Paypal Payments to India Being Reversed

If you receive payments via Paypal and you live in India, you will find anything sent as a personal payment reversed.

Things change rapidly across the internet and apparently Paypal which handles payment across the web and across the world has just put a new policy into place. It no longer sends personal payments to India.

Lots of writers who use sites like oDesk, associated Content, Triond and Factoidz may well be affected by this if those sites do not find a way round it.

I discovered this when I heard than a friend had his monthly earnings which add up to over a hundred dollars paid into his Paypal account and then found the transaction reversed. He immediately got onto the site and asked what was going on. A little investigation revealed that Paypal no longer accepts personal

Customers who asked for clarification were sent the following reply:

“Your payment of 123456 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.” (Quoted from Paypal email).

There is a way round this if you do send payments to India.

Apparently earnings from writing, affiliate earnings, etc are counted as ‘personal’ payments. If you click the option in the payment box for sending payment for ‘goods,’ the payment will be allowed. It might be worth telling any site that has trouble paying you via Paypal about this. The key is not to identify it as a ‘gift’ on the Paypal forms. This really is quite bizarre. I have not tried this so I cannot guarantee that it works.

However, the advice in the paragraph above does not apply every time. I also read that an Indian company paid via Paypal had withdrawn their money to their bank account a week previously and then found that the transaction had been reversed and the money was taken from their bank account.

Apparently this was done to stop large amounts of money being sent as personal payments to avoid Paypal fees. It seems that if the payments are made as business payments and the fees paid, they will go through.