Feb 10
The recent policy update by Paypal literally ruined its reputation level among indian merchants and bloggers. You can find the links to read the actual issue if you hear this for the first time.
We also have some Instant Paypal Alternatives to send and receive funds to avoid loosing the buyers or orders. Paypal is used for Millions of Dollar Transaction by Indians every month. Sudden, Paypal’s behavior is totally unacceptable as it reversed the funds of indian account holders without any prior notice. Moreover the policy update also reflected with some reversal fee at the account holder end. Which made people to think, Is Paypal Scamming its Account Holders ?.
Alert Pay is a similar service like Paypal, located in Canada. The current move made by Alertpay appears like it is interested, to stand in the user base competition with Paypal. Yes, the recent newsletter of alertpay says it all.
This recent announcement will surely trigger up a account migration war between paypal and alertpay in focus of Indian Account Holders. Till date, alertpay have a very good reputation among indian users. Hence this positive offer can be the best way to say “come to papa… 
“ to the e-merchants and bloggers, who are frustrated and feeling so bad about paypal. Apart from personal payments totally free between alertpay users, indians can now withdraw the amount to their Credit Card. Requesting Cheque is Possible too. Soon it is expected to announce the support for local banks as well. If you are using alertpay and have any positive or negative feedbacks, please write them up in the comment below. Thanks for reading…!
Feb 06
Its very tough to loose our customers and taking unwanted tax charges in our transactions. Even paypal do charge some Reversal Fee, for the reversal done automatically by Paypal from Day 1 of this month. I was charged with 3.50$ for my 37$ Reversal done to one of my buyer. The recent posts “Paypal Stops Personal Payments to and from India” and “Paypal Reversal Hits High Alert to E-Merchants” can be helpful if you are reading this news for the first time here and have no clue about it. Bloggers and E-Merchants are very much frustrated with this behavior. But still there are people who says the Reversal didnt affect the Premier and Business account users when they receive money using “Goods” option while paying their bills.
The best alternatives for Paypal to receive funds without delay from your customers can be “Moneybookers” , “AlertPay“ and “Liberty Reserve”. But ofcourse, do check their Fees and Tax rates while doing transactions through these services. This can be considered as an alternative but to that much comfort that you had with the Paypal. Being nothing atleast you can prevent your customers name removed from your database. Will surely come up with more alternative options in few hours.
Paypal is also acting bit faster to sort out all the issues that happened to its indian users. However, the delay and no announcement (till now in policy updates of paypal member page) may let the customer base of india getting reduced from paypal lists.
Feb 05
The issue is on High Alert across the Web for E-Merchants and Webhosting Companies especially. Whoever receives donation from their website visitors also affected because of the paypals new restriction over indian account holders. Even though the majority of indian internet users use paypal these days the current reversal process irritates every one. The question is,
- There was no Announcement regarding the reversal process ?
- Is it advisable to hold all the transactions till an official clearance announcement from paypal end ?
- What will happen if i loose my customers as the payment made by them reversed ?
- Will Paypal loose its indian customers as we already started to look for paypal alternatives ?
Because there are people who get email from paypal, that the money (900$ to 1400$) have been reversed to the buyer who paid the money few hours back. Paypal Call center is too busy right now in answering the queries from indian merchants. However they are still promising there will not be any negative effect on the current policy.
* Moneybookers is said to be a positive alternative for Paypal in India.
People, who totally depend on donations and funds from their website are under RISK. We expect paypal should act as fast as possible. I just got 40$ reversed to one of my friend who sent me on 1st february, 2010 and i just sent an email to Paypal through Resolution Center and waiting for their reply.
Lets hope for the best !
(Maybe) Paypal Staff Reply to a Blog Post TechGround: 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.
Feb 05
Today an email from paypal says that it currently stopped all payments to or from india when it is made as a personal payment. So users must do the payments under services or goods. Few months back paypal have increased its transaction fee little higher and that made small business people feel bad. And still people do transaction via services to cut the charges applied by paypal to paypal transactions. So this new policy update from paypal end totally restricts indian paypal account holders to stop their personal payment transactions. Where they wont be able to send or receive any money from their family members or friends.
Hello XXXX XXXX,
Your payment of  37 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: Â (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
This has some positive and negative feedbacks from the paypal users. There was no announcement from paypal end regarding this new policy update. However, paypal seems working bit fast on solving the issues related to this REVERSAL made by Paypal. Many indian paypal users are now in Negative balance due to this sudden change of policy.
Update: From Digital Point Forum (and its still unconfirmed)
Well as from some source on DP, PayPal didn’t submitted required documents to RBI office which they asked so RBI denied them to use NEFT system until they add it but few people are reporting that funds transfered to account so within next 2-3 days all pending withdrawal will be clear excluding Sunday!
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