Unfortunately, I have another bad news for India exporters. I was about to go to sleep and I received an email from PayPal regarding upcoming changes to PayPal User Agreement. Below is the main points of that email.
- Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and
- Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
The second point is the most shocking one. NOW WE CAN’T RECEIVE ANY PAYMENT EXCCEEDING $500. It seems Indian Government (RBI = Reserve Bank of India) is keen on stopping export income.
Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and
Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
What does that mean to me?
It means, if your business includes receiving payment of more than $500 in a transaction, either STOP EXPORTING and go find your self another business OR ask each and every client to use wire transfer to send you money, which includes visiting bank personally and fill out wire form with all the SWIFT details (in most of the cases). According to me, this will make few clients go away and choose provider from another country.
Indians, it seems Online Export business is in danger now. Better start thinking for alternate business….