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Paypal Reverses Payments Made To Indians

Posted by kdawson on from the money-available-but-not-to-you dept.

bhagwad writes "Beginning January 28, Paypal has been reversing the payments made to any Indian provider of services. In addition, Indian users have been unable to withdraw their money to their bank accounts. As a result, a large number of Indian Paypal accounts have negative balances running into the thousands of dollars. The worst part is that users weren't informed beforehand — the funds were just whisked away. Indian providers have gone ballistic, with over 2,000 posts on a thread on the reversal of payments and over 700 posts on this thread about the delay in transfers. Paypal hasn't given any explanation to this behavior other than they're looking into it. Although Paypal claims in the above blog post that payments made for 'Services' are not being reversed, this is not true. All payments not made for 'Goods' with a shipping address have been reversed — in fact, the Paypal e-mail tells the Indian sellers to encourage their clients to lie and claim that they're paying for goods with a shipping address instead."

4 of 509 comments (clear)

  1. Makes me wonder... by lag10 · · Score: 5, Insightful

    Why anyone trusts PayPal with their money.

    1. Re:Makes me wonder... by Anonymous Coward · · Score: 5, Insightful

      Nobody trusts Paypal, but there is no viable alternative. Not yet, anyway, but that can't take long in light of these shenenigans.

    2. Re:Makes me wonder... by Rophuine · · Score: 4, Insightful

      Paper records can be easily forged and it takes tools most banks don't have to tell when and by whom. Electronic records are more secure.

  2. Banking Reform by PingXao · · Score: 5, Insightful

    Banking reform in the US should include subjecting PayPal to all the rules and regulations that apply to banks. I find it strange how they've managed to avoid being classed as a bank all these years in the first place. Current regulations leave a lot to be desired, but making PayPal adhere to them would be a good first step.