Does skrill charge extra for withdrawals into India?

I had been reading a lot about skrill account holders not receiving the entire money that they had withdrawn from their skrill accounts. Since I myself had never experienced anything like it, I was of the opinion that the account holders might have done something wrong! But then, it happened to me!

One fine day I went ahead and withdrew USD 299.07 from my skrill account. This was the amount after the fees had been cut so I was supposed to receive this exact amount in my SBI account. Now, whenever I withdraw from skrill, the entire amount is sent through a SWIFT transaction (not sure if that's the official term) or more precisely, a wire transfer, from skrill to my bank. So, when the amount is deposited in my account, I see the accompanying remark in my account statement as - Forex Txn / USD XXX.XX @ YY.YY where XXX.XX represents the amount withdrawn (299.07 in this case) and YY.YY represents the prevalent exchange rate.

Here's a snapshot of my withdrawal record in skrill.

Skrill's extra charges for withdrawals into India


Now, naturally, I was expecting the remark in my bank account statement to read something like this - Forex Txn / USD 299.07 @ YY.YY. Imagine my surprise when I found this -




Forex Txn / USD 267.57 @ 61.57

Now that was a whopping USD 31.5 less - INR 1939.45 at the rate at that time! Come on!

Now I created a ticket with the skrill help desk and complained about this 'extra charge'. They replied back that they hadn't deducted any money from their side and that this must have been a deduction from my bank's side.

So off I went to my bank and told them of the situation. Thankfully the bank officer was detailed in her explanation and that helped me understand the situation.

She explained that the bank hadn't received any direct SWIFT wire transfer for my account. She showed me a bunch of papers which she said were the prints of the SWIFT transactions that the bank had received in the last few days and my account was not involved in a SWIFT transaction. So, the money that I received was sent from an intermediary bank who had received the original SWIFT transaction and it was this intermediary bank who had charged the USD 31.5 as fees for the transaction.

Let me explain it in an easy to understand way -

RIGHT WAY:

1. Skrill sends wire to my SBI account
2. SBI receives a SWIFT transaction
3. Complete amount received in my account

WRONG WAY (or, EXPENSIVE WAY):

1. Skrill sends wire to some XYZ bank
2. XYZ bank receives SWIFT transaction
3. XYZ bank deducts USD 31.5 as fees of their own
4. XYZ bank sends an NEFT to my SBI bank account
5. Deducted amount received in my account

I understood the process and shot off another ticket to the skrill helpdesk, telling them of skrill's extra charges and demanding that they directly send the money to my bank and not some intermediary bank. This is what they responded with -





Well, now there's nothing much I could do about it. So, for the time being, I have shifted to paypal. According to my calculations, at the current rate, skrill will be cheaper than paypal only if the amount withdrawn is more than USD 900. but then again, since the fees charged by the intermediary bank is not specified anywhere, it could end up being higher for such a large amount.

So, for now, since skrill is proving to be more expensive, it's paypal for me! Skrill's extra charges are the reason why I've made this shift; otherwise skrill had been the less expensive option till now.

Common mistakes to avoid in Paypal and Moneybookers

I’ve experienced that Paypal and Moneybookers expect their users to read the terms and conditions thoroughly and strictly adhere to it. Now, that is the right thing to do and every user should take care to ensure that they have read and understood the terms and conditions. But I do understand there are many people out there who will yawn ten times by the time they finish the opening paragraph. So, here’s a brief summary of what mistakes you should avoid at all costs to ensure that you’re not barred from using Paypal or Moneybookers due to a violation of terms and conditions or that you are restricted from using their services to the fullest:

MULTIPLE ACCOUNTS
Both Paypal and Moneybookers have strict policies against having multiple accounts and they shall permanently disable your account if they find that you have violated this condition. There’s little you can do then except pleading with them to consider your case and give you back your account. It is like a dead end for Indian users of Paypal since they have to provide their PAN while registering initially.

GUESSING THE BANK DEPOSITS (PAYPAL)
Just wait for a few more days and if you don’t see the deposits contact Paypal, but please don’t try to guess the deposit amounts. Many people just enter the example amounts for no logical reason whatsoever and then they receive the warnings.

GUESSING THE POSTAL ADDRESS VERIFICATION CODE (MONEYBOOKERS)
Again, just wait for a few days for the verification letter. It has to come all the way from London and might take a while. If you try to guess the code you receive a stern warning from Moneybookers – DON’T TRY TO GUESS THE CODE.

ENTERING PSEUDO NAMES AT REGISTRATION
Well, it’s no problem when you enter a pseudonym while registering at hunkychickens.com but you’ve got to use your real name over here. If you really have entered false names then you shall have to produce certificates or documents to support your claim.

CHOOSING THE CURRENCY (MONEYBOOKERS)
Moneybookers doesn’t allow you to change your currency after your first transaction; and this ‘first transaction’ includes your verification of your credit card. So, be sure that you have selected the currency most beneficial to you. For most of the Indian freelancers I would believe that USD is the currency most beneficial in the long run.

What To Do When Paypal Permanently Limits Account

This is the major undoing of countless users who one fine day suddenly feel that they ought to have two or more Paypal accounts. Now, it is strictly stated in the terms and conditions that you cannot have more than one account, no matter what. Yes, you may have a business account and a personal account in your name but you cannot have two business accounts or two personal accounts in your name.

Now, it so happened that this genius writer decided to make multiple Paypal accounts one day. He made them and he hadn’t had the slightest clue that he wasn’t supposed to do so. Then came the email from Paypal; here is the text –

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“We’re sorry to let you know that the use of your account is not in
accordance with the terms and conditions of our User Agreement and
therefore has been permanently limited.

What’s the problem?

Our system has detected that you have multiple PayPal accounts, of which
one or more has been limited for engaging in activities which do not comply
with our policies, including:

 1. Reports of excessive buyer complaints for:
        a. merchandise or services not delivered or significantly not as
described; or
        b. payments you received which your buyers did not authorise/approve to be
made; or

 2. Negative balance(s) due to insufficient funds to cover refunds for
claims or chargebacks awarded in favour of the buyer; or

 3. A violation of another PayPal policy or agreement you have with us

What does it mean to have a permanent limitation?

You will no longer be able to use PayPal’s services to send or receive
payments with this account or your other accounts which have been limited.
However, you can still view your transaction history.

What happens next?

Any balance in your PayPal account will be held for up to 180 days (or
longer as required and permitted by law). This balance will be used to
offset any obligations that you have to PayPal or your buyers and to cover
future refunds for claims or chargebacks that buyers may file against you.

After the 180 days hold period (or longer as required and permitted by law)
has expired, if there is any balance remaining, we’ll send you an email
letting you know when and how you can withdraw the money from your account.
Please note, that your PayPal balance is auto withdrawn to your linked bank
account in India.”

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I was flabbergasted! I had some pending payments and I didn't know what to do with them! So, I wrote to Paypal saying that though the primary fault was mine, I at least deserved a warning before my account was terminated.
They replied that they will review my account and after a few days, to my surprise, this is the email I received from them –

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Our review is complete and we have restored your account.

We appreciate your patience and thank you for your help in making PayPal
the safest and most trusted online payment solution.

Thanks,
S___t
PayPal

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I feel I was lucky since I didn’t carry out any transactions through the new duplicate accounts. Anyway, this is one mistake you should best avoid. However, if you are reading this too late then probably you could come up with a genuine explanation that your intentions weren’t malicious and that you are ready to provide any kind of documents they require to prove it.
Good Luck!