This is the shocking most disgusting,disturbing news i have found


I am the buyer and paid for a hosting service. 2 days later I got an email from paypal saying they returned me money when I never asked them to do it.

"
Your payment of $35.9 has been returned to you. If you sent the payment with a bank account, the funds will be returned to your PayPal balance. If you paid with a credit card, the amount will be credited back to your card.

We returned the payment to you because we have stopped allowing personal payments to be sent to or from India.

If this was a payment for a purchase of goods or services, and not a personal payment, then you may resend the payment to the seller by following these steps on the PayPal website: (a) click the Send Money tab, (b) select “Goods,” and (c) provide a shipping address.

If this payment was a personal payment, such as a gift to a friend or family member, then we request that you find another payment method until we restore personal payments to and from India.

We are trying to resolve this issue as quickly as possible and we’re sorry for any inconvenience.

Thank you,

PayPal
"

The weird thing is the money hasn't been returned to my account. I'm not from India so I'm assuming the seller is from India. Should I just ignore this cause the money hasn't been returned and I'm guessing the seller still has the money?



There are big big discussions going on in various forums that paypal is not only returning personal payments BUT ALL PAYMENTS MADE TO/FROM INDIANS

Please check your balance now

AND BTW NO NEED OF TRYING WITHDRAWAL. ITS ALREADY IN MESS..
NO WITHDRAWAL TO BANKS IN BEING DONE FROM PAST FEW WEEKS FOR PAYPAL INDIAN USERS.

This only applies to indian paypal users

I request every indian paypal user to check their paypal account and see if there has been any reversal

Paypal is reversing money and sometimes many users have negative balence due to this since they have already withdrawn the amount

To add to the problem no payment request to bank made after jan 26 is being done by paypal

That does sound like a huge issue although we've not seen any transactions from our customers in India reversed [yet?]. From what it looks like it's only "personal" payments to/from India and not standard/business transactions that are being reversed.

If you used a "personal" payment method to pay for your hosting (which avoids the PayPal transaction fees) this is exactly the reason PayPal is taking this sort of action.

Definitely will be keeping an eye out either way.

That does sound like a huge issue although we've not seen any transactions from our customers in India reversed [yet?].

Definitely will be keeping an eye out.

I agree with you Mike. That is issue, not a policy of them.

Some update about the issue
Only payments sent after 1st FEB are believed to be reversed and effected..
Some says this applies to invoice generated too
So all webhosts receiving Indian payments or web hosts run by Indians will have HUGE HUGE impact

And regarding the withdrawal problem
Here is the post in on of the forum which explains it


Update

I just talked with my friend who works for PP's back office here @ Chennai. The delay is because RBI has requested documents from PP a month back and now that PP failed to produce it, RBI just sent back the NEFT money to PP. Only after PP woke up and sent the documents. Now, all our funds have already been sent to PP's clearing house. I hope that we get the money in 2-3 days (excluding the weekend days)

Yeah, I experienced the same thing. Last week I withdrawn few amount to my bank account, here in India. But, money isn't deposited to my bank account yet. So, I contacted paypal and they said that they have already deposited all amounts. It's really shocking news. I will have to check with my bank account.

You would not probably have got the money today
It will surely take a week to get this problem resolved
But i am not worried about the withdrawal problem ...what i am worried is payment getting reversed..

How can Indian webhost run business when all the payments are getting reversed?
I have just confirmed that even invoice generated are getting reversed..

The same applies to other webhosts receiving Indian payments through invoice ..

And BTW is this the correct section where i can post this thread.. I think every webhost need to look at this thread and be aware of this issue. I would request a mod to move this thread to appropriate section where it can get maximum exposure ..

Update: Only payments sent/received via Goods option in paypal are valid.All others such as service,invoice payments are getting reversed.

How does this effect you as of now ..

case 1) You are an Indian: You cant send/receive any payments or pay any invoice/bill/web hosting fees etc
+ since there is a withdraw problem, you cannot withdraw the amount to your banks as well

Only thing you can send/ receive is the payment sent via goods option

case 2) You are not an Indian: You cant receive any payments from Indians. This includes the invoice payments,server,webhost payments etc etc
Only you can receive payments sent via goods option from Indian paypal users as of now
Paypal payments to/form other countries are unaffected.

The problem as of now is only for Indians
I hope everyone out there understands the magnitude of this problem and realize how serious this is if nothing gets solved soon

The same is the case with me. My payments are reversed. What if I update my personal account to business account?

If i have a business account, can I receive my payments to my indian bank account???

Can someone pls answer this?

Thanks
Rafi

Lost All my Money + my account is in negative balance. How can they do it with out any F*****g notice????

The same is the case with me. My payments are reversed. What if I update my personal account to business account?

If i have a business account, can I receive my payments to my indian bank account???

Can someone pls answer this?

Thanks
Rafi
All indian accounts no matter its personal,business or premier are affected
Paypal has gone crazy and mad
Only all hope lies on monday and tuesday to see whether the problem will be rectified or not

Actually,

Day before yesterday, my payment got reversed, so I contacted paypal and they suggested me to use following method and I asked my sender to resend money and got it now.

If this was a payment for a purchase of goods or services, and not a
> personal payment, then you may contact the buyer and have him or her
> resend the payment as follows:
>
> - Have the buyer log in to their PayPal account.
> - Click “Send Money.”
> - Enter their email address in the “To” field.
> - Enter the amount of money they wish to send you, and choose the
> currency from the list.
> - Select “Goods”, “Services”, or “eBay Items”, depending on the
> purchase.
> - Click “Continue.”

Thanks

In my Paypal Business Account, I am getting payment as before and no reversal etc, everything is working as it worked always.

Also just before I noticed this post, I made two payments for servers through my Paypal as I have always done.

Oh my.. this "incident" is getting me worried since my country is well known as one of the biggest scamming and fraud country when it come to the terms of e-Money. What should I do if this is ever happened to my country ? Should I take all my money on my PayPal account right now to prevent something like this happened ? I'm getting paranoid..

I cannot stand paypal. For some reason they always agree with scammers. They need to look over their rules and re think them very closely.

We had a payment for services reversed when sent to a vendor in India. Per PayPal's instructions, we resent it as a GOODS purchase, not as a service as we did originally. Looks like it went through without further issues.

Can anyone verify it worked for them as well?

i lost my $50

I've also heard about this and also they go blocking indian client paypals as well.

We also have a case where we sent payment to our India programmer. I received the Paypal email yesterday, checked with the programmer, he said nothing was debited from his account.

Today, the programmer contacted me the payment was reversed. As robertk1 had suggested, we resent it under "Goods" instead of "Services". It is working fine for us.

I can confirm that even Goods Payment are being reversed one by one. First it was believed to work but not anymore.

Please everyone dont just say " Hey it didn't affected me .." since the payments reversal process is not instantaneous and it may take a while for it to mess with your account

@Vinayak_Sharma: I have confirmed that even business accounts are being affected. You are saying you are not effected but it may happen that the reversal process may start soon on your account too

Even first i thought i was unaffected until i saw payments got reversing one by one after a while

No need of trying withdrawal to Indian bank option since it is also having
problem

It will show completed status after 1-2 days but none after Jan 26th are getting money

We are in a serious problem fellas .. never have faced such a serious problem before
Many are saying it is surely a govt. (either US or Indian Govt.) intervention problem..
The news has broken in techcrunch too..

Although still my transactions are working fine, but noticing that members here are facing problems, I searched and found this http://www.moneylife.in/article/8/3591.html

Now I think it has to do some thing with Foreign Exchange Maintenance Act (FEMA) or TAX or keeping up proper records.

According to a reports from techcrunch.com, Anuj Nayar, director for global communications at PayPal had said, “I can confirm that personal payments to and from India have been suspended while we address some questions from our business partners. You can still make commercial payments. We’re trying to resolve the situation as quickly as possible and we’re sorry for any inconvenience this may cause.”

Last year in November, the Indian government had issued a notification (No No.13/2009/F.No.6/8/2009-ES dated 12 November 2009) for prevention of money laundering. Under this notification, the Reserve Bank of India (RBI) has asked all banks and financial institutions to maintain proper record of all transactions and verify identity and address of a non-account based customer or a walk-in customer.

Now as far as I know, it's Paypal that does the transactions in non Indian currencies and the Indian user is charged/paid in INR through Paypal's local CitiBank account. That means, very intelligently, Paypal is saving on TAX as they are the one having foreign exchange transactions and FOREX earning is TAX free here. Now, its a corporate fraud in simple terms, though there are many loopholes in the system that Paypal must be enjoying till date, now some one must have noticed that which must have forced Paypal to take such action.

Also to note, it is Paypal who had suspended transactions and doing reversal, its not RBI or Indian Government doing this, as many other methods are working fine, this again make me think about Paypal's wrong doing.

Although PayPal provides money transfer service to and from India, neither the company nor its account holders pay any tax on the transaction. When Moneylife contacted the RBI to know about the PayPal issue, an official said,”We have no idea why this is happening. PayPal doesn’t come under RBI’s purview.”

Since Paypal charge and pay Indian users in INR (Notice in your CC or bank statement, it says "Domestic Transactions" sometime back may be a year back it was "Foreign Transactions") and does the conversion itself, again it is not doing something right.

PayPal does come under RBI’s purview, I am not sure how that RBI officer stated that it doesn't. Anyone and every one doing any money transaction whether domestic or foreign, does comes under RBI purview.

To me it seems there is lot more than that meets the eye. We will have to keep a watch as the drama unfolds.

Also time to seek another legitimate provider.

thanks for the updates, guys!.. Did anyone try Xoom.com .. Xoom allows money transfer to India via Paypal. Did anybody try successfuly? Just let me know if someone has so I can withdraw my money from Paypal via Xoom to my indian bank account. Please update, and God may this issue be resolved peacefully and ASAP.

Thanks
Rafi

@Vinayak_Sharma: Yes i have also read the moneylife article already ..
Even if this ends happily i am going to avoid paypal from now on ..
Even i believe that they are making corporate fraud just like you said ...
So we cant trust them anymore unless they change the way they work and handle payments

I totally agree with you. The way they have done this is completely wrong.
This is really unbelievable step taken by paypal!
They should have issued a notice saying that all future personal payments would be affected and not reversed the payments.
I am Freelance and do work on a Best Free Freelancing Website getmeafreelancer.com and get payments from Buyers via paypal, now it will affect my business alot
Another discuss on this issue going on here

developersolution.com

Moreover, the interesting part is, why they are allowing transactions, why not blocking them in the first place, as it may create lot of confusions and may destroy business of an individual. Imagine you sold your services, buyer got what he/she wanted and Paypal on a random date reversed the payment.

BTW any ebay.in user, any effect there?

This is not professional, they can't just take these kinds of action without prior notice. :mad:

We're definitely going to avoid PayPal from now on.

Im not sure of the full story and I doubt any PayPal employee regardless of the area is permitted to make any statements regarding this.

However if im reading this right it's affecting payments to PayPal personal accounts rights?

I did notice

"Our fees are now the same for all accounts - Personal, Premier, and Business. Please note that the Purchase rate applies to all payments using Request Money."

I don't think it was always this way, especially since it says now. Without some clarification PayPal is setting itself up for one of the largest class-actions this industry has probably seen.

One things for sure, make sure you don't have any funds in your PayPal account if you deal with India, until further clarification is provided.

I know I didn't get any emails advising us of any changes in anything at PayPal.

I believe it may have to do with something on unverified account sending limits.

Ironically, yesterday I was searching for sending limits of unverified Paypal accounts. Here and there I've read if you put your country as India, the limit will be $200.00 USD (Or India's currency, they weren't very specific). And as you know, USA Paypal accounts have a $0.00 sending limit (Who knows why. Maybe it's to stop fraudulent payments).

Surface & woods01 : Please read this post
http://www.webhostingtalk.com/showpost.php?p=6635072&postcount=20
In simple words paypal is reversing ALL PAYMENT made to/made from Indians from feb 1st ..
ALL PAYPAL INDIAN ACCOUNTS(business,personal,premier) ARE AFFECTED
Though in their official email they are telling only personal payments but the real truth is far away for their statement ..



There are some serious thing going on and i highly doubt this would get resolved soon since i believe that either US federal bank or Indian RBI action is involved
For further reference : http://www.moneylife.in/article/8/3591.html

In short paypal has isolated India from their service and is making reversal at this time

I can't say that I agree with the previous post about PayPal removing India. Their website clearly shows support for India (https://www.paypal.com/worldwide/).

I've yet to see any reversals from Indian clients however this issue at least raised my attention that PayPal changed it's fee schedule without sending anyone a notice.

We need more companies like Paypal with terms of services larger then our constitution to just be able to do whatever they want whenever they want.

I can remind myself of the PayPal FDIC pass-thru guarantee that's posted on their site.

That would probably have to do something in the event PayPal decided to just take merchants money away from them.

I believe it may have to do with something on unverified account sending limits.

Ironically, yesterday I was searching for sending limits of unverified Paypal accounts. Here and there I've read if you put your country as India, the limit will be $200.00 USD (Or India's currency, they weren't very specific). And as you know, USA Paypal accounts have a $0.00 sending limit (Who knows why. Maybe it's to stop fraudulent payments).


I don't think anybody in the world can do business with an unverified PayPal account.

now the issue becomes bigger and bigger paypal need make a full stop to this issue

Below is the URL of the PayPal blog with information about this. Possibly it has to do with one or more of the following: (a) Money laundering (2) Tax evasion (3) Violation of PayPal or Banking regulations.

https://www.thepaypalblog.com/2010/02/personal-payments-and-local-bank-transfers-in-india/

In my Paypal Business Account, I am getting payment as before and no reversal etc, everything is working as it worked always.

Also just before I noticed this post, I made two payments for servers through my Paypal as I have always done.
Same here... I am able to receive and send ALL my payments through PayPal with utmost ease. I have an Indian PayPal Business Account.

Aditya, please stop posting falsifying information. Many high-volume business accounts remain unaffected by PayPal's current issues. You only have a person account, so you can speak only as a personal account holder. There is no need to cause any more confusion.

Same here... I am able to receive and send ALL my payments through PayPal with utmost ease. I have an Indian PayPal Business Account.

Aditya, please stop posting falsifying information. Many high-volume business accounts remain unaffected by PayPal's current issues. You only have a person account, so you can speak only as a personal account holder. There is no need to cause any more confusion.

But never ever ask for a Personal Payment from now on or it will get reversed. Always tell you buyers to send payment as Goods/Service.

Same here... I am able to receive and send ALL my payments through PayPal with utmost ease. I have an Indian PayPal Business Account.

Aditya, please stop posting falsifying information. Many high-volume business accounts remain unaffected by PayPal's current issues. You only have a person account, so you can speak only as a personal account holder. There is no need to cause any more confusion.

i am having a premier account ...
Please if you have time check this
http://forums.digitalpoint.com/forumdisplay.php?f=101

And then comment whether i am spreading false information or not..

Business Account and Premier Account are different in legal aspects.

Business Account means you are doing business, and that is perfectly legal, as long as you are doing the right things.

Premier Account is another personal account with more features.

There is no need to lock the thread, as every one has to see where things are going.

I am sure the coming week will clarify lot of things.

And particularly check posts which shows that Indian business paypal accounts are affected ..
ex :
http://forums.digitalpoint.com/showpost.php?p=13527247&postcount=7
http://forums.digitalpoint.com/showpost.php?p=13547161&postcount=1195
etc etc

If your account has not been affected ,then very good but i told what many many others are experiencing ..

Anyways this thread is turning into convincing thread to verify that their is a problem and not about sharing the problem faced by WHT users ...I would here by request any mod to please close/lock this thread ..

he is not spreading any fales info lot of the webmaster has suffered this issue with paypal

paypal do what they want, when they want as someone previously stated they seem to agree with scammers, but what can we do?

paypal do what they want, when they want as someone previously stated they seem to agree with scammers, but what can we do?
You can call them up and convenience. You can use fraud protection methods and be wary while transacting. Trading online isn't the same as doing business in person.

Double check each transaction before you accept it as a payment.

As for our account, we have incoming payments sent from 'Send Money' tab on PayPal's website completely disabled. Clients can send money to us only through clicking on the PayPal icon on their Invoices. No transaction has ever effected us.

What the hell is going with this paypal? My money are just getting reversed...Are they working to get this resolved?

What the hell is going with this paypal? My money are just getting reversed...Are they working to get this resolved?

ya there are in process but they dont given any time to reslove this let wait and watch the game by paypal

Can each affected person inform here the following:

1) Your Account Type (Personal/Premier/Businesss : Verified/Unverified)
2) Other Party's Account Type
3) Payment mode (Send money/Invoice/Subscription)

Please try to provide accurate details about your and your partner's account type, also the way money was sent/received (money that is reversed).

I am just curious and trying to understand what is happening, why is happening and with whom this happening. As even today I got money in my Verified Business account and made payment too.

Though I am still not affected, but just to inform:

1) I have Verified Business Account (Indian, Non US)
2) My clients too have verified account of all types and vendors have Verified Business Account (US and Non US)
3) All payment sent to me are either subscriptions or for invoices (No send money tab use), all payment sent by me are either subscription or invoices (No send money tab use).

And I am not affected.

1) Your Account Type --> Premier : Verified (Indian )
2) Other Party's Account Type --> Business : Verified (Non Indian Account)
3) Payment mode : Mass Payment Mode (Service)

The money i got from the AD And Affiliate Agency got reversed. It was made using mass payment mode by the Agency.

So can be regarded as service payment.

1) Your Account Type --> Business : Verified (Indian)
2) Other Party's Account Type --> Business : Verified (Varies)
3) Payment mode --> Send Money

1) Your Account Type --> Business : Verified (Indian)
2) Other Party's Account Type --> Business : Verified (Varies)
3) Payment mode --> Send Money
Are you saying you are affected or not ?

We have quiet a few customers as well as staff from India but we have not experienced any problems so far. D:

Are you saying you are affected or not ?

Yes, we are.

Yes, we are.

Oh this proves that even business accounts are having problem ..
Now i am wondering why some here say that their business accounts have not been affected ..?
May be some of them are affected and some are not ...
No one is knowing what exactly is happening...!!

Oh this proves that even business accounts are having problem ..
Now i am wondering why some here say that their business accounts have not been affected ..?
May be some of them are affected and some are not ...
No one is knowing what exactly is happening...!!

We don't have enough data here to claim that.

But from whatever data we have, it looks only personal payments without enough details are affected.

Anyone, who's invoice or subscription payments are reversed?

Made it to slashdot http://news.slashdot.org/story/10/02/07/1830222/Paypal-Reverses-Payments-Made-To-Indians

Below is the URL of the PayPal blog with information about this. Possibly it has to do with one or more of the following: (a) Money laundering (2) Tax evasion (3) Violation of PayPal or Banking regulations.

https://www.thepaypalblog.com/2010/02/personal-payments-and-local-bank-transfers-in-india/

I posted the above, approximately 28 hours ago. Probably PayPal will explain their new regulations for transfers to/from India, this week.

I have no such reversal issue till now in our business account. But, there are 7 withdrawals pending between 27th Jan to 3rd Feb.

They have some issues with reports to RBI, and that is causing the delay. I have just used xoom to withdraw money from PayPal, the cost effective way in my view if you need some INR urgently. Let me know if you need more info about the withdrawal.

Okay as far as I understand, reversal will happen if and only if your buyer sends the money as a Personal Payment which is only possible through 'Send Money' menu in PayPal account.

I'm saying this because we haven't found the money got reversed which either came through Invoice or sent as a Service Payment.

This URL will give you the latest official information from PayPal about this issue: http://apnews.excite.com/article/20100209/D9DOSAD80.html

Well at least commercial payments can still be made.

Try good it work fine

This URL will give you the latest official information from PayPal about this issue: http://apnews.excite.com/article/20100209/D9DOSAD80.html

Oh.. thanks god. Atleast, they provided some update. It is was just headache for us. Hope, this should be fixed soon. :)

Its official now ..
RBI behind all the scenes ..
India’s Central Bank Stops Some PayPal Services
http://www.nytimes.com/2010/02/11/business/global/11paypal.html

And also see here

http://www.thepaypalblog.com/2010/02/update-on-paypal-situation-in-india/

Grossly incorrect.

Just for example, from that nytimes link you gave:

But the Reserve Bank of India said Wednesday that despite the online payment service’s ubiquity in India, it is not properly registered.

“Providers of cross-border money transfer service need prior authorization from the Reserve Bank under the Payment and Settlement Systems Act,”

The act, adopted in August 2008, regulates payment and settlement methods in India.

So what paypal is doing, is illegal as per the laws here, moreover paypal is claiming that RBI recently informed them.

Paypal says

The regulators recently let PayPal know about revised licensing rules

If you notice, the act was adopted in August 2008, why was paypal sleeping over it, why other remittance providers not facing the axe. Paypal is a big company with many operations here in India, like ebay, development center, customer support and many other establishment, why they never got themselves properly registered for this service. When you do a business in any country, you are bound to study all laws there, but they studied the loopholes.

See it yourself

PayPal does not consider itself to be in the remittance business in India because accounts are online only. Recipients must transfer the money to a bank account to withdraw it.

They are a remittance business, because in the end they are the facilitators of remittance to India.

Further, why didn't they stopped people from using the personal payment transaction facility and withdrawal facility, they rather let it happen to deduct fee, and sat over your money making millions in few days.

Even now they have not informed the user base officially, for every minor change in their policies we get an official email, even they send their promotional offers regarding shopping on ebay or using paypal in a festive season. Why they have not emailed all the affected users about this, till date.

Why are you blaming RBI or Indian Government, you should remember that only because of them, our economy is not as badly effected as the US economy has been.

Paypal, or for that matter of fact all companies, have their T&C, and the user must abide by them, same way all countries have their own laws so companies should obey them.

Don't be ignorant, if you are doing business without knowing the laws, you are bound to get burned, paypal just did that to you. There are many Indian companies using paypal and are not affected, less withdrawal, because they did things properly and within the framework of law.

.....
There are many Indian companies using paypal and are not affected, less withdrawal, because they did things properly and within the framework of law.

+1
I strongly presume only the personal accounts are hit.

I would say, only personal payments are affected, whether you have personal account or business.

Though we have a verified business account, we never accept personal payment (send money). We always generate invoice/subscription to receive payment, and not a single transaction got reversed even if client has a personal account.

@Vinayak_Sharma: I know and support all the facts you said in the post.I strongly support RBI as i feel they are best.

I never did criticized them for their move.I just gave the updates.

Any BTW did you tried and successfully withdraw paypal amount to your bank account recently ..?

I responded as you said "RBI behind all the scenes .."

No I have not tried withdrawal as of now, firstly because there was no need, secondly I don't want to lose money on conversion/transactions. Also paypal has not informed us officially that withdrawal process has been restored or not.

If you need your funds urgently, try using xoom, it may cost you a bit, but you will get your money.

If you need your funds urgently, try using xoom, it may cost you a bit, but you will get your money.

It wont cost you a bit even.

1. Try finding a coupon code for Xoom
2. PayPal exchange rate and Xoom exchange rates differ from Re 1+ which covers xoom fee.

I have a verified premier account and did not notice anything unusual with my pp account till now.

I just got off the phone with PayPal US (well I called from US, but the call center was not obviously Americans...), and they told me they're now reversing all payments, both personal and commercial now...sure does make paying people on a regular basis very difficult..

My payment from an invoice from an Indian person got reversed. I then sent a payment for a "service", which also got reversed. So what they're saying is definitely confirmed by at least me sadly.

Time to find another solution...

The latest update with paypal i think.

https://www.thepaypalblog.com/2010/02/an-open-letter-from-farhad-irani-on-the-situation-in-india/

This really sucks as it's hurting everyone, not only businesses but personal accounts as well! And from the parts I read on this thread, it's also illegal what they are doing!

it is really giving lot of problems

lol, 2CO started the campaign to cash in the situation http://www.2checkout.com/campaigns/india.html

not just 2co even alert pay has started up special promo for indians, indians can note the changes by visiting alertpay.com, its actually specially changed for personal accounts