Paypal has suddenly withdrawn the personal payment system to and from India which means Indian Paypal users will no longer be able to send or receive personal payments from Paypal. All recent transactions in February are getting reversed if the transactions were made as personal payment. Paypal has not clarified anything officially, but the reason might be the large number of fraud cases that occur from this Asian country. Whatever the other reasons might be, Indian Paypal users are going to suffer.
Today I got three transactions reversed within minutes. Although the transactions were not personal, the sender had marked them as “personal payment“. So, I guess a large number of $$$$$$ is going to be revered today from Paypal India users.
Paypal Personal Payments reversed in India
If you had a business deal with someone but the sender marked the payment as personal, you will suffer in case you have already shipped the product or service and they money gets reversed to the sender. Generally people tend to use the “personal payment” option while making a payment as it comes on the top and quite convenient.
The notification mail from Paypal to me was like this :
Hello Soumyaranjan Pratihari,
Your payment of $$$ 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,
PayPal
In order to get the reversed transaction amount back to your Paypal account, you need to contact the sender again and request him/them to issue the payment again by following the below steps :
- Click the Send Money tab
- Select Goods
- Provide a shipping address
- Send the money.
Even if the payment was a personal payment such as a gift, it’s likely to get affected and reversed. Paypal will take it’s own time in restoring personal payments to and from India which might even take months or years.
How do you see this personal payment reversed steps taken by Paypal? Since a major part of Paypal users belong to India, don’t you find this step a bit harsh? Keep your thoughts using the below comments section.
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I am in the same queue, my infolinks payment got reversed and now my paypal account balance in negative. I do not know what to do.
should i mail to infolinks ?
@ Blogtips : You may contact Infolinks, but they are aware of this Paypal service change as well. I got a mail from Infolinks where they assured me that their Accounts Department is currently working on this and the money earned by the publishers will be sent again shortly.
yes Same case with me…My payments has been reversed too even more I havent received a withdrawl amount via paypal in my bank which i did on 28th jan. 2010. I have been lost by many bucks due to paypal currently.
thanks bapun, for a very satisfying reply as i was thinking of doing a mail to infolinks but no need now.
@ Bharat : Don’t panic mate. Just send a email to the sender and request him to resend the money. Paypal have sent the mails (in case of reversed transactions) to the sender and receiver as well, so the sender should be knowing this.
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 sorry for any inconvenience this may cause.
Well this is really frustrating ideally paypal should have informed all the indian users of this action atleast 2-3 days before actually implementing it, why all of sudden.
Hi Anuj from Paypal – well my paypal account balance shows negative even when they have not deposited money into my bank account – whatever new payments i get or reversed payments that are sent back to me are balanced towards the negative balance in my paypal account – this is really worrying me. How are they going to resolve this. First off they are holding the transfer to my bank account and secondly they are making my paypal balance negative. Will paypal take immediate action on this.
Priya
All payments were sent to me were marked as for services and still why are they reversing the payments. None of the payments were marked as personal.
Priya
Well, they will lose most of their Indian Customers very soon, seeing how they are making customers like Priya suffer. I wish they US Lawyer sense an opportunity here and sue PayPal on behalf of every Indian Customer with atleast 1000 dollars per head compensation for causing mental stress and for “illegally” suspeding financial transactions. Such a step has to be taken only after giving Notice, and all transactions prior to the Notice should be allowed.
Hi Anuj,
My Transaction has been reversed. We have requested money through a PayPal Invoice for Service – despite that it has been reversed.
I checked with my client and they have received the money back to their credit card. He sent me a snapshot of his statement.
My balance is negative now and when I try to resolve balance it gives an error related to credit card.
There is no place on PayPal where we can report suck problem. The “cases” section does not have options to report such issue.
What to do?
Sunil
I agree with Tameem, i think this is some kind of harrasment and well they take up the reversal fees also in the transaction. They should have informed the people earlier
$849 just 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.
Same problem with me. Even I don’t understand why payal reverse payment. Even if paypal can stop to send money from sender.
I have requested to withdraw money to bank account and transaction was cancelled and I got loss of USD32 by exchange rate. This is really a cheating.
There is no point in panicking. The best option is to ask your clients to hold the payments till this issue is resolved. I don’t think PayPal would run away with our money, they have a name in market and they would not like to spoil it at any cost.
Regards.
Hi All,
I request you all to raise your voice to the top management of paypal. I have made a sheet of 110 contacts of the top paypal executives! I request you to send in your complaints and post your response here!
http://uploading.com/files/d16472c8/Paypal.xls/
Paypal has really screwed and infact insulted all the indians by sending those automated responses and providing poor customer support. I really pray that a good competitor takes benefit of this situation and just screws paypal. That is why competition is good for an economy.
They are not transfering money and my payments have been reversed. I don’t know who can answer my questions.
As someone who knows PayPal quite well, I can tell you that Aryan’s strategy of mail-bombing PayPal personnel is futile. PayPal personnel are strongly warned, upon penalty of termination, that only (a) company-authorized spokespeople and (b) staff that have been fully trained by the PayPal marketing communications team may say anything on behalf of PayPal may post something to community forums such as this one. When something of this magnitude happens, all communications must be approved by at least the local marketing communications team, if not the local legal representative.
Regarding Interview Questions’ wish for competition, online payments is a difficult, fraud-filled business to be in. Fraud losses alone have forced most retail online payment companies to close. Even Google Checkout has not gained more than 1% market share, even though former PayPal staff went to work there. (I don’t know the market share statistics for Amazon.com’s payment systems, which are aimed at developers, not retail customers.) The only viable retail competitor in India I’m aware of is Obopay, in the mobile arena.
Hi all,
The issue is not yet resolved as on Feb 7th night…
Here is the recorded file of a conversation with a Paypal customer care employee on February 7th, 2010..
The issue will be resolved only by Tuesday/Thursday and they are not providing exact reason for the issue…Download and hear it…6MB mp3 file
http://filekeeper.org/download/shared/paypalcall.mp3
what is Infolinks is all about ? any idea please?? am new to this . Thanks in advance
@ balavalli : Infolinks is an intext advertising solution similar to Kontera.
My bank transfer got reversed and paypal charged my $32 as reversal fees.
@ Premium WP Themes : While withdrawing funds to your bank account, Paypal charges some amount as money conversion fee (dollar to rupees). Since Paypal reversed the payment from their end, all charges will be refunded to you.
Why paypal doing like this?
paypal can give notice before do this reversed payment
Actually i am withdraw $250 to my bank account but when it reversed i got only $230 so $20 was i loss
in transaction step they can give some msg “your payment will not withdraw”
I think in paypal not have good programmers or they making something frauds
I am really so sad after hear this one
@ Phpdeveloper : Paypal defines this as some internal error and trying to get it fixed ASAP. All we can do now is wait and see.
@bapun now i check my account they credit my $20 so i dont loss
I also get some information from paypal blog https://www.thepaypalblog.com/
this blog was answered by paypal employee, he says that
1. Why did you suspend local bank transfers and personal payments to and from India?
We temporarily suspended these services to respond to enquiries from the Indian regulators, specifically questions on whether personal payments constitute remittances into India.
We’re working with the regulators and our bank processing partners in India to get this resolved as quickly as we can. We realize that this is causing considerable inconvenience to our customers and I want to reassure you that this is a top priority for the leadership at PayPal
2. When will personal payments be turned back on?
The regulators recently let PayPal know about revised licensing rules that we are now actively engaged in securing. Personal payments to and from India will be suspended for at least a few months until we fully resolve the questions from the Indian regulators.
3. When will local bank withdrawals be available?
Customers should be able to withdraw their funds to a local bank within the next few days. In the meantime, we’re going to restore the money into the PayPal accounts of any customers in India who have initiated a recent withdrawal, so they know that the money is safe in their accounts. Customers will also be reimbursed for any withdrawal fee charges.
4.The PayPal reversal has left me with a negative balance. What shall I do?
If you bought something or transferred money out of your PayPal account to your bank account before we reversed the payment then you may be left with a negative balance.
If this was a payment for a purchase of goods or services, you should contact the sender and have him or her resend the payment as follows:
(a) click the Send Money tab, and
(b) select “purchase.”
If this was a personal payment, then the sender will need to find another payment method until we restore the service. We’re sorry about this.
If you can’t recover the funds from the sender, you can bring your PayPal balance current by logging in to the PayPal account and clicking the “Resolve Negative Balance” link on the Account Overview page.
5. My payment was reversed but it was not a personal payment. What happened?
Only personal payments should have been reversed. Customers who believe that their payments were reversed in error should request that the payment be sent again by following the steps above (click the Send Money tab and select “purchase.”)
If you are still having problems, please contact PayPal customer support
I hope that this helps clear up some of the confusion around the situation in India and I’d like to take the opportunity to personally apologize on behalf of PayPal for the inconvenience that this is causing our customers.
I have a business account with PayPal and I have always sent invoices to my buyers and on the PayPal web page to create invoice I was always selecting “Service” in the drop down they have there on the web page. Despite the invoice marked for “Service” the payment I received against those invoices were reversed by PayPal. This is not fair since PayPal is saying they are NOT reversing any payments for Goods / Services.
The questions are:
1. When the buyer receives the invoice and makes the payment do they need to again select what this payment is for like “personal” payment or “Goods / Services”? Will that not already pre-selected as “service” since the invoice is raised as service?
2. Can PayPal give an assurance that if they are paying against the invoice and if the invoice is for “service” and the buyer is not altering the invoice/payment to “personal” then it will not be reversed?
I just revieved the infolinks payment again today. so now can i withdraw the money from paypal into my bank account ?
Please reply bapun ?
Any Update on Paypal issue. Any alternative to withdraw money from paypal account
@Bharat: There are no official statements yet. However, the payment option to and from India is working now (except Personal Payments).
Thanks Bapun for the reply Howeven I am keen to know about the withdraw to bank account issue. Are we able to withdraw money to our bank accounts from paypal?
@ Bharat: Last day I have withdrawn some amount to my bank account and the transaction is under processing. I will update you shortly.
Thanks Again…Finger crossed. waiting
Any update about withdrawl issue
Sorry mate, have not checked my bank details. By the way, I am just moving outside for something and will check the details in a ATM counter. Will post a update within next 1 hour
Oops… Money transfer is not completed yet