Extreme panic has set in amongst Indians who regularly transact on line using Paypal. By aggressive marketing and ubiquitous presence, Paypal has attracted several users to its fold and it has reached a state of being the default payment method preferred by almost all Indians. “Donate using Paypal” had been a staple badge on many a blog that offer free services.
But Indians have got a shock of their lives last week. Their inward remittances which were actually towards goods and services delivered had been arbitrarily assumed as personal payments and reversed, to wit, sent back to the remitter.
Added to that agony, all withdrawals into the bank accounts in India had also been suddenly stopped. People who had assigned payments to firms for business transactions had been taken by surprise by this kind of bolt from the blue!
This is a sample of messages received from Paypal:
We are currently experiencing an issue processing withdrawals to Indian bank accounts. As a result, there may be some delay in withdrawals from your PayPal account to your bank account.
We apologize for any inconvenience this has caused, and are doing all we can to resolve the issue.
But according to this entry on Macworld, “some delay” will be in the order of many months!