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Paypal Reversing Money Sent To/From India Using ‘Personal/Services’ Option

Paypal is used across the globe to send and receive money for various purposes. In a recent move paypal is reversing all the money sent using “Personal/Services” option. Earlier Paypal was reversing the money sent using the “Personal” option however, recently it also started reversing money sent using “Services” option.

Upon contacting them via email, i was not able to get a satisfactory response. Then, after talking to their representatives located in USA, i got to know that Paypal is doing security check for all the India accounts because it has been observed  by them that most of the scam’s are carried out using the India accounts. They also said that the reason for disabling the “Personal” option was the misuse of this option. My friend Vaibhav Kanwal(Using paypal for years) too talked to a representative at paypal and he was told that Paypal has currently disabled the “Personal” option for Indian users and that he should look for another alternative (A nice way to treat its users).

My take is, disablement of  “Personal” option is somewhat acceptable but reversing money sent using “Services” option is totally wrong. Moreover, they are charging cancellation fee for money reversal which is certainly not good at all. And even if they were planning to do this reversal crap then they SHOULD have put up a notice on their site or sent an email regarding the same to all the Indian users. One more thing, i am not sure but i think it has got something to do with the RBI’s (Reserve Bank of India) notification on 14th August, 2009 regarding “Policy Guidelines for issuance and operation of Prepaid Payment Instruments in India” which can be read here.

As far as solution of this problem is concerned, their is no response from Paypal’s side, in fact they are suggesting users to look out for alternative ways. Payoneer is one of the alternative’s which you might be interested in using until Paypal finds a solution.


  1. I am really getting irritated because of this step by paypal. I have stopped doing all the transactions, in hope that they will look into this issue soon… Hope they do something fast…I just can’t wait long to get my money!


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