PayPal Stops Personal Payments To and From India
By on February 5th, 2010

In a jolt for Indian users of PayPal, they have decided to stop personal payments that are sent to Indian accounts and originate from one. The issue has quickly escalated and snowballed because several web publishers rely on PayPal to receive online payments from advertisers and clients.

The shock was even bigger when PayPal started reversing payments received by Indian accounts and sending them back to the people who sent them. Here is a email that Indian publishers have been receiving after PayPal reverses the payments.

Hello Publisher,

Your payment of  XXX has been sent back to the sender of the payment. 

We reversed this payment 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 contact the buyer and have him or her resend the payment as follows:  (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, then we have requested that the sender 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

TechCrunch was able to get an update on this issue from Anuj Nayar, Director of Global Communications at PayPal, he 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.

However, no matter what the problems were, PayPal definitely did not handle it amicably. There was absolutely no intimation to users about this issue and people who withdrew the money from their accounts now face negative balances. We will try and get more information about this issue and update you, however, it is high time we see more PayPal alternatives rather than be a victim of such unwarranted actions.

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Author: Keith Dsouza Google Profile for Keith Dsouza
I am the editor-in-chief and owner of Techie Buzz. I love coding and have contributed to several open source projects in the past. You can know more about me and my projects by visiting my Personal Website. I am also a social networking enthusiast and can be found active on twitter, you can follow Keith on twitter @keithdsouza. You can click on my name to visit my Google+ profile.

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