If you have not hear about the PayPal earlier, it is the online payment system from eBay. It is one of the best product for sending the payments to any part of the world. As of now there is no real competition to PayPal and they are enjoying the most of the market share. There may be future challenges from Google CheckOut, which is new product launched by google. I will write another article explaining the unique features about PayPal and how it works?.
One of the main advantage in PayPal is you can withdraw the balance amount to your local bank account. For example if you are doing any freelance work and receiving the payment of $4000 through paypal and the payment is sent from USA. You can easily add your bank account in your PayPal account and withdraw the money. It will be converted into local currency. This process takes only few days.
Most of the freelancers and small companies in India depends on this services to receive the money from outside India. The shock came when last month (28th) RBI told PayPal to stop the payments to Indian banks because they don’t have the proper authorization to make fund transfer. Then onwards PayPal has stoped all the payment to banks and waiting to resolve the issue with RBI.
The status of the issue is explained in the PayPal Blog. It would be nice if they come up with the solution faster. It will be a big problem for the small companies using PayPal as the payment method. PayPal also provides another option for issuing the cheque. But, this process takes very long time.
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February 15, 2010 at 3:03 am
This is useful information keep updating on this.
February 27, 2010 at 6:36 am
Recent issues with PayPal withdrawals to Indian Banks & more over payments just randomly being reversed back to the senders will have a deep impact on PayPal’s reputation. It raises so many questions like (THIS MIGHT CONTAIN SPOILERS):
A) Should we trust PayPal in future?
ANS: ABSOLUTELY NO
B) Are they really concerned about our Money?
ANS: ABSOLUTELY NO, After a long period of two weeks we receive an apology letter stating that “We are sorry we goofed up opps!”? and stuff like “Your money just got sacked since this is nothing serious to us we are just doing a drill of playing a game with your hard earned money”?
C) Is RBI responsible for this?
ANS: UNQUESTIONABLY MAYBE, So, Question is why this is happening in India and nowhere else? Question is why we are being kept behind curtains and dark? Question is why Moneybookers and other Payment systems are working but PayPal is not? you just want to exclude the RBI out of this since they are least concerned with us. Everyone failed here! RBI off course you cant expect them to give you a comforting truth so a comforting lie should suffice you! And PayPal Ow man no shit a multinational company failing to inform and notify of an issue of this magnitude. That was an AWESOME combination of pure frustrating, destroying trust & spreading chaos.
D) So what does PayPal tell us now?
ANS: “We are sorry, but your valuable to us so please give us another opportunity to goof up and play some more engaging games with your money” and “We just love to make more profits by giving you a pathetic exchange rate”
D) What now?
ANS: DTA (Don’t Trust Anyone) Get your sleeves up against them and find your own ways to get paid over any other medium that serves better, communicates better and keep them in plenty. If one fails other should work out.
Ive let all my clients know about this issue and advised them (in advance unlike PayPal) to switch over to some other Payment system which is reliable, responsible and does the main thing “ACTION” at PAR. The truth will probably be dead and berried RIP about what happened because the shame and disgust they bring upon themselves is apocalyptic now.
February 1, 2011 at 10:48 am
actually what happend is RBI treated paypal like bank and asked to give interest to users who have money more than a week
it is the main problem