The Solution to the PayPal problem in India

Hi guys,

So I went though the 15 page thread about the new RBI + Paypal rules which will be in effect from March 1. But I couldnt find a single solution to the problem.

We all are fucking pissed. Beyond belief.

But cussing and shouting wont help.


We as online entrepreneurs have no other option but to continue business.


So let us use this thread for solutions to the PayPal issue.

Please do not copy and paste the paypal email like it has been done dozens of times in the other thread.

I created a separate thread for brainstroming solutions and a way out cuz it will get
lost in the other thread.

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The solution that comes in my mind now:

- Use another paypment processor to accept payments (you guys please suggest some in this regard)

OR

- Tie up with a friend or relative outside of the country and use his paypal account. This will be a lot of hassle though and a lot of money lost in processing fees.
- Use a credit card to make payments.


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I'm sure we can come up with better solutions.

 

how about get one country account for spending purposes and use indian pp for withdrawal purposes

 

how ? when PP says you can't have more than one account. I dont trust proxy.

 

right chandan . Now we have to do like that only . We dont have any other way

 

well we have to do illegally only . We have to use another account inorder to continue all our business or else its waste.

Actually RBI allowed forex to trade with international brokers from Feb 01st 2011,it was the circular and blocked the paypal . That means RBI is allowing to send money to other countries using bank and not paypal . The reason is that bank will be having accounts to whom we sending and why we sending and we have to pay tax whereas in paypal it does not happen and we paying tax to US government hence paypal made this issue into account .

 

What is the problem? The only point is, (a) no more cash balance in Paypal account, (b) withdraw all money within 7 days of receipt notification from receiver (c) incoming funds cannot exceed $500, and, (d) continue purchases from the linked credit card on account.

Is this a problem? How many of you sell items worth over $500? Even if you do, ask buyer to send payment in two transactions - that's a loophole in the rule! Secondly, withdrawing funds to bank - its obvious you're doing business to make money so its not a problem to take back money into your banks! Lastly, though you cannot make purchases thru cash balance, you can do it via linked credit card - so what's the hurdle here? Paypal didn't say you cannot buy stuff! They only said, buy with linked credit card. No need to panic.

 

lol so you are going to ask with paypal " hey i am creating accounts in 2 countries. is this ok ? "

 

I think I have a solution for this stupid situation created by RBI and Paypal.

Just follow these steps.

1. Withdraw funds to your bank account within 7 days as per the new rule.
2. For making payments online, use Payoneer card (apply if you don't have one).
You can load $100 or $200 to your payoneer card using your local bank's debit card.
3. Add Payoneer card to your Paypal account as additional source for funds. (Paypal says "you can not use your Paypal funds to buy anything online", but in this case we are not paying from Paypal funds but paying from Payoneer card funds.) You can also pay using Payoneer Debit card directly.

4. And about $500 limit per transaction, Always ask the buyer to make wire transfer to your bank account.


All these drama are done for making all of us pay tax for our online income!

 

Actually, I am worried about the payments which are made automatically from PayPal account. For example, hosting, e-junkie, mediafire and other stuff.
Now, if hostgator try to generate invoice, will PayPal decline it from paying OR it will be automatically charged to our CC?
I am afraid that our hosting, domain registration and e-junkie account will no longer exist. What do you say guys? Any ideas?

 

yes, i am dependent on paypal and if my account gets blocked i am in the middle of nowhere.

 

Instead of money going from your paypal balance, because of new rules, it will be directly charged to credit card. i wonder paypal will make provisions sooner or later to add funds from your credit card

If you are so much worried about buying domains and hosting expenses, you dont even need paypal to pay for hosting and domain purchases. Get a credit card and you can directly pay with your visa/mastercard. You dont even need to link your credit card to paypal. The internet started off with credit card payments and it is the mother of all payments an then paypal took over. Almost half of my clients still prefer to directly pay with credit card rather than paypal.

 

Absolutely right

 

I feel same,they want tax from us.
Well recently one of my friend told me that, now payoneer card is not working in india,rbi blocked it. Is it true?

 

I think so too. But aren't we paying the income tax wherever applicable? If we are what else do they expect?

 

man all are dependent on pp not due to their company but due to buyers who pays via paypal. we need to convince our buyers to pay via alertpay or moneybookers.

 

Chandan, if these rules are applicable to PayPal, they will be applicable to all payment gateways sooner or later. AlertPay works the same way paypal worked for us and it will be restricted as soon as most of us switch to this unless they take this opportunity to register themselves as a bank in India.

PayPal is just causing the issue as they are not willing to register themselves as a bank and work under RBI regulations - source - http://goo.gl/R7XRm

We may better start a move to force PayPal to register as a bank in India considering their huge revenue from India.

- Vijay

 

So, there is no other alternative for us to choose and if we continue using paypal, They will be ready to piss on us .

 

WHY IS EVERYONE WORRYING PAYPAL NEVER DOES WHAT THEY SAY!

they might you are allowed to keep funds for more than 7 days just like what they said lastime 30 days but no one had to withdraw money..

 

My biggest doubt is What is receipt of payment,Customer pay via buy now button,I provide service,When the receipt will come.
And paypal must register themselves as a bank,If they do They get revenue higher than what they get now.

 

Im amused on seeing some people saying 'Paypal must regster themselves as bank in India'. Did u think Paypal as your nearby Chaiwalla?

They are multi-billion dollar corporation & would look at ways of increasing their revenue without legal hassles from any country.

So drop the idea of pressurizing Paypal!! It would not lead anywhere