Comments on: Paypal Limitations in India Could Pose Problems for Domain Investors http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/ Domain blog featuring domain investing strategy, domain valuation, and domain development commentary from Elliot Silver, founder of Top Notch Domains, LLC. Thu, 24 Apr 2014 01:16:27 +0000 hourly 1 http://wordpress.org/?v=3.7.3 By: karan http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-64445 Sat, 18 Feb 2012 21:17:20 +0000 http://www.domaininvesting.com/?p=8550#comment-64445 i have verified paypal account with credit card and bank a/c on file.
what is my credit limit for sending and receiving money? its doesnt show up in my account.

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By: Suresh Nair http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-63982 Wed, 15 Feb 2012 04:47:41 +0000 http://www.domaininvesting.com/?p=8550#comment-63982 My Solution to Paypal – RBI issue.

I am Suresh Nair from Kerala. I have been using Paypal for the last 8 Years. They are one of the best payment processors. I cannot compare paypal with other payment processors like clickbank, 2checkout etc, because most of our sales are processing by Paypal. I have provided 2 payment options and 95% of them are choosing Paypal. So I cannot think about an alternative. The recent issues are because of ‘outdated’ guidelines from RBI. First of all, paypal is not a bank but a payment processor. So they have to make new rules/guidelines for payment processors.

Because of the new guidelines, we are facing the following issues:

1) Not able to use paypal fund to pay for domain, hosting, advertising expenses.

2) Not able to accept big amounts like USD 10,000 at a time, so we create multiple invoices for the same transaction.

3) Not able to process immediate refunds. Because, auto withdraws make the account empty. When somebody post an issue in paypal resolution center, they cancel the previous withdrawal and automatically deduct the foreign currency transaction fee. This is nearly $1.5 for every thousand rupees. This has already happened several times.

2 months back I found a real solution to this problem: I became an NRI and all the problems were solved. I registered a business in Malaysia and I have a Paypal account which is attached to my Malaysian bank account. Then the fund will be transferred to my Indian (NRE) account. No worry on paying Income taxes here in India since I am now an NRI and NO income tax in Malaysia for foreign income.

So Paypal doesn’t suck, but RBI sucks!

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By: karan http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-57555 Fri, 18 Nov 2011 13:03:11 +0000 http://www.domaininvesting.com/?p=8550#comment-57555 It sucks big time. how do we do business. can anyone suggest any alternate? i cant use escrow for $800 deal. pl help. My income has dropped 95%

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By: Chitraparna Sinha http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-46804 Mon, 16 May 2011 16:45:50 +0000 http://www.domaininvesting.com/?p=8550#comment-46804 The company I work with deals only in PayPal…Its a UK based company and employees working outside UK are paid salary through PayPal only…

Now my question is : does this $500 limitation apply to funds received in GBP? I mean will PayPal convert amount received in other currencies to $$$ and then if its more than $500 block your account?

Please advice.

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By: V Dev http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-46638 Sat, 14 May 2011 01:24:55 +0000 http://www.domaininvesting.com/?p=8550#comment-46638 Try moneybookers.com, set up a personal account. no deductions, fixed small fee for transfer, and no ‘preconversion’ into rupee – (all ingenious ways invented by Paypal to screw customers).

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By: James http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40572 Thu, 10 Feb 2011 00:05:52 +0000 http://www.domaininvesting.com/?p=8550#comment-40572 I have been helping people in India solve the Paypal problem through setting up a Hong Kong company which has a Hong Kong bank account tied to a Hong Kong Paypal account which can be operated remotely by the user in India.

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By: .Me Of Course! http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40173 Mon, 31 Jan 2011 21:44:17 +0000 http://www.domaininvesting.com/?p=8550#comment-40173 This will forse more deals to go via brokers and brokers will provide smart packages, when buyers “push” by 500, and then sellers pull by 500 in pieces.

If there is a need, there is a way.

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By: LS Morgan http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40109 Sun, 30 Jan 2011 14:13:39 +0000 http://www.domaininvesting.com/?p=8550#comment-40109 It creates a colossal pain in the ass for anyone sourcing development work from India.

I really don’t source from there much anymore, but occasionally, it is cost effective to hire a $5 hourly guy to perform certain ‘menial’ coding tasks, then just put my Eastern European guys on the job to tidy it up once the grunt work is done.

Do we know how they intend to handle benchmark payments, etc? For example, how would they prevent someone from just smurfing a series of $400 payments to effect a $2000 transaction?

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By: Kannan http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40103 Sun, 30 Jan 2011 07:41:30 +0000 http://www.domaininvesting.com/?p=8550#comment-40103 Thanks Elliot for the informative post.

Reserve Bank of India has imposed some restrictions on Paypal since it is not a banking entity and thus not entitled to give interest on money retained with it nor report transactions falling under the money laundering definitions.

It certainly puts a big spanner in the works but payment by cheque or merchant processors should circumvent the problem to a certain extent but the small players would definitely feel the pinch.

Hope Paypal works out something with the RBI since the larger issue of internet commerce is at stake.

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By: URLWala http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40100 Sun, 30 Jan 2011 06:00:09 +0000 http://www.domaininvesting.com/?p=8550#comment-40100 It has nothing to do with restrictions by RBI. It is other way round. Read the article which tells us that it is PayPal which is screwing the Indians. :
http://techie-buzz.com/tech-news/paypal-rbi-guidelines-flouting.html

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By: BullS http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40091 Sat, 29 Jan 2011 20:30:21 +0000 http://www.domaininvesting.com/?p=8550#comment-40091 It is not only India, other countries are following suit like Malaysia/Indonesia.
Why—-to prevent money laundering.

US will be looking into this issue too.

Paypal is not regulated by the FDIC or any regulations.

Do you know you can send >10kUSD via paypal and not file the paper work requirement?

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By: Raman http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40088 Sat, 29 Jan 2011 18:59:38 +0000 http://www.domaininvesting.com/?p=8550#comment-40088 Hi Elliot!! Raman here. I am from India and I’m domain investor. I use paypal for transaction above $1k. RBI has restricted norms, I am very sad. I will choose escrow now.

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By: Giochi per Ragazze http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40085 Sat, 29 Jan 2011 17:08:30 +0000 http://www.domaininvesting.com/?p=8550#comment-40085 There are many alternatives to paypal.
Something like Western Union or moneybookers…..

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By: Elliot http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40079 Sat, 29 Jan 2011 16:00:39 +0000 http://www.domaininvesting.com/?p=8550#comment-40079 @ TD

Not sure, but I’ve met a couple companies from India and have worked with them outside of Elance after a successfully completed project.

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By: TeenDomainer http://www.domaininvesting.com/paypal-limitations-in-india-could-pose-problems-for-domain-investors/#comment-40077 Sat, 29 Jan 2011 15:47:40 +0000 http://www.domaininvesting.com/?p=8550#comment-40077 Do you know if every freelancer site pays out with paypal? This leaves a nice hole for some new player in the area to move in (google checkout maybe?)

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