Tuesday, September 25, 2012
PayPal Inc. will ban payments between residents of Argentina effective Oct. 9, 2012. Under new terms of the payment service's user agreement, Argentinians will thereafter be able to send and receive international payments only. PayPal defines Argentine resident as any individual or "entity, partnership, organization or association" that signs up for a PayPal account in Argentina.
In July 2012, the Institute of International Finance Inc., a global association of banks, called the economic policies of Argentinian President Cristina Fernández de Kirchner "unorthodox." The IIF said, "The government has resorted to tightening controls on trade and capital flows to restrain chronic capital flight and limit the loss of international reserves."
In September 2012, a new 15 percent tax on all foreign purchases went into effect in Argentina. According to media reports, the result of the government's policies has led some PayPal users in Argentina to set up two accounts under different email addresses. They then are able to transfer money between the two and exchange local currency for dollars in the process.
Regarding its plans for the Argentine market, PayPal sent The Green Sheet the following statement: "We consider Argentina to be an important market. However, we do not currently offer services that cater to the specific needs of the local Argentine market. For example, we do not provide users the ability to transact in local currency or withdraw to local bank accounts. Therefore, we decided to limit our services to international payments for goods and services while we evaluate possible improvements to our product offering."
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.