PayPal is an international online payment system which allows you to send or request money online easily. Simply use your PayPal account to transfer money to family and friends living abroad. It also allows you to make purchases from international online stores, which includes eBay and Etsy. You can just register your bank account or debit card with your PayPal account. Once this is done, you can transfer the money to others. It is also possible to use your PayPal account to make online payments. However, you need to check if the facility is provided by the online shopping website. A PayPal account can be opened free of charge. You are charged nominal transaction fees depending upon the payments made by you.
Steps to open a PayPal account using debit card
It is important to remember that you are not issued any separate PayPal debit card, if you are an account holder in India. You can your existing debit card to open your PayPal account:
Step 1: Visit the PayPal Home page by logging on to https://www.paypal.com/in/home. You can also download the PayPal mobile application from the Google Play Store or the Apple Store on your smartphone.
Step 2: Click on the "Sign Up" tab located on the top-right corner of the user interface screen.
Step 3: You will be redirected to a page where you select the type of account you would like to open. You need to choose whether you are opening the PayPal account as a shopper, a businessman or as a freelancer. Choose your type of account and proceed by clicking on the "next" tab.
Step 4: If you choose the account as a shopper you will be redirected to a page where you provide your personal information such as your name and email address. You will be prompted to create a password to complete your Sign Up procedure. People who choose to have accounts as business persons or freelancers are simply required to enter their e-mail ID. Your account will be created.
Step 5: Next, you will be prompted to enter your debit card number, its expiry date and the CVV number mentioned on the flip side of the card. You will also have to enter your billing address
Step 6: You need to link your debit card by clicking on the "link card" tab.
Step 7: After linking your debit card, you must complete your KYC compliance i.e. you need to provide your PAN card details, confirm you email ID and link the bank account you would be using to transfer money to your PayPal account. You also must enter the purpose code (shopping, business, freelance).
In case you have a SBI debit card, you must request your bank to activate international usage on their debit cards. Since PayPal transactions are of international nature, this is an additional security feature provided by SBI. SBI customers can open a PayPal account only after international usage is activated on their debit cards.
Limitations of holding a PayPal account
A PayPal account has certain limitations:
- Since PayPal is designed to facilitate international and cross border fund transfers, Indian customers cannot send or receive funds within India from customers who have PayPal accounts. This is in accordance to the restrictions set by the Reserve Bank of India (RBI).
- An Indian PayPal account holder, who receives money from another account, cannot use the remittance immediately to make any online purchases. You need to transfer the money from the PayPal account to your savings account. You can then start making online purchases using debit cards. But remember that a separate PayPal debit card is not issued for account holders residing in India. You will have to use your existing debit card for transactions once the money from PayPal account is transferred.
- The non-issuance of a PayPal debit card is also a limitation. PayPal is simply a platform for fund transfer. It is not possible to directly use the funds in your PayPal account using a card.
Benefits of a PayPal account
- PayPal is the faster and secure way of making payments online. The key benefits of using a PayPal account are:
- It is free. You don’t have to pay anything to open a PayPal account.
- PayPal is a faster and simpler way to make recurring payments for your utility bills.
- It is an extremely safe platform for transaction. All your financial information is secure when you transfer money using a PayPal Account.
- If you are hesitant to provide your financial information every time you shop, that is not an issue. Speed through checkout with PayPal.
- You can make any purchases or send money to family and friends in the U.S. using your PayPal bank account for free.
PayPal Fees and Charges
One of the biggest advantages of opening a PayPal account is that is free. Unlike a normal bank account, you do not have to pay any fees or charges for opening a PayPal account. You deactivate the account at any time, without paying any fees.
The only fee attracted is for undertaking transaction. Customers in India have to pay a transaction fee of 2.5% of the sum remitted along with a fixed fee of ₹3 per transaction. If you are using your PayPal account to shop in US, you can undertake any transaction (online or in-store) or transfer funds to other accounts in US for free.
PayPal remittance limit and minimum withdrawal limit
There are restrictions on the remittance and withdrawal limit for customers in India. If you are receiving the fund transferred from a PayPal account into your account, you can transfer the fund to your savings bank account free of charge. However, this is applicable only if the beneficiary provides the correct bank details while transferring the money. Beneficiaries who provide incorrect bank account details are charged a fixed penalty of ₹250. Indian PayPal customers receiving money are allowed to receive a maximum of $10,000 per transaction. The limitations are only applicable to Indian customers in line with the restrictions set out by RBI. There is no as such limit for remittance or transferring funds for international customers who have PayPal accounts.
PayPal has now started offering automatic withdrawals for Indian account holders. Enabling this option on your PayPal account page will automatically debit funds from your PayPal account to the savings bank account in India. This feature has been introduced in line with the regulatory requirements of RBI.
PayPal Customer Care Number
Indian customers holding PayPal accounts, who have any issues such as sending or receiving funds can get in touch with the customer care unit on the toll-free number 1-800-419-9833. You can get in touch with customer care executives anytime between 9 a.m. to 9 p.m., from Monday to Sunday. You may be asked to verify your name and account details before the service is offered.
FAQs
Do I need to have an internet connection if I need to make PayPal remittances?
Yes, an internet connection is mandatory. PayPal is essentially internet banking services. Having a stable internet connection is a primary requirement to carry out transfers and deposits.
Do I have to pay any fees or charges for activating and/or deactivating my PayPal account?
Activation and deactivation of PayPal account is done free of cost. All you have to do is provide the necessary details and submit the required documents (needed for completing your KYC compliance formalities). You can simply uninstall the PayPal application from your mobile phone or stop visiting the PayPal website from your desktop computer. While there is no activation, deactivation or annual charge levied for using PayPal services, you have to bear some transaction charges which include currency conversion charges.
Are all debit cards accepted for PayPal remittances? If not, which ones are accepted?
PayPal does not accept all kinds of debit cards. You can only use international debit cards provided by international Payment systems such as VISA debit card, MasterCard debit card and Maestro debit cards. Separately, PayPal does not issue any PayPal debit cards to residents in India. PayPal is simply an account where money can be deposited or withdrawn.
Is there a way to confirm a transaction made to the beneficiary?
When you transfer funds to a beneficiary, you will receive a confirmation message on your app and in your e-mail account as soon as the beneficiary receives the funds remitted by you.
I am an Indian PayPal account holder trying to send money to another Indian PayPal account holder. My transaction is getting declined. What is the reason for this?
As per RBI guidelines, you cannot send or receive funds to or from other Indian PayPal account holders. This is because Paypal service is meant for international transactions only. Also, you can only send or receive a maximum amount of $10,000 per transaction in accordance to the RBI guidelines.
I am using PayPal account to transfer funds within US. What are the applicable transaction charges?
Using PayPal account to make transactions within US is free. No charges are applicable.
Can I add more than one card to my PayPal account?
This is possible. However, for your security, a card can only link to one PayPal account at a time. To add your card, sign into your PayPal account. Go to Profile and click Add/Edit Credit Card. Select the card type, enter the required details and click Save.
Is it possible to have multiple PayPal accounts?
Yes, PayPal offers you the flexibility. You can create one personal account and one business account. You can link more email addresses, debit or credit cards, and bank accounts. However, each account must have its own email address and bank account information.
I can see that there are two types of PayPal account options available. How do I choose?
PayPal offers individual and business accounts. Select the individual account if you want to use it for personal purpose. Select the business account if you are a merchant who operates under a company or group name.
Which are the Indian banks which allow transactions through PayPal?
Only banks that issue internationally accepted debit cards associated with VISA, MasterCard, American Express, Maestro Debit cards, and Discover are allowed to let their customers open a PayPal account using their debit card. These banks are:
- Axis Bank
- HDFC Bank
- IDBI Bank
- ICICI Bank
- Kotak Mahindra Bank
- State Bank of India (SBI)
- Indian Bank
What is PayPal’s buyer protection?
PayPal Buyer Protection offers protection to buyers who use PayPal for transactions. Customers can use PayPal for online shopping.In case you do not receive an item or service that it not as per the description given by the seller, you're covered for the full amount of the transaction including return shipping costs. The conditions of the buyer protection are:
- you must have paid for the item or the service in one go.
- you have 180 days after the payment was made to file a dispute.
- you need respond within the specified periods to our requests for information while your case is reviewed.
Is it possible to cancel a payment done through PayPal?
PayPal cannot reverse a transaction which is completed. The only option in this case would be to reach out the recipient and ask for a refund. A refund to a debit or credit card may take up to 30 days to process, depending on the card issuer.
If the status of the payment shows as unclaimed, you can cancel the transaction from proceeding further.
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