PayPal Stops Personal Payments Sent To and From India

By Posted 2010 Updated   India

Today Paypal reversed advertisement earnings from a top advertising network from our PayPal account citing that they had “stopped allowing personal payments to be sent to or from India.” Here is the email we received explaining why the payment was returned back.

Your payment of 123456 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, PayPal

Here is what the Paypal send money screen looks like

Advertisement earnings or affiliate commissions are not personal gifts. So if your affiliate payment money transfer or advertising income payment has to be done, it means the payer needs to select Goods as the reason for payment, or the funds will be sent back if your PayPal account lists you are based in India.

Update (Feb 4): Anuj from Paypal has confirmed in the comments

Personal payments to and from India have been suspended while we address some questions from our business partners. You can still make commercial payments. We’re trying to resolve the situation as quickly as possible and we’re sorry for any inconvenience this may cause.

Update (Feb 5): Binary Turf managed to get a paypal customer support reply.

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.

Update: The Paypal payment block will continue for a few months pending dispute with Indian regulatory authorities.


41 comments on “PayPal Stops Personal Payments Sent To and From India

  1. PayPal_Anuj says:

    Personal payments to and from India have been suspended while we
    address some questions from our business partners. You can still make commercial payments. We’re trying to resolve the situation as quickly as possible and we’re sorry for any inconvenience this may cause.

    • dhaval says:

      I faced same issue, my money was sent back to chitika after days of payment made.

      Why cant paypal have exceptions for the online ad companies like chitika/infolink ?
      they do not send personal payment, this payment is what we have earned through displaying advertisements.

      Paypal has to fix it at the earliest, Or we need to start looking for better alternative.

    • QuickOnlineTips says:

      Thanks for the official word from Paypal. It would be good if the issue is sorted out soon as thousands of payments would have been affected.

  2. sudharsan @ technoskillonline says:

    My friend too suffering from the same problem…
    So he cant receive payment from infolinks

  3. Philip Cohen says:

    “We reversed this payment because we have stopped allowing personal payments to be sent to or from India.”

    Only India? Why? I wonder what the problem is. Could it be that the gnomes at PayPay are trying to figure out how they can get a higher fee for such “personal payments” transactions?

    • QuickOnlineTips says:

      It seems maybe the Indian government might be concerned about the uncontrolled International money transfer via Paypal.

  4. nilesh says:

    samething happened to me… i lost lots of money in this process…. is there any alternative to paypal?

  5. Satish Talim says:

    Same here. This has to be corrected immediately. What are the alternatives to Paypal?

    • QuickOnlineTips says:

      Most affiliate and advertising programs use PayPal. I think most of them have a paper cheque alternative.

  6. Sue says:

    It’s not just personal transactions. Business payments made to suppliers in India have been reversed from their accounts several days after payment was made. The money has been taken from our bank account so I had no idea there was a problem.

    No notification/advice to me from Paypal I found out from our supplier and trying to talk to a person at Payapl is a complete nightmare.

    • navjyoti says:

      same with me and even worse is that my client has not received money that is been reversed and my account is in negative.

  7. Netchunks - Web Magazine says:

    This is not good, Paypal will certainly have a bad future in Indian markets if it continues in the same manner, I too lost some bit of money I got as payments for freelancing. Why have they have to reverse, could not they just cut the transaction fees or something? Or totally eradicate the personal payment things

  8. alexxfender says:

    Same here.. notification ahead will be appreciated a loadz

  9. Uttoran Sen says:

    my infolinks payments are reversed too, since the mass pay option perhaps don’t cut the fees, i guess that might be the reason why it got reversed… am sure they will fix it soon,

  10. Serin says:

    This is really bad. At least they should have informed people about this earlier. Forget about the payment which has gone back to my clients, the money which i had already requested to get transferred in my local bank account got rejected and I am bearing a huge loss… It’s really sad and shocking. How can they do this without any prior notice! Does anybody know, if I will be able to get my money back or not?

  11. Avninfotech says:

    we have withdraw the amount but it was not gone on bank account
    as well not in sender.

    what happend

    i have lost lots of $$$$ Please help

  12. Karthik says:

    $849 got reversed today from my paypal account. I am sure that I am not going to use Paypal here onwards. But, I am not sure how to recover the lost money and how to set right my Paypal negative balance. In fact, I will not be surprised if Paypal just charges my credit card associated with my Paypal account without any notice to nullify the negative balance.

    I am just thinking of a way to drag Paypal to consumer court in India. Anyone would like to join hands??? I am sure that we can earn a hefty sum, even if sue Paypal in India given their unethical practices.

    • Pinaki Ghosh says:

      On behalf of the service providers of Eastern India, I have complained about this PayPal financial scam, in which thousands of us have lost thousands of dollars, to the Commissioner of Police, Kolkata. I am also going to release a press release about this and reach out to all national media tonight. We have been scammed by PayPal.

  13. Rahul says:

    It is high time that we start looking for paypal alternatives, this whole incident has proved how unreliable paypal is for Indian customers.

  14. sunny says:

    I have withdrawn 300$ on 27th jan 2010 and I have still not received yet. I think we should launch a massive protest against paypal and its ridiculous support team. Please E-mail them again and again so that these idiots do something about this issue.

  15. Funny Images says:

    Use www.XOOM.com till paypal resolve issues.

    XOOM is another best site for receiving money to india.

    Any other paypal alternatives?

  16. VICTOR says:

    How i can Now cashout from paypal?
    plz give sugessions.
    they are asking me to confirm my bank a/c.

  17. Pinaki Ghosh says:

    PayPal has robbed me of 5 of my recent payments on 5th and 6th Feb. They amount to $1,055. Of which 2 of the payments (total $196) I have been able to recover, as the clients were good enough. The rest is for work that has been delivered. Now, however nice clients are, they do not show the urge to pay once they have received the service. So I am worried about the remaining 3 payments.

    My questions to PayPal are:
    1. How old payments are going to be reversed (which date)? The payments that were reversed till now came to me between 2 and 6 Feb. Are they going to reverse older payments? There are so many!

    2. Do we need to change our online shopping cart settings now? I have shopping cart in three of my websites : I use Virtuemart shopping cart (for Joomla). Do I need to change any shopping cart setting now that payments must come as payments for “goods”? If so, what?

    3. Why were we not informed 15 days in advance? Who gave the permission to paypal to touch my money? I discover with horror one morning that my account balance is fast disappearing. WHY did PayPal do such a horrendous thing that amounts to no less than scam? They have robbed my account balance without taking my permission. Will such a thing ever be expected of a bank? What will be the reputation of a bank that reduces the account balance without prior permission or information? Will PayPal take the responsibility of re-collecting the amount that was reversed, and that I lost? Why would PayPal not be made to compensate this amount, since I have provided this service already?

    4. I had withdrawn $700 from PayPal on 4 Feb, which was cancelled by PayPal on 5 Feb. Why would a legitimate withdrawal be cancelled? I had withdrawn on 1 Feb also, which has not yet reached my bank account today, on Feb 6th. Come on, what is happening?

    This is no less than a financial scam involving the money of thousands of users. We have lost our money for using PayPal. PayPal should be taken to court for playing havoc with our hard earned money! And I am going to do so.

  18. Timir Patel says:

    Paypal done this without any intimation and how can paypal reverse money from our account once they have credited.

    If they have stopped personal payments to and from India. then they have to block the option by sender side that he can not

    send payment in India.

    I got USD 577 in last few days. I have also requested to withdraw money in bank account. See what happens !!!!!!

    Paypal canceled all my withdrawal requests and credited USD 542 and reversed to senders.

    I got credit of USD 542 instead of USD577. Even if withdrawal requested are not completed (Deducted exchange rate fees). But

    how can they deduct exchange rate fees even if transactions are not completed and money are sent back to senders.

    Now I have negative balance. And I like that balance will become positive by deducting from credit card.

    Who can tell that paypal is safe way payment method ????

    No steps are taken in front of paypal.

  19. Mozi says:

    PayPal should inform us that they are going to change in their policies ,, I was shocked as saw that payments are reversed. well most important thing is that why India :-(

  20. AvjThemes says:

    Paypal must have informed us well in advanced and why they are reversing payments which are already completed, one of my payments of Feb 1 is reversed on Feb 5 this is utter nonsense.

  21. 5to10pm says:

    I am also a sufferer of PayPal., Lost about $60 in currency exchange.

    How to recover this money from PayPal. I was wondering how much money PayPal will get for all this reversals.

    Guys, stop discuss, lets take the action. Please give me some idea on how to fire a complaint against PayPal.

    We need to act soon, else many will get caught in these reversals.

    It is their responsibility to notify all the Indian customers about their reversals. But they are not.

    Please act as soon as possible. How to fire a complaint on PayPal..

  22. Love Kumar says:

    I also lost 167 USD in currency exchange form PayPal? They charged rate of 1 USD = 48.353578871 INR which is ridiculous, where the actual rate is 45+

  23. Amin Ismaili says:

    Why can’t I withdraw my hard earned PayPal money to my BANK ACCOUNT? This is really a worrying factor. Let me get some more insight on this tomorrow. WE MUST DO SOMETHING.

    Amin

  24. PayPal_Anuj says:

    Just wanted to let everyone know that we’ve posted an update to the PayPal situation in India on our blog with additional details: https://www.thepaypalblog.com/2010/02/update-on-paypal-situation-in-india/

  25. Avinash says:

    Anuj from the Paypal Comm Team has made a new update on their blog on Feb 9 regarding the payment reversal to and from India, citing Revised licensing rules of the Indian Govt.

    *Personal payments to and from India would be suspended for at least a few months.

    *Customers should be able to withdraw their funds to a local bank within the next few days who initiated recent withdrawal.

    Read the full update @ Paypal Blog

  26. swati says:

    indian goverment dont want anyone to earn Bread and Butter,

    now the freelancer like me are unable to work.

    please let me know if any other way to withdraw the money.

  27. Vijayawada says:

    This is kind of disappointing news.

  28. Ramesh says:

    Any laternatives to PayPal till this problem is solved!!!!

  29. Partha says:

    See “An Open Letter from Farhad Irani on the Situation in India” https://www.thepaypalblog.com/2010/02/an-open-letter-from-farhad-irani-on-the-situation-in-india/, They still mumbling on this issues without any solution for us.

  30. we developer says:

    Paypal playing with our bread and butter – mostly affected to freelancers from india — very very bad situation — pls suggest any other money transfer if anyone knows

  31. Aden says:

    Hi friends,

    Finally, paypal has said that R.B.I asked to stop sending payments to indian banks. So its time to complaint against R.B.I. For more info visit – http://complaintaboutrbi.blogspot.com

  32. Gina says:

    That’s terrible.

    Well, you may also want to try AlertPay, Xoom or Western Union online.

  33. luc says:

    paypal is suite 4 criminal buyer

  34. Paul says:

    Don’t waist your time with Paypal. I have had an account with them for years. When I saw that I could remit money internationally for a low fee, I thought, great! They charged my credit card in a heart beat. The time to notify the recipient wasn’t bad, but the recipient couldn’t touch the money without a debit or credit card. After much searching, I finally noted that the recipient could issue a refund. That done, I, on the same day, signed up for XOOM and sent the same amount for the same fee. It showed up in the recipient’s bank account 3 days later (including a weekend). Xoom sent regular updates while my inquiries to PayPal remain unanswered.

  35. ainbabu2011 says:

    Check out these Paypal alternatives-http://paypalalternatives.in

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