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Monthly Archives: March 2010
New Paypal withdrawal Instructions – Using Purpose Code
Here’s the latest update over the Paypal India Issue Resolution. Couple of days back, it was told that Paypal has cleared everything with RBI and will now be implementing new withdrawal policies to mean Indian Regulations.
Though I did provide some Paypal alternatives, who wouldn’t like all Paypal issues to be resolved and start using the account as usual. Currently, all withdrawals from Paypal for Indians have been suspended. Paypal is in the process of implementing withdrawal policy changes, and this service will be available again from March 3rd.
In a latest post on the Paypal Blog, it has been put how Indians can withdraw money from their accounts. The details are mentioned here:
What is the new Paypal Withdrawal policy for Indians?
Under the new policy, users will be asked to enter a new field, “Purpose Code”. This information is required under the laws of India in order to identify the nature of cross-border merchant transactions.
How can customers pay?
Now personal payments and transfers have been barred for Indians. So payments can be accepted only via the following methods:
- Using the Pay for Purchases (Goods or Services) tab
- Completing PayPal checkout at your website
- Responding to PayPal “Request Money” instructions (invoices)
- When you instruct PayPal to withdraw your PayPal balance to your bank account in India, you will be required to provide a purpose code for the transaction.
What is a purpose code?
So, a purpose code defines your purpose behind enabling the cross-border transaction. The code will depend on the nature of your business or services provided. Note: This code is different from Importer Exporter Code (IEC) issued by the Ministry of Commerce and Industry. You can find out which Purpose Code is for you via the following table:
| Code | Category | Description | Who should be using it |
| P0101 / P0104 | Export of Goods | Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) | eBay merchants, jewelers, sellers of collectibles and other such products through eBay and your own websites / catalogues globally.Please note: Cross border shipment of goods and services for which you file GR / PP / SOFTEX / EC forms only should be processed with this code. Use P101 if Deutsche Bank is your banker and P0104 if you bank with any other bank If you have any questions, please check with your bank to help you with the same. |
| P0301 | Travel , Hospitality and Tours | Purchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, hospitals, Emporiums, Educational institutions etc. as well as amount received by TT/SWIFT transfers or debit to Non-Resident account). | Online Travel Agents, Airlines, Railways, Buses, Taxicab Services, Hotels, B&Bs and other travel / tourism related sales through PayPal |
| P0801P0802 P0803 | Information Technology | Computer Information Services. Hardware / Software / Data Processing consultancy/implementation | If you are an independent / freelance coder / hardware consultant or data processing service provider, or a small business providing such services for websites globally, please use these codes.For all IT related consulting services where you know you do not need to file a SOFTEX form, please use the appropriate code. 801 for hardware consulting, 802 for software consulting and 803 for data management and processing consulting services |
| P0805P0806 | Content and Journalism | News Agency and Subscription services | If you are a freelance journalist / blogger / news aggregator please use this purpose code for withdrawals.If you are a newspaper or an online news aggregator for websites overseas, please use the appropriate code from these two. 805 if you a freelance journalist, and 806 if you are a newspaper / aggregator |
| P0902 | Licensing of creative works | Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films) | Artists, designers, other creative service providers where the principal revenue mode is license fees, please use this code.If you produce creative works which you license out for entities overseas, licensing revenues may be classified under this purpose code |
| P1004 | Other services | Legal Services | If you are providing outsourced law related services |
| P1005 | Accounting, auditing, book keeping and tax consulting services | For accounting consulting and accounting services | |
| P1006 | Business and management consultancy and public relations services | Management / brand consulting and management services can be exported with this purpose code | |
| P1007 | Advertising, trade fair, market research and public opinion polling services | Marketing/ brand consulting / logo design / event management services can be exported with this purpose code | |
| P1008 | Research & Development services | If you are an outsourced research and development services provider based in India, receipts can be inwarded through this purpose code | |
| P1009 | Architectural, engineering and other technical services | Any other technical services such as eTutoring, education and other services you render over the internet via web conferencing tools or similar channels, please use this code for your withdrawals |
If you are not sure about your code from the table above, you can contact the Paypal customer care, by logging in to the site.
Also, Paypal cannot be used for Charity and Donations. It has to be used for Goods and Services.
Hope, this will resolve most of the issues and everyone will be able to withdraw money. Based on the purpose code, banks may tend to ask for Invoice details. Withdrawal resumes from 3rd March’10.
People who were using Paypal for personal remittances, cannot use it so further. They can get back their money deposited via Cheque withdrawal. Hope you found this information useful, do leave your queries below.
Paypal Alternative and How to withdraw money to Indian banks
First of all, HAPPY HOLI to all. Its the festival of colors and I wish everyone of you a colorful life. For those unaware, Holi is an Indian festival when people apply colors on each other, forget all their worries/inhibitions and enjoy life in unison.
In my last post, I had told you about how the Paypal issue is partially resolved at this point of time. According to paypal officials, bank withdrawals will start from 3rd March’10. But until the problem is resolved completely one does need to find alternate ways. Also, this issue should make us realize that we should be prepared in future. So in this post I will be telling you about Paypal alternatives and also how to withdraw money from Paypal in the current scenario…
Paypal Alternatives
1. Moneybookers.com – Like Paypal, this is another service which serves for 30+ countries, India included. With low transaction rates and easy money transfer options, this is one of the best money transfer methods and a good alternative to Paypal. It allows direct withdrawals via local banks, credit card, cheque, etc.
Moneybookers also provides escrow services and lets you send money to non-moneybooker members. Like paypal, it operates on e-mail ids. Easy to use and quick signup. Join today.
2. Payoneer - This service is for those who would like to have the ease of drawing money at any point of time instantly or even to enable themselves to make purchases. Payoneer provides its account holders with cards on a monthly maintenance fee which are similar to any credit/debit cards. You can top-up the card and use it as you please. There are transaction rates involved in ATM withdrawals.
My suggestion would be to get this card and use it for emergencies. Though the maintenance fee is little high. Currently, Payoneer is issuing cards for free without any initial cost. Make the most of the offer.
How to withdraw money via Paypal with Xoom?
You can send funds to your bank account using Xoom from your own PayPal account in less than 2-3 business days (for smaller amounts, it’s as quick as less than 24 hours).
Here’s a detailed explanation on how this works:
- Open a free Xoom account, if you don’t have one. Please provide proper details as asked. Xoom verifies its users and needs to make sure of their identity.
- Complete email verification and use the Send Money option to send money.
- Enter the desired amount to be withdrawn. Select “Bank Deposit” Option. and specify “PayPal” on one of the next pages.
- Enter the Recipient bank details (Note: Sending money to YOUR own Bank account from your PayPal is perfectly legal)
- If it’s the first time you’re using Xoom — you may be prompted to enter your own Personal details (like Address, Date of Birth, etc. Make sure everything you enter correct information)
- “Payment Information”: Select “Pay with your Debit Card, Credit Card or PayPal account” Option. “Payment Method” as PayPal
- You’ll be redirected to PayPal where you can fill authorize the payment.
You can track the transaction any time by logging into Xoom via the “My Accounts” page. Xoom transfer money fast though there is a limit to how much you can transfer.