Which PayPal “purpose code” allows users in India to receive payments from international users?

Drsunil V December 5, 2013
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Which PayPal “purpose code” allows users in India to receive payments from international users?

  1. Krishna P
    December 6, 2013 at 7:39 pm

    As far as I know you can receive any payment from internet user in India via Paypal and Indian user can't send payment to another Indian user. Editor : thetaborsoft.com

    • Drsunil V
      December 11, 2013 at 3:59 pm

      Thanks. Yes , the basic protocol is very agreed!

  2. Drsunil V
    December 6, 2013 at 5:11 pm

    I saw the "item" link. It indicates that personal payments to and from India are disallowed

  3. Drsunil V
    December 6, 2013 at 5:09 pm

    Thanks for sharing your experience in Paypal transaction. It is Very useful to know the intricacies to be sure of funds transfer , and how rules work or have changed

  4. Kyem G
    December 5, 2013 at 6:20 pm

    Well, 2 years back, I won $30 from Make Use of itself for winning the Runners in the 'Answer of the Week' section. I had no other option other than Paypal and I obviously had to connect my State Bank of India account to Paypal. I chose to just only receive payments and chose free lance jourlism (I don't clearly remember) and I got my tranfer easily, the $30 was turned on to ~?1600 and got deposited in my account. I was not aware that I cannot use my bank balance to shop but still I tried shopping with eBay internation website. It was rejected. While contacting Paypal, they said, to do any kind of sales and business (includes shopping), you need to first authorize a credit card and they will provide you a purpose code to enable sales and business purpose. I asked my Bank manager for this and he said that he will activate the purpose code to the bank account as if you receive any amount in Paypal for business (even you receive it from India itself), the amount will get transferred to your bank aacount and you have to pay using ur credit card.. Well I don't have a credit card as I'm a student & I didn't want to mess up with my father's credit card. And so I didn't move on further. This much info I do have.. Hope this helps.. I don't know if there is any change in rule in these two years...

    • Drsunil V
      December 11, 2013 at 4:00 pm

      hi. It was nice to know so many points regarding using paypal. Thanks for sharing your experience in Paypal transaction. It is Very useful to know the intricacies to be sure of funds transfer , and how rules work or have changed

  5. Bruce E
    December 5, 2013 at 7:35 am

    There are no special codes required to receive payments from anyone using PayPal. In India, when you wish to withdraw funds from your PayPal account and transfer them into a linked bank account, a purpose must be selected to let the bank know where the funds came from (freelance journalism, software consulting, legal services, etc). The purpose code will be shown on your bank statement. This code itself is not used by the end-user at any point during the withdrawal. For a more complete list of purposes that can be selected, who should use them and a detailed description, see this document.

    • Drsunil V
      December 5, 2013 at 7:39 am

      Thanks. Your answer has dispelled doubts. Please tell , is it true that paypal users in India , can receive and withdraw to bank , payments only for specific "purpose code/s"? If not , why is export code documents be need to be shown to bank?

    • Bruce E
      December 5, 2013 at 7:59 am

      Because of Indian law, PayPal can only transfer funds that have a selected purpose that falls under either a 'sales' category or 'exported goods or services.' I am not sure why only those categories are allowed or if they will ever be expanded or what laws govern this issue for that matter. Remember though, from everything I have been able to find, this only applies to monies transferred to an account in an Indian bank. Money can still be received in a PayPal account and simply used from there, apparently without any additional oversight. You will need to speak with someone who has either been doing this for a while or who has a background in Indian law for more specifics.

    • Drsunil V
      December 5, 2013 at 11:08 am

      Thanks. I have read your reply with care , with attention to all words. Does this imply , that if the sender transfers funds to an Indian paypal user's email id with "purpose code" Journalism/Other Information service , then the user in India would NOT BE ALLOWED to withdraw the funds to Indian bank account? even after using the withdraw to paypal linked bank account option? If yes , then only after purpose code of sales/exports with proof of sales documents shown to bank , is sales funds withdrawn to bank?

      Additionally , a rule also says that the funds are not allowed to be used from paypal account to buy online ( by directly using the funds transferred to Indian user account )

    • Bruce E
      December 5, 2013 at 5:46 pm

      Found another PayPal item. Apparently the sender needs to select either 'Goods,' 'Services,' or 'eBay Items' when sending money to India. Even though their question asks 'why,' they don't bother to answer it; they merely state what can still be done. The document linked in the original comment seemed to indicate the purpose was only required to withdraw the funds, not send them, but the document linked here indicates it is also needed on the sender's end. In any case, you will need to seek another way to transfer the funds such as Western Union or possibly a bank-to-bank transfer.

    • Drsunil V
      December 11, 2013 at 4:01 pm

      Thanks. Please acknowledge a basic q about purpose code : Is the code decided and input by sender accepted on receiver's account as default code for the transaction?

    • Bruce E
      December 11, 2013 at 4:16 pm

      According to the second link I found, the purpose is selected by the sender of the funds.

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