When you start working online, you need a mode to send and receive payment. Usually you can use your credit card or debit card to make payment online but to receive Payment, you need to take help of services like PayPal, Google Wallet. PayPal has been one of the oldest and trusted service to send and receive Payment. Especially if you are from India, you will find PayPal service to be the best when it comes to receiving Payment from overseas. Do remember, most of the advertising network (if you are a blogger) pays using PayPal, so it’s essential to have a Paypal account.
When you open up a PayPal account in India, you can start sending payment right away (After linking with your credit card) but to receive Payment you need to link your PayPal account to your bank account. This will remove the withdrawal limit from your PayPal account, and you will be able to withdraw money from your PayPal account to your bank account.
Here are the few important things that you should know about being a PayPal Indian user:
- Earlier there was no such limitations on PayPal and and Indian Paypal user could store and use money in their PayPal account to send payment or buy any goods online. But in 2010, RBI imposed new set of rules on PayPal, and now you can only withdraw money from your PayPal account to Bank account. ( You can’t use PayPal money directly for online purchases or Payment). This is indeed a problem as you will end up paying conversion fees twice, but at this moment there is no solution to this. If you have any relative outside India, you can ask them to create a PayPal account for you, which you can use without any such limit or restriction.
- An Indian PayPal user can’t send or receive money from other Indian PayPal user.
Benefits of using a PayPal account:
- You will be able to make online payment without exposing your credit card details.
- You can use Indian Debit card to make payment. This helps many of you who don’t have a credit card.
- You can receive Payment from overseas account. (Such as client, advertising payment).
- Many online services charge recurring payment. When you pay with Paypal, you can anytime cancel the recurring payment.
- You can send mass payment using Paypal.
- You can create and send invoice directly to your client.
Steps To Create your PayPal account:
First of all head over to PayPal.com and click on to get started to create your PayPal account. On the next page you have an option to select between “Personal and business account“. For bloggers, I would recommend you to start with personal account and if you ever need a business account, you can instantly upgrade it from PayPal dashboard.
On the next page you need to sign up by filling up a form, you can enter your Credit/Debit card detail then or can skip it for later to send Payment. Do remember, when you open a Paypal account in India, it’s a limited PayPal account. You can use it to send Payment to anyone using your Credit or Debit card, but to receive Payment you need to complete these 4 tasks:
- Add your PAN card
- Confirm your Email (When you sign up, you will get an Email from PayPal to confirm your account)
- Add bank account (This will be the bank account where your Paypal money will be withdrawn to)
- Purpose code (From the long list, select the purpose on which you are receiving payment on your Paypal account)
Here is the link to the page which you can access anytime to see if any verification is pending for your account.
Pan Card :
Your Pan Card name should be same as your PayPal account name. If you are a minor without a Pan card, you should open a PayPal account in the name of your parents.
Linking Bank account to your PayPal account:
This process will take 2-3 days if you initiate now, so I suggest you to create your Paypal account right away, as if in future you need to receive money from any of advertising company or client, you don’t have to wait then. Click on Start in front of Add bank account and you will be taken to the next page where you need to enter just few fields such as :
- Your Name
- Your Bank account
- Your bank IFSC code. (If you don’t know the IFSC code of your bank branch, simply go to your bank official site and search for it). If not, Search in Google with “Your Bank Name, Branch and IFSC code”. Ex: ICICI Bank, VasantKunj IFSC code”. You can also select No in front of “Do you know your bank’s IFSC code?”, and select your bank, state and branch using Drop-down from there.
Once you are done adding the bank account detail, Paypal will send you 2 small deposits in your bank account. After receiving the deposit (In my case it took only 24 hour to receive two small transactions), you need to login to your PayPal account, click on verify at top and enter the amount to complete verification of your Bank account and PayPal linking.
Add PayPal purpose code:
Next step is to add the purpose code for your transactions. If you are receiving Payment for affiliate commission or advertising, select “Advertising and market research” or select what is appropriate in your case. However, this will be your default purpose code, and at the time of withdrawing money from PayPal account to your Bank account, you can select any other.
Note: Money in your Indian PayPal account will be withdrawn automatically every day. You can also manually withdraw money to your bank account. Usually it takes 5-7 working days for money to be credited in your bank account.
Linking Credit Card/Debit card with Indian PayPal account:
When you are linking a credit card to your PayPal account you will face no issue. You can always add a new one, edit old one or remove old one by going to Profile > Link/edit credit card. Debit card from selected bank works fine with PayPal and according to users comment, these are the Indian bank debit cards that I’m aware of which works fine with PayPal. (If you know of other bank Debit card, let us know via comment).
- Axis Bank
- ICICI Bank.
- HDFC Bank Platinum Chip Debit card
- CITI bank
While adding ICICI bank debit card if you see this error:
“The bank that issued your card didn’t approve this transaction. Please contact the card issuer’s customer service department if you have any questions. Or you can add a different card now to continue.”
You need to call up their customer care and ask them to enable the international online transaction. Or you can also message INTL to 5676766 from your registered mobile number.
For other bank debit cards, in most of the cases they will say it’s an international debit card, which works fine when doing a transaction at ATM, but you need to ask customer care if you can use the card for online transaction without 3D secure pin verification. If not, ask them to enable it. If they can’t, it’s time to change your bank.