Paypal Allows Indian Users To Withdraw To Local Banks

[The Simpleton 2]

Paypal is partially back in action for Indians. They've recently started allowing local bank transfers. The catch is that users have to supply a "purpose" for withdrawing their money. The paypal blog said that users would be required to enter a purpose code, but all I found was a list of reasons to choose from. This is really annoying, although it does makes some sense.

 

It's annoying because why should I tell anyone why I'm getting the money?! On the other hand, it's useful because some fraud may be prevented this way. I guess all this purpose code stuff is useful only for people who make huge transactions. I withdraw around $100 per month so I guess it doesn't make any difference to me. And I'm sure a lot of Indian users will be happy as well.

 

You can read the full instructions on withdrawing under the new rules on http://forums.xisto.com/no_longer_exists/"</a&gt'>this page

[k_nitin_r 8]

Hi Simpleton!Paypal initially started off as an idea to pay your pal for splitting a lunch or dinner check, or for sending the equivalent of a gift certificate on his or her birthday. Under the new terms and conditions for transferring money to India, you can no longer make personal payments. It does, in a way, prevent Paypal from operating in India under the initial vision that was conceived. Perhaps if the government could exempt payments under a certain value or payments from a Paypal personal account from falling under the same restrictions as a large transaction of a Paypal business account, the arrangement could have been more practical.Many Indian firms provide services and accept payments over Paypal. Such users generally have a Paypal business account and make transactions that exceed the limitations placed on a Paypal personal account. The arrangement does not seem to help prevent fraud in any way, but seems to have more control for the government over the export of software and payment for the services, in order to apply income tax and sales tax (CST? VAT?) on the transferred amount.

[mahesh2k 0]

Paypal closed personal payments for two reasons. First it's deal with indian reserve bank and second scam from india are rising and people are using personal payments for making free money transfer. This is the reason they're removing personal payments from asia. After india other countries will face the similar situation of removing personal payments.By removing personal payment options, we didn't lose much here as we have to pay taxes for the services we use. Besides that i don't feel any wrong in their actions now cause i have seen how people are cheating using personal payments. Good to see that they started issuing withdrawals to bank. Now we can do some business online. :-) I thought opaque will get this information first as he's doing much more transactions than us. Anyway, thanks for posting the_simpleton.

[fermin25 3]

Good news for the indians and congratulations to all that people that work in the internet and now is receiving their money with paypal. I opened an account with 2checkout and I am very dissapointing because they only allow you to use a domain. If you have different domains you have to buy another account, with $19 discount but for me that?s a lot of money to spend with a credit card. And paypal doesn?t work with Honduras and I don?t know why if they maybe can be making millions of dollars with the withdraws of the people that works illegally in the U.S. but they want to give all the market to Western Union and Money Gram. I think that one of the best payment processors in all the internet is Alertpay but the only trouble with alertpay is the language because if your customers don?t speak english how can they fill all the payment process if that is in english.So congrats to all the indians and continue using Paypal.

[kleong 0]

I will rather go through extra steps if that can help to prevent fraud. At least, paypal are allowing Indians to withdraw their money. Could you imagine if paypal decide to pull India out from it list of countries that they support. That will be worse.

[k_nitin_r 8]

Hi!@mahesh2kI don't really understand how scammers in India use Paypal, unless you are referring to tax evasion, but I get what you mean about the free transfers. People making personal payments for free still have to pay the exchange rates and Paypal gets to keep the difference between the prevalent exchange rate and the exchange rate that Paypal uses to transfer the amount. I think the service could be used to convert or transfer 'black money' (money un-declared for tax purposes).@fermin25, @kleongI didn't think of it that way. Having Paypal continue to provide services in India while collecting information about how the individuals gained the 'wealth' is better than having Paypal shut down their India operations entirely.

[mahesh2k 0]

I don't really understand how scammers in India use Paypal, unless you are referring to tax evasion, but I get what you mean about the free transfers.

I think you're unaware of cases of people who download stuff using paypal and ask for refund then paypal issues fund back to them and buyer is losing his product to some warez person. To verify this you can contact 100+ sellers from warrior forum who got cheated like this.

Another case, many script selling sites (clone script), freelancers who are not signing any contract, escrow are cheating their buyers. Paypal holds huge list of such people.

One more famous case of cheating in india is virtual credit card scams, go to digital point or some hyip/ptp forums and you'll find ton of indian members selling VCC and credit card numbers of others.

People making personal payments for free still have to pay the exchange rates and Paypal gets to keep the difference between the prevalent exchange rate and the exchange rate that Paypal uses to transfer the amount.

No. Earlier paypal used to offer personal payment in gift and personal cash option which used to be tax free. that includes charity, donation etc type of funds. And there was no exchange rate and tax for that. I got donation payment 100% without tax from one of theme showcase site.

I think the service could be used to convert or transfer 'black money' (money un-declared for tax purposes).

Nope. With 5$ or 10$ and above varying amount daily with personal payments and donation people used to cheat paypal and this is not just restricted to india but all other countries as well. There was no case of black money as paypal is very strict with transfers and documentation. And most of the countries where black money goes are either banned in paypal or not yet fully functional.

[H.O.D 0]

This is a good news for all those users who just use paypal to withdraw payments they get online. But for those who have to make payments online, I guess the scare isn't over yet. I think they (paypal staff) are not clear when they will allow sending of payments to others. They should at least give some estimate as to when they will allow users to make payments so that they can plan alternatives till then.

[Spyda 0]

Ok now this may seem "racist" to some, but please do not take it this way. I have many Indian friends and the majortiy of people at the university I attend or Indian or of Asian color, so please do not take it that way. This post is just coming from somebody who does businsess over the internet and has been scammed many times from people who are from Indian. Furthermore, I have been scammed a total of 4 times, all of which are from people who were Indian. I no longer accept payment from people from India because, frankly, it is not worth it at all. Anyway, here's the story.So, I started flipping websites around 3 years ago. It began as a small little thing I would do on the side and it started to take more and more of my time as I began to make more money off of it and began to get better at it as well. Anyway, I met this person online whose name was Kumar. He told me he was interested in my website and on the site that I would sell on my websies (digitalpoint) he actually had a failry good Itrader. I think it was somewhere around 4 or 5 and he had zero negative so that also was a plus site. Anyway, he told that we should talk on MSN because it would be easier for himself and myself to discuss everything there, where we do not have to mess with private messages which can be a hassel. I agreed, and met him on MSN where we began to discuss everything. Come to find out this guy had a paypal account and wanted to do everything like the transfer of the site, ect through there and I agreed since i also did most of my businsess through paypal and thought it was the easiest way to go. So... he goes ahead and sends me the money and I transfer the site and domain. Two days later I come to find he does a chargeback on what he bought from me and I lost the money. I contacted paypal and they could not do anything about, so the guy got the site and his $150 dollars back. I was pretty pissed, but I decided to move on. From there, I sold some more sites and ran into a nother guy from india. Dont remember what this guy's name was, but anyway he kind of told me the same thing we should deal businsess over MSn b/c it's easier. I was relucatant at first, but agreed and this time I logged the IM files. This guy on the other hand told me that he didn't have paypal and had a credit card only. I told hi mthat he would still be able to sell me what he wanted to through paypal and he went ahead and payed, I sent him the sites and then BAM... chargeback, again. Was pretty annoying that it happened twice. Since thne, I have stopped accepting payment from people from India and later paypal made it so they couldnt use it or something.So in my opnion, they really shouldnt allow people from India to use paypal b/c of all the fraud... I am not the only one either!

[mahesh2k 0]

@Spyda

So in my opnion, they really shouldnt allow people from India to use paypal b/c of all the fraud... I am not the only one either!

I've gone through your post and i have to say your last statement was very offensive. I'm also from india, opaque(shri) owner of Xisto is also from india. Do you think we also deserve to get banned from paypal just because others are scamming ? We never scammed and though there are many indians who scam but is it right to ban whole country for this ? I hope you understand that india is the biggest technological solution provider and there are many services to-and-from india. Scams from india are actually 1% of what money goes-and-comes online from india. It is completely unfair to say that paypal should ban whole country for the scam of few people.

Besides you got scammed because you didn't take help of escrow system. Escrow system helps prevents fraud while selling sites/domain etc. Are you unaware of that if you sell on flippa ? By the way, more than 30% top sellers on flippa are indians. So guess, who will get into loss if paypal is banned for india.

Besides if you ask me personally, scamming from site flipping is more from Netherlands, china, indonesia as per the records of many site flipping networks. These people take advantage of escrow system not applied to their country and they easily get away with law as escrow and law there is very defensive for their citizens instead of international relations.

To end this short post, i would like to tell you that i got scammed from my fellow countrymens while selling one theme and now last week again for article writing job. So scamming and losing money is part of online working. I found few techniques to deal with these type of people. I'll create thread to let you know how to deal with any type of transaction scams be the scammer from any country.

[H.O.D 0]

@Spyda: Here's another Indian replying back to your harsh comments. While I agree that what happened to you is completely unfair, it's not right to judge an entire nation by a few people's behaviour. It's just our bad luck that the smartest people on the net happen to be the fraudsters/scammers/crackers. It's not the case with just one country but it's happening all over the world. How would you feel if a foreigner visited your country, ran into a few ruffians and judged that the country is full of them? That doesn't sound good, does it?!Actually a lot of Indians get scammed/tricked by other Indians - that's because most of the internet users here have got access to the internet very recently. Before the new millenium the internet hardly made any impact here and it was thought to be a passing fad. After broadband rates came down, people were only beginning to realize the power of the internet when they were taken aback by how easily one could get cheated online.So I request you to please take back your comment. It's not good to blindly judge a billion people based on what 4 people did to you!@mahesh2k:That thread you mentioned sounds interesting. I'm looking forward to reading it soon!

[k_nitin_r 8]

Hi!@mahesh2kGoing with the reasoning that Paypal enforced their policy to prevent scammers in India from engaging in business transactions from people in other parts of the world, it would have to be the Indian scammers who buy products and make payments through Paypal. However, Paypal prevents payments to India and not from India.I did, however, read about Paypal's policy favoring buyers - all it takes is one complaint from a buyer and Paypal reverses the transaction and restoring the funds to the buyer's account. I believe the best way to deal with Internet transactions is if an organization takes on the middle-man position and acts as an intermediary by buying products and re-selling them. The credibility of the organization would encourage people in doing business with them (and, convince people that it is safe to enter their credit card numbers online), while scammers wouldn't be able to directly interact with the consumers thus keeping the gullible protected from the risks of Internet transactions.@SpydaBanning the use of Paypal in India is like throwing the baby out along with the bath water. There are scammers all across the world, and using an escrow service to make sure you get your money is your best bet - the buyer would be entering their payment information on the escrow service and you get your funds, the minute the buyer decides to gain access to your file - the escrow gives them the link for the download only after the payment has been made.Paypal was not conceived to be a payment gateway for business transactions, though it evolved into something for just that. If you wanted to pay your friend for a lunch bill that he/she would not accept payment from you for, you could sent the amount across electronically and there's no possibility of them refusing to accept the money. Similarly, you could send across funds to a non-profit or charity organization and they wouldn't have to hire software developers to figure out how they would accept credit card payments online. When it comes to business transactions over the Internet, you ought to use Paypal only when you are dealing with someone you can trust because the model Paypal follows is in favor of the buyer, the one who actually puts money into the system, and it is only fair if they worked that way - if you accidentally put in an additional zero and sent across a hundred dollars instead of ten dollars, you would be pretty upset if Paypal refused to reverse the transaction simply because you clicked the "Submit" button.BTW, you mentioned that you had all of the MSN chat logs of the conversation that you had with the second buyer. Were you able to use them in getting paid, or did you lose the case with Paypal entirely?@HODI would like to add that Indians developed their ability to bargain in order to avoid getting scammed. When you observe the buyers and sellers at an Indian market place, the seller quotes a price and the buyer eventually settles the transaction at a half of the quoted price! If a tourist visits the market place and buys a product at the quotes price, it doesn't make Indians scammers - it's simply the way things work and a lack of familiarity with the business practices is no reason one should hold up placards and put up posters that label all Indians as fraudulent scammers.

[mahesh2k 0]

@Nitin

Going with the reasoning that Paypal enforced their policy to prevent scammers in India from engaging in business transactions from people in other parts of the world,

I think you're unaware of the fact that paypal not only stopped the personal payments from india but from indonesia, philipines and some other asian countries because of this scamming. Besides there are still some people who are into scamming by asking for personal payments. Paypal not only enforced this to india but to many other asian countries.

it would have to be the Indian scammers who buy products and make payments through Paypal. However, Paypal prevents payments to India and not from India.

I think you missed the big point here or maybe you didn't tried to pay money via paypal during the ban period. Paypal stopped all indian personal and premium transactions on 1st feb and after huge queries and business loss they had to open premium transactions and payments within and from India. And now finally they opened for almost every transaction except personal payments.
And yes taking middle man or escrow is the one way to protect any buyer or seller in online transactions.

[H.O.D 0]

I would like to add that Indians developed their ability to bargain in order to avoid getting scammed. When you observe the buyers and sellers at an Indian market place, the seller quotes a price and the buyer eventually settles the transaction at a half of the quoted price! If a tourist visits the market place and buys a product at the quotes price, it doesn't make Indians scammers - it's simply the way things work and a lack of familiarity with the business practices is no reason one should hold up placards and put up posters that label all Indians as fraudulent scammers.

Well you got the market place point right. People seem to have the opinion that each and every seller on the street will quote a higher price than normal and it is their right to bargain. Similarly, the sellers naturally assume that the customers will bargain and most of the times they intentionally raise the price. Well all that is street business and it applies for Indians only. In the case of what happens when foreigners come here, it is unfortunate that the sellers raise the prices even higher in the hope to make a quick buck. Call it greed or call it ignorance, but whatever is the case, this situation is going to continue for some more years and as you said it is no reason to think ill of Indians. Similarly it's not wise to think ill about all Indians based on judging a handful of them.