Immediate things to do – PayPal Halts Personal Payment Transactions From And To India

We can do what we can do which we can, things can not be done/improved which is out of our control at the moment.

Objective to anyone: Keep our business run (Do not spend much time in worrying, use the time effectively into productive).

What We can Do:

  • Use Buy Now buttons/Billing system to get the funds. This will not be reversed. (But do not initiate withdrawal of funds using Bank accounts until you come to know the withdrawal problems with RBI are solved)
  • Importantly, arrange funds to live your life this month, assuming you will get your money at the end of this month, also prepare the backup plan for next month.
  • Start keep contacting the clients to whom the money is sent back, get in touch with them, explain the situation, create a buy now buttons for them, ask them to make the payment such way. (In this case only, you will come to know what the client situation exactly now, are they willing to pay back (do not run away), whether they got the funds back etc). It is your responsibility to keep in touch with your customers, keep updated them about the issue, they should not be in a confused state. Now, most of our customers (to whom the money was sent), feels we, Indians are not good enough, doing personal business which are not legal, for that reason, PayPal is doing such things. We need to talk to the client & explain, we are legal, doing business in a good manner, saying, this is the glitch with PayPal. This will ensure the customer confidence on your business. (No one realizes indirectly it affects our customers confidence, trust towards our services). Because, they are from US/UK/somewhere, they do not have any problem with PayPal. so, they may think, we are not doing good.
  • Funds withdrawal: All the withdrawals are reversed to PayPal account at the moment. You can initiate a withdrawal using “eCheck option”. This is valid & you can get your money. Please note that “You can’t encash your payment directly. You need to deposit into your account & collect them”. This process will take 8-10 days completely.
  • Also try to promote the issue “PayPal holds our money, deposited into our account that is worth of millions”, not the issue ‘PayPal do the reversals’. The way media looks/projects two issues in a different way (If you say Someone ICICI/SBI/PayPal do not give us the money that is in our account, holds all the customers money due to their glitch, the total amount is worth of 1K crores, definitely, the media will turn their attention.) If We talk about reversals, the media will feel, it is happening within the bank policy changes, that we can’t do much. Promote “PayPal holds 1K crores & not responding to the customers”, it will certainly get the attention of media.

What we can’t do:

  • Reversals are happening (note that the reversal time taken depends on the queue in the system & the timezone of the payment made). This is not the fault in the PayPal system. PayPal officially do this without any announcement. No matter whether it is business/premier/personal accounts,if you are from India, it happens. No matter which method you use (Service, goods, eBay, shipping address etc). The only thing the reversal do not happen is “if the payment made using Buy now buttons/billing system”.
  • All the withdrawal initiated after Jan 28th is on hold by PayPal India. The funds are cleared from PayPal US & arrived to PayPal India. Due to the problem between RBI & PayPal India regarding, PayPal India can’t transfer the funds to customers account using NEFT. (This is how PayPal withdraw works: PayPal US releases the funds to PayPal India using Federal Bank in US. As soon as it is done, “the status will be changed automatically to “Completed”. This will take 24 hours maximum. PayPal India releases the funds using NEFT to corresponding Indian banks). The reason of Jan 28/29/30/31 are delayed is, they arrived to PayPal India on or before 31st. But, due to holidays of 30th & 31st, unfortunately, they can’t process on Feb 1st which is the official date of RBI to stop such processes. Update: All the funds are reversed back to PayPal account.