Important Update from Paypal for PayPal India Users : Change in User Agreement

Do you know that according to a newspaper, RBI is helping US companies like Visa and Mastercard by making credit card necessary. Surely RBI governor has taken bribe from these companies to introduce such rules.

 

Hundreds of freelancers which includes housewives cant get Credit Card.

 

I understand your situation and I am also in the same situation but I am not worried as I knew these changes were pending for long time and I am well prepared for this. Why are you worried about your refunds and money back guarantees? Add a credit card and use funds from credit card while making refunds or any payments. That's it, problem solved.

Another method you can implement is, add a payoneer card to paypal. Load money to your payoneer card (this can be done using your local credit/debit card) and make online payments. You are only restricted from using paypal balance as fund source while making payments. You are still allowed to make payments using your credit card as source of funds.

About $500 restriction, please understand that it's put to trouble Paypal and not you and me. Paypal is making huge money from balances kept in your paypal account and restricted paypal account. First of all, Paypal is just a payment gateway not a bank, so paypal allowing it's users to keep balance in it's account is illegal. This can be solved if Paypal is ready to get a banking license, but Paypal as a company is huge and they are not ready to do this, so the current situation is created.

Don't you think whatever money we spend from Paypal balance is unaccounted in our country...so it's called as "Black Money". So, RBI says, "Withdraw all the money to your bank and then spend it". What's wrong in it?

 

I completely agree with you because I am also in a similar position. But many visitors here who have never ventured out of their full time work will not be able to understand or empathize with us.

Our super efficient RBI thinks that they only have the right to block. They have conveniently forgot that many payment processors think twice about accepting credit cards.

Most of the time it is due to our super efficient banks, who provide credit card, the transactions never materializes. We just get a reply that the credit card is not validated by the bank. We are stuck with our IMPERIALISTIC MINDED SICK BANKS.

And now the RBI too had ditched us.

 

Go right now to any ICICI or Axis Bank with Rs. 20000, they will give you a credit card with a limit of Rs. 17000. Yes, it's instant. You need to carry your address proof and photo id too. They will open a FD for your Rs. 20000 and give you a credit card against that FD. You will not be withdraw or close this FD account unless you clear your outstanding on your credit card and close your credit card account. If you default in your credit card payments, they will close your FD account against your credit card outstanding.

 

BaltiSinghji, Do you know that a lot of the time the transaction gets declined by the Credit Card providing Indian bank. This is for the low value transactions, then think about our situation when we have to make high value purchases.

REMEMBER:
When you are spending your paypal balances, it is like spending your own money from pocket, nobody can ask you a question.

Now when you use credit card you are getting credit from the bank, it is the bank's wish to accept or reject your transaction because they are lending you.

Now tell me why I have to explain it to the stupid bank?

If we have option spend balances it is my money and I can spend it as I want.

 

Ji, Thanks for tips. I do have a CC linked to my account.

Just go over here and see the pricing

interspire.com/shoppingcart/compare.php

That's just a tip of a proverbial iceberg.

Just a couple of purchases will make my CC limit blast off... now should I pay interest to our banks, because I have to pay my staff every month and the project will get over only after a couple of months to receive the final payments.

Does RBI has people intellectually talented to understand these business nuances.

 

In addition, I think RBI has colluded with our Indian Banks in making this policies.

 

I can't stop laughing at this!

If any amount is not accounted then it's not your own money. This is the case in any country of the world. Even the taxes we are paying is our own money, then why are you paying? There are some rules that every citizen of the country must obey and this is applicable to all the countries.

The funds you receive in Paypal are not accounted and black money until they are transferred to your bank in India. So, if you spend money from your Paypal account, that's simply you are spending unaccounted money (black money) which is questionable. So, RBI is restricting this practice of spending unaccounted money directly from Paypal.

I don't find anything wrong with it.

Everyone here thinking about their own problems in a small view point. Look at the big picture, we, online entrepreneurs generate around 2 billion dollars every year and they are mainly transferred through Paypal but around 50% of this money is spent directly from Paypal, which is illegal and these transactions are simply "black". Another thing is, as long as you keep your balance in your paypal account, paypal is making huge money out of it and even more money from limited accounts. These are again illegal because Paypal is not a BANK to keep balances in it's users accounts. They are just a payment gateway. So, like every payment gateway processors should abide the rules of RBI of money should be transferred to the end user within 7 days.

We are all furious about our immediate problems without thinking deep about the changes made by RBI.

 

You can laugh at whatever you want. I don't have a problem.

What I find funny is your inability to answer my questions? If you can't answer/provide a solution then please keep quite don't make funny comments

Why are you making an ASSUMPTION that the money spent from Paypal balances are going unaccounted. Who said that to you?

All the transactions are reflected in our revenues and we pay taxes for that.

Now how much time will it take for the RBI to order the Paypal to submit the a member's transaction history and to verify it electronically. Few seconds, I guess.

Do you mean that our RBI lacks IT staff to get this working.

Again, if you find yourself intellectually smart to find solutions for your problems then that's great I salute your intellectuality. But please refrain from laughing at other people's problems, here we are speaking about livelihood of so many freelancers.

Everybody has varying degrees of resources at their disposal, some will be able to circumvent any problem but it be very difficult for others to do the same. I hope you understand.

 

Whether I think deeply or shallowly this is a retrograde step from RBI, please accept that.

When our work providing countries have no problem with this system it is a service providing country that has a problem. Actually it should be the vice versa.

And there are people to support these retrograde actions!!!!!!!!!

 

Will you guys kindly stop fighting?

I'm also frustrated with this issue and feel helpless.

Please no more fighting.

 

Hey, don't take anything personal... I didn't mean it that way...

Now you understood the whole thing properly.

This is exactly RBI is asking Paypal.. to become a bank and share the user data with RBI, but Paypal is not ready to do this. So, now you must be clear where the problem is...

The entire problem can be solved if Paypal operates as a bank in India or RBI gives special status to Paypal.

Another simple solution to the whole thing is, Paypal should make PAN Number mandatory and add all the transaction details to PAN of the user.

 

I think you need to know more about how the financial system works between countries. Every country has it's own rights to protect it's funds and regulate the terms. So, this is just a step to stop Paypal working like a bank when they are not. If the users of the Paypal have some problem with it, they are bound face it. If the user base of Paypal in India are huge, Paypal must bend itself to solve these problems.

You know that if India don't have "Double Tax Treaty" with USA and other countries then you need to pay tax to the USA government or other countries for all your paypal transactions. Since we have the double tax treaty, we are allowed to receive funds in Paypal without taxes being deducted. So, RBI has every right to regulate the inflow funds at any place where the money is coming through. So, it's simply a step to regulate Paypal, not you and me.

 

Nothing personal! You are just presenting an alternate point of view. Actually what you say is correct regarding the regulation of money flow. I perfectly understand your point of view.

But my contention is that it is not going to help it, instead it is only going stifle the freelancers. It is like the income tax department increasing the tax to 50% thinking that they are going to be flooded with money, whereas in reality tax inflow is only going reduce as the time goes by because the business cannot operate profitably.

See Paypal is just an another company, it need not have any love towards Indian freelancers, instead it is the RBI that should have policies facilitating the freelancers.

How does a $500 cap going to help it. We can always overcome it by splitting the transactions but isn't it not breaking the purpose for which the cap is created. Only the lowest budget projects come under this cap.

How did the RBI arrive at this cap? Did they take into account the service level guarantees that a seller has to provide? Did they take into account multiple transaction cost? Or they need not worry about any of these?

They do not have any necessity for that. The 2 billion dollar they are transacting in India is peanuts when compared to amount they are transacting in other countries. If they are not a bank elsewhere I do not see any reason for them to become a bank in India.

Again they need not worry about us Indians when the whole world endorses their payment system.

They have already made it a year ago. I was not able to log into paypal account without providing my PAN number last year.

 

Hey buddy, if you feel frustrated then join our fight, its very interesting.

Remember small drops make an ocean, please take a few minutes to write to

seems to have his inbox full so his mail box is not accepting any messages.

 

Yes Paypal too must do something to accommodate its Indian users, hope it does.

 

Its not mandatory. Its your choice whether you can enter your PAN number or not..

 

The user above my post said that paypal has made it mandatory a year ago.. I opposed that only..