PayPal suspends service in India

PayPal, the online payment processor, has put some of its services in India on hold temporarily and is reversing funds requested through PayPal India, according to reports.
Anjul Nayar, a PayPal representative, said Saturday in a blog post that "personal payments to and from India and transfers to local banks in India have been suspended" as the company works with business partners and stakeholders "to address questions they have about the service".
Nayar wrote that customers can still make commercial payments to India, but merchants will not be able to "withdraw funds in rupees to local Indian banks." An Associated Press report noted that the suspension took effect January 28.

Source: *news.cnet.com/8301-1023_3-10448971-93.html

A

What are the alternatives for PAYPAL?

its really sad

This is really a shocking news....Many Indian companies rely on Paypal

my recent withdrawal got cancelled

have to find some other method to withdraw

Lot of money got stuck there now

Seems something related to Indian Govt Policy as well.

Really hope they solve the issue soon.

Meantime, wire transfer (of course not related to PP, but as an alternative) works fine. Tried it yesterday and worked. Yes, the fee might be slightly higher, but for large amount, we can use that.

What is the reason for this..?

Yes, I saw this on digitalpoint forum...Sad news,

Getting the updates email from Paypal - and it seems they will resolve it soon. At least they have to keep their reputation. So far it all seems positive.

Yeah..sad news. But no one knows why this is happening. Atleast they should have mentioned a VALID and understandable reason.

The current reason is

while we work with our business partners and other stakeholders to address questions they have about the service

anyone have a clue about what these questions are? or even could be? and why single out India?

@Anorion - from the Paypal blog and other sources it seems something with Indian Government policies. They might have asked Paypal to stop all personal payments, and the licensing issues.

But then, no idea why the bank transfer part is suspended. Will have to wait and see.

Here is the clear picture (got info from DP)

*www.nytimes.com/2010/02/11/business/global/11paypal.html?partner=rss&emc=rss

Other payment gateways are now trying to capture Indian Markets before Paypal resumes their services again. Following is the email which I received today from Alertpay (another site like Paypal).

Thank you for making AlertPay your way to pay! As you know, AlertPay is the rising leader in online payments, offering the most ease and security when it comes to spending and sending money online.

We are happy to offer our members in India a flexible and powerful payment platform in which your information is always safe and your payments are always made instantly – without interruption!

Did you know that you can send money to friends and family for FREE? With AlertPay, you can!

Whether you have a Personal or Business account, you can send money for FREE by e-wallet or credit card to anyone with or without an AlertPay account.

To make withdrawing money easier for our valued members, we recently introduced withdrawal by credit card, which is just as convenient as a bank transfer! You can also withdraw your money by bank wire and check!

With all of these options, why go to anyone else for your online payment needs? AlertPay takes care of your business, no matter where you live!

I love this line from their message

With all of these options, why go to anyone else for your online payment needs? AlertPay takes care of your business, no matter where you live!

Competition ka zamana hai bhai... Life is a Race agar tum tej nahi bhagoge to duniya tumhe kuchal kar aage chali jayegi..

^^ Yeah..true..even I got that mail from Alertpay, but does Alertpay deposits money directly to bank, like paypal ? Does anyone have any info for this.
BTW, you've made a mistake, its kuchal kar instead of "chuchal" lol..

saqib_khan: BTW, you've made a mistake, its kuchal kar instead of "chuchal" lol..

hehe thanks for correcting me.. I am not good in writing hindi words in English..

this has been corrected now...

Paypal -> Xoom -> Bank account seems to be working fine for a lot of people (again from DP forums), and I think that is a good method, at least till Paypal resolve the bank withdrawal issues in India.

V

Paypal refuse to register as bank with RBI neither it accept to the scrutinise of it transfers by RBI.. with such refusal, RBI order its suspension of some services(personnal transfers) in India..wired transfer is taken witin BANKs so it is in order..Indian Agencies are mainly concerned paypal services might be used as transfer of money between terrorists..
Paypal should remember it is not 'google' neither India is 'China'

vaithy said:
Paypal refuse to register as bank with RBI neither it accept to the scrutinise of it transfers by RBI.. with such refusal, RBI order its suspension of some services(personnal transfers) in India..wired transfer is taken witin BANKs so it is in order..Indian Agencies are mainly concerned paypal services might be used as transfer of money between terrorists..
Paypal should remember it is not 'google' neither India is 'China'

wtf

then how are terrorist supposed to transfer of money damn , now have to find alternatives

Paypal to xoom to bank account - worked for me

Also, Paypal to debit card still works and we can ask for a cheque too. So it is not fully closed.

so if anyone needs paypal balance can contact me.
i will pay you on paypal ($) and transfer the same amount (Rs.) to my
SBI Account Gujarat.

din said:
Also, Paypal to debit card still works and we can ask for a cheque too. So it is not fully closed.

hey how you got your debit card registered with Paypal? Every time I try to configure it, paypal rejects it. (I have ICICI bank Debit card)

@maxmk

Do not get confused with attaching a debit card and withdrawing money to debit card.

Attaching an Indian debit card - in most case it will not work, as Paypal can't take that small amount (1.59 USD or so), but that will be added in our account (provided your debit card has cvv code).

Now, if it is a Visa card, you can withdraw money into it.

Hope this helps.

Now, if you do not have a credit card and your debit card is not accepted by Paypal (note: this is the case of Paypal verification), you can use a VCC and I think max_demon is a master in that

People in DP forum claimed they could even withdraw to a VCC ! I didn't try that personally, so not sure about it.

J

I have some amount say 100 USD in my paypal account, I tried to get that to my ICICI account but I was not able to confirm the bank as the small deposits were never successful. Anyone here can help me using that money.. ?

@j_jindal1

Paypal suspended money withdrawal to bank account temporarily, and it is not clear when they will resolve the issue.

For the time being, use xoom or any other alternative method to withdraw money from Paypal. (Debit card withdrawal, cheque etc)

J

Thanks for replying Din..

din said:
@j_jindal1

Paypal suspended money withdrawal to bank account temporarily, and it is not clear when they will resolve the issue.

For the time being, use xoom or any other alternative method to withdraw money from Paypal. (Debit card withdrawal, cheque etc)

I think this is temporary and will not sustain long - Hope so.

Yes, according to PP, they are trying to solve it soon, but takes more time than they expected.

Really hope they resolve it.

my withdrawal is also stuck in between.
Hope it get solved soon. Haven't try xoom as withdrawal fee is very high.

Friends, you can get update from paypal official blog:
*www.thepaypalblog.com/

@ravi_9793

Use coupons to get your money from xoom - for free (no fee at all)

And it is all valid/legal. I tried and received money in bank account without paying any fee to xoom.

You can also try withdrawing to credit/debit cards or erquest a cheque (may take more time I guess).

Check DP forums for coupons, or if you want, I can post here.

din said:
@ravi_9793

Use coupons to get your money from xoom - for free (no fee at all) And it is all valid/legal. I tried and received money in bank account without paying any fee to xoom.

You can also try withdrawing to credit/debit cards or erquest a cheque (may take more time I guess).

Check DP forums for coupons, or if you want, I can post here.

thanks a lot din.
Actually I had already started withdrawal process, and paypal shows it as completed.

Now I have only 200$ left in my paypal account, which I plan to purchase some service at DP or will use for my servers rent.

Thank you again, I may send you PM for Xoom coupon in couple of days because I may get 550$ payment next week.

Latest update.

Paypal will resume bank withdrawals from Monday. They will contact the users before Wednesday with more details.

Source - Email from Paypal and also the Paypal blog.

i think now xoom has some problems.
*blog.xoom.com/2010/02/paypal-funded-transactions-to-india.html

sorry if i misunderstood it.

Yes, xoom closed the doors ! It no longer accept Paypal as source for sending money to India.

But PP opened the doors again

So do not worry.

More at - *www.thepaypalblog.com (Official Paypal Blog)