When it comes to online trade or transaction of money, PayPal is still a name bigger than anyone else. Sure there are quite a good number of PayPal alternatives but none of them have the “trust factor” PayPal commands.
Since March 1st 2011, PayPal has been giving a chain of headaches to Indian users. They practically screwed Indians by locking the exit door for payments and according to the new rule – no Indian PayPal user can use funds from his/her PayPal account to buy goods, pay bills or send the money to any other PayPal user. All the funds in your PayPal account must be withdrawn to your Bank account within 7 days or else the payment will be returned to the sender.
The next rule plunged the final nail in the coffin – Indian PayPal users can not receive payments that are more than $500. A single transaction from any PayPal account to the PayPal account of an Indian user must not cross $500. This rule is still in effect, so a lot of freelancers and web workers are still under “The PayPal curse”.
However, PayPal has been silently tweaking their fund withdrawal system for the past couple of weeks. First they introduced an auto-withdrawal system for Indian users which will automatically withdraw all the PayPal balance to your Bank account. This is magic but there is a slight disadvantage, in case you frequently get small payments in your PayPal account.
PayPal charges a withdrawal fee of INR 50, for every fund withdrawal that’s below INR 7000. So if you receive INR 2000 on 1st, INR 3000 on 4th and INR 4000 on 6th – you lose an amount of INR 150. This is because the auto-withdrawal system will automatically refund the money within one day and since each of these amounts are less than INR 7000, a withdrawal fee of INR 50 will be charged for every fund withdrawal request.
You could have saved that INR 150, if you withdrew all the money on 6th as the gross amount is more than INR 7000. Agree that the withdrawal fees is a meager amount but would you tear a $1 or 10 rupee note every other day? There is no point in losing your money in thin air – however large or small it might be.
Now the other good news for Indian PayPal users is that PayPal has recently removed their withdrawal fee from funds withdrawal system which means, no longer you have to pay any fund withdrawal fee for whatever amount you withdraw to your bank. You can withdraw $1 or $1000 – no withdrawal fee will be charged.
This is indeed good news for small businesses and freelancers who often get frequent payments that don’t add up to INR 7000. No need to worry about your PayPal funds – they will now work on Auto-pilot mode and you never have to pay anything to the pilot. Ever!