PayPal India Will Decline All Payments Made Above $500

Posted By: Poketors - October 12, 2011
There is some more sad news for PayPal India users. As we already know about the RBI guidelines to PayPal (not to accept any transactions that exceeded $500 in value). PayPal already informed the same to all its users in India. PayPal account holders will continue to receive payments exceeding that limit without any issues.

PayPal India Will Decline All Payments Made Above $500
Image Credit : PayPal india
PayPal (as per RBI guidelines) declines all transactions that exceed $500. But the most saddest part of it is that they will also-reverse all the previous payments till date you have got in or after March 2011 that exceeded the amount 500$.

So if you have received a payment of $800 and it was successful and you have immediately transferred the amount to local bank account. Here, your PayPal balance was $0. Here if PayPal wants to reverse that transaction and returns all the money to the sender from whom you have received that payment, in this case the sender will get his money back, But as the money has already been transferred to your local bank account so here you will have a negative PayPal account balance as - $800.

As per PayPal  there would be no charges applicable to its users to clear the negative balance and any further payments received in future maybe adjusted in your PayPal account. As of now, PayPal is not charging your credit card or your local bank for adjusment of the negative balance.

Hence you need to get the money back from your client and for this you need to search for an alternative way. The options such as wire transfer and printed cheque sent via mail can be considered as alternatives.

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