Troubleshooting Paypal For People in India

So you want to open a paypal account, but not sure how to go about it? Ok, you already have it but don't understand a few things about how to use it.

No worries. After you read this post, almost all your problems will be solved.

So lets start with account creation.

What do you need to open a paypal account? Only a valid email address. Yes, you only need a valid email address to open a paypal account but to make full use of paypal you will need to add your credit card.

The things you can do without adding a credit card is everything other than sending more than $100 to anyone in one go, withdrawing more than $500 a month and to withdraw not more than $3000 a year.

Credit card is only used to verify a user and lift the limitations on sending amount and withdrawing amount. So do not worry if you don't have a credit card. You can always use paypal's services, even if you don't have a credit card.

However, as with every e-commerce service provider you should take time to read its terms and conditions. It may be real useful to you later.

To verify your account with credit card, add your credit. You can do this by going to the link "add card" option in the left hand side of your account overview section. When you add your credit card paypal will charge a small amount of $1.95 from it. Next, wait for your account statement or if you have online access to your statement go and check it.

Note: For some people it can take more than 20 days. So be patient.

You will find a 4 digit number related to the amount charged by paypal. Provide this number to paypal and you have a verified pyapal account. The charge of $1.95 will now show in your account balance.

After you get verified using credit card you can send any amount to anyone and withdraw upto $2500 each month.

Some people also ask if they can use their debit card to verify a paypal account. Unfortunatley this service is not available in india. However, paypal allows you to add a US bank account which can be used to verify your paypal.

This can be useful, if you have relatives there or you have business relations in the US. Ever wondered how valuble your relatives can be ;-)

When you add a US bank account, paypal charges two small amounts to your bank account. This is added to your Paypal balances as soon you verify the transactions.

You may also want to upgrade your account for added services.

If you intend to use paypal to only receive or send money to other paypal users, your primary account is sufficient. However, if you want to receive credit card or debit card funded payment, you will need to upgrade your account. You can upgrade your account to a business or premier account. The only catch is that paypal will now charge a percentage for recieving money into your account.

So do not upgrade unless you are sure you need it. And for business accounts, upgrade only if you have a bank account.

Note: Some people confuse upgradation with verification. I repeat verification is only needed to lift monthly and yearly limits on sending and withdrawing. You can upgrade your account even if you don't have a credit card.

There are two options for withdrawing money from paypal. Check and bank transfer. To request money by check, go to withdraw option and select "Withdraw by check". After making a request your check is processed in 6-7 days and then it is sent to you. It depends on postal service how fast you will recieve your check or not receive it at all.

Maximium time reported for receiving a check from paypal is 20 days. Paypal charges $5 for every check you order so plan your withdrawal in advance. You will recieve your money in indian rupees, so there is no problem of conversion. Simply wait for the check to get cleared and then enjoy your money :-)

You can also withdraw money by wire transfer to your bank but as said earlier this bank account has to be a US bank account.

You must be scared about not receiving your check from the postal service. However, to your relief there are other options which you can use to receive your money securly and quickly.

One option is Gcard. It is a prepaid debit card which you can order for a minimum of $25. However, to open an account with Gcard you will need to submit your verification and identification documents. These can be your drivers liscence, passport, pan card etc. You can find more info about Gcard here

Gcard provides you with a prepaid no-name mastercard which you can use to withdraw money from any ATM which supports mastercard. There are fees related to its usage which you can learn about from its website www.mygcard.com

You can also try this link on opening a US account.

Last but not the least. The information provided here is most accurate to my knowledge but I am not an expert on this. So you might need to contact a competitve authority before opening an account with paypal.

Good luck to your business.