PayPal Auto Withdrawal problem

Few days back I had mentioned about Auto withrawal of PayPal balance. Since the PayPal removed the 50 Rupees withdrawal fees, I thought there won't be any problem in this Auto Withdrawal.

But yesterday I realized the big issue of this Auto Withdrawal.

Yesterday PayPal has started auto withdrawal of my PayPal balance to my India Bank account.

A Buyer has requested refund once after the Paypal initiated the auto withdrawal. And, PayPal placed a hold for the disputed transaction. And, immediately PayPal cancelled the Auto withdrawal.

Finally my PayPal account is having Negative balance. Ideally it should be 0 instead of negative balance. So, I had done detailed analysis to know the reason.

And, I came to know that the exchange rate difference caused this Negative balance. Even if the PayPal did the auto withdrawal and Cancellation within few minutes gap, there was a huge difference in Exchange rate.

i-e PayPal used lower Exchange rate for converting USD into INR while doing auto withdrawal. And, it used higher Exchange rate for converting INR into USD while cancelling the Auto withdrawal. So, finally I lost significant money because of this Auto withdrawal implementation.
I think PayPal can take necessary steps to prevent such losses. For example, instead of placing the hold immediately after  getting dispute, it can do it only after finalizing the dispute. What do you think about it? You can share your thoughts thro' the comments.


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