Tranfer from Paypal

There is good news for Paypal user in India. You can now transfer money through check and without going through the acrobatic feat of transfer through relatives and friends where you waste money on the transfer fee. Unlike the US where you can add a bank and have the money transferred, Indians have to be content with a check that Paypal will issue in your favor (take care that the name is same as the one in your bank account). And the current limitation is withdrawal of only $2,500 per month.

I have been using Paypal to accept payments for ads, and for smaller projects (below $500) and use it to buy software online. This new development from Paypal will be welcomed by many Indian developers, freelancers and small companies alike. I hope, we can add banks in future and have the money wired straight away.

Xoom

I tried Xoom too, which is good and can transfer the money directly to most Indian banks within 4-5 days. However, the transaction charge is high and the conversion ratio is not really in your favor. On my test run, the dollar was about ₹1,000 cheaper thus making a lost of (roughly) ₹1,000 per $1,000.

VISA Transfer

Very recently (October, 2007), Paypal introduced the Paypal-to-VISA direct transfer. It charges a transaction fee of $5 per transfer and you can transfer about $500 per day; this will hit your VISA credit card account within 3 days (my experience). This is a better alternative if you need quick cash.

Nonetheless, I still feel if you can wait for the standard 15-20 days check delivery to India, it is worth it. It also has the cheapest transaction fee of just $5. Well, it takes another 2 days once you drop the check as they are payable-at-par at all cities in India.

Direct Bank Transfer

Paypal has just enabled (got an email today, Nov 1, 2007) the best option of money transfer from Paypal; and that is “Withdraw your funds to your own Indian Bank Account”.

Now you can add your Indian bank account to your PayPal account, so you can withdraw your money directly to your bank. It saves you time and gives you faster access to your PayPal funds!

Plus, there is no charge to withdrawal amounts over ₹7,000. For withdrawal amounts of less than ₹7,000 there is a nominal fee of ₹50.

So, pick you choice.