I was happy to see my bank transfers getting reversed to my Paypal account. But as the euphoria has dies out, certain questions have arose in my mind: 1) Isn't this all a scam? First, Paypal charges 4% on the amount we receive from our buyers. Then we withdraw our money at below-market exchange rates. After this scenario, Paypal reversed back the bank transfers with a poor exchange rate. People might have lost hundreds of dollars due to this. And these hundreds of dollars might have gone in to Paypal's pockets. For e.g. If I receive $500, Only $480 is transferred to Paypal account. Then I withdraw it at Rs.44.50 exchange rate. Then it gets transferred back to my Paypal account at Rs.46 exchange rate. So, $500 has condensed to $445, a loss of $55 to me. But this $55 is of Paypal. Considering that millions of Indians are using Paypal, you can just imagine the profits Paypal might have earned due to this fiasco. 2) Why at financial year ending? I remember a similar situation arising last year right about the same time. This is financial year ending where companies have to present their annual report. Due to the Indian fiasco and the above-mentioned scenarios, Paypal can easily show over $100 million profits! The share prices will be up and the company gets in more profits. This is all a financial ploy by Paypal and it's parent company, Ebay. 3) Why target India? First, India has a huge consumer base for Paypal. Second, India does not have proper systems in place to answer to consumer redressals. Third, the exchange rate is high enough for the Indians to not worry about some $50 loss. Fourth, Indians are gullible enough to be happy with the reversals, as I was. Fifth, Indians are lazy and they do not want to get involved in litigation. Sixth, Paypal is a US Company and is protected from Indian laws. Seventh, they could not try this with Europeans or other Asian countries, as their systems are very strong that could have led to business closures. So, Paypal used this huge number of consumers in India to try out their financial ploy. They are immuned to the laws and anyways no case will be filed against them. Business will continue as usual for them. We know RBI was not involved in this fiasco and it is all Paypal's doing. This is as clear as water. We have been duped and we may all continue to use Paypal. And you all can try for bank transfers now. I am sure it will reach your bank accounts before this weekend as Paypal has got its purpose served.
@imran +11111 right right right !! Your every word is right and clear as water. Paypal has played with Indians...
Thanks for the kind words. I am angry on Paypal for what they have done, and angrier to know that I can't do anything to them.