Every person using PayPal from India might be now knowing the issues faced by PayPal and it seems the personal transfers to Indian accounts will not happen very soon. During this issue, people who had withdrawn the amount from their PayPal account to their bank account got it reversed to their PayPal account. Now what really happened here is when people withdrew amount during the first week of February 2010, the exchange rate for USD to INR was around 44 and when it was reversed and put back to their PayPal account the rate shown by PayPal is around 48.
Because of this, many people who withdrew during the last 2 weeks lost money due to currency fluctuations. This turned out to be in huge amounts as the exchange rate was pretty high. Had PayPal notified users about this issue or if they had disabled the bank withdrawal, people wouldn’t have lost money in market fluctuations.
We contacted the customer support at PayPal yesterday because of this reason and here is what the custom support had to tell us.
We would like to inform you that we will reimburse the total amount and ensure that you are not impacted by any currency fluctuations during the last week. This reimbursement should appear after the restoration of your account balance has been completed.
We will be contacting you in the next few days with an update and, if the issue has been resolved, you can initiate another withdrawal to your India bank account at that time.
This email states that the amount would be fully reimbursed and market fluctuations during the last week will not be considered. Now, we’ll have to wait and see if PayPal takes currency fluctuations into account or not.
If you had any such issues with PayPal during the last week, do share your feedback in the comments.