Paypal Domestic payments banned for Indian users!


Paypal seems to have stopped the domestic payments in India. PayPal Domestic payment means – buyers from India send payments to sellers from India. We do not have any reasoning for this yet. But this is major issues which is going to be faced by Indian Paypal users.

This was revealed on one of the forums, where PayPal Indian user was complaining about following error which he was encountering

“We’re sorry. We’re not able to complete personal payments to account holders in India at this time”

One of the paypal employees replied to the thread and gave following information:

This message is returned if buyers from India send payments to sellers from India (i.e domestic payments). You should be able to receive payments from buyers outside of India.

If you have specific examples where this message was returned to a buyer outside if India when trying to send a payment to you, please contact customer support with the details so that it can be further researched.


Here is the screenshot of same


Here is the entire thread of the conversation.

Paypal seems to be screwing Indian PayPal users from time to time. This is probably the 3rd or the 4th time that users are facing the issue with Paypal payments.

What is worst is – There seems to have been no announcement intimating the Indian paypal users regarding the same. I can tell you for sure that couple of months back, this was very much possible, as I myself have done it.

We have got in touch with PayPal to know more on this. But if this is really the case, many users are going to get affected with it. We really need a good alternative for paypal in India…

Have you recently faced any issue of this kind ?

Hattip: Santosh Dawara

  1. VED036 says

    PayPal officials in India need to be more obsequious to the officials in the RBI. Instead of using Mr., Mrs., Miss &c. they should learn to use Saab, Saar, Memsaab, &c. and do a bit of bowing to them.

    This is the way other similar companies work inside India.

    This is the inside secret, which maybe the PayPal officials also know.

  2. Farhad says

    I have used Auction Essistance for a PayPal in the USA. So far it is working good. My only issue now is trying to get money out since Payoneer is banned.

    Do you have any suggestions?

  3. Nuzzo says

    Since PayPal has some restrictions in India. Do you think it would be a good idea to get a USA PayPal from Auction Essistance?

  4. Sabrina says

    Hope Paypal allows domestic payments from indian buyer to indian seller. Please Please Please !

  5. Brian says

    This is just BS by paypal. They charge such ridiculous fees and their service is pathetic. Just like ebay. it sucks!

  6. chets says

    Hi guys,
    I have one question though, I’m an indian currently living in Philippines. I’m planning to move to INDIA , Now i would like to
    operate same PayPal account in INDIA and transfer my PayPal funds to
    indian bank account provided if i have added indian bank account details
    along with its BANK CODE etc. Could i still be withdraw or transfer my
    funds to that mentioned indian bank account.
    If answer would be YES then….
    #. Kindly provide me the recommended bank name or bank name which has tie up with PayPal.
    #. Is there any fees for withdrawal or transfer the money in indian bank

    You assistance would be greatly appreciated.
    Thanks in advance.’

  7. anurag says

    I don’t like Paypal even if it is fully allowed to do transactions in India. It’s because of it’s monopoly. I’ve tried to search one eshop in India who is receiving money using Paypal. I could find only one.
    Although healthy competition should be allowed by RBI for to payment gateway companies, I’d prefer to go with any of Indian Bank Payment Gateways.
    I’ve hit upon some negative points of Paypal which I could not find elsewhere:

  8. Kamal says


    This is true that, we the Indian clients of Paypal are fade up with its services and really looking for its alternatives. But some of my friends are using Paypal Express Checkout with the signature and all, and they are able to take payments from domestic clients.
    I really do not know what Paypal is thinking gonna doing. But one thing I can make sure that, as soon as we find any gateway in India better than Paypal, everybody will kick it off and Paypal is too close to it.

  9. Jason says

    There is another player in the market who is gradually opening it’s doors in India. They just opened up an office in India and is already servicing India generally. I would recommend moving onto as well since it’s a great option. You can withdraw funds directly to ANY credit card.

  10. Aaron says

    PayPal is number one non-responsive payment processor in the world. There is no use of contacting them to resolve the issue, no one is there to take your views. We must have a better alternative to PayPal.

  11. j says

    You are again early to report and spot on, great!

    I think

    “We have got in touch with PayPal to know more on this.”
    is not going to work, we have done this so many times and still suffering.

    The answer lies in another line of yours
    “We really need a good alternative for paypal in India”

    Its a problem and hence an opportunity.


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