Last day Paypal started reversing legitimate personal payment transactions of Indian Paypal users. Unfortunately the motive and decision of Paypal played the second role here while their technical difficulties played the lead role and made the matter worse. Paypal decided to withdraw personal payment service from all Paypal India user accounts but this change was meant to be applied on the transactions that were made from other normal Paypal users. Transactions from high profile Paypal accounts such as Infolinks, Chitika, Kontera were exempted from this sudden change.
Just after Paypal started reversing all transactions, it’s server blacklisted all transactions from Chitika, Infolinks, Kontera, ReviewMe accounts as well. And as the result all payments from these ad networks to webmasters and bloggers were reversed.
Infolinks team contacted me and said :
This issue is related to a change in policy done by Paypal, which should not have affected your Infolinks payments. PayPal have admitted to have encountered some technical issues which caused the new policy to affect you. They are currently looking into it and we will re-issue your payment as soon as we receive confirmation from them that the problem was fixed.
While Infolinks and Kontera payments were reversed last day, Paypal reversed Chitika payments today. Since I am working with a limited number of affiliates/advertisers, I can’t say more about other ad network’s transactions. But all these payments from such large companies were reversed because of Paypal’s technical problems and not just to follow the recent change. All we can do now is wait and hope Paypal to take some immediate steps.
And one more (evil) observation, Paypal might loose several thousand dollars because of this sudden action. Let me tell you how : Paypal is sending back all the money to the sender, no matter if you have already withdrawn the money to your bank account/credit card or it’s still there in your Paypal account. Now if you have already withdrawn the money and have no balance left in your account, all reverse transactions will reflect as negative balance in your Paypal account. If you are a blogger and got the money from ad networks/affiliates such as Chitika, Infolinks, Kontera, ReviewMe, PayPerPost, TextLinkAds etc, you can login to your accounts and change the Paypal address. Now when those companies will reissue the payment, you will get them on your new Paypal address. That’s it. You have already withdrawn the amount to the bank account and now you again get that money in a new account. Now you can again withdraw money to your bank account (may be a new one) from your new Paypal account and you get twice of the amount you own.
What do you think? How Paypal is going to handle this issue? Will Paypal ask the ad networks/senders to reissue the payment to the same old account, to prevent itself from getting scammed? Share your thoughts using the below comments box.
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Thank you so much for this useful info. My payment from an SEO company has been reversed to the sender. But, fortunately, a couple of days ago, I withdrew it to my bank account. However, now my paypal account shows a negative balance. How will I resolve this issue? Will I inform the SEO company to send the payment again to clear the negative balance? Please help me!!!!
Hi
Why Paypal have made it mandatory for the sender’s to provide their shipping address? Some of my payments which were not made via “personal payment” option have also reversed.
Any idea how long this issue is going to continue?
@ Amit and Emiley : Some technical disabilities at Paypal’s end made the matter worse. Hope to see everything as before by 9th of this month.