you realize that these two are different?
  
  I dont understand that if you two have so much problems with paypal and think they are fraud and what not, why are you using it
  
  It is just like going to have a burger in McDonalds everyday and then calling them fraud
  
  Thanks
  
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SamirSM 13 years ago

Oh! And I also see a blog post about paypal in your website. Why are you promoting paypal in your blog if you think they are fraud ?

Thanks for reminding me about my blog post though.

I needed to update certain things.
- Thanks
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raybanmy 13 years ago

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Shynash21

13 years ago

i think indihow is appointed by the rbi to defend thier greedy deeds...and for all i know he is not doing a good job...lol

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SamirSM 13 years ago

Originally Posted by Shynash21

i think indihow is appointed by the rbi to defend thier greedy deeds...and for all i know he is not doing a good job...lol

RBI is an autonomous financial regulatory insitution and not a private company like Paypal which needs to promote itself.

If you consider regulating forex and preventing tax fraud to be greed, then it is pointless debating anything with you

And RBI doesn't need defending. It will do what it wishes anyhow.
- Thanks
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Rukshan

13 years ago

Don't worry. There are many ways to collect paypal payments by using a merchant account. For an example 2co, Fastspring and plimus are widely used by Internet marketers. After you collecting the payments from customers, then you can use a payoneer card or wire transfer to local bank account. It needs few more weeks. But this is great solution for all indians

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gskesavan

13 years ago

Andrew Hansen had written about paypal and advised his readers to not use it. I shoulda listened then !!!! LOL transferring all the money back to my account and gonna close my paypal.

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FredJones

13 years ago

Don't close it right now, there is no point.

I heard 2CO gives you weekly payment.

Can anyone confirm whether they let you refund also? And whether they are at par with some of the other facilities that Paypal gives like integration with something like Rapid Action Profits, WSO Pro etc?

Originally Posted by gskesavan

Andrew Hansen had written about paypal and advised his readers to not use it. I shoulda listened then !!!! LOL transferring all the money back to my account and gonna close my paypal.

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nvs74191

13 years ago

What this means is the following:

1. You cannot pay for products and services from your paypal balance. You necessarily have to transfer your paypal balance (meaning, whatever you earn for your products and sevices using paypal payment button) to your Indian bank account.

This helps the RBI (Reserve Bank of India, India's central bank) to monitor the flow of funds in and out of the country. It is not just accounting, but a way of preventing unauthorised use of money, like, say, funding terrorism, etc.

2. You can continue to pay for goods and services using your paypal account, if you have linked your credit card to the paypal account.

3. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction. This means, your products and services cannot be priced beyond $500 per unit. If you wish to sell high priced goods and services, use some other authorized payment gateway or get a merchant account of your own.

Hope this helps.

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FredJones 13 years ago

To me what it also means is that I cannot have a 8-day vacation without worrying about my business. I explain the reason in details here.
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Sid Hale

13 years ago

Thank you,

After reading through all these posts (almost all of which have mis-interpreted the entire issue) - a breath of fresh air!

Originally Posted by nvs74191

What this means is the following:

1. You cannot pay for products and services from your paypal balance. You necessarily have to transfer your paypal balance (meaning, whatever you earn for your products and sevices using paypal payment button) to your Indian bank account.

This helps the RBI (Reserve Bank of India, India's central bank) to monitor the flow of funds in and out of the country. It is not just accounting, but a way of preventing unauthorised use of money, like, say, funding terrorism, etc.

2. You can continue to pay for goods and services using your paypal account, if you have linked your credit card to the paypal account.

3. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction. This means, your products and services cannot be priced beyond $500 per unit. If you wish to sell high priced goods and services, use some other authorized payment gateway or get a merchant account of your own.

Hope this helps.

This is spot on! Can't believe it has taken 2 pages of discussion for something that you have summarized so well.

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apoorv.parijat

13 years ago

Thank you, that clears everything for me!

Originally Posted by nvs74191

What this means is the following:

1. You cannot pay for products and services from your paypal balance. You necessarily have to transfer your paypal balance (meaning, whatever you earn for your products and sevices using paypal payment button) to your Indian bank account.

This helps the RBI (Reserve Bank of India, India's central bank) to monitor the flow of funds in and out of the country. It is not just accounting, but a way of preventing unauthorised use of money, like, say, funding terrorism, etc.

2. You can continue to pay for goods and services using your paypal account, if you have linked your credit card to the paypal account.

3. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction. This means, your products and services cannot be priced beyond $500 per unit. If you wish to sell high priced goods and services, use some other authorized payment gateway or get a merchant account of your own.

Hope this helps.

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vishalduggal

13 years ago

Originally Posted by nvs74191

What this means is the following:

1. You cannot pay for products and services from your paypal balance. You necessarily have to transfer your paypal balance (meaning, whatever you earn for your products and sevices using paypal payment button) to your Indian bank account.

This helps the RBI (Reserve Bank of India, India's central bank) to monitor the flow of funds in and out of the country. It is not just accounting, but a way of preventing unauthorised use of money, like, say, funding terrorism, etc.

2. You can continue to pay for goods and services using your paypal account, if you have linked your credit card to the paypal account.

3. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction. This means, your products and services cannot be priced beyond $500 per unit. If you wish to sell high priced goods and services, use some other authorized payment gateway or get a merchant account of your own.

Hope this helps.

1. And what about the 7 days limit of withdrawal?
2. Can people still buy our products and services using PayPal buy now buttons? Or they too have to link any credit card to pay Indians?
I am sick of being using PayPal.

Thanks

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kumar

13 years ago

Originally Posted by nvs74191

What this means is the following:

1. You cannot pay for products and services from your paypal balance. You necessarily have to transfer your paypal balance (meaning, whatever you earn for your products and sevices using paypal payment button) to your Indian bank account.

This helps the RBI (Reserve Bank of India, India's central bank) to monitor the flow of funds in and out of the country. It is not just accounting, but a way of preventing unauthorised use of money, like, say, funding terrorism, etc.

2. You can continue to pay for goods and services using your paypal account, if you have linked your credit card to the paypal account.

Excellent post, Mr.Swaminathan.

As I understand the above second point, if my credit card is linked
to my Paypal account, I can pay for goods and services but the
payment gets deducted from the card, not from the Paypal balance.

Please let me know if my interpretation is correct.

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ebooksmaster

13 years ago

WOW...I have been reading pages and pages of stuff regarding Latest paypal india rules....And i feel that i would have saved hours of my time if i have read your post first..How clear....

So what i should do from march1 is...
1.Transfer my paypal funds to my bank account every 7 days....
2.Should not Price my products above 499$

Hey...i can live with both...I regret why i wasted time reading hate threads about Paypal,RBI and congress etc...

Originally Posted by nvs74191

What this means is the following:

1. You cannot pay for products and services from your paypal balance. You necessarily have to transfer your paypal balance (meaning, whatever you earn for your products and sevices using paypal payment button) to your Indian bank account.

This helps the RBI (Reserve Bank of India, India's central bank) to monitor the flow of funds in and out of the country. It is not just accounting, but a way of preventing unauthorised use of money, like, say, funding terrorism, etc.

2. You can continue to pay for goods and services using your paypal account, if you have linked your credit card to the paypal account.

3. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction. This means, your products and services cannot be priced beyond $500 per unit. If you wish to sell high priced goods and services, use some other authorized payment gateway or get a merchant account of your own.

Hope this helps.

Thanks
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aritrim 13 years ago

The move will filter out a whole lot of scammers who have been doing business for years, without having even a minimum trade license. Without maintaining accounts, and having no clue how to export services from India.

However the 100 crore Ebay business from India will suffer too.

I do not know why people are complaining, but YOU DO NEED/ YOU ARE SUPPOSED to bring your foreign income straight to your bank. And then spend from there.

So if you are getting paid for a job for 100 USD and then you buy 4 domains for $20, YOU ARE NOT ACCOUNTING THE $20 thereof. But from now on, YOU WILL.

So, yes the move is appropriate.

If you are providing services worth 500 USD and more, go the proper export route. Proforma Invoice, Letter of Credit etc. Consult a Chattered Accountant who deals with export related stuffs.
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supersonic

13 years ago

The idea behind these rules is just to make the online income transparent and taxable. Most of the people keep on earning and spending money via PayPal. For example, they are doing the business, making money and spending money by buying computers, televisions, music systems online. In that way, RBI has no idea about the income of an internet marketer.

Now, the rule of withdrawing money to your bank and not to be able to use your PayPal balance is just to make it clear how much you are earning from your online business so that you pay taxes.

This is a serious problem, because how will you pay for:
- Hosting
- Ejunkie
- Mediafire
- WSO and bumps

It has been more difficult for the people who are hiring freelancers to get their projects completed paying only $5, $15 etc.

Just think about the websites like Fiverr. How will Indians pay $5 for those jobs?

Before this, you were transferring your NET INCOME to your banks because you were already paying for hosting, advertising expenses from your PayPal and the net amount is transferred to your bank. But, now your bank account will show a lot of transactions. You will be MESSED UP while calculating your net income. Because, you will have to do a total of withdrawals and SCRUTINIZE your credit card statement to refine for the business transactions.

I don't know, how we will manage it, but currently it seems very cumbersome.

Thanks
1 reply

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apoorv.parijat

13 years ago

Originally Posted by supersonic

The idea behind these rules is just to make the online income transparent and taxable. Most of the people keep on earning and spending money via PayPal. For example, they are doing the business, making money and spending money by buying computers, televisions, music systems online. In that way, RBI has no idea about the income of an internet marketer.

Now, the rule of withdrawing money to your bank and not to be able to use your PayPal balance is just to make it clear how much you are earning from your online business so that you pay taxes.

This is a serious problem, because how will you pay for:
- Hosting
- Ejunkie
- Mediafire
- WSO and bumps

It has been more difficult for the people who are hiring freelancers to get their projects completed paying only $5, $15 etc.

Just think about the websites like Fiverr. How will Indians pay $5 for those jobs?

Before this, you were transferring your NET INCOME to your banks because you were already paying for hosting, advertising expenses from your PayPal and the net amount is transferred to your bank. But, now your bank account will show a lot of transactions. You will be MESSED UP while calculating your net income. Because, you will have to do a total of withdrawals and SCRUTINIZE your credit card statement to refine for the business transactions.

I don't know, how we will manage it, but currently it seems very cumbersome.

It definitely is cumbersome... but at least we can purchase/send money across.

-----

I, for one, after reading all of this, think that this decision isn't as bad as it looked on the surface. It's good, in fact. India has a strict regulatory system in place and that is what stayed rock solid when the other economies were falling during the recession.

If Paypal doesn't want to report transactions above $500, its up to them. If they want to totally ban payments above $500, again, more power to them. However, the government is doing its bit: they require reporting and, in my opinion, it is good.

They are allowing you to pay (if what I've read is true) if you have a credit card linked. I see no problems with that. If you're doing serious business, getting a credit card is breeze these days.

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FredJones

13 years ago

Yes, as I have been saying all along, what Govt of India has been doing is absolutely okay so far. They NEVER asked Paypal to stop any transaction of any value, but asking for official reports is absolutely legitimate.

Now of course if Paypal does not want to do that then they have a problem. But anyway, its their problem, as long as we find good alternatives that is... Else the problem transits to us, end users, also.

Only if Paypal had an automatic system in place by which they would deposit the amount directly in our banks that would be perfect. Else, you simply have to log onto Paypal no matter what you do, only to withdraw your money. As I said, now I no longer have an option to stay out of work for more than 7 days without bleeding money directly. That's where the issue of being a payment processor versus a bank crops up ...

And, for transactions above $500, make sure that you use a payment processor who does the reporting properly to the Govt as per the official regulation. Which one is good in India? Lets talk about that on a separate thread.

Originally Posted by apoorv.parijat

It definitely is cumbersome... but at least we can purchase/send money across.

-----

I, for one, after reading all of this, think that this decision isn't as bad as it looked on the surface. It's good, in fact. India has a strict regulatory system in place and that is what stayed rock solid when the other economies were falling during the recession.

If Paypal doesn't want to report transactions above $500, its up to them. If they want to totally ban payments above $500, again, more power to them. However, the government is doing its bit: they require reporting and, in my opinion, it is good.

They are allowing you to pay (if what I've read is true) if you have a credit card linked. I see no problems with that. If you're doing serious business, getting a credit card is breeze these days.

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apoorv.parijat

13 years ago

Originally Posted by FredJones

Only if Paypal had an automatic system in place by which they would deposit the amount directly in our banks that would be perfect. Else, you simply have to log onto Paypal no matter what you do, only to withdraw your money. As I said, now I no longer have an option to stay out of work for more than 7 days without bleeding money directly. That's where the issue of being a payment processor versus a bank crops up ...

There is, as far as I know, something called Paypal Auto Sweep. I don't really know if it exists for Indians but after this, Paypal should enable that for us, too.

How to Set Up PayPal to Automatically Transfer Payments to a Checking Account | eHow.com

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FredJones

13 years ago

Excellent post. The only catch that I saw there is that it mentions "merchant account" - does that cover premier accounts too? If yes then great else it won't work for me

But you know what? If Paypal has this and if they provide free transfer to Indian banks even for amounts under INR 7,000 then we have reason to remain happy. If they charge their INR 50 per transfer below INR 7,000 for transfer then that's not great though - forces you to sell for a higher price if you have an option and be non-competitive if not.

Anyway, excellent post, a very constructive one. You deserve a Thanks for this one

Originally Posted by apoorv.parijat

There is, as far as I know, something called Paypal Auto Sweep. I don't really know if it exists for Indians but after this, Paypal should enable that for us, too.

How to Set Up PayPal to Automatically Transfer Payments to a Checking Account | eHow.com

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Mo Faisal

13 years ago

Greetings,

Tell me, what's the use of crying over spilt milk. Our constant bickering about paypal or rbi isn't going to change the current situation we all are caught in.

Instead, why not find a solution for the dilemma we are facing.

Sure, we won't be able to pay money using paypal. But, surely we can pay if we have a credit card linked to our account. We might even be able to pay using net banking. (I'll need to confirm it, though.)

Hope that helps..

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Adie

13 years ago

ok, here's an additional info:
Why Is PayPal Screwing Indians? An ex-RBI Employee Tells Me The Facts

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seasoned

13 years ago

Originally Posted by Adie

ok, here's an additional info:
Why Is PayPal Screwing Indians? An ex-RBI Employee Tells Me The Facts

They are the "facts" twisted around, etc....

The money isn't even REAL yet. I mean your customers may not pay the money for YEARS! The credit card company may take the money back even after 3 months! Gee, they should be happy they even get it in a week. Many here have advocated clearing out the account so paypal can't touch it. If an indian does that, paypal may have to go through the courts in INDIA!

I suppose the RBI may sometime want them to pay 30% on the money. What if there IS a chargeback? Does the theif(because they are theives in such a case) get to keep the interest?

And some idiot there suggested having people WIRE it! That REEKS of fraud! SO I am supposed to lose any control, etc... and effectively GIVE the person who knows how much and pay $40 EXTRA(What chase charges for a foreign transfer) for the privilege? so THEY can avoid a minor charge, etc???? NO THANKS!

And what is CHASE'S position on suuch a DUMB request?

An important note about security

If someone you don't know asks you to send or receive a wire transfer, we recommend you decline. If you accept the request, there is a good chance you will become a money "mule," helping to launder the proceeds of fraud. You will break the law, and you may become a fraud victim yourself.
Here are some tips to help keep you and your accounts safe:
It is usually best to ignore unsolicited e-mail job offers or opportunities, especially if the company is overseas
Never give your bank account details to someone you don't know
Please contact us right away if you have questions or concerns about fraudulent activity

Steve

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seasoned

13 years ago

You know, it is CRAZY! Some say that paypal should not be able to hold ANY money for ANY time! OH REEEEALLY!?!? Then WHO should get it?

NOT india! It doesn't really exist!
NOT the merchant! It wasn't really paid!
NOT the customer! THEY committed to it, and it is in process!

When you "pay" via credit card, you are not REALLY paying! ANOTHER is LOANING money on your behalf. For several reasons, it might be withdrawn, and they may be told you never authorized it. Frankly, I could understand them treating it as clickbank, with a hold back.

You COULD easily get rid of all this. Just get your OWN gateway and merchant account! The money would be AUTOMATICALLY credited to your account in short order, follow all laws, and you won't have to deal with paypal! THEN, if you have a chargeback, YOU will be responsible to pay it back.

Steve

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supersonic

13 years ago

Opening a merchant account is costly and more than that, most of them pays you after a month. Can you suggest some good ones?

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Rukshan 13 years ago

Originally Posted by supersonic

Opening a merchant account is costly and more than that, most of them pays you after a month. Can you suggest some good ones?

Fastspring.com is a good one for us. They pay after 2 weeks.
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- supersonic 13 years ago
  
  Originally Posted by blog8491
  
  Fastspring.com is a good one for us. They pay after 2 weeks.
  
  From which country you are and how do you get paid? Do they transfer to your bank or what?
  
  Thanks
  
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  Rukshan 13 years ago
  
  Originally Posted by supersonic
  
  From which country you are and how do you get paid? Do they transfer to your bank or what?
  
  I'm from Sri lanka. They release payment to my payoneer card. You also have an option to receive funds to local bank account. But I use payoneer card to get cash within a short time.
  
  Thanks
  
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seasoned 13 years ago

Originally Posted by supersonic

Opening a merchant account is costly and more than that, most of them pays you after a month. Can you suggest some good ones?

Merchant accounts generally don't even work on the internet! I know of only like 2 that do, but they are NON STANDARD, so GOOD LUCK trying to find software that can use them. So THAT means you have to use a gateway like authorize.net which ALONE adds a monthly charge.

Such is the cost of bypassing things like paypal.

I have NEVER seen a merchant account that took more than 3 days, and many take only about ONE! They work llike paypal, but the money goes directly into YOUR account. If they work differently there, it must be INDIA that is causing the grief.

Steve
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masterjani

13 years ago

I am also searching for a good merchant account anyone helps.

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Patrick

13 years ago

I dont understand about this more than $500 thing.

In that conversation Why Is PayPal Screwing Indians? An ex-RBI Employee Tells Me The Facts (which I am not sure is real or made up), the RBI guy says that anyone who brings more than $500 into India should report.

I have had transactions before sometimes worth $2k-$5 even. Neither my bank, not anyone called me to report it.

So if someone uses direct bank transfer and pays me around $1 K, I have to report it ??

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whizkidd

13 years ago

Originally Posted by schwarzes

I dont understand about this more than $500 thing.

In that conversationWhy Is PayPal Screwing Indians? An ex-RBI Employee Tells Me The Facts (which I am not sure is real or made up), the RBI guy says that anyone who brings more than $500 into India should report.

I have had transactions before sometimes worth $2k-$5 even. Neither my bank, not anyone called me to report it.

So if someone uses direct bank transfer and pays me around $1 K, I have to report it ??

Looks like you didn't read it properly. Its Paypal who is bringing the cash to India. You are just sending it USING PayPal. So its they (PayPal) who have to report it to the RBI, not you. They simply aint ready to do that - so circumvent the rules.

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iuditg

13 years ago

Moneybookers is a nice alternative to paypal, maybe we can start using there service

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masterjani

13 years ago

The problem is Payoneer is blocked in india.No way i think

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Rukshan 13 years ago

Originally Posted by masterjani

The problem is Payoneer is blocked in india.No way i think

What? Can't you withdraw in ATM's? In sri lanka we can withdraw cash in HSBC and Standard Charted bank's ATM. Earlier most of local banks supported payoneer cards. But after issuing payoneer new cards, local bank ATM's don't support it. Anyway I can use my payoneer cards in sri lanka. Little bit lucky
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vishalduggal

13 years ago

Common guys this is not so much big problem.
We just need to withdraw the money after every 7 days and who are making 100-200 daily they might be already doing it.
And we just need to verify the account using Master card or need to add a master card to our account. That's it. You are just making some simple rules a way too difficult and controversial.

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