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GREAT NEWS: All Indians, Paypal Comes with NEW solution.

Discussion in 'BlackHat Lounge' started by carsonrathi, Mar 1, 2010.

  1. carsonrathi

    carsonrathi Senior Member

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    Hey Guys,

    Great News, no need to worry!

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    Code:
    here with more details for our customers in India on how to withdraw your funds from your PayPal account to a local bank account in India.
    
    As I indicated in my earlier blog post, we are making changes to comply with Indian regulations for settlements for exports of goods and services.  In order to facilitate this process, PayPal will be suspending new withdrawals on March 1, 2010. We expect to resume the service on March 3rd. When you select the ?Withdraw Funds? option on your PayPal account after March 3rd, we will ask you to fill out a new field entitled ?Purpose Code?.   This information is required under the laws of India in order to identify the nature of cross-border merchant transactions.
    Why are we asking you to do this?
    
    PayPal needs to put in place certain changes to comply with Indian regulations.  This means that
    
       1. Indian PayPal users (Business, Premier and Personal Account Holders) are no longer able to receive personal payments.   Your  customers now have three options to pay you by
             1. Using the Pay for Purchases (Goods or  Services) tab
             2. Completing PayPal checkout at your website
             3. Responding to PayPal ?Request Money? instructions (invoices)
             4. When you instruct PayPal to withdraw your PayPal balance to your bank account in India, you will be required to provide a purpose code for the transaction.
    
    What is a Purpose Code?
    
    The purpose code helps your bank furnish information that may be required by the Reserve Bank of India to identify the nature of the cross border transaction. Details on the different purpose codes are in the table below.  Please note that this is different from the Importer Exporter Code (IEC) issued by the Ministry of Commerce and Industry.
    When is a Purpose Code needed?
    
    When you initiate a withdrawal, you will now be required to declare a purpose code when you are completing the bank withdrawal request.
    
    Please note that according to Indian law, based on the value of withdrawal and the purpose code in your declaration, your bank may require you to provide documentary proofs such as invoices / goods receipt forms as applicable to reconcile with your withdrawal.
    What do you need to do?
    
    Step 1:  If you have initiated a withdrawal prior to March 1st it will be restored to your PayPal balance. The initial amount you receive back in your PayPal balance will be less than the amount you withdrew; all applicable fees and charges will be credited to your PayPal account separately. This credit for fees and charges  may take a few days to be reflected in your PayPal account balance, but we expect the full amount of the original withdrawals to be in all of the applicable PayPal accounts by the end of the week.  Please bear with us as we complete this process.
    
    Step 2:  Once the funds are back in your PayPal balance, or if you have no pending withdrawals as of 1st March,  starting on 3rd March you can request a new withdrawal to your local bank account, and you will need to select the Purpose Code relevant to your business.
    Frequently Asked Questions
    Q. What are the Purpose Codes I need to use?
    
    Please use whichever purpose code below correctly identifies your business.
    Code 	Category 	Description 	Who should be using it
    P0101 / P0104 	Export of Goods 	Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) 	eBay merchants, jewelers, sellers of collectibles and other such products through eBay and your own websites / catalogues globally.
    
    Please note: Cross border shipment of goods and services for which you file GR / PP / SOFTEX / EC forms only should be processed with this code. Use P101 if Deutsche Bank is your banker and P0104 if you bank with any other bank
    
    If you have any questions, please check with your bank to help you with the same.
    P0301 	Travel , Hospitality and Tours 	Purchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, hospitals, Emporiums, Educational institutions etc. as well as amount received by TT/SWIFT transfers or debit to Non-Resident account). 	Online Travel Agents, Airlines, Railways, Buses, Taxicab Services, Hotels, B&Bs and other travel / tourism related sales through PayPal
    P0801
    
    P0802
    
    P0803
    	Information Technology 	Computer Information Services. Hardware / Software / Data Processing consultancy/implementation 	If you are an independent / freelance coder / hardware consultant or data processing service provider, or a small business providing such services for websites globally, please use these codes.
    
    For all IT related consulting services where you know you do not need to file a SOFTEX form, please use the appropriate code. 801 for hardware consulting, 802 for software consulting and 803 for data management and processing consulting services
    P0805
    
    P0806
    	Content and Journalism 	News Agency and Subscription services 	If you are a freelance journalist / blogger / news aggregator please use this purpose code for withdrawals.
    
    If you are a newspaper or an online news aggregator for websites overseas, please use the appropriate code from these two. 805 if you a freelance journalist, and 806 if you are a newspaper / aggregator
    P0902 	Licensing of creative works 	Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films) 	Artists, designers, other creative service providers where the principal revenue mode is license fees, please use this code.
    
    If you produce creative works which you license out for entities overseas, licensing revenues may be classified under this purpose code
    P1004 	Other services 	Legal Services 	If you are providing outsourced law related services
    P1005 	Accounting, auditing, book keeping and tax consulting services 	For accounting consulting and accounting services
    P1006 	Business and management consultancy and public relations services 	Management / brand consulting and management services can be exported with this purpose code
    P1007 	Advertising, trade fair, market research and public opinion polling services 	Marketing/ brand consulting / logo design / event management services can be exported with this purpose code
    P1008 	Research & Development services 	If you are an outsourced research and development services provider based in India, receipts can be inwarded through this purpose code
    P1009 	Architectural, engineering and other technical services 	Any other technical services such as eTutoring, education and other services you render over the internet via web conferencing tools or similar channels, please use this code for your withdrawals
    Q. What if none of the above are applicable?
    
    The purpose codes above should cover your business. If you are unclear on what purpose code you should choose, please contact PayPal customer support by logging into your PayPal account and clicking on ?contact us? at the bottom of the page.
    Q. I run a charity, and I am based in India. I don?t see the purpose code for donations and charities
    
    A. PayPal can currently be used only as a gateway for payments of goods and services into India. We cannot process payments for charitable donations at this time.
    Q. My account says I am not allowed to withdraw. I see my balances are restored but I am unable to provide a withdrawal instruction
    
    A: We may have suspended withdrawals from your account as we work to incorporate changes in the withdrawal process.  We will be requiring additional verification regarding the nature of the transactions you are performing.
    Q. I used to use PayPal for Personal Inward Remittance to India. Now, my balances are stuck in PayPal
    
    A. We are no longer able to complete these withdrawals to your bank account in India.  You do have the option to complete your withdrawals by check.  If you have any questions, we urge you to contact PayPal customer support by logging into your PayPal account and clicking on ?contact us? at the bottom of the page.


    So no need of IEC code and it will be pretty easy to witdraw. This was information from paypal blog:
    Code:
    https://www.thepaypalblog.com/
     
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  2. nirmar

    nirmar Regular Member

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    ^^^^ Select your Purpose Code. (For Indians only):D

    Collect your invoice copies.

    Code:
    https://www.thepaypalblog.com/
     
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    Last edited: Mar 2, 2010
  3. carsonrathi

    carsonrathi Senior Member

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    Hey,

    Now the thing is what should be the appropriate code for us, internet marketeer.

    Well let's see, withdrawal is starting from tomorrow.

    Thanks,
    Carson
     
  4. nirmar

    nirmar Regular Member

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    P0802

    Freelancers, Software related services.
     
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  5. dheer

    dheer Jr. VIP Jr. VIP Premium Member

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  6. dheer

    dheer Jr. VIP Jr. VIP Premium Member

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    YES it is 3rd March ;)
     
  7. dheer

    dheer Jr. VIP Jr. VIP Premium Member

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    @ nirmar I appreciate your posts here and on the other thread. thanks for your information..

    your this post was awesome:-

     
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  8. nirmar

    nirmar Regular Member

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    To all my indian bros.

    :D
     
  9. sandesh_007

    sandesh_007 Regular Member

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    So finally we do not need any IEC codes and just need to enter this purpose codes to withdraw money...However depending on the amount banks may asks for documents.

    Also there is one comment i read in the other paypal thread

    Does it really like that?
     
  10. mogambo

    mogambo Registered Member

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    Does that mean we can no longer receive money by just giving our paypal email address for our services like at dp or some other place?
     
  11. BigBuddy

    BigBuddy Account Under Review

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    Still i am afraid to withdrawal the amount to my bank, best and safe option is check withdrawal. Further how can bank know we have provided the exact purpose codes? Paypal did nt clear the amount limit which they will ask for supported documents. Still paypal sucks.
     
  12. mogambo

    mogambo Registered Member

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    I dont think paypal sucks.... i feel its Indian laws which suck
     
  13. carsonrathi

    carsonrathi Senior Member

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    it's pretty strange to see how you can threaten by company forming procedure?

    If you are 'threaten' just by company forming procedure then if some days people from RBI visit your home, you may get heart attack, isn't it?

    Secondly, what i have informed is based on the word 'Export code' by Farhad Irani, now they are using 'Purpose Code' as there new word, so, whats my mistake in this?

    They have not used 'export code' which they have mentioned in last email, they made is 'Purpose Code' which is different settlement with RBI.

    And lastly, if you are still serious about online business and earn more then $35-$50k per year, then form a company under Indian company Act to pay your taxes and save money.

    if you feel threaten by my post then you must be feeling great relief by this post, so why not appreciate for this.

    A famous quote "Glass filled half can be seen as half empty or half full, depend on the person's view"

    Overall, paypal is working for us now, so why not enjoy it.
     
  14. dheer

    dheer Jr. VIP Jr. VIP Premium Member

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    again again again as usual u didn't again understood what I wanted to indicate lol.. I said to wait and watch what paypal says.. and that time you said it is IEC code for sure and I have a company and bla bla...

    lol I didn't hear that RBI also visits at home (not office ;) ).. It ll be not a panic for me lol.. I ll just offer them a cup of tea..

    It was foolish that you didn't have any idea and you just throw posts what you think and still arguing which is kinda INSANE...LOL...

    Yes absolutely this was ur biggest mistake that you assumed it is IEC code.. but infact it was just a purpose code..

    Why you ppl jst throw posts and spread rumors?? to just increase ur post count? or you want to show off that you are the ONLY ONE in the whole world who knows everything what is gonna happen.. lol..

    and the last but not least you have posted another thread that NO need to worry... now we can withdraw without IEC code.. lol..which is kinda INSANE IMO.. ;)

    No dude there is not any mistake from you...Does Farhad Irani told you over phone to interpret this Export Code term as IEC code? May be.. lol...Just asking may be as usual you know everything about paypal ;)

    Great that you know what is happening between RBI and paypal internally and how they do settlements.. we are eager to read more on this topic.. can you please update?
     
    Last edited: Mar 2, 2010
  15. virus_1720

    virus_1720 Jr. VIP Jr. VIP Premium Member

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    I think i'll pay extra $20 to get my funds via Xoom. I love their 24 hrs service. Great for instant withdrawal. Gaypal is good but Xoom is better
     
  16. dheer

    dheer Jr. VIP Jr. VIP Premium Member

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    xoom has stopped services to get funds via paypal.. correct me if I am wrong bcz I do love xoom..
     
  17. sandesh_007

    sandesh_007 Regular Member

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    I had used Xoom 10 days ago last to withdraw paypal funds.

    Have anybody used it recently and noticed any changes?
     
  18. carsonrathi

    carsonrathi Senior Member

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    I don't understand why you are feeling 'threatened' ?

    and if you do not have to take anything from my post then leave it and go ahead. If you think they are rumors and not affecting you, then why not move your own way?

    Post count? lol i have started this thread in Lounge area thus yours posts are not counted here.

    i have atleast 2-3 highly informative posts (not just post, a tried and tested systems that i personally use) in BHW, can you show me any of your's?

    So dude be with your self, i was trying analyze what paypal meant i have never asked you to 'follow my butt'.

    fact is paypal used the word 'Export code' in last email and as Mr.Farhad Irani knows that many of the business owner which have even 0.01% percent knowledge on how IEC works WILL take it as IEC code THAT's the reason why he have cleared it in his blog post that it is NOT the IEC code.

    Take what you want, and don't speak when you can't give anything valuable to community.

    Again, show me any of your post which you think help BHW members to achieve and gain some valuable knowledge in there business, can you?


    I am not a kind of person who'll jump over you because you just don't like my stuff, so i'll end it here.

    Best news is paypal is there to help every one, so take there help and enjoy cash ;)

    Thanks.
     
  19. BlackHatPro10

    BlackHatPro10 Newbie

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    Hi Carson,
    I agree with your post.I also interpreted the Export code as "IEC" but now PayPal introduced a new thing "purpose code".
    Anyway,in my opinion it would be safer for the us(the internet marketers) to regisrer a company.Here nobody understand the concept of internet marketing and now as PayPal has come under scanner,the banking authorities ,the income tax department etc may scrutinize us more.

    I have talked to several bank officials about PayPal and the internet marketing kind of thing but not a single one of them understood these things.

    Till now,it was easier to go unnoticed but they'll be keeping a close eye from now onwards.

    Now I think using our own merchant account will be more appropriate than going through the hassles of PayPal system but again it'll result in decrease in sales as more than 25% of the online buyers use PayPal.

    I think the "Purpose code" for we ,the marketers should be "P1007".What do you think?
     
  20. nehaind

    nehaind Newbie

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    I dont think that Paypal problem is solved ...infact I can see more problems coming up in near future .
    1.They may ask PAN NUMBER at the time of registration and withdrawal .
    2. They may make mandatory to submit your Photo Id and proof of address once your transactions crossed INR 50K ( Paisapay already doing this )
    3.Submision of copy of Pancard when you withdraw funds over INR 50K
    4.It is mandatory for all Authorised payment processors in india to sumbit periodical report to RBI. As paypal now got licence in India , they will forward all reports to RBI.
    5. Most of paypal users have multiple Account IDs ( in their own name as well as in fake identities.) Once they started taking your pancard details you have to maintain only in your name . ( paypal can verifiy your PAN CARD details over the internet .)
    Once you are banned by paypal , it will be very difficult to open new account .
    Also next year UID proggram is coming up and then .....it will be next to imposible to make accounts in fake name