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