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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."

11 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 davester666 · · Score: 5, Funny

      New meaning to the racist term "indian giver"...

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      Sleep your way to a whiter smile...date a dentist!
    3. Re:Makes me wonder... by witherstaff · · Score: 5, Informative

      That's not very convenient for instant or simple online sales. Also you normally get hit with a $15 wire transfer fee on top of it. For large purchases it's doable, for paying some coder by the hour it'd be a hassle.

    4. Re:Makes me wonder... by terraformer · · Score: 5, Informative

      http://www.gunpal.net/
      It's an alternative.

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      Who are you? The new #2 Who is #1? You are #617565. I am not a number, I am a free man! Muhahaha.
    5. Re:Makes me wonder... by brusk · · Score: 5, Informative

      No, it's a fee you pay for a regular wire transfer from one bank to another. Its absence is what makes PayPal so convenient.

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      .sig withheld by request
    6. Re:Makes me wonder... by Rophuine · · Score: 5, Informative

      Anywhere but the US, you just sign in to your internet banking account, key in his branch ID and account number, and away the money floats, on a surge of digital freedom! In the US however, try this approach, and your rent just become $355.

  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.

  3. Due to RBI regulations by kai_hiwatari · · Score: 5, Informative

    This is due to some change in the regulations by the Reserve Bank of India (RBI) regarding offshore money transfers. I read somewhere that RBI is demanding some documents form PayPal to make them eligible to transfer money to and from Indian Banks. Apparently PayPal hasn't been able to furnish those documents.

  4. My theory by wealthychef · · Score: 5, Funny

    I think PayPal is run by cowboys.

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    Currently hooked on AMP
  5. Re:Who will be manning the call centers... by Anonymous Coward · · Score: 5, Informative

    Posted anonymously to keep moderation.

    http://www.paypalwarning.com/paypal_phone_number