This article describes Paypal’s Automatic Withdrawal or Auto-Sweep option, to automatically withdraw your Paypal balance to your checking acount.
Paypal Auto Sweep
Paypal offers an "auto sweep" automatic withdrawal option to qualified Business and Premier accounts. This option is not available to Personal accounts. When enabled, any Paypal balance will be automatically transferred to a designated checking account every night around midnight to 4:00 AM. This option is a great convenience to merchants with high transaction volumes, so they do not have to log in and manually withdraw the funds periodically. It also avoids the risk of having Paypal freeze your account and any funds within it.
Requesting Auto-Sweep Capability
To enable Paypal Auto Sweep, log into your Paypal account. Click the "Contact Us" link in the footer, and then select "Call Us". Call in and ask if Auto Sweep can be enabled on your account. The Paypal representative will check your eligibility, and enable the option if you are qualified. You may have to provide your social security number and/or lift any withdrawal limits in place. It is not clear what the qualifications are, but most likely, they will look at your transaction volume, transaction types, and account age.
Enabling Auto-Sweep
Once enabled, you will see an "Auto Sweep" option in your Paypal Account Profile page. It is located uncer My Money > Paypal Balance > More > Auto Sweep. You can enable or disable auto-sweep, and select the checking account where to deposit the funds. The funds will be transferred via the Automated Clearing House system, and will take 3-5 business days to settle in your bank account.
Auto-Sweep Disabled Automatically
Note that auto-sweep will automatically be disabled in the following circumstances:
- You initiate an electronic funds transfer from your bank account into your PayPal account. (To prevent added funds from immediately being withdrawn.)
- You disable it from 'Edit Profile'.
- Funds are paid out from your account while there is a pending transfer. (The pending transfer will be reversed in order to prevent a negative balance.)
If this happens, you simply go back to "Edit Profile > Auto Sweep" to re-enable it.
Comparison to Google Checkout
Interestingly, Paypal does not provide any information on their website regarding the Auto Sweep to Checking option. It appears that for security and fraud reasons, they do not offer the option to all accounts or promote the option. By comparison, Google Checkout automatically sweeps your funds to your Checking account by default. Two business days after you charge your order, the funds are automatically sent to your checking account.
Created 2010-09-27, Last Modified 2012-10-22, ©
Shailesh N. Humbad
Disclaimer: This content is provided as-is. The information may be incorrect.
Seems like PayPal and Indian bloggers have love and hate relationship. Earlier Paypal imposed some new rules for Indian PayPal users. One of them was withdrawing money from PayPal account to bank account within 7 days. Though I faced no issue with this feature and seems like PayPal has come up with another solution to make it mandatory for Indian
users.
Also see: Paypal Guide: Everything You Need to Know
PayPal started offering automatic withdrawal for Indian users. Interesting thing is, apart from FAQ page PayPal has not made any official statement or comment regarding this new Auto withdrawal feature.
How to use PayPal auto withdrawal feature?
Login to your PayPal account and hover on Profile link and click on add/edit bank account. (See screenshot)
On the next page select bank account or you can click on Add bank account to add a new one. In my case I selected my existing bank account and clicked on make auto withdrawal.
Though there are many unanswered question like What will happen if withdrawal amount is less then 7000. (Update: See below for an update on this). As Paypal charges INR 50 for withdrawal amount on 6,999 or less. I believe we will have answers to such question soon. Another drawback is now we can’t hold money in our account to wait for good foreign exchange rate. We will cover more on this But for now I suggest you to check out FAQ page from PayPal.
PayPal FAQ page has added some information regarding the auto withdrawal feature for Indian users.
Here is useful excerpt from the FAQ page:
What is auto withdrawal? Auto withdrawal is the process of automatically transferring your funds from your PayPal account into your bank account in India. Where will my funds be auto withdrawn to? Your PayPal balance will be auto withdrawn to your bank account in India. If you have one bank account added to your PayPal account, it will be set as your auto withdrawal account. In case you have more than one bank account added to your PayPal account, you will have an option to set your auto withdrawal account. Why are my funds being auto withdrawn? This is an Indian regulatory requirement and applies to all PayPal users in India. When does auto withdrawal happen? Your PayPal balance is auto withdrawn to your local bank account in India daily. You can check your bank account within 5-7 working days after your funds have been auto withdrawn from your PayPal account.Another news is Indian Paypal users still can’t use their money in PayPal account for any purchase and with this new changes, I believe we don’t expect it be back again for Indian users. So any money receive on your PayPal account, Indian users can only withdraw it directly to bank account.
Though it’s sad to see PayPal dying in India and especially when it’s considered as one of the standard for online payment. Anyways I will keep you updated with latest and update on PayPal and India Love hate relationship. For now you can check out Alternatives site to PayPal.
Update: So finally we got answer to some of the unanswered questions and first of them is there will be no withdrawal charges for Indian Paypal users. No matter how much amount it is, it will be withdrawn into your bank account without any charges.
Though for newbie PayPal users, you need to have your PayPal name and bank account exactly the same, else you won’t be able to link your bank account. In case, if you have used misspelled name or nickname, you can contact PayPal and provide them with PhotoID proof and they will update your profile to match your bank account name.
So if you are an Indian PayPal user, you need to update three things in your account instantly: Pan, Bank account and Paypal purpose code.
It’s good to see that PayPal has made things clear now and despite of all the restrictions like we can’t make Payment using existing credit on PayPal account, I believe as a webmaster we will continue using it, since it’s a standard mode of Payment globally.
What’s your take on new withdrawal policy of Paypal for Indian users?
A Blogger, Author and a speaker! Harsh Agrawal is recognized as a leader in digital marketing and FinTech space. Fountainhead of ShoutMeLoud, and a Speaker at ASW, Hero Mindmine, Inorbit, IBM, India blockchain summit. Also, an award-winning blogger.