19 points every PayPal account holder should know.

by Ankur Jain on April 2, 2009

If you have a PayPal account and find yourself struggling with their plans, fees, TOS, different account types etc then the following points are must read for you. Do check out the money saving tip in bold.

  1. There are three types of accounts in PayPal. Personal, Premier and Business. Personal vs Premier vs Business PayPal Tips
  2. A single person can only have two accounts with PayPal. One Personal Account and other Premier or Business Account. Each account should have a unique email address, bank account and credit card associated with it.
  3. Opening a PayPal account and sending money from a PayPal account is completely free of charge for all three account types.
  4. Receiving funds from a PayPal account:
    1. To your personal PayPal account is free.
    2. To your premier/business PayPal account involves fees.
  5. You can also receive funds from from a credit/debit card.
  6. With personal accounts you can only accept five credit/debit cards payments while incase of premier/business accounts there is no such limit.
  7. Receiving funds from a credit/debit card to your personal PayPal account involves higher fee than premier/business account. Fee varies by country. Check out fee structure for US based PayPal account holders and fee structure for India based PayPal account holders.
  8. Premier/Business account holders can also accept payment through credit cards without asking the payee to register with PayPal.
  9. If you have a premier/business account, you cannot accept business funds to your personal accounts. It means you can’t ask your website visitors to put money in your personal account instead of premier/business account. However you can accept funds from your affiliate/advertising network in your personal accounts.
  10. Money Saving Tip: If you are a premier/business account holder and have a good standing with PayPal you can apply for merchant rates. Merchant rates attracts lower fee than normal premier/business accounts rates. To qualify for merchant rates you should have received more than $3,000.00 USD in PayPal payments in the previous calendar month.Merchant Rates India
  11. PayPal has been investing a lot on the customer service front. While generic questions can be asked @AskPayPal twitter handle, for account related questions you have the facility to call them or send an email via the contact form.
  12. Don’t let your money stagnate in PayPal account. Invest in PayPal Money market fund and see your money grow.
  13. Something for your protection. Never click a PayPal link in your email. There are lots of phishers around. It is always advisable to directly type-in the URL.
  14. While opening a PayPal account, use a Gmail address. Gmail has put in place some special authentication for PayPal wherein you will never find a PayPal phishing messages in your Gmail account.
  15. For simple needs, PayPal also provides a inventory management feature under merchant tools. Now no need to go for those big online shopping carts.
  16. If you are a merchant and want to find and test out how that PayPal button would behave in real time. Check out PayPal Sandbox
  17. If you are a PayPal account holder from outside US be prepared to shell out large sum of money as PayPal fee. Even while withdrawing money(in your currency) to your account, PayPal has its own exchange rate which is always lower than the current exchange rate. I wish PayPal could look into this uneven fee structure. For instance: If you are from India and assume you receive $100 in your account and current normal exchange rate is $1 = Rs50. The actual amount what you will get in your PayPal account would be $95.8 (3.9% of $100 + $0.3) and if you chose to withdraw to your bank account in India, the amount you will receive would be around Rs 4358 (PayPal exchange rate is Rs1.5 lower than normal exchange rate). All in all a loss of Rs 642 for an amount of $100!
  18. Make sure you read the T & C document of PayPal carefully. PayPal is quick to limit an account for even a slight aberration. For instance, you are not allowed to log-in to PayPal from a country which is not included on Paypal’s permitted countries list.
  19. Even if you’re logging in from a permitted country but if that country is not your base country (where you regularly do business from), it’s a good to to let your PayPal account rep know about your travel plans. I have seen accounts getting limited in such cases too!

{ 68 comments… read them below or add one }

Balaji @ GuideToTech.com June 26, 2009 at 7:26 PM

That’s a great piece of info mate…
Thanks

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ROW June 26, 2009 at 11:18 PM

@Balaji: Glad you liked it

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Balaji | GuideToTech.com July 21, 2009 at 4:29 PM

Yeah mate PayPal makes money mainly from us mate…

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anup kumar August 25, 2009 at 6:37 PM

Hi

I like to open an account at PayPal. But since I do not have any credit card, I am not able to open an account in PayPal. So, there is any method to open an account in PayPal without the Credit Card? pls let me know

Thanking you
anup kumar

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ROW August 25, 2009 at 6:45 PM

@Anup: You can open a PayPal account without a credit card.
Credit Card is only required when you want to become a ‘verified’ account holder.

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Janardhan Hebbar February 3, 2010 at 11:28 AM

Boss, How can I thank you ? I have just registered with paypal and just wanter to know more about and landed in your website. never seen such an info loaded web page in my life. Thanks allllott.

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ROW February 3, 2010 at 11:39 AM

Janardhan: Thanks for your comment.

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Mayank February 4, 2010 at 1:50 PM

Really liked your post. You seems to know a lot about PayPal, Kindly help me.

I have heard PayPal demand lots of documents for Business Account. Could you tel me something about what documents they ask. I have a unregistered Individual Small Business in India which I operate from home. I do have Bank Account with Business Name, PAN Card on my name, Company Stamp, letterhead. What else to PayPal Demands.

Also I have read several places to open a premier account with Business Name eg If your Business name is Acme Solutions type Acme in First name and Solutions in Last name of Premier Signup. Article says this is trick for people with very small business. I would like to know Is it Legal to do that or PayPal is gonna freeze my account.

I tried contacting PayPal but their support really sucks.

Thanks.

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ROW February 4, 2010 at 2:33 PM

@Mayank: Thanks for your kind words!

I do have Bank Account with Business Name, PAN Card on my name, Company Stamp, letterhead. What else to PayPal Demands.
I think that should be sufficient. You can check the PayPal help for the list of all required documents.

Article says this is trick for people with very small business.
I would suggest you not to take chances with PayPal. They are quick in limiting accounts and after that it’s a real long drawn process to deal with them. So better-safe-than-sorry.

All the best!

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Nikhil February 21, 2010 at 1:17 PM

Gr8 Information Friend,
You have a good knowledge for Paypal Accounts.

Thanks

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MR DESTROYED March 10, 2010 at 10:12 PM

Paypal have destroyed my business before it got up and running, screwed my 2 ebay powerseller accounts up,our 1st holiday me my wife and 2 children were having in 3 years has been cancelled all because of the limitation rules and the fact they hold on to your money for 90 days always side with the buyer i could go on and on and on but to be honest i just wanted to warn any business going with paypal HAVE A BACK UP PLAN!!!!!!!!!!!!!!!!!!!

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Paul October 24, 2010 at 11:15 AM

Hey Dude,

Awesome blog post.

In your 9th point,

“However you can accept funds from your affiliate/advertising network in your personal accounts.”

Are you sure of this?

I m going to start a closed network of advertising club, where in members get additional features if they pay.

Do I have to register under the Ministry of Corporate Affairs? I do have DIN.

Can I receive funds from members, into my personal account in paypal?
Or Shall I upgrade to premier ?

Do i have any problems from IT dept ?

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Ashish March 23, 2011 at 2:51 PM

Great post friend,

Keep it up…

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varun dawar July 24, 2012 at 9:19 AM

Hello Dear,

My Brother wants to open a Paypal Account In South Africa and we will work for U S A customers from INDIA . We are going to start Online Technical Support for Computers For U S A customers .
Can my brother attach his salary account in South Africa with Paypal account to receive money from U S customers..

Please Advice
Thanks
Varun Dawar

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Ankur Jain July 28, 2012 at 11:20 AM

PayPal is available in South Africa so I don’t think there should be any issue attaching PP account to receive money.

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Arvind March 21, 2013 at 10:42 PM

My name is Arvind Kuliyal but as per records it is only Arvind, so when I was opening my account I wrote Arvind Kuliyal but later on i came to know about the procedure for Pan Verification. I want to change the name to Arvind to my account. How can I do that.

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Frank D'Souza June 8, 2013 at 9:51 PM

Hey!

Excellent post!

I just wanted to know whether it is possible to list an Indian debit card and transfer money overseas.

I tried listing local debits, it won’t accept. Is there a way to pay international sellers, like those on eBay via a personal PayPal account?

Thanks!

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Ankur Jain June 8, 2013 at 9:59 PM

@Frank: I think only credit cards are allowed not debit cards. Personal accounts have many restrictions, I would suggest upgrading to premier/business accounts.

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bhaskar ghosh June 26, 2013 at 2:59 PM

Sir i just open a paypal account several days ago with my name.
The detailed bank account given is a joint holding with my father and the name on the debit card is my fathers name but pan no is mine they say the pan is invalid.if i give my fathers name is there is a chance or not

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salman June 27, 2013 at 2:41 PM

i want to make paypal acc for business.i am from india and do business with us cust.can u tell me for which account should i go.and what are the requirements for dat

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Ankur Jain July 2, 2013 at 8:06 PM

@Salman: Go for PayPal business account.

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Marsanen July 9, 2013 at 3:26 PM

can i open a personal paypal account using my sister’s pan card since i don’t have a pan card yet. Her pan card is not registered to paypal. Thank you.

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Ankur Jain July 9, 2013 at 8:53 PM

@Marsanen – Why not, just that any earnings will be credited in her account not yours.

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Akshay July 18, 2013 at 10:55 PM

I think you should update the info on this blog article. Paypal is now offering only two types of accounts now. And the fee structure has been revised somewhat.

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Ankur Jain August 3, 2013 at 7:20 PM

Yes Akshay. It’s a bit dated article but still most of the part is relevant today. I’ll try to update the outdated points.

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Ashok July 25, 2013 at 9:37 PM

Dear Friend ! I have not Credit Card , and i want open account on Paypal . So please advise me , it is possible to open account on Paypal without credit cart and how can i open …………..

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Yogi Amitram July 26, 2013 at 12:37 PM

Dear Akur ji,
I am running a small ashram, and i want to receive donations from India and other country.
Our ashram is in the beginning situation. so we can not afford a lot of expenses.
Please guide us , what to do also please e-mail me you contect no. I would like to talk to you.
Namaste

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Ankur Jain August 3, 2013 at 7:17 PM

@Yogi: I have sent you my contact details.

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shashi kiran July 30, 2013 at 1:08 PM

Thank you very much for an excellent information.

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Tharani October 9, 2013 at 11:34 AM

Hi all,
I dont have pan card . can i use my mom’s pan card?wll it be a problem in future?

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Nilesh October 30, 2013 at 2:50 PM

Hi,
First of all a very informative article and I must congratulate you for it. I am running a business in India wherein I want to start selling aquarium products online using PayPal. However, my customers would only be from India. I tried a lot to find out the fees structure for these transactions where they will be only within India and nothing coming in from out of India. However, I am not able to locate this information. Do you have any idea about the fees structure for such case? I would open a Business Account based on the fees that are charged. :)

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qasim November 4, 2013 at 9:09 PM

hey, i want to make account on paypal , but paypal is not currently avaible in pakistan ,i want to start from saudia arbiya so by cosing saudia arbia can i use my pakistan credit card ?

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Ankur Jain December 15, 2013 at 1:47 PM

@qasim: Please check with PayPal support regarding this. I may have said this earlier and will repeat, please be careful with PayPal. They are quick to limit accounts if they found even an iota of doubt. Better be safe than sorry.

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nagaraj November 10, 2013 at 9:34 AM

HI my case is similar to Yogi Amitram but i serve old people,can u give your contact details?please.if not please answer my question,why paypal takes credit card,do they take money on monthly/annual basis without our approval? Is there any hidden charges ?. why not debit card?Please bro answer my questions

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rafeeq November 17, 2013 at 4:40 AM

while creating business paypal account in india it is asking for business details, business owner details and PAN number is it for the business or business owner (PAN Details). it is not clear

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Ankur Jain December 15, 2013 at 1:39 PM

If you’re registering as a business, provide your business PAN details.

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Gautham Sk November 18, 2013 at 4:47 PM

Hey,
Nice article was very informative. I have a question though,Please help me.
I’m a freelance graphic designer and I have a personal Paypal account were I want to create a “Buy Now” button to sell my designs , Is it possible for me to do it?
As I’m freelance is it possible for me to start a business account with the same details and bank account I have used in my personal account?
I’m really confused and Thanks.

-Gautham

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Ankur Jain December 15, 2013 at 1:38 PM

You can go for Premier account, if you are not a registered entity.

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Robin Monteiro November 26, 2013 at 2:00 PM

Hi Ankur,
Thanks for your post, i will like to tell you that for withdrawing funds to your local bank from your paypal account is free ( Ref: https://www.paypal.com/us/webapps/helpcenter/helphub/article/?solutionId=11927&topicID=11500006&m=HTQ )
Please update this info. and also the calculations you have made with new dollar rate-lol.
Thanks,
Robin

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Ankur Jain December 15, 2013 at 1:37 PM

Yes, it is free I never said withdrawal from Paypal is paid.

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urvashi December 9, 2013 at 4:31 PM

i hv registered myself wid paypal, and they charge dollar one from my account.. i cudnt understand the fee.. is the registration chargeable?? are thr any hidden charges tht would be deducted afterwards?? what if i nvr use my paypal account i mean if nvr such need arises?? pls reply..

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Ankur Jain December 15, 2013 at 1:35 PM

No, the registration is not chargeable. That was done to verify your credit card. You should not worry about any extra charges with PayPal. In my experience they are quite transparent.

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Pravin December 17, 2013 at 6:24 PM

Dear Friend,
Very useful info! When I opened personal a/c in 2007,that time no such clear & useful info was available for indian users.I gets some money from affiliate type program & some matrix type programs where user sends money thro’ his paypal a/c by entering his sponsor’s paypal email .
As some sellers affiliate programs only pay to affiliates only if an affiliate have premire a/c. So I want to open premire a/c. At this time ,there is no option in my paypal a/c to upgrade to premire. Paypal representative says that personal a/c is same as premire & I should close this current personal a/c & then open new premire a/c.
Plz give me advice that should I keep this current verified personal a/c & open a new premire a/c with different email & debit card ? I have attached ICICI banks card to my current active personal a/c. Debit cards from which other banks are perfect to attach if I opens a new a/c?
With premire a/c ,Can I eligible to receive payment from my site visitors & other programs downline members(From worldwide) when they simply login their paypal a/c ,enters my paypal email in the ‘send money to’ option & clicks on ‘send money’? Currently I gets money in my personal a/c from such member.
Plz reply me as early as possible! I will be very thankful if you send a reply to my email.
Thanks again!
Pravin

P.S. I request you to update this article if possible!

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Ankur Jain December 17, 2013 at 9:00 PM

@Pravin: We have updated the article with latest info. Check the top link regarding Personal vs Premier vs Business, so it is indeed possible to open a Premier account with them. Make sure to use different address while opening such an account.

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Grace hopper December 22, 2013 at 4:14 AM

I just did google search on paypal reversal scam. This was first listing and it was right on the nose correct. Ebay/Paypal must be stopped by someone. Author is correct I just had someone with no history buy an item in November and shipped two days later. Got message just today the funds were reversed with NO explanation. Can’t wait to get the negative feedback which I have no control over either since 1 out of 20 people actually give feedback after buying.
Don’t do international whatsoever after a Canadian/Paypal scam cost me $200 – no tracking by USPS across US border. Already had plenty of buyer scammers trying and sometimes getting refunds/discount and switching products out when returning. Don’t need Ebay/Paypal helping them out.

This time I am not going to lie down and take it. I have already researched the buyers name! Luckily they used their work email and I will also contact their workplace! I eventually will file a police report on this buyer and federal charge of wire and mail fraud. Thanks internet for evading everyone’s privacy and I will do the same when I am wronged.
You can do this too!!! Go after the address you mailed it to!

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Ankur Jain December 22, 2013 at 5:47 PM

@Grace: That’s the harsh reality we have to accept. Do let us know about the progress in this case. All the best!

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IMHBN December 28, 2013 at 8:40 PM

Hey I have created a PAYPAL PESONAL ACCOUNT!
And I’ve Confirmed my BANK ACCOUNT.. N LINKED IT WITH PAYPAL….
BUT THERE IS A OPTION THAT ASKS FOR PAN INFORMATION….. IS THAT REALLY REQUIRED TO CONFIRM THE ACCOUNT….

NOTE: I’ve verified my bank ACCOUNT!
Is Pan Important for it….
will I be able to receive and send payments ?????

#imHBN

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Ankur Jain December 29, 2013 at 3:07 AM

Yes, if you’re in India, you need a PAN number to withdraw money. It is very easy to apply for a PAN card. You should be able to get it in a week.

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shiva January 5, 2014 at 8:31 AM

I opened a premier paypal account . It charged me Rs. 63.19 . And I am worried that should it continue for next month also ? I mean pls tell me I would be charged for next month also or It would be free for next coming months ?

Hoping for your early reply !
Thanks

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Dutt January 30, 2014 at 2:05 AM

Just read shiva’s comment! I was just going to upgrade to premier a/c.. now, on 2nd thoughts..
Guys, plz let know if they r charging on paypal premier a/cs..
waiting feedback!
thnx

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Rahul January 10, 2014 at 2:04 PM

Can i use paypal for my online technical support business in india.

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Ankur Jain February 4, 2014 at 5:05 PM

@Rahul: Someone paying in INR to Indian Paypal account – No. Otherwise Yes.

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nigah January 22, 2014 at 5:06 PM

i received $ 0.48 in my paypal account from a PTC site. Deducted fee is $ 0.32. is it a very high percentage of fee deducted by paypal?

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Ankur Jain February 4, 2014 at 5:03 PM

Beware of PTC sites. PayPal frown upon such sites.

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aim_aris January 24, 2014 at 11:17 PM

Hey fren, i have problem with paypal. im new user coz coz i need to receive money from my buyyer oversea (other country) i sell my item just $420 than my buyyer said he was send money to my paypal account and paypal send me email to tell me they already deduct $420 from he (buyyer) and just wait for me send the proved (recipt/post t.t number) for verification. After all it done, paypay reply me back my transaction will realise to my accout in 12-24 hours without login until get email from them. Im waiting until 3 days and they said ‘account limitation’ min transaction is $2000. so they deduct agains the balance from my buyyur to reach $2000 and to make all this clear paypay ask me to refund back the balance using western union ($2000-$420* = $1580*) and send to them back the western union receipt for verification to they proceed all the money to my account. After i research about paypay im scared and not trust to give my money ( refund/$1580)to buyyer if im late to done this refund, my money are hagging there and will freeze. Is it true about this paypal procedur and what should i do ? If this true, maybe my paypal account will get limitation also and cannot witdraw all the money back. Please help me, reply asap…

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Meenakshi February 23, 2014 at 11:48 AM

Hi
I want to make a personal account on paypal but i don’t ve a pan card.
Do i ve to make the account on my dad’s name if m using his pan card or i can use my name with same pan card for making an account ?

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Ankur Jain February 24, 2014 at 12:03 AM

@Meenakshi: If you are using your dad’s PAN card, use his name.

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nitin February 24, 2014 at 8:54 PM

Hello

We have recently started using PayPal for our Ecommerce venture in which we sell goods to Indians abroad. Since we cannot hold the dollars in Papal account, we often use the existing PayPal balance to refund those customers whose orders we cannot fulfill.

This practice ccauses either some loss or profit due to dollar fluctuations. I would like to know if you have any recommendations on managing accounts (book keeping) with respect to PayPal transactions. How to adjust the profit or loss whi ch results due to dollar fluctuations.

My question may sound naive. But I am not for Accounts background & hence looking for some help from experts.

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Ankur Jain February 28, 2014 at 5:23 PM

@Nitin: Your CA can certainly help you with this. Losses/Profits arising out of exchange rate fluctuations can be shown in your accounts.

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Kishan March 1, 2014 at 8:20 PM

Dear Sir

I want send the money to china by using paypal. Please tell me the methods.
I am using HDFC and AXIS bank debit card. How i should open the account and and how i can transfer the amount to my trader at china.

Kishan

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Ankur Jain March 2, 2014 at 2:48 AM

@Kishan: If you want to create a PayPal account from India, you would need a credit card to send money. Debit card won’t work. You can also Wire transfer the money. Check with your bank.

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Tammy March 5, 2014 at 4:38 PM

Excellent Article Ankur. It’s still current after 5 years. I have a question you might know the answer to. I’m living in Canada and have had a personal PP acct for over 6 years in perfect standing. However, since opening my account in 2008, my credit rating has become terrible. Also, I would like to upgrade with PP to their “Advanced Business Account.” I spoke with a PP customer service on Feb 25, 2014, and learned this will cost me $5 monthly plus transaction fees. So far so good. However, I’m very worried that they may decide to run a credit check on me personally to make sure that I’m “low-risk” in their eyes. If they do this, they will discover my credit rating is very bad. Can you let me and others know if you have heard of PP running credit checks when their members upgrade to either an “Advanced or Pro” business account? By the way, in their TOS, they claim that they have the right to do this, which is what has me very nervous. All help and advice is appreciated. Thx Ankur. Tammy.

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Ankur Jain March 12, 2014 at 12:47 AM

@Tammy: If their TOS says so, yes you should be careful.
Are you sure you need the Advanced Account? Do check their normal business account as well. It has all the facilities of personal account and more and transaction fees are much lower.

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Anurag Sinha March 10, 2014 at 3:21 PM

hey I am a student and a freelancer too, so i need to open a paypal account to receive payment from 3 website so which account should i go for?? and also which purpose code should i opt according to Indian Rule??pls help…

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Ankur Jain March 12, 2014 at 12:49 AM

@Anurag: You should go for premier account.

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Nasir March 12, 2014 at 10:26 AM

Sir…what is purpose code in paypal .what i chose in all options

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Rafiq March 14, 2014 at 8:46 PM

Hello All,

I am a seller on paypal.
Paypal is highly unprofessional, unethical in dealings.
They can hold your money without any reasons for an indefinite period.

I have been experiencing this since Dec and having very tough time.
As some one pointed out rightly, they always side buyers not sellers.

Be aware.

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Dev March 28, 2014 at 2:47 PM

I want to open a business account with paypal, when I gave the business PAN, it says it is invalid . I am not supposed to give a personal PAN, because this is a business account (am I right?) when I open and login to my account on paypal, it says welcome and “my name” so I believe I should give my personal PAN and not company PAN to verify.

The company is a partnership, so it wouldn’t be right to give just my PAN

What should I do here??

Reply

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