In continuation to the news and articles on the issue of PayPal and RBI conflict on guidelines and new regulations published in Times of Assam, we have found in our further course of investigation and analysis of the issue that PayPal has been continuously playing fowl against the Indian customer. For instance, in India, PayPal is serving its customers not as a Global entity for money transactions but as a registered Indian entity PayPal India Pvt Ltd, a Private Limited Company of India, about which PayPal origine hasn’t mentioned anywhere. All transactions by PayPal in India are NEFT i.e. National Electronic Funds Transfer, which makes the entity virtually acting as a Bank just like any other common Bank of the country which provides E-banking through NEFTs. So any directive from The RBI to PayPal Pvt Ltd of India is actually not unjustified as it would have been to PayPal origine.
Right from its starting days of operations in India, PayPal was found to be only keen in reaping off maximum benefits with over-expensive services. The huge amounts which the Indian customers have over the years ended up paying to PayPal is because of the entity’s fraudulence and to some extent monopoly of the market, not to forget the average Indian merchants’ lesser knowledge of the e-commerce world. Of course lack of vigilance from any authorities and no united body of freelancers in the country to protest added to PayPal’s delight. For example, the entity making mandatory for Indian customers to have a credit card to use its services was completely a fake gimmick of regulations. A high level source from the RBI has confirmed that there was no regulation or directive that online money transfers requires a compulsory credit card!
In addition to the service charge which PayPal rightfully takes for transfer and withdrawal of funds, the entity is known to offer lower currency conversion rates (rates lower than the global market of the day). Some customers of Pay Pal who have written to us after our publishing of continued reports on Pay Pal and RBI has cited examples where the Global exchange rate of US Dollars to Indian Rupee was, for example 45.66 but PayPal has converted and Paid at the rate of 44.66, the hidden charge costing Indian merchants an extra rupee per transaction. This has been again given a blind eye by National authorities due to the lack of proper regulations and governance in this sector. Needless to mention, this currency conversion fraudulence by PayPal to the Indian customers is shamelessly aimed at sucking off profits apart from the actual service charge which they can claim. This is something where other entities like Moneybookers has been able to succeed with SWIFT i.e. Society for Worldwide Interbank Financial Telecommunication (Cross Border Bank to Bank Wire Transfer), by charging no hidden costs and paying what the customers deserve apart from the service charges. As reported in certain statistics recently published that Indian buyers from EBay prefer PayPal for buying, PayPal is being used by its owner company EBay in India only to manipulate the huge Indian Market. No wonder PayPal had no mind for the Indian customers inconvenience when they incorporated the recent rules, taking the fake shadow of RBI. Its time PayPal is exposed and forced to give an explanation about the entire issue. Enough of fooling the Indian Customers and sucking money out of small scale freelancers & IT Service providers.
Note:
1. Times of Assam have collected some of accounts(Indian users) with PayPal and so has an insight to the happenings. In case we have some news via this account because of the above news, we would keep our readers updated.
2. Times of Assam hereby mentions that from now on the issue or news about PayPal and RBI would be separately published or dealt with.
1) Indian banks charges ETF charges and currency conversation charges for all electronic transfers (example hdfc bank ltd.,) why there are no regulations against it but RBI is trying to regulate paypal
2) even if paypal gives Rs.1 less, do you understand that they are not charging anything for money transfer, obviously customers are okay with it hence they are paying for it, who is RBI to decide and take away bread and butter of indian developers?
3) paypal wants credit card information on file to protect their interest and interest of their customers. By having credit card on file they ensure account holder is legitimate person and will not run away after fraud, have you ever heard of online disputes and frauds?
4) moneybrokers and other online merchants charge $20-$40 for remittance where about 50 paise is shamelessly eaten by indian banks, why there are no regulations or actions against it.
5) do you know developers in India has no choice other then using paypal because its most trusted platform in the world and people refuse to pay online to INDIAN DEVELOPERS through any other channel?
6) Indian banks credit card processor example icici payseal etc., charge anywhere from 4-8% + transaction fees which is way more then what paypal charges. Also, there is no customer service from these banks and it is impossible to open merchant account with these banks for small developers.
You should understand practicle problems of indian developers. I request Times of Assam to investigate the matter further on too.
Thank you to tell us so much. So nice sharing. I’m glad to read it.
Nice Article. Excellent Comment from Max :)
Our online store is using Moneybookers and we had withdrawn Rs 11,125 but surprisingly Moneybookers [or Money eaters?] deposited only 9041 Rs in our bank.
Now we really donnt understand how much exactly MB is charging for fund withdrawal.
Any clue?