How to use paypal?

With increasingly high number of freelancers budding from India, the demand for Paypal has also seen a steep rise. Graphics, software development, translations, recording, networking or writing- all the skills sets are presently being outsourced from offshore companies to Indian freelancers. Earlier freelancers in India hesitated for online work from offshore companies due to discrepancy in payment mode and thus delay payment. With the quality work- a timely commensurate payment is the demand of every service provider. Hence, came online payment modes to support online payment. Wire transfer, xoom, Western Union etc are some of the means to let you have your payment.

What is Paypal?

Paypal owned by e-bay has always been considered as reliable gateway for payment both for buyers and providers. But earlier in India, paypal doesn’t supported withdrawals of funds into the bank account. But since 2007 it was made possible and banks like State Bank of India, Allahabad Bank, Union Bank of India, HDFC, ICICI etc now has join hands with paypal to facilitate this service.

In plain words, Paypal is an online medium to which buyer and service provider comes on same platform to send and receive funds. A buyer can send funds and service provider can receive funds using paypal accounts. What all you have to do is to register for free account on paypal. You can register on paypal by complying with simple steps provided by instruction on site itself.

Before getting started you may feel bit on edge for registering on it or not but believe me it’s very simple and convenient. The same was case for me and I used to avoid work from clients who have their payment settled to paypal. And the problem further arises when you ask from more and more people regarding its operatability and none seems to come up with satisfying answer.

How to withdraw money using Paypal in India

One you are registered you can immediately start receiving or sending fund. There are three methods to which you can receive funds

1. Credit Card- To withdraw money using your credit card you need to verify your registration status by providing your card numbers and other required details. After doing so you are free to withdraw funds up to any limit and you becomes a verified member.
2. Cheques- You can demand cheques from paypal for the amount you want to withdraw. But the adverse side of it is the fees they charge from you for delivering the cheques at your place in addition to the time that is taken for cheque delivery. The fees that you have to give for requesting cheque is 250 INR and the time cheque may take is 25-45 days. The other problem is that you will need minimum 150 $ in your account to request a cheque
3. Bank Withdrawals is the most convenient way for withdrawing funds. This is so, as you can withdraw funds using this option even if you are not a user of credit card (which means you are an unverified user). Being an unverified member you have certain limitations on withdrawing funds like you can withdraw amount up to $500 in a month. The time taken for money transfer from your paypal account to bank account is 5-7 business days (though I usually receives money in my account within 3 days). You can add your bank account by going on profile settings and can make a withdrawal request for desired amount whenever you want. As you add your bank account to paypal you need to provide IFSC code usually provided on leaflets of your cheque book or else you can download the excel sheet from http://www.rbi.org.in/scripts/neft.aspx by clicking 'List of NEFT enabled bank branches' and check out your bank IFSC code

Remember

Make sure that you register with the details like name and address correctly especially the last name. Whenever you make withdrawal request- if paypal found any discrepancy in the name with which you are registered and the name you have on bank account than it will return with request charging you a return fees of 250 INR.

As you proceed with withdrawal request, Paypal pay you 1 Rs. less than market rate on Dollar conversion rate. Also if you withdraw amount less than 7000INR than 50Rs will be charged as fees to bank withdrawals. However no fee is levied if you request amount more than 7000INR towards bank withdrawals.

Enjoy your paypal banking and get flooded with e-money :-)

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