Tuesday, March 2, 2010

paypal withdrawals in India

New Bank Withdrawal Instructions for Our Customers in India

Farhad Irani

As promised on Friday, Farhad Irani here with more details for our customers in India on how to withdraw your funds from your PayPal account to a local bank account in India.

As I indicated in my earlier blog post, we are making changes to comply with Indian regulations for settlements for exports of goods and services. In order to facilitate this process, PayPal will be suspending new withdrawals on March 1, 2010. We expect to resume the service on March 3rd. When you select the ‘Withdraw Funds’ option on your PayPal account after March 3rd, we will ask you to fill out a new field entitled ‘Purpose Code’. This information is required under the laws of India in order to identify the nature of cross-border merchant transactions.
Why are we asking you to do this?

PayPal needs to put in place certain changes to comply with Indian regulations. This means that

1. Indian PayPal users (Business, Premier and Personal Account Holders) are no longer able to receive personal payments. Your customers now have three options to pay you by
1. Using the Pay for Purchases (Goods or Services) tab
2. Completing PayPal checkout at your website
3. Responding to PayPal “Request Money” instructions (invoices)
4. When you instruct PayPal to withdraw your PayPal balance to your bank account in India, you will be required to provide a purpose code for the transaction.

What is a Purpose Code?

The purpose code helps your bank furnish information that may be required by the Reserve Bank of India to identify the nature of the cross border transaction. Details on the different purpose codes are in the table below. Please note that this is different from the Importer Exporter Code (IEC) issued by the Ministry of Commerce and Industry.
When is a Purpose Code needed?

When you initiate a withdrawal, you will now be required to declare a purpose code when you are completing the bank withdrawal request.

Please note that according to Indian law, based on the value of withdrawal and the purpose code in your declaration, your bank may require you to provide documentary proofs such as invoices / goods receipt forms as applicable to reconcile with your withdrawal.
What do you need to do?

Step 1: If you have initiated a withdrawal prior to March 1st it will be restored to your PayPal balance. The initial amount you receive back in your PayPal balance will be less than the amount you withdrew; all applicable fees and charges will be credited to your PayPal account separately. This credit for fees and charges may take a few days to be reflected in your PayPal account balance, but we expect the full amount of the original withdrawals to be in all of the applicable PayPal accounts by the end of the week. Please bear with us as we complete this process.

Step 2: Once the funds are back in your PayPal balance, or if you have no pending withdrawals as of 1st March, starting on 3rd March you can request a new withdrawal to your local bank account, and you will need to select the Purpose Code relevant to your business.
Frequently Asked Questions
Q. What are the Purpose Codes I need to use?

Please use whichever purpose code below correctly identifies your business.
Code Category Description Who should be using it
P0104 Export of Goods Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) eBay merchants, jewelers, sellers of collectibles and other such products through eBay and your own websites / catalogues globally.

Please note: Cross border shipment of goods and services for which you file GR / PP / SOFTEX / EC forms only should be processed with this code.

If you have any questions, please check with your bank to help you with the same.
P0301 Travel , Hospitality and Tours Purchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, hospitals, Emporiums, Educational institutions etc. as well as amount received by TT/SWIFT transfers or debit to Non-Resident account). Online Travel Agents, Airlines, Railways, Buses, Taxicab Services, Hotels, B&Bs and other travel / tourism related sales through PayPal
P0801

P0802

P0803
Information Technology Computer Information Services. Hardware / Software / Data Processing consultancy/implementation If you are an independent / freelance coder / hardware consultant or data processing service provider, or a small business providing such services for websites globally, please use these codes.

For all IT related consulting services where you know you do not need to file a SOFTEX form, please use the appropriate code. 801 for hardware consulting, 802 for software consulting and 803 for data management and processing consulting services
P0805

P0806
Content and Journalism News Agency and Subscription services If you are a freelance journalist / blogger / news aggregator please use this purpose code for withdrawals.

If you are a newspaper or an online news aggregator for websites overseas, please use the appropriate code from these two. 805 if you a freelance journalist, and 806 if you are a newspaper / aggregator
P0902 Licensing of creative works Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films) Artists, designers, other creative service providers where the principal revenue mode is license fees, please use this code.

If you produce creative works which you license out for entities overseas, licensing revenues may be classified under this purpose code
P1004 Other services Legal Services If you are providing outsourced law related services
P1005 Accounting, auditing, book keeping and tax consulting services For accounting consulting and accounting services
P1006 Business and management consultancy and public relations services Management / brand consulting and management services can be exported with this purpose code
P1007 Advertising, trade fair, market research and public opinion polling services Marketing/ brand consulting / logo design / event management services can be exported with this purpose code
P1008 Research & Development services If you are an outsourced research and development services provider based in India, receipts can be inwarded through this purpose code
P1009 Architectural, engineering and other technical services Any other technical services such as eTutoring, education and other services you render over the internet via web conferencing tools or similar channels, please use this code for your withdrawals
Q. What if none of the above are applicable?

The purpose codes above should cover your business. If you are unclear on what purpose code you should choose, please contact PayPal customer support by logging into your PayPal account and clicking on ‘contact us’ at the bottom of the page.
Q. I run a charity, and I am based in India. I don’t see the purpose code for donations and charities

A. PayPal can currently be used only as a gateway for payments of goods and services into India. We cannot process payments for charitable donations at this time.
Q. My account says I am not allowed to withdraw. I see my balances are restored but I am unable to provide a withdrawal instruction

A: We may have suspended withdrawals from your account as we work to incorporate changes in the withdrawal process. We will be requiring additional verification regarding the nature of the transactions you are performing.
Q. I used to use PayPal for Personal Inward Remittance to India. Now, my balances are stuck in PayPal

A. We are no longer able to complete these withdrawals to your bank account in India. You do have the option to complete your withdrawals by check. If you have any questions, we urge you to contact PayPal customer support by logging into your PayPal account and clicking on ‘contact us’ at the bottom of the page.

withdrawal that is still pending as of 1st March it will be restored to your PayPal balance.

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Posted on March 1, 2010 at 11:06 am in General, Stuff for Everybody | 27 Comments »
PayPal’s Ed Eger on Reserves

Hi All-I’m Ed Eger, the new general manager of North America. Recently our partners over at Channel Advisor let us know that there is a lot of confusion among our merchant customers about our reserves policy. In fact Scot Wingo, the CEO of Channel Advisor, wrote a blog post about this topic today. In response to that post, I wrote the following which appeared on his site. It’s also below.

PayPal is in business today to connect consumers and merchants all around the world, creating opportunities for people in their personal and professional lives.

It is with these values that we approach all of our customer relationships and it’s the key reason why we continue to offer an open platform, which easily onboards all types of merchants and gives near instant access to their funds – whether you’re a new entrepreneur or the largest retailer on the web. We’re proud of this approach to payment services which is unique in the industry.

The current severe global economic recession has impacted the ability for financial service companies to offer credit all over the world – credit required to run and sustain businesses. However, in the face of these challenging economic times, PayPal has on-boarded more than one million new merchants and increased our total credit exposure by more than a third in the last year. To the best of my knowledge, no major financial institution expanded credit to small and medium businesses at that rate. In fact, most headlines talk about significant tightening of credit across our industry.

In order to maintain the strength of our business and keep our costs low, we’ve had to evolve some of the ways we manage merchant risk. This does not mean we have unilaterally tightened credit across our entire merchant base. Instead, we are selectively addressing a small fraction of the highest risk merchants in our portfolio—merchants who we believe may struggle to meet their commitments to their customers. These targeted actions not only protect consumers from poor experiences but ultimately benefit our merchants by allowing PayPal to continue to extend credit when our competitors will not — all while maintaining low and simple pricing.

In his blog, Scot Wingo refers to a new “reserves” policy, the holding of a minimum balance in merchants’ accounts when there is increased risk in their business. To be clear, this requirement affects less than 1% of all of our merchants; it is truly a targeted and a rare occurrence within PayPal. In fact, a merchant is only subject to a reserve if the business has shown strong evidence of highly risky behavior – for example, high chargeback rates or excessive refunds. When high chargeback and refund rates occur at a merchant, their consumers lose confidence not just in that merchant, but in the entire ecosystem of merchants supported by PayPal. Merchants who continue to deliver good customer experiences and maintain low chargeback and refund rates are unlikely to be subject to such reserves.

Another element of our risk management policy is selectively delaying access to funds for some merchants (this practice is commonly referred to as “delayed settlements” in the industry and as “holds” in PayPal). Because we believe that our near instant access to funds for the majority of our merchants is a key differentiator, we strive to ensure our hold rate is lower than most payment processors in the industry – only a small fraction of our merchants have holds placed on them, with an average hold time of less than 11 days. The vast majority of our sellers get access to their funds immediately. By comparison, other payment processors have policies such as 14 days delayed settlement on 100% of new sellers.

I’m grateful for this opportunity to communicate how and why we work with our customers to manage risk. We continuously listen to feedback from our sellers and other stakeholders such as Scot so that we may improve our service for our merchant customers. And based on Scot’s feedback, we know that we need to do a better job communicating with our customers about our decisions and how we’ve implemented them. This is a journey and we are firmly committed to being the best merchant partner in the industry – helping merchants grow, manage, and run their businesses – and in many instances their livelihoods.

I would love to hear from you. You can contact me at ed@paypal.com.

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Posted on February 28, 2010 at 7:23 pm in Stuff for Merchants | No Comments »
Resuming local bank withdrawals to India

Farhad Irani

Hi. It is Farhad Irani again with a progress update. We have been diligently working with the RBI and our business partners to resume Indian bank withdrawals for the thousands of Indian businesses who use PayPal to sell their goods or services in the global marketplace.

I’m pleased to tell you that the RBI has now allowed us to resume bank withdrawals for settlements for exports of goods and services. We are currently making changes to comply with Indian regulations for settlements for exports of goods and services, and we anticipate that as of Wednesday, March 3rd, we will be able to resume the bank withdrawal service. As part of the changes, you will be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal. This information is required under the current laws of India in order to identify the nature of cross-border merchant transactions. On Monday, March 1st, we will be back in touch with specific instructions on how you can move your money into your bank account. I will be posting another blog then.

I’d like to thank the RBI for working with us to get this addressed. We know this is an inconvenience to you and we appreciate your patience.

Moving forward, the RBI has told us that PayPal needs specific approvals to allow personal inward remittances to India, which we currently do not have. Until we get these approvals, personal payments into India will remain suspended. However, if you are an exporter, you will continue to be able to use the PayPal service for payments of goods and services. In fact, with the changes we are making to our system, PayPal is now set to be a more powerful engine for exporters in India. With purpose codes for export transactions and FIRCs (Foreign Inward Remittance Certificates), you should now be able to get the export related benefits you seek.

We know the past few weeks have been difficult and I would like to assure you that we have been working tirelessly to resolve the situation and restore our service. PayPal’s highest priority is to always ensure we comply with all applicable regulations everywhere we do business around the world.

Going forward, you can expect the same reliability from PayPal that you have enjoyed for all these years. I would like to thank you all for sticking with us and assure you of our best services going forward.

Farhad

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Posted on February 26, 2010 at 6:27 pm in Stuff for Everybody | 250 Comments »
PayPal supports Getting British Business Online

Cameron_McLean

Hi, it’s Cameron McLean here, general manager of PayPal UK Merchant Services.

Online businesses are flourishing despite tough economic times, as consumers turn to the internet for bargains. But half of Britain’s small businesses are missing out as they still don’t have a website. A new initiative supported by PayPal aims to put that right.

Getting British Business Online (GBBO) is led by Google and partners include PayPal and the UK telecoms giant BT. GBBO aims to get 100,000 businesses online with a free website by the end of 2010.

Central to GBBO is a ‘wizard’ that businesses can use to create their first website in around 15 minutes. They will be given a free .co.uk web address and can choose a website from a variety of templates to suit their business. PayPal already helps huge numbers of businesses accept secure payments online, and anyone starting a website through GBBO will soon be able to add PayPal automatically to the site they create for free as part of the initiative – in a few clicks.

British businesses can sign-up for a free website now at www.gbbo.co.uk.

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Posted on February 25, 2010 at 2:33 pm in Uncategorized | 1 Comment »
Enter the Share the Love Photocard Contest



Doug Filak 2Hi all, I’m Doug Filak with PayPal’s consumer credit marketing team and I wanted to share with you a new contest with a chance to win up to $5,000. Until Sunday, February 28th you can enter the Share the Love Photocard Contest where you can be rewarded just for customizing your PayPal Plus MasterCard.

To enter and for full contest details go to http://www.paypal.com/sharethelovecontest, upload an original image to be placed on your PayPal Plus MasterCard, and have your friends and family vote for your card design by visiting http://www.sharethelovecontest.com/votepaypal.

The eight card designs that receive the most votes will win cash prizes. The grand prize of a $5,000 will go to one winner, two winners will win $1,000 and five winners will win $500.

Voting will begin March 1st, 2010.

And, if you don’t already have a PayPal Plus MasterCard, you can apply for one here.

We look forward to seeing all the fun cards you create!

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Posted on February 23, 2010 at 12:57 pm in Uncategorized | 1 Comment »
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kindly do read it

1 Comments:

Blogger Naima said...

Specializing in small and medium-sized businesses in both traditional and Internet environments, Merchant services has one of the highest merchant acceptance rates in the industry, with most applications approved within two business days.

In addition, our technological advances have effectively harnessed and exceeded the growing demands in the processing industry—allowing us to support nearly every vertical market with increasing and profitable business solutions.

March 9, 2010 at 1:05:00 PM GMT+5:30  

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