Posted: in Technology by Manish Kumar 29 Comments

Paypal India Problem Resolved


I have blogged about Paypal Payment Reversal Problem earlier this week and I mentioned that I have sent an email regarding the problem to Paypal. Well, I just got a mail from Paypal India assuring me that the payment reversal and withdrawal problem will be resolved withing a day or two.

Here is the direct mail that I have got:

Dear (My Name),

Thank you for your patience while we work to address the issue of processing withdrawals to Indian bank accounts.

We expect to have this issue resolved within the next few days. In the meantime, we’re going to restore the amount of your recent withdrawal into your PayPal balance so that you can know your money is safe in your account. You should see the balance restored within 24 hours. In addition, you will see a reimbursement of any withdrawal fees charged. We will ensure that you are not adversely affected by currency fluctuations during the last week.

In your transaction log, you will soon see that your PayPal withdrawal request has been reversed. We ask that you wait to submit another bank withdrawal request until we have addressed the processing issue. We will contact you again in a few days with an update and, if the issue is resolved, you can initiate another withdrawal at that time. In the meantime, you will have the ability to spend your balance to purchase goods or services if you choose.

Again, we apologize for the inconvenience this has caused.

Thank You,


Good to see the problem being resolved.


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  • Samiran Nandi
    Feb 09, 2010 at 11:17:am

    Yes, PayPal isn’t working properly in India.

  • India News
    Feb 09, 2010 at 02:46:pm

    But, there is no specific date. I got the similar mail from PayPal, but again there is no transparent answer.

  • Shri
    Feb 09, 2010 at 04:05:pm

    The amazing thing they are doing is they are not reversing you in full, like i placed withdrawl of $2K, it ws halted and now i got it back in my account, $1850 only, where my $150 gone? what calculations they are doing? whay they are charging different conversion rates to/from even if the mistake was on their end ?

  • Kumar
    Feb 09, 2010 at 08:30:pm

    Hey, I also had the same problem. Did a withdrawl of $1400 and today it got reversed to my paypal account. But the amount showing my paypal bal is just $1300. Not sure what happened to $100. When I asked customer care, they said it will be come to the paypal account in 24 hrs. Please update me when can we withdraw this amount to our bank account

  • pahelvan
    Feb 09, 2010 at 09:09:pm

    I got two withdrawl reversal. i got 922 usd instead of 1000 wihdrawal and 1850 usd instead of 2000 withdrawal. where is my 228 USD

  • chandra
    Feb 10, 2010 at 03:34:pm

    Paypal problem is not solved still freind, that mail does not say how many days it can 365 days also.

  • Amin Ismaili
    Feb 11, 2010 at 12:17:am

    I faced similar issue and did some Googling and found that RBI has asked PayPal to submit some regulatory documents which they are unable to submit to RBI. Hence they have stopped all services. But yes, why can’t they inform us in advance. So we don’t loose these $$ because of reversals…!

  • Harry
    Feb 11, 2010 at 01:23:am

    Yes buddy… Its not yet solved.

    I am not sure why paypal is taking so long to solve this problem.. India has lots of potential and TONs of users are from India with them…

    Dont know how they can do this? Why it takes so long?

    Holding money so long cause lots of problem to Businesses in India.

    Hoping to get this solved ASAP.

    Keep watching!!!

  • Babu Koilada
    Feb 11, 2010 at 11:10:am

    This year’s valentine day really examining me. I am a freelance writer and i always use paypal for withdrawals to get my money in my local bank account. I got lots of money in paypal. I need to withdrawal it. I wann to buy expensive gift to my girl friend. But this paypal ruined me by stopping transactions in india.

    Oh..god ..please help me in this situation

    When this problem will be resolved.

  • Arijit
    Feb 11, 2010 at 11:08:pm

    Which is the good alternate???

    Please help me.

    We must move forward with our works. It allready harms our business a lot. But we Indian can overcome with this situation.

  • jsmi
    Feb 12, 2010 at 08:07:pm

    Nice idea to get more traffic…! Paypal issue is not yet resolved and you mislead people with your title to get more readers. Too much people to suffer and some people to make their harvest from this disaster…!

  • Reds
    Feb 14, 2010 at 02:54:am

    Guys, lets find out any other alternative to withdraw our funds…

  • Arijit
    Feb 14, 2010 at 01:53:pm

    It’s taking so long time. It’s going really hard.
    I donno how we make business. I don’t know who is saying the truth Paypal or RBI.

    We’re still in dark.

  • threepasscom
    Feb 14, 2010 at 09:59:pm

    Guys, simply use You have to pay 10.99 fee something if you are using Credit Card/Paypal option. Some other options (not remember) have low fee. Also xoom gives more exchange value, so the fee will be reduced…

    Also there are some xoom coupons available, but dont know where to get it. If you apply this coupon your withdrawal fee will be reduced.

    Most of the time xoom deposit money in 1 day to indian bank.

    Those have big money can just spend 10.99$ for the transfer.


  • Ajay
    Feb 15, 2010 at 10:18:am

    I fully agree. is the best alternative. Now I have compared the exchange rate and its shocking. Paypal who cliams itself to be free is actually charging through providing lower exchange rate, whereas xoom is charging for the service but allowing better exchange rate and it is faster.
    check it.
    best of luck

  • JD
    Feb 15, 2010 at 10:14:pm

    XOOM works… i just received payment in my hdfc account. My paypal is Verified which is required for this withdrawal & three things have to match :
    1) Paypal account name
    2) Bank account name
    3) Xoom account name

    Whats more, I have withdrawn amount using Xoom code which is gettable after googling, & this means no xoom fees..

  • Kailas
    Feb 16, 2010 at 05:29:pm

    After reading abt on this forum, I did one test transaction on this site. It was very easy process. The transaction was sucessful also. But after an hour, I got mail from xoom that the transaction was cancelled. They did not mention any reason for cancellation. Thankfully re-credited the transaction amt to my paypal. Then I searched on google abt xoom transaction cancellation and found that many customers faced this problem. Some of them even lost their money in cancellation process. And all were blaming xoom for their poor customer support.
    So before moving from paypal to xoom, I would like to suggest the people to have proper enquiry abt this service and then only carry out the money transfer otherwise your money will be blocked (as it is blocked at paypal for unknown reason)

  • Zoom
    Feb 20, 2010 at 12:20:am

    @Shri: The rest of the money will be back to Paypal, don’t worry.

    I tried Xoom, hoping it works. ;)

  • Gopakumar
    Feb 23, 2010 at 06:15:pm

    How much time did it take for the money to get reversed??
    I have requested withdrawal 2 weeks ago. Still, i haven’t got the money back to my paypal account.

  • Ronak Shah
    Feb 24, 2010 at 06:09:pm

    check the above link guys…

    If it’s a personal payment then it may generate a doubt of money laundering whereas if it’s a business payment then you *may* / * may not have to ask your vendor to resend the payment once you refund the payment back to you.

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