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Paypal stops personal transactions to India without notice

Indian Paypal users mostly small merchants, freelancers, independent software developers and hobbyists are dismayed by Paypal’s unprofessional way of halting transactions to India. It did not give a formal notice or any direct information to its users. This can least be expected from a company as large as Paypal.

What PayPal users wish was that Paypal could have atleast informed them before a transaction was being done or an alert to every Paypal user. However, Paypal only informed when the user was unable to send or receive the payment and later tries to contact the customer support.

Contacting customer support, one gets a canned reply as follows:

Personal Payment – Send Money for India Accounts
• India customers are no longer able to see the option to send a Personal payment on the Send Money page • They can continue to use other payment options, such as eBay checkout.
If this was a payment for a purchase of goods or services, and not a personal payment, then you may contact the buyer and have him or her resend the payment as follows: (a) click the Send Money tab, (b) select ‘Goods’, and (c) provide a shipping address.
If this payment was a personal payment, such as a gift to a friend or family member, then we request that you find another payment method until we restore personal payments to and from India.
Although India customers are unable to send Personal payments, they are still receiving Personal payments from Non India customers.
• In order to stop ALL Personal payments TO and FROM India accounts, we have started reversing Personal payments sent by Non India customers starting today. (the only exception will be in cases where the buyer has included a shipping address – we don’t want to delay any shipment of goods)
• Emails will be sent to both sender and recipient to let them know why the money was returned and what options they have to proceed forward. (see attached for examples)
• We are also in the process of implementing a change on the website to automatically stop the payment from processing, rather than waiting to reverse the payment. We will send you additional updates as soon as we have more details.
The Personal payment option on the International Send Money page has been updated and India has been removed from the ‘select a country’ drop down list.
• If the payment was for a purchase of goods or services, and not a personal payment, then the buyer may resend the payment to the seller by following these steps on the PayPal website: (a) click the Send Money tab, (b) select ‘Goods’, and (c) provide a shipping address.

Looks like PayPal was unable to resolve questions or submit documents requested by Indian Regulatory Authorities
PayPal has always been an issue for Indian users. Many Indian credit cards are just blocked by Paypal stating it is not valid when an user tries to add his credit card to the account.

A new service called AlertPay has been started which is much similar to PayPal with all its features. I guess its time to move on to another provider rather than hoping for the least concerned Paypal to resolve its issues.

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5 Responses to Paypal stops personal transactions to India without notice

  1. Suman August 30, 2011 at 3:53 am #

    Very much align with Sonia, PayPal is doing monopoly here, transaction fee while transfer amount to your bank……Huge.

    No other option available here…. ccavenue is too expensive.

  2. anil September 16, 2010 at 5:09 am #

    Paypal always a problem for indian users.I don’t like their policies.I always hate paypal.I lost $6400 using paypal.Please try other alternatives.

  3. SEO India August 19, 2010 at 2:50 am #

    Hey thanks for sharing this news with us. You right we should now move on to new service provider.

  4. Sonia July 30, 2010 at 12:59 am #

    A new fact about Pay Pal :
    I applied for a charity account with Pay pal because its free and supported by vbulletin software for payment subscription, I have all the documents like NGO Registration certificate, Memorandum of Society, Society PAN card, and the Bank details , bank details were verified by the Pay Pal by depositing amount of Rs. 2 and 40 paisa, after submitting all the document as per said in their website and in their emails, they again asked me for a authorization letter from our Society members on the letter head of the Society, I submitted it as per they said, but after completing all the formalities they denied me for the account, just because they have no tie-up with India regarding charity account, what the hell is this, why the pay pal people should not mention at the time sign up process. I have wasted around 1000/- rs in doing fax to pay pal and after 4-5 days they denied. Now I have no other option left, so I signed with ccavenue, but the cost of basic signup is around 8500/- and the per annum fee is Rs 1500/- after tax, I think PayPal is playing with Indian customers, We wrote a letter against this to the Reserve Bank of India, and also file a RTI to know the working of PayPal in India, after searching on the Internet we also found that PAYPAL is run by ebay, and found tons of complaints against ebay , after collecting data of ebay customers, we called them personally and found a big scam, we are planning to file a Public Interest litigation, against HomeShop 18, IndiaTimes Shopping, Ebay, AVA etc,
    Don’t apply for a charity account with pay pal if you are living in India. Just wastage of time and money.

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