Paypal , an eBay Company has recently suspended its transactions to and from Indian Paypal Accounts. All the transactions marked as gift, personal payments , and services are being reversed.
I also transferred an amount to my Indian Bank on 28th January, which showed as completed but has not yet been credited to my Bank Account. Many Indian Entrepreneurs are facing the problem since 27th January.
I got an email from Paypal on 2nd February stating the issue and the email was like this
Dear XXX XXXX,
We are currently experiencing an issue processing withdrawals to Indian bank accounts. As a result, there may be some delay in withdrawals from your PayPal account to your bank account.
We apologize for any inconvenience this has caused, and are doing all we can to resolve the issue.
Thank You,
The comments section on Tech Crunch is full of frustrated Indians and other people claiming that their thousands dollars are hanging no where. The money is not with PayPal neither the amount is credited to their banks.
BinaryTurf got a detailed answer to their query. It might be some policy of RBI that might have changed this year and therefore money is still hanging no where. The solution to this problem is either use one of the following as payment methods like
- Payoneer
- 2 Checkout
- Alert Pay
- Liberty Reserve
- Moneybookers
I am not sure how many people will shift to other methods of online payment, but still know that I will not be using PayPal untill the issue is resolved so that I do not have to pay the reversal charges and any other charges , and I even have contacted my advertisers to stop payment this month.
I will keep you guys updated 
{ 1 comment… read it below or add one }
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.