Preferred Method of Payment in India

Discussion in 'Development Options' started by ryanmlanane, Apr 10, 2012.

  1. ryanmlanane

    ryanmlanane New Member

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    What is the preferred method of payment in India.

    I know paypal - AliPay is a name I see .. What else ?

    I am interested in what the BEST payment option would be for a U.S. based company looking to process transactions in India would be - and keep it as convenient as possible for Indians.

    Ryan
     
  2. shaileshthakur

    shaileshthakur India New Member

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    Paypal is best with some restrictions.

    Apparently, the Reserve Bank of India, India’s central bank, has imposed some restrictions on how PayPal users in India can use the money in their PayPal accounts. These new regulations will be in effect starting March 1st, 2011. PayPal made an announcement on its website and listed the following restrictions:

    • Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and
    • Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
    Simply put, whatever money our Indian webmaster friends make online, they must withdraw. They are not allowed to use their PayPal money to purchase products or services online. This kind of defeats the primary purpose of having a PayPal account, doesn’t it?
    If you are an Indian merchant and you’re selling export related goods (for example, jewelry, bags, anything that may be considered for export), you can accept payments via PayPal only if the sale price is US$500 or less. I guess that rules out the possibility of buying a Ferrari from India online.
    PayPal Alternatives for Indian Webmasters

    With PayPal almost impossible to use in India, what PayPal alternatives do Indian webmasters have? Here’s what I can think of that I have already tried:

    • Moneybookers
    • AlertPay
    • Western Union (a bit inconvenient because the recipient needs to actually go to a Western Union branch to claim the money)
     
  3. ryanmlanane

    ryanmlanane New Member

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    That is pretty damn ignorant.

    Why would India's Central Bank impose those regulations without having an alternative payment processing solution in place ? If there was one in India I could see their reasoning. Paypal probably has $100,000,0000 in all the accounts combined. They practically are a bank.

    By limiting activity in India's PayPal user accounts - The bank of India has limited the ability for people of India to make money. What if someone earns $1,500 in a month through an affiliate program based in the States, England, Germany, or anywhere else? Then they have to wait for a paper check, and I am sure longer delays in clearing the payment.

    I knew there were issues with PayPal in India but I didn't realize they were that limiting to webmasters. That makes it so they can't have more than $500 a pay period from any program - or the payment to them by pay pal would be unauthorized / declined due to pay pal policy. Quite interesting.

    There's a hole to be filled here - and it is big business for someone. Wish I had a few million dollars to start a paypal for India - The possibilities are massive ... Heck I use PayPal to send family members stuff, friends, pay for almost everything A-Z ..
     
  4. chaudi

    chaudi Canada Member

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    Most Indians don't have bank account let alone credit cards. Come back in 20 years...
     
  5. Daver

    Daver Member

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    The best and easiest way to get money from an indian person is:
    -Open a bank a/c in a Indian bank (Public sector or private), and tell them to Online transfer OR deposit money in their local branch of same bank OR send money via NEFT for amounts less than Rs 2Lacs.

    With Online transfer, they first have to add you as a beneficiary and bank will approve it in about 12-24 hours. After that in the same bank, transfer is instant, and in case of Neft, delay is about 2 hours on working day, or next working day. Direct deposit in local branch, in case you have a/c in public sector bank, will attract about rs 25-100 fees for any amount deposited. Private sector branches allow deposit without any fees. Neft will attract only Rs 5 for amounts less than Rs 2Lacs.

    To pay money to an Indian:

    Again, open an a/c in Indian Bank and pay them via Online Transfer OR via Checks

    Online transfer, within India and within Bank is free. Within India but in different bank, the fees is Rs 5. In both cases, first you have to add them with their a/c number, Branch IFSC Code and sometimes their Email address(the one they use with bank). Then your bank will approve it and after that within Bank, transactions are instant and Neft >2hours.

    To open an a/c by an Indian in Public sector Bank (SBI is best), one needs to deposit minimum Rs 500 in Rural ares, and Rs 1000 in Cities. Netbanking is provided free of cost.

    To open an a/c by an Indian in Private sector Bank(HDFC Recommended), one needs to deposit minimum Rs 5,000 in Rural ares, and Rs 10,000 in Cities. Netbanking is provided free of cost.
     
  6. ryanmlanane

    ryanmlanane New Member

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    If 10 % do that's 100,000,000 + people
     
  7. Kokoro

    Kokoro Poland Member

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    Could you recommend an Indian bank which allows foreigners to open an account through Internet (either private or company with no local branch) and having an user-friendly online panel in English?
     
  8. indoms

    indoms India Member

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  9. Daver

    Daver Member

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    SBI & HDFC have the most helpful net banking portal. About the first thing that any bank which allows foreigners to open an account through Internet (either private or company with no local branch), it is tricky.
    I checked my HDFC bank website, and they say that any Foreign National can open account provided he has a residential permit. (Presence in India) Savings Accounts with HDFC Bank: Regular Savings Account | Opening Regular Savings Account India

    From google, people are telling/suggesting that "get a friend to open account, and use their net-banking username/password" (perhaps illegal, banks say dont share password and friend will be responsible for all the activity). Maybe a bit better will be to get your friend open an account and add you as a joint a/c holder?

    Both of my Banks, SBI & HDFC also require a Indian mobile number. SBI sends a One-Time-Password every time I transact via Net Banking, HDFC does same randomly. Although for some years when I was in Kenya, I requested my Branch Manager to change my contact number to my Kenyan Mobile Number, and they happily did it.

    Your best bet could be to ask one of your local bank(Your Local or Indian), which has a branch in India, to help you to get an a/c in INR
     
  10. Kokoro

    Kokoro Poland Member

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  11. mobile

    mobile India Member

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    directi is starting pay.pw

    ccavenue is good for indian customers..
    Most of peoples use debit cards for payment in india.
    sbi account is also Good.
    Getting credit card is hard in india.. Evan my self dont have credit card.. ;O
    I think so limits are removed. ;)
     
  12. skyshipper

    skyshipper India Active Member

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    paypal will open a dispute and block funds at the drop of a hat! trust escrow More! even ecop appears ok, mitsu escrow looks promising.

    p.s. nothing against ppal! (done $xxxxx there) but exprssing current views, with frequent policy changes!
     
  13. VishalS

    VishalS New Member

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    Yeah for Indians...ccavenue offers a whole lot of payment options. I think Paypal restrictions have eased now from what I read in earlier posts. Though to the best of my knowledge, Indians themselves cannot pay by Paypal in Indian accounts.
     
  14. justifyme

    justifyme New Member

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    have to go with pay pal. Or else go with some secure bank payment which is situated in india
     
  15. justifyme

    justifyme New Member

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    before using the debit cards people would have to conform with that the site was under in versign registration
     
  16. overcast

    overcast India Member

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    PayTM and UPI seems to be getting a lot of popularity lately. And you can find that some of the features of the PayTM are lot better. You can use it as an wallet. And sometimes you can also send the money back to the bank. So it has all the required features. You can also use the UPI wallet. And that should be good enough for your payment sending needs.
     
    Jeff likes this.
  17. Kimla

    Kimla United States Member

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    I know that while some aren't a fan of papal, I am. They don't have as many restrictions as they used to on Indian accounts, and plus they are pretty efficient and quick.
     
  18. ritchie

    ritchie Kenya Active Member

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    I can see that this is an old thread so I'm just curious to find out whatever changes might have happened since then. I know that PayPal imposes some restrictions as part of their AML procedures. Is Skrill popular as well?