PayPal Local restrictions

PayPal Local restrictions

Paypal, as of yet, have not provided their services to many countries that are known to have a high percentage of internet shoppers such as Bangladesh and Egypt.

China
In China PayPal offers two kinds of accounts:

•   PayPal.com accounts, for sending and receiving money to/from other PayPal.com accounts. All non-Chinese accounts are PayPal.com accounts, so these accounts may be used to send money internationally.

•   PayPal.cn accounts, for sending and receiving money to and from other PayPal.cn accounts.

It is impossible to send money between PayPal.cn accounts and PayPal.com accounts, so PayPal.cn accounts are effectively unable to make international payments. For PayPal.cn, the only supported currency is the renminbi.

Japan
In late March 2010, new Japanese banking regulations forced PayPal Japan to suspend the ability of personal account holders registered in Japan from sending or receiving money between individuals and as a result are now subject to PayPal’s business fees on all transactions.

Taiwan
As of mid July 2010, users in Taiwan have noticed that the “Personal” tab for sending money has been omitted without notice. There is no longer an option to send personal payments, thus forcing all recipients to pay a fee.

Brazil
As of mid-November 2010, users in Brazil also have noticed that the “Personal” tab for sending money has been omitted without notice. There is no longer an option to send personal payments, thus forcing all recipients to pay a fee. Balance transfers between PayPal accounts of the same account holder incur an additional 6.4% fee.

As of beginning January 2011, Brazilian users are no longer allowed to withdraw money using credit/debit cards.

India
As of March 2011(Date needs to be changed), PayPal made changes to the User Agreement for Indian users to comply with Reserve Bank of India regulations . Notable changes to the agreement were:

• Export related payments for goods and services may not exceed $500.

• Any balance or future payments must not be used to buy goods or services but transferred to a bank account within 1 day from the receipt of payment.

• Credit/Debit cards must be used to pay through Paypal.

PayPal Labs
PayPal’s innovation environment, PayPal-Labs.com,hosts several outreach and experimental projects such as the storefront application, the MySpace and Facebook donation widgets, and the PayPal blog.

Bank status
Peter Thiel, the founder of PayPal, has stated that PayPal is not a bank because it does not engage in fractional-reserve banking.Rather, PayPal’s funds that have not been disbursed are kept in commercial interest-bearing checking accounts.

In the United States, PayPal is licensed as a money transmitter on a state-by-state basis.PayPal is not classified as a bank in the United States, though the company is subject to some of the rules and regulations governing the financial industry including Regulation E consumer protections and the USA PATRIOT Act.

Commencing July 2, 2007, as PayPal (Europe) S.à r.l. & Cie, S.C.A., PayPal moved its European operations from the UK to Luxembourg. As a Luxembourg entity, it is since regulated as a bank by the Commission de Surveillance du Secteur Financier (CSSF) and provides PayPal service throughout the European Union.

Safety and protection policies
The PayPal Buyer Protection Policy states that the customer may file a buyer complaint within 45 days if they did not receive an item or if the item they purchased was significantly not as described. If the buyer used a credit card, they might get a refund via chargeback from their credit-card company. However, in the UK, where such a purchaser is entitled to specific statutory protections (that the credit card company is a second party to the purchase and is therefore equally liable in law if the other party defaults or goes into liquidation) under Section 75 Consumer Credit Act 1977, the purchaser loses this legal protection if the card payment is processed via PayPal.

According to PayPal, it protects sellers in a limited fashion via the Seller Protection Policy. In general the Seller Protection Policy is intended to protect the seller from certain kinds of chargebacks or complaints if seller meets certain conditions including proof of delivery to the buyer. PayPal states the Seller Protection Policy is “designed to protect sellers against claims by buyers of unauthorized payments and against claims of non-receipt of any merchandise”. The policy includes a list of “Exclusions” which itself includes “Intangible goods”, “Claims for receipt of goods ‘not as described’” and “Total reversals over the annual limit”. There are also other restrictions in terms of the sale itself, the payment method and the destination country the item is shipped to (simply having a tracking mechanism is not sufficient to guarantee the Seller Protection Policy is in effect).The PayPal Seller Protection Policy does not provide the additional consumer protection afforded by UK consumer legislation (e.g. Sale of Goods Act) and in addition it cannot be enforced in the Courts because PayPal operates from Luxembourg, outside all three of the UK legal jurisdictions.

From Wikipedia, the free encyclopedia