PayPal Notification: Reversed Transaction – Not Allowing Personal Payments to and from India

paypal PayPal stopped allowing personal payments sent to and from India. In fact the worse part of this story is that they have started reversing some already completed transaction which were basically donations, gift, or any other personal payments. Lot many webmasters, merchants and other online business people in India are suffering because of this. We at Internet Techies get a good amount of donations for our open sources developments, blogging tips and support. Because of this initiative from PayPal, couple of donations reversed from our account. After that we needed to send a separate mail to the donor to make that payment as a purchase or service.

If you are having an account on PayPal and your account is on PayPal India, then you may get a notification as below (if your account got any payment as personal payment since 1’st Feb 2010),

Here is the email which I got today about the reversal of one of my received donations,

 

Your payment of  $$$ 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

Many publishers who uses Infolinks and other advertisement platforms are facing serious problems as their payments comes as a personal payment in case of PayPal withdrawal. Thank God we had put a hold on that payment.

If PayPal was planning to impose restriction on such payments in India then they should send a notice before a month or so and then implement the changes in the system so that no one will have to suffer like this. PayPal support is getting too many emails and they really busy answering the queries and concerns from different account holders. We talked to PayPal guys and they told us that they are going to make some changes in the system in couple of days here is the excerpt from what we got from them,

 

After doing my careful review on the transactions about the donation
that were sent by the sender on your account, I was able to see that all
of them were reversed to the sender’s account because they processed
the payment as a "Personal" payment instead of "Purchase".

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.

Since this payment is for donation, we can recommend that you contact
the sender again and have them resend the payment as "Purchase" and
select "Goods" instead of Gift or Services so that they can process the
donation successfully. Please be reminded to add also the sender’s
shipping address so that the donation will go through.

We are trying to resolve this issue as quickly as possible and we’re
sorry for any inconvenience.

But hey PayPal, this is not the proper way of handling financial transactions. Let us know whether you are also facing the issues related to payment reversal. If you are looking for an alternative to PayPal then you can try Moneybookers for merchant services.

Related: PayPal Currency Converter – Know exact exchange amount before withdrawal

Sanjeev Mishra is a professional blogger and an Internet Marketing Consultant based in India. He has built the Internet Techies to provide you updates in technology and web application area.
  • Hello Sanjeev,

    PayPal is having technical issues. My infolinks payment got reversed and i send them mail, paypal is working on to fix the issue.

    Thanks,
    Krishna

  • Purush

    Paypal is not going to restore the payment. They cleveraly planned and made checkmate on indian user.

    Bcoz of this many people was caught in problem. We are the sufferers. Plz join together and fight against the Paypal.

    Paypal made bad impression from Indians.

    Hereafter Paypal wont be secure and safe transaction. They should not use this words again. Idiots they don’t know how to make a move, without any notifications they made this.

    Paypal should face this severe consiquences.

  • I totally agree with you. The way they have done this is completely wrong.
    This is really unbelievable step taken by paypal!
    They should have issued a notice saying that all future personal payments would be affected and not reversed the payments.
    Another discuss on this issue going on here
    http://www.developersolution.com/news-and-general-affairs/top-news-paypal-stoped-payment-india-t-20.html#pid72

  • Sam

    There is no point in panicking. The best option is to ask your clients to hold the payments till this issue is resolved. I don’t think PayPal would run away with our money, they have a name in market and they would not like to spoil it at any cost.
    Regards.

  • Yes, this move without any intimation is really bad and PayPal will definitely loose a percentage of market share from India. Some updates are coming as the issue has been resolved. Waiting for more updates.

  • The problem is with donations. As on Internet Techies, we provide free support to our visitors and they donate some amount as per their choice. Now PayPal has reversed some donations and it is really awkward to ask donor to donate the same amount again. Waiting for proper response from PayPal team.

  • Tejas

    There is a problem with invoices as well. We have got a payment reversed which was a valid business transaction with an invoice sent by us. Can you help me? Where should I send paypal my complaint

  • Hello,,

    I am also facing this problem. Someone put some amount to my account and paypal resend that money to him and cut some amount from it as a fee. This is all done without notice. If they have any professionalism, they would only done this with a prior notice. I think we should Ban PAYPAL AND EBAY.

  • More than 200 USD are reversed back , The problem is that I had to all time ask my clients to resend the payment . Hope PayPal will correct this soon. As mentioned people will migrate to some other service apart from Paypal if this continues.

  • Timir Patel

    Paypal done this without any intimation and how can paypal reverse money from our account once they have credited.

    If they have stopped personal payments to and from India. then they have to block the option by sender side that he can not

    send payment in India.

    I got USD 577 in last few days. I have also requested to withdraw money in bank account. See what happens !!!!!!

    Paypal canceled all my withdrawal requests and credited USD 542 and reversed to senders.

    I got credit of USD 542 instead of USD577. Even if withdrawal requested are not completed (Deducted exchange rate fees). But

    how can they deduct exchange rate fees even if transactions are not completed and money are sent back to senders.

    Now I have negative balance. And I like that balance will become positive by deducting from credit card.

    Who can tell that paypal is safe way payment method ????

    No steps are taken in front of paypal.

  • Nik

    Hey! What is this going on paypal?

    I have faced 2 problems:-
    1) MY withdrawal from my paypal account to my Bank account in India got reversed ( I lost $32 for the exchange fees). Paypal shall bear these expenses as its their fault.

    2) All the payments which i received in Feb are reversed

    At least paypal shall not reverse the transactions done before Feb. My withdrawal from paypal to my bank account was done on 29th Jan, but am suffering the wrong doings of paypal.

    Can anyone tell me how can i withdraw my money from paypal and get rid of their services in future…

  • Just wanted to let everyone know that we’ve posted an update to the PayPal situation in India on our blog with additional details: https://www.thepaypalblog.com/2010/02/update-on-paypal-situation-in-india/

  • Francis

    Hello,
    Is not only India,I live in Japan and Got the same mail of Yours few days a go.
    I believe that this is something wich has to do with the law and regulations in the Asia.

    Sincerely,
    Francis