This post was published long ago, when I was a student and an amateur blogger. The links might be outdated and content may not be useful anymore. Please read this content keeping its age in mind.
Paypal is a simple and affordable payment solution for online entrepreneurs. It is one of the most popular payment options available online. Paypal is used worldwide, though some countries are not allowed to use it.
Paypal is known as one of the easiest and popular ways to pay online. If you ask yourself what is Paypal, than the simplest answer is this: a tool that allows you to safely send and receive money via email. The company is owned by eBay, and it is a global online payment system. With this online payment system you can send money from your credit/debit card, transfer money to and from your bank account. Use it whenever you need to send money to someone (settle a debt with a friend, pay for online purchase/auctions…) or when someone needs to send money to you. Paypal system is an easy way for individuals and merchants to send and receive money online for goods, services, charitable donations, and more.
What Do I Need To Open Paypal Account?
To open a Paypal account, you will need:
- An email ID
- A bank account in one of the allowed countries.
- A residential address in one of the allowed countries.
- A valid phone number in one of the allowed countries
- A credit card to be used to verify the account after it is opened.
How Does Paypal Work?
How much does it cost me?
As many people already know, it’s always free to send money. You always send the same amount of money without having to pay extra. But personal accounts can receive a limited number of credit or debit card funded payments per year and are assessed a transaction fee. To view your Personal account limit, log in to your account and click the View Limits link. Members with a Paypal Business account or Paypal Premier account are charged a low transaction fee for receiving payments. For more information, consult the list with the transaction fees
Does Paypal work in India ?
Yes. You can send money by Paypal in India and withdraw them by asking Paypal India check. You can see all the available countries on the Paypal website here.
Even more important! You can now transfer money from your PayPal account to any of your bank account in India directly from the PayPal website. PayPal has also scrapped the withdrawal fees for electronic transfer if the amount withdrawn is more that Rs 7000 and a nominal Rs 50 for small transfers. Earlier PayPal would charge $5 per transaction irrespective of the amount on the cheque.
As stated on their official website: If you have an account registered from Argentina, Brazil, Chile, China, Ecuador, India, Jamaica, or Uruguay, you can request a check. When you request a check, it will take 4-6 business days to process the request and prepare the check to be mailed. Postal delivery time is additional and varies depending on your country of residence.
Paypal Bank Account in India
If you have a indian Paypal account, then you can add the following indian bank accounts:
State Bank of India
Bank of India
Union Bank of India
ING VYSYA Bank
Standard Chartered Bank
Citibank – As an example Citibank cheques take more than 4 weeks to clear.
Trough this indian bank accounts you can send money by Paypal to India. Before you withdraw the amount from PayPal to your Indian Bank account, ensure that name of the bank record and PayPal match character by character else the transaction will not go through and PayPal would also charge a INR 250 processing fee.
To get your money from PayPal to a bank account in India, all you require is your bank account number and the IFSCI code of the bank branch where you have the account – call your bank customer care service and ask for IFSC code -it’s an 11 digit code maintained by The Reserve Bank of India.
PayPal offers another option for Indians who hold a Visa credit card or debit card – you can withdraw funds directly to your Visa branded credit, debit or prepaid card.
Note : Till date you cannot use any Indian Debit Cards (ATM Cards) along with paypal.
If you have any queries, please post them as comments.