Saturday, February 6, 2010

PayPal is facing issues in doing transaction from/to India

PayPal which is a widely used payment processing system stops personal payments to and from India.

TechCruch says It is reversing personal transactions; transactions involving businesses are still allowed..

PayPal is sending below email while doing payment reversal

Your payment of 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.

Thank you,

But going thro' lot of discussions about this issue I understand that this issue occurs not only for personal payments but other payments (goods, service) are also facing some issues.

In these discussion, people are raising below questions.

1. Why Paypal is doing payment reversal without doing any prior information to the customers?

2. Why it targets only India?

3. Is it technical problem from PayPal side? Or something related to regulatory actions taken by RBI (Central Bank of India)?.

4. How long it will continue? Is it temporary issue or policy change?

5. Is it possible for Paypal to reverse the money already withdrawn to the Indian bank accounts?

6. For some people, Payment reversal causes negative balance in paypal account. Will it create any further issues?

It seems withdrawal from paypal to bank account in India is also getting affected. Even Bank withdrawal is also getting reversed.

The discussions about this issue shows that people got angry due to this irresponsible activities of the PayPal. But one thing is very clear from the discussion. There is no alternate payment processing system for PayPal. There may be some eCommerce systems. But they may be lagging either availability or safety, or they may be expensive. For example Google Checkout is not available in India.

So, let us hope for recovery of PayPal and continue using PayPal still Google Checkout takes the lead.

PayPal is the subsidiary of eBay which is a popular online auction and shopping website.

Do you want to say anything about this PayPal issue? Share it thro' comments.

And, if you know any further updates about this issue, you can mention here.

Some PayPal users are getting ready to find some alternates. Find below the message in one of the freelance website rentacoder

Attention Indian coders who were paid via PayPal this payment period:
PayPal is experiencing internal issues with payments to India. We sent all payments to them by Thursday February 4th (in the same manner we have done every month prior). Thursday 67 Indian PayPal users received an email from PayPal stating "We reversed this payment because we have stopped allowing personal payments to be sent to or from India. "...despite the fact that the payments were not sent in this manner. Unfortunately today PayPal reversed an additional 137 payments (this time supposedly because of the shipping address).

We are working with our PayPal rep and have escalated this issue to PayPal management, to determine if there is any way we can send these through PayPal. However, if we cannot, we may have to ask you to switch to another payment method. We will let you know more once we find out more.

Till now only official information from paypal is the below blog post.

Hi blog readers, it’s Anuj from the communications team here.

I’m writing to let you know that personal payments to and from India and transfers to local banks in India have been suspended while we work with our business partners and other stakeholders to address questions they have about the service.

During this time, customers can still make commercial payments to India but merchants cannot withdraw funds in Rupees to local Indian banks.

We’re trying to resolve the situation as quickly as possible and we’re really sorry for the inconvenience that this may cause our customers in India and around the world.

I’ll update the blog as soon as we have more information to share.


Rentacoder is suggesting Payonner as an alternative. Find below this message from RentaCoder.

Update for Indian coders using PayPal: As you know, PayPal recently blocked payments to India, including the
ones we sent. Our PayPal rep found a workaround that allowed us to resend them on the the 5th, and unlike previous attempts, these payments have not yet been returned to us (and we believe it worked). However we have never received a coherent answer from PayPal as to why they blocked any of the payments to start with, so this workaround may or may not work next month. If you wish to avoid the uncertainty and switch to Payoneer, they are offering a special to Indian workers. If you tell them you are from Rent a Coder and signup before February 28th, they will waive the typical $9.95 activation fee and expedite shipping for free (which will give you the card in hand in 7-10 days of approval). Click here for questions or to signup.

Now, what is in your mind? Will you continue using Paypal or start using another system? You can answer is poll.

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1 comment:

anithegregorian said...

Recent issues with PayPal withdrawals to Indian Banks & more over payments just randomly being reversed back to the senders will have a deep impact on PayPal's reputation. It raises so many questions like (THIS MIGHT CONTAIN SPOILERS):

A) Should we trust PayPal in future?

B) Are they really concerned about our Money?
ANS: ABSOLUTELY NO, After a long period of two weeks we receive an apology letter stating that “We are sorry we goofed up opps!”? and stuff like “Your money just got sacked since this is nothing serious to us we are just doing a drill of playing a game with your hard earned money”?

C) Is RBI responsible for this?
ANS: UNQUESTIONABLY MAYBE, So, Question is why this is happening in India and nowhere else? Question is why we are being kept behind curtains and dark? Question is why Moneybookers and other Payment systems are working but PayPal is not? you just want to exclude the RBI out of this since they are least concerned with us. Everyone failed here! RBI off course you cant expect them to give you a comforting truth so a comforting lie should suffice you! And PayPal Ow man no shit a multinational company failing to inform and notify of an issue of this magnitude. That was an AWESOME combination of pure frustrating, destroying trust & spreading chaos.

D) So what does PayPal tell us now?
ANS: “We are sorry, but your valuable to us so please give us another opportunity to goof up and play some more engaging games with your money” and “We just love to make more profits by giving you a pathetic exchange rate”

D) What now?
ANS: DTA (Don’t Trust Anyone) Get your sleeves up against them and find your own ways to get paid over any other medium that serves better, communicates better and keep them in plenty. If one fails other should work out.

Ive let all my clients know about this issue and advised them (in advance unlike PayPal) to switch over to some other Payment system which is reliable, responsible and does the main thing “ACTION” at PAR. The truth will probably be dead and berried RIP about what happened because the shame and disgust they bring upon themselves is apocalyptic now.

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