Congratulations, Paypal India !!

Personal account? Personal accounts in India are not allowed to sell. So this question does not even arise.

No. It's trying to work with RBI so that PayPal is legal in India.

Oh yeah? Try that. If you are not from US or UK, then blame Google.... Because, G.C is available for US and UK customers only.

RBI has no issues with Paypal. RBI has issues with people and companies using paypal to keep funds and use them without paying taxes. I personally know an entrepreneur who keeps close to 10000$ in Paypal account to evade taxes.

Paypal is not the only way to get money. What makes you say this? If you are heavily service oriented, it might affect your business. However, if you are serious in your business, use 2checkout.

If people find it hard to use Paypal, stop using it. Move to some other service!!!

Wrong!!!

Paypal has a 10$ withdrawal criteria. if your account balance does not reach 10$, you will not be forced to do that.

And where are you from ?

Oh yeah?

You really love Paypal?

Do you know how many sellers in the forum are facing the wrath of Paypal?

They simply shut down accounts without any notice.

I know a lot of people who have lost a lot of money due to high volumes of cash inflow.

My Paypal account was also about to get limited once due to high cash inflow.

They had called me, asking about my business and other particulars and they told me that if I had not picked up the phone call, they would have limited my account.

And it was 3:15 AM in my place.

So please dont draw conclusions and tell that Paypal is an amazing company.

I can actually show you proof right here in the forum of how Paypal has ruined

people's online businesses.

What "options" are we talking of here?

Hey,

You are not saving anything and you are paying extra by these new policies.
You are counting that Rs.50 saving a day, let me show you how much you are losing:

Today's real exchange rate i.e 1 Dollar = Rs.47:




BUT, if i have to withdraw $10 to my bank account from paypal
THEN Paypal's Rate of Exchange for USD to INR:



For $10 USD withdrawal, i am getting 10*45.52 = Rs.455 to my account (PP just had another share from withdrawal too)


NOW, suppose if i have to send payment or REFUND some one (assuming today's autowithdraw is done and i don't have any money left in morning)
THEN:




Paypal's exchange rate is, 1 USD = Rs.48.6 that they are charging us.

SO, if John purchased your (Indian) ebook for $10:

1) After deducting PP fees you can see approx $9.40 in your account.
2) Withdrawing it today, will get you 9.40*45.22 = Rs.425 (approx)

HOWEVER, if you have to refund this transaction from credit card
as you will have no balance in PP then:

As per today's PP exchange rate, it will take out 9.40*48.6 = Rs.456.84

That's not end here, this is PP's cash, what about our lovely credit card company? for Citibank, they will levy (as per my card) 10.4% interest on
the foreign transaction, so out of that Rs.456.84 that paypal charged you for REFUND, you need to repay to your credit card:
456.84*10% = Rs. 502.52 (Again this is applicable if you have paid your card in FULL, within 55 days of transaction, if you are only paying EMI then add 5% more to the above amount)

In short, instead of refunding Rs.425 (which we originally receive), we have to pay back Rs.502.25 as the refund goes from card.

So, after RBI policy paypal have actually increased there cash from Indian merchants either your withdraw (which they do everyday) or your refund or you make payment.
Flat Rs. 77 loss in every $10 in REAL.

That 77 goes to paypal

While typing this i was pissed however in a way, paypal is genius.

AND this all was for $10 withdrawl, if you are withdrawing $1000, you are actually
paying additonal Rs.7.7 * 1000= Rs.7700 + THE ORIGINAL PAYPAL FEEL around $50 i guess.

This is what you call Win Win situation.

Thanks,
Carson

I thought I would once again join the conversation. But I am sick of people complaining about paypal.

Some things you need to understand.

Paypal is not collecting any money from you on a monthly basis. If you want to use their service for free, then you need to abide by their terms.

They are a business and they need to make money. It's not as easy as you make it out to be. Although transaction charges are small (Try comparing it with clickbank), when you process chargeback or refund, it's additional expense for them.

So yes, they will charge you by either increasing commissions or by decreasing the actual conversion rate.

If you have withdrawn money to your bank from paypal, you know that they send it from Ireland (That's what happened to me at least 10 times I have withdrawn with them).

Assume your service costs 100$ and client is in the US. Then the client would either need to send 110$ via western union or you get only 90$ while the client includes the charge of wiring the money to you to make the total 100$.

Now, take the case of paypal. If the client sends you 100$, you will get 96.8$ (Deducting the 2.9% + 0.30$ fees).

Suppose you withdraw 96.8$ to your bank. That means you get around 4404 Rs in your bank account. If you received 90$ straight from the client, then you will receive Rs 4297. however, this does not involve the convenience of sending directly to your bank account. You have to go and collect the money from their channel partners.

So in effect, even after the reduced conversion rates and added benefit of sending money directly to your bank, PP is still cheaper and more convenient.

The above quote is from their site which explains why you will get a smaller exchange rate.

Quit complaining. What's everyone issue? What do you expect from a free service (Yes, they charge you for transactions, but that's a very low fee. Besides, if you don't make any transaction, they are not going to call you up for doing transactions as they need money as a business)?

Why do you make refund issues such a big thing? it's not like every other transaction is going to be a refund. if that's your case, you need to take a closer look at your business practice and not why Paypal causes you to pay a higher fee.

And you think India is the only place where there is corruption?

If you have problems with a business, just move on and quit whining.

I suppose on a positive note, if they decide to freeze your account for one of their airy fairy non existent "reasons", with a bit of luck they'll only have one days worth of cash.

Agreed. Now that they are changing, people will look for alternatives. Ultimately, a nice, good, one will pop-up,.

Same here.

Over the past 3 days, no auto withdraw. And worse still, no communication also on what's the strategy.

I mean, being in India, one is expected to withdraw in 7 days. Now, in absence of any message, does this mean that they have changed the auto withdraw to manual withdraw? Or have they reduced the frequency of auto withdraw to some higher number of days?

I wish Paypal was at least professional to the tiniest extent and had sent its users some sort of message on what the plan is. As of now, they seem to be excercising with our accounts at their sweet wish, without bothering to even let know what they are going to do.

This is ultimate rubbish.

I see at least one other person (Wariswar, quoted below) have the same experience as me. How's it going with others?

RBI asking for financial details is nothing weird. Doesn't that already happen in the USA? Paypal is doing that there with closed eyes because they know they are going to lose their business if they don't follow it. Why is what RBI saying a problem while for example what is happening in the USA (Paypal reporting all transaction to the authorities in the USA) is not a problem?

Paypal is finally doing the right thing by trying to comply, and doing a BS of it by trying to impose their own interpretation of the RBI laws. Plus, they are doing a much bigger BS by not letting $500-plus transactions happen because they don't want to report to RBI (bypassing this portion of the rule). And RBI is doing a great job by letting them still operate by letting them go off the less-than-$500-transactions not being reported. In fact, RBI should start asking report of all transactions because that will make Paypal open up the $500+ transactions.

As a practical example, a lot of the recurring billing affiliate sites take Paypal for the payment method with no alternative in place. Now, do you think you can work for such companies being in India? No. Why not? Because surely you would want to generate more than $500 per month - but if you do that you cannot get paid thanks to Paypal not following the real RBI rules and trying to bypass them. And why stick to Paypal? Because, Paypal is big enough to keep a number of merchants use only Paypal.

Time to start writing to some of the companies (for example)? Yes, things are changing and time to let the world know maybe. Many voices can make a difference although one voice probably cannot.

No big deal, since they are not charging fees.

BUT...

Are you from India? Are you from a country that does not use US $ as the currency? Do you know that currency conversion has a cost and loss associated? Do you realize, that for every year, your income statement and balance sheet in your financial books and income tax declarations will go up by 365 additional lines or so just because of the daily withdrawal? Who is going to pay for making you write and maintain those lines? Paypal?

By the way, do you think your customer deserves to know his/her relationship with you and if you are changing anything for the customer then you should let the customer know? That's how I deal with my clientts anyway.

And interestingly, Paypal does not think so. They change whatever and whenever they want to change, without telling anything (not even a broadcast email, forget a personalized console when you login) to their customers. Isn't this a courtsey? Did you read the cse earlier when the daily auto-withdrawal didn't happen for 3 days with no communication and had left us clueless before suddenly resuming also without any communication or notice? Surely this is not a joke?

Did you read Carson's post on how refunds is a massive loss out of your pocket if using credit cards for it? We've been paying from credit cards since April 2011 and that's not an issue at all. The issue is elsewhere that's got nothing to do with credit cards really.

The talk here is about Paypal being professional and legal, not cheap. I agree they are cheap and that's probably their biggest selling point and that does help. But that's not the topic of discussion here. The topic is their consistency in what they do, predictability on what they are going to do, customer relationship management (toying with customer account versus not toying with the) and remaining legal.