PaisaPay and PayPal- Taking out the confusion

PaisaPay is eBay India’s proprietary system through which buyers and sellers can use their credit card or Online bank account for making fast and secure payments.

The name PaisaPay may look similar to that of Paypal but apparently the way PaisaPay functions is a bit different from that of Paypal.

First of all what you need to know is that PaisaPay is not any online bank account like Paypal which can be used  to make Internet transactions. PaisaPay can only be used to make a transaction on eBay (and any other eBay  products that it may introduce in future). Unfortunately if you are looking for a way to transfer your money from Paypal to PaisaPay, I’m afraid that it isn’t possible, at least for now. Either your credit card or your bank account has to come in between Paypal and PaisaPay to transfer money from Paypal to PaisaPay.

Here is how the system works:

You (Buyer) are interested to purchase a product (either through Auction or Buy it now) and make a payment either using your credit card or online bank transfer.

Once you make a payment, you can see the status of your payment under the My PaisaPay account in your eBay account.

After that PaisaPay confirms that you made the payment and asks the seller to ship the product you purchased or won through auction to the address mentioned in your account.

At the other end, the seller enters your shipping address in his My PaisaPay section and makes the shipping. There will be a certain time line (1-7 days of buyer’s payment confirmation by PaisaPay for delivery within India) in which the seller has to enter the shipping details failing which you the buyer is eligible for a refund.

After receiving the product, you have to confirm (or do nothing within the timeline) the same within 5 days from the end of delivery deadline and only after which the seller account is credited with the money you paid using the credit card or bank account.

If the buyer didn’t receive the product with in the time mentioned by the seller, you can claim a refund with the timeline. Even if you fail to make a claim with in the time line you may be eligible for a refund using the eBay Buyer protection program.

As a buyer, there is no fee for using the PaisaPay system. However, sellers are charged from 4% to 5.5% plus taxes for using the service.