If you are an Online Marketer / Freelancer / SEO Provider / Web Developer / Export Seller from India using Paypal as your Payment Gateway, You probably have received the short Love Letter from Paypal regarding the new policy change effective from 1st March 2011.
For those who haven’t received it Here is link: https://www.paypal-apac.com/india/
So what is the big Fuzz About:
1. Paypal balance cannot be used to purchase goods / Services.
This means I will have to purchase my Domains – Server Fees through My Credit Card. If I want to use Paypal it will be after converting it from My account or CC again. That will be hell lot of charges.
2. Withdraw the payments within 7 days to your bank accounts.
Again a Big problem in case you are not able to access your account for 7 days!!! Will Paypal be working on auto withdrawal method is a solution time will tell.
For Small Freelancers, will the Rs 50 fee for all transaction below INR 7000 be applicable. So more Fees and more trouble ahead.
3. NO TRANSACTIONS ABOVE $500
This means now you can not accept any payment beyond $500 in a single transaction. You will need to ask your client to make multiple payments in steps below $500. Your Client is definitely going to get pissed off!! And so will you be.
Most of my services are above $500 which I will need to break into small packages now. Or I will have to find a real good alternative for this payments.
If you are receiving monthly payments automatically from Affiliates and Ad networks, some steps will have to be made to make the transactions in steps of $500.
The Problem here seems to be with Paypal not willing to adhere to Indian Laws and not want to provide the transactions details to RBI. The Complete Picture is yet to be seen.
Due to the Fight between Paypal and RBI Authorities, the whole breed of Indian Webmasters/ SEO Professionals / Writers / Online Sellers and all those who use Paypal to get money from overseas clients for their daily bread are Suffering.
How are we supposed to deal in such a scenario??
With such restrictions it is surely going to effect the overall business in field of Small Scale IT and Online E-Commerce Business.
Paypal has always been in News for wrong reasons when It comes to its operation in India. Last Year around the same time it had stopped the withdrawal for all the ids for about a month and many small time Freelancers had to just pray for some kind of solution between paypal and RBI.
No Doubt RBI is implicating these strict policies to bring the Out and Out transactions of Black Money in control but what it is affecting is Millions of Small IT Houses / SEO Firms and Freelancers who earn their money through small – big projects and accept money through Paypal since it is the single most convenient method to get money online and 90% of the client trust it.
With the effect in place, many small and medium IT and export business houses will be affected in a big way. With RBI Regulations that are decade old which were made even before the advent of E-Commerce and Online Revolution in India, It too has to consider the negative implications on the whole on Common Man. But Alias who will be listening to the Common Man!!!
Those on the Govt Seats have all their Money safely deposited in Swiss Banks. And no efforts will be made by any one to get those money in India but these Babus will make all efforts to bring India back to stone Age era by restricting the prosperity and advancement of Young Indians who are bringing Money To India.