Founded in New York in 2005, Payoneer is a leading global payments platform that facilitates international money transfers in over 70 currencies. It offers virtual local accounts, multiple payment options, along with digital FIRA to ease compliance for Indian businesses.&nbsp;

While Payoneer is a go-to for many, its fees and customer support have not met everyone's expectations. If you're looking for an international payment solution, it’s wise to consider a few alternatives that might better suit your need

Payoneer Vs PayPal: Which is the right pick for you?

As we’ve discussed, <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees" target="_blank">Payoneer payment Gateway</a> is a leading platform for businesses to send and receive international payments. Let’s take a quick look at some of its key features, pricing and areas of concerns.

Opening a Payoneer account is free, but there are <a href="https://www.skydo.com/blog/payoneer-fees-india-guide" target="_blank">charges associated</a> with receiving and withdrawing payments. Let's understand their fee structure:

Receiving Payments in your Payoneer Account:

Credit Card payments: <a href="https://www1.payoneer.com/in/about/fees/?no_follow=true">3% transaction fee</a>

ACH Bank Debit (available in the US):<a href="https://www1.payoneer.com/in/about/fees/?no_follow=true"> 1% fee</a>

Payments via Payoneer’s virtual accounts: Free

Withdrawing Payments from your Payoneer Account:

Withdrawal in the same currency comes with following <a href="https://www1.payoneer.com/in/about/fees/?no_follow=true">fixed fee</a>

A <a href="https://www1.payoneer.com/in/about/fees/?no_follow=true">2% forex markup </a>applies if you withdraw in a different currency. For example, if you receive a payment in USD and withdraw in INR in your local bank account, you’ll get INR 84.28 instead of INR 86 at the current exchange rate.

Payoneer charges $29.95 annually if your account is inactive for 12 months.

Businesses choose Payoneer for its integration and convenience, however, the limited understanding of its customer support team and comparatively steep conversion rates have raised eyebrows.&nbsp;

PayPal is a leading financial services company, and its credibility coupled with global reach make it a top choice for receiving international payments in India. The platform supports over 100 currencies and offers various payment methods, including credit and debit card payments and subscription models. <a href="https://www.skydo.com/blog/open-your-paypal-account-with-skydo">Here's how you can open and connect your PayPal account with Skydo</a>.

The following are the<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives" target="_blank"> PayPal fees associated with receiving international payments in India via Paypal</a>

Transaction Fee: PayPal charges a<a href="https://www.paypal.com/in/webapps/mpp/merchant-fees?no_follow=true"> 4.40% transfer fee</a> on international business payments. For instance, receiving USD 1000 from a US client results in a USD 44 deduction.

Fixed Fee: <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees?no_follow=true">A fixed fee, </a>depending on the currency, is also applied alongside the transaction fee.&nbsp;

Currency Conversion Fee: PayPal adds a<a href="https://www.paypal.com/in/webapps/mpp/merchant-fees?no_follow=true"> 4% currency conversion fee </a>to the prevailing exchange rate when converting foreign currency to local currency, which means you'll receive a lower exchange rate than the market rate.

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives" target="_blank">PayPal’s </a>ease of use and credibility make it a crowd favourite for managing cross-border payments but its significantly high pricing can be off-putting for many, especially for smaller businesses.&nbsp;

Here’s a quick snapshot of Payoneer Vs Paypal along with Skydo, for a better understanding:

Deciding which platform is better isn’t straightforward, as both have distinct strengths. Payoneer offers lower fees for receiving international payments, while PayPal is renowned for its global credibility and widespread acceptance. Assess your specific needs to determine which platform aligns best with your business requirements.

Payoneer Alternatives for Receiving International Payments in India

Beyond Payoneer vs PayPal, let’s take a look at a few other Payoneer alternatives that&nbsp;can help you receive international business payments in India with ease.

Stripe, an Irish-American company, is a renowned payment processing and merchant services platform. Accepting over 135 currencies, it stands as a solid alternative to Payoneer for international payments.

Stripe's fee for international transfers can be expensive as it includes a <a href="https://support.stripe.com/questions/additional-pricing-information-for-indian-cross-border-sellers]%5C?no_follow=true">4.3% transaction </a>fee and an additional<a href="https://support.stripe.com/questions/additional-pricing-information-for-indian-cross-border-sellers?no_follow=true"> 2% currency conversion fee.</a>

Stripe does not provide FIRA to Indian businesses and freelancers, adding to their compliance burdens. Users have also expressed concerns about <a href="https://www.g2.com/products/stripe-stripe-payments/reviews/stripe-payments-review-9510506?no_follow=true">transparency in their communication</a>.

Skydo is a global payment solution simplifying cross-border payments for freelancers and small businesses in India. It offers virtual international bank accounts to its users in under 5 minutes and also supports an entire payments ecosystem consisting of payment tracking, invoice generation and more.&nbsp;

Skydo charges a flat fee of USD 19 for payments up to USD 2,000 and USD 29 for payments between USD 2,001 and USD 10,000.

Currently, Skydo supports only inward remittances in India, allowing businesses to receive, but not send international payments. Additionally, it may not be the most cost-effective option for payments under USD 1,000.

Wise (formerly TransferWise) is a global money transfer platform operating in over 80 countries.&nbsp;Initially a peer-to-peer remittance service, Wise now offers multi-currency accounts for both individuals and businesses.&nbsp;

<a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Wise </a>applies a transaction fee depending on the currency used. It offers a mid-market exchange rate, but be aware that Wise fees include an additional currency conversion fee. The platform also offers Digital FIRAs for Wise business accounts in India. However, it is available for an extra charge.

While Wise offers a <a href="https://www.forbes.com/advisor/in/banking/wise-review/?no_follow=true">user-friendly interface</a> and efficient money transfer services, some users have noted that customer support <a href="https://www.g2.com/products/transferwise/reviews?utf8=%E2%9C%93&amp;filters%5Bnps_score%5D=1#survey-response-9454134?no_follow=true" target="_blank">can occasionally fall short in addressing and resolving issues effectively.</a>

Established in 2015, PingPong is a popular name in the cross-border payments arena, aiming to simplify international payments for freelancers, businesses, and e-commerce sellers.

PingPong charges a competitive 1% transaction fee, which is attractive but can become substantial for larger transactions. Additionally, since there is a lack of clarity around Ping Pong’s forex rate, there is a possibility of a markup on that rate.

While their customer service is generally prompt, some users have found the <a href="https://www.g2.com/products/pingpong-payments/reviews/pingpong-payments-review-8133929" target="_blank">onboarding process cumbersome.</a>

Choosing the right payment partner for your business is crucial. Issues like the lack of FIRA, forex markups, currency conversion fees, and high bank fees can make international transactions costly and inconvenient.

When selecting your international payment provider, check the following factors and consider consulting a financial advisor as well:

Fee Information: International transactions can be expensive, and there's no standard pricing model. Look for a provider with competitive rates so you can keep more of your hard-earned money.

User Experience: Managing global payments should be straightforward. Opt for an easy-to-use platform and reliable customer support to ensure smooth transactions.

Compliance: Cross-border payments are closely monitored to detect any suspicious activity. Select a trusted payment platform that meets regulatory requirements and simplifies compliance for you.

At Skydo, we offer a fast, secure, and less-expensive solution for you to receive international payments. Switch to Skydo today and enjoy the best in international&nbsp;payment solutions for your business.

Payoneer vs PayPal vs Wise & more : Which Is Right for You?

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As an Indian business or freelancer earning globally, managing international payments can be a significant challenge. That’s where platforms like Payoneer step in. Payoneer is a global payment platform that facilitates sending and receiving international payments in over 70 currencies. In this article, we’ll explore Payoneer's fees and charges to help you understand the costs involved in receiving international payments in India through Payoneer.

Payoneer Fees India: What you need to know

In India, professionals and businesses can effortlessly make a payment request and receive international payments via Payoneer. With Payoneer, clients can pay you online<a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees" target="_blank"> through various methods</a>, including credit cards, ACH bank debits (US only), and global virtual accounts. You can then withdraw these funds directly into your local bank account.

Additionally, Payoneer offers an enterprise solution that enables businesses to make <a href="https://www1.payoneer.com/in/enterprise/?no_follow=true">mass international payouts</a> efficiently.

While opening a Payoneer account is free, many of these services come with associated fees. Let’s take a closer look at Payoneer fee information for sending, receiving, and withdrawing international payments.

Payoneer is a popular platform for businesses in the US and around the world to send cross-border payments. The platform offers multiple payment options for your clients, including credit cards and bank transfers. Let's break down the pricing associated with each payment method:

Payoneer to Payoneer Payments: Payments made between Payoneer accounts are free. If both you and your client use Payoneer, opting for this method can help you avoid transaction costs.&nbsp;

Credit Card: If a client pays you via credit card, an additional 3% Payoneer fee on the transaction amount will be applied.

ACH Bank Debit: This option is available only in the US. If your US client pays you via ACH bank debit, you'll incur an additional 1% as Payoneer fees.

Wire Transfer: Your clients can also make SWIFT/Wire transfers via Payoneer. However, please note that direct bank payments may incur a SWIFT fee of USD 20-40. This fee is typically charged by third-party banks before the payment reaches Payoneer, so it isn’t categorized as Payoneer fees.

Local Virtual Accounts: If your clients pay through <a href="https://www.skydo.com/blog/virtual-account-numbers" target="_blank">local virtual accounts</a>, there are no additional Payoneer fees.

Once you receive payment in your Payoneer receiving account, you can withdraw it to your local bank account. However, be aware that Payoneer fees apply depending on the currency in which you withdraw the payment. Let’s break down these fees:

Fixed Fees for Same Currency Withdrawals:

If you withdraw funds in the same currency in which the payment was made, the following <a href="https://www1.payoneer.com/in/about/fees/?no_follow=true">flat fees</a> apply:

This fee applies only if your bank account is in a country where the official currency matches the account’s currency. For example, if you have a USD bank account in the U.S. and your client pays in USD, you can withdraw the payment for a flat fee of $1.50. However, if your USD account is in a different country, like India, the flat fee doesn’t apply.&nbsp;

This typically applies to international payments. If you withdraw funds in a different currency, a<a href="https://www1.payoneer.com/in/about/fees/?no_follow=true"> 2% forex markup </a>will be applied. For example, if you receive an international payment in USD and withdraw it in your local currency, say, INR, you’ll receive INR 82.32 instead of INR 84 at the prevailing exchange rate.

Additional fees, such as bank processing, landing, or intermediary fees, may also be deducted if applicable.&nbsp;

Payoneer charges an <a href="https://www1.payoneer.com/in/about/fees/?no_follow=true">annual fee of $29.95 </a>if your account is inactive for 12 months.

Opening a Payoneer account doesn't come with any registration fee and the platform also offers certain free services like Payoneer to Payoneer transfers. But please note that all the Payoneer fees mentioned above also apply in India.

Payoneer Charges India: How much do I need to pay to receive global payments?

To get a better understanding of Payoneer fees, let’s try to understand how the fee works through certain hypothetical examples.

Payoneer Fees for receiving and Withdrawing USD 8000 via virtual account:

Imagine you receive a payment of USD 8,000 from your client through your virtual account and want to withdraw it in INR. Let’s see the Payoneer fees associated with receiving and withdrawing the same:

Exchange Rate: INR 84 (Approximately as of 19th August 2024)

USD 8000 at live FX rate= 8000*84= INR 672000

Payoneer Fees for withdrawing payment in different currencies: 2% forex markup

Therefore, the effective exchange rate = INR 82.32&nbsp;

USD 8000 at the effective forex rate = &nbsp;8000*82.32 = INR 658,560

Payoneer Fees = INR (672,000- 658,560) = INR 13,440&nbsp;

So, for your USD 8,000 payment, you'll actually receive INR 658,560. The remaining INR 13,440 will be deducted as Payoneer fees.

Payoneer Fees for Receiving and Withdrawing USD 8000 via Credit Card

Now, let’s consider the same situation where you receive a payment of USD 8,000, but this time it’s through a credit card.

USD 8000 at live FX rate= 8000*84= INR 672000

Payoneer fees for credit card payments: 3%

Payment post 3% deduction = USD 7760

Payoneer Fees for withdrawing payment in different currencies: 2% forex markup

Therefore, the effective exchange rate = INR 82.32

USD 7760 at the effective FX rate = 7760*82.32 = INR 638803

Payoneer Fees = INR (672,000-638,803) = INR 33197

So, for your USD 8,000 payment, you'll receive INR 638, 803. The remaining INR 33197 will be deducted as Payoneer fees.

Payoneer Fees Reviews: What people are saying

People have mixed feelings about Payoneer’s fees. While many users appreciate the platform’s features and simplicity, some are less satisfied with the associated costs. For instance, <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-7918141%5C?no_follow=true">one user</a> finds Payoneer overall useful but is disappointed with the high forex markup. <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-7905207?no_follow=true">Another user</a> enjoys the convenience of sending and receiving international payments but is frustrated by the high fees and clunky user interface.&nbsp;

On the other hand, <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-7698854?no_follow=true">some customers </a>are quite upset with Payoneer’s fees, feeling that the platform charges for nearly every activity. Overall, while many value Payoneer for its convenience, there’s n<a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-5318676?no_follow=true">oticeable dissatisfaction</a> with its relatively high costs.

Receiving International payments with Payoneer vs Skydo

We took a close look at Payoneer’s fees for receiving international payments in various scenarios. Now, let’s see how much it would cost to receive the same payment through one of its substitutes, Skydo.

Like Payoneer, Skydo offers international virtual accounts, allowing your clients to pay via these accounts like local bank transfers. However, Skydo operates on a flat fee model: we charge USD 19 for payments up to USD 2,000, and USD 29 for payments between USD 2,001 and USD 10,000. What’s more, Skydo converts your payment at the <a href="https://www.skydo.com/blog/how-much-forex-fees-do-you-pay-on-global-transactions">live Forex rate </a>with no added markup or currency conversion fees. So, if the current rate is USD 1 = INR 84, that’s exactly what you’ll get. Plus, opening and maintaining your Skydo account is completely free.

So, let’s consider receiving a payment of USD 8,000. With Skydo, you’ll only pay a flat fee of USD 29, which equals INR 2,436 at the INR 84 exchange rate. This means you’ll receive INR 669,564 for your USD 8,000 payment.

In contrast, with Payoneer, you would receive INR 658,560 after deducting INR 13,440 in fees. By choosing Skydo, you save INR 11,004 on the same transaction.

So switch to Skydo today and save more while getting paid!

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Payoneer Fees: All you need to know

The landscape of cross-border payments and global business has transformed dramatically in recent years. Traditional banking methods are now being challenged by innovative solutions and new entrants, like Payoneer offering a bunch of financial services. This article explores Payoneer Payment Gateway, delving into its features, fees, and user reviews to provide a comprehensive overview of this modern cross-border payment solution.

Founded in New York in 2005, Payoneer is a global payments platform that enables businesses to send and receive international payments in over 70 currencies. It offers <a href="https://www1.payoneer.com/in/solutions/global-payment-service/?no_follow=true">multi-currency virtual accounts</a> in the US, EU, UK, Japan, Australia, Mexico, and China, along with flexible payment modes like bank transfers and credit/ debit card payments.

In India, businesses can request and receive global payments through Payoneer Payment Gateway. The platform also offers free <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">digital FIRAs </a>for international payments, streamlining compliance.&nbsp;Ordinarily, payments made via local bank transfer or wire transfer/ SWIFT payments take approximately<a href="https://payoneer.custhelp.com/app/answers/detail/a_id/33930/~/what-is-the-status-of-my-payment%3F-%28receiving-accounts%29?no_follow=true"> three business days</a> to reach the payee's account.

With the exponential rise of global commerce, Payoneer has integrated with various online marketplaces like Airbnb, Getty Images, and Fiverr, helping businesses expand their customer base, access the global market and receive payments from these platforms. However, some users have reported issues with these integrations.&nbsp;For instance, this user seems to be dissatisfied with <a href="https://www.g2.com/products/toptal/reviews/toptal-review-8662387">Payoneer’s integration with Toptal</a>.&nbsp;

Additionally, Payoneer offers enterprise solutions, including <a href="https://www1.payoneer.com/in/enterprise/?no_follow=true">mass payouts and API support </a>for automating and managing payments, making it a versatile choice for global transactions.

As we have already discussed Payoneer Payment Gateway is available in India both for businesses and freelancers to request and receive global payments. Its enterprise offering also provides businesses with global mass payout solutions. However, note that the Payoneer card is not currently available in India. 

Payoneer is licensed and regulated by multiple government authorities, including the OPGSP framework in India&nbsp;and is generally considered safe for use.&nbsp;

However, there have been occasional security issues. For instance, earlier this year, many Payoneer users in Argentina reported <a href="https://therecord.media/financial-platform-payoneer-account-hacks-phishing?no_follow=true">suspicious activities</a> in their accounts. Additionally, some users have shared experiences of their accounts being <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-9064277?no_follow=true">hacked</a> or <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-9723605?no_follow=true">frozen </a>without prior notice. While Payoneer is generally trusted for its security measures, such incidents can raise concerns among current and future users. Having said that Payoneer is committed to strengthening and bolstering its security to detect and eliminate any kind of payment fraud.

Creating a Payoneer account is free. Here’s how you do it:

Verify Your Email: Before finishing, check your inbox for a verification email from Payoneer and follow the instructions to confirm your email address.

Opening a Payoneer account is free, but sending, receiving, and withdrawing payments involves <a href="https://www.skydo.com/blog/payoneer-fees-india-guide">various fees</a>. Here’s a breakdown:

Once you receive payment in your Payoneer account, you can withdraw it to your local bank account. However, be aware that Payoneer fees apply depending on the currency of your account.

Fixed Fees for Same Currency Withdrawals:

If you withdraw the amount in the same currency in which the payment was made, the following <a href="https://www1.payoneer.com/in/about/fees/?no_follow=true">fixed fees</a> apply:

A <a href="https://www1.payoneer.com/in/about/fees/?no_follow=true">2% forex markup</a> is applied if you withdraw in a different currency. For example, if the payment was made in USD and you withdraw in INR i.e. your local currency, you’ll receive INR 84.28 instead of INR 86 at the prevailing exchange rate.

Understanding these fees can help you make informed decisions when using Payoneer for your transactions.

For a detailed breakdown of Payoneer Fees, click <a href="https://www.skydo.com/blog/payoneer-fees-india-guide">here</a>

Payoneer Reviews: Customer Care, Usability and Fees

With over 5 million customers, Payoneer is undoubtedly a safe and trusted platform for cross-border payments. Let’s take a look at some Payoneer reviews to gauge the opinion of users on various aspects of Payoneer Payment Gateway.&nbsp;

Many users appreciate Payoneer for its <a href="https://www.g2.com/products/payoneer/reviews?utf8=%E2%9C%93&amp;order=g2_default&amp;filters%5Bsentiment_snippet%5D=495052?no_follow=true">ease of use</a> and smooth transactions. Its user-friendly interface and integrations with platforms like Airbnb, Getty Images, and Fiverr make it a popular choice for businesses and freelancers to handle international payments.

Many users have found Payoneer’s<a href="https://www.g2.com/products/payoneer/reviews?utf8=%E2%9C%93&amp;filters%5Bsentiment_snippet%5D=495449?no_follow=true"> customer suppor</a>t to be unsatisfactory. A common complaint is that support agents often lack a thorough understanding of their own platform. Additionally, users have reported instances where their accounts were put on hold without prior notice.

While some are impressed by Payoneer’s low fees, others find it steep, particularly for small businesses.&nbsp;

Payoneer Payment Gateway alternatives to take note of

While Payoneer is a leading name in cross-border payments, its limited customer support and relatively high fees have prompted many to seek alternatives.

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal</a> is a popular alternative and a prominent name in global finance. It offers cross-border payment services, but unlike Payoneer, it doesn’t provide multicurrency virtual accounts, making international payments more costly. Although PayPal’s ease of use and credibility make it a solid Payoneer alternative, many users look for more <a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">affordable options</a> to receive global payments.

Skydo emerges as another strong alternative, offering a fast, secure, and cost-effective solution for businesses to receive cross-border payments in India. With its flat fee structure, dedicated customer support and seamless onboarding, Skydo has become a go-to choice for companies and freelancers to manage their global payments. Additionally, platforms like Wise and Stripe are also viable substitutes to Payoneer for receiving international payments&nbsp;

Choosing the right payment partner for your business is crucial. Issues like the lack of FIRA, forex markups, and currency conversion fees can make international transactions costly and inconvenient.

That’s why make sure to compare and analyse, user experience, pricing, support and compliance provisions and seek professional advice before selecting your international payment provider.&nbsp;

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Payoneer Payment Gateway Features Fees

In today's global economy, enabling seamless international payments is essential for both, businesses and individuals. PayPal is a well-known name in this domain offering both personal and business accounts. With features like e-commerce integration, invoicing, international money transfers and many more, PayPal in India offers a wide range of functionality, making it a solid choice for both commercial and personal use. Here is a step-by-step guide on how to <a href="https://www.skydo.com/blog/open-your-paypal-account-with-skydo" target="_blank">link your PayPal account with Skydo. </a>

In this blog, we will delve into PayPal's effectiveness in facilitating international payments for Indian users. We'll examine its charges, user reviews, and key features, while also considering whether more cost-effective alternatives might be available for managing global transactions. 

PayPal's credibility and global reach make it a popular choice for receiving international payments in India. It allows businesses to accept payments in over 100 currencies through multiple payment methods like debit card/credit card payments and subscription models.&nbsp;

It also provides <a href="https://www.paypal.com/in/webapps/mpp/firc-certificate?no_follow=true">monthly digital FIRAs</a> to Indian businesses and freelancers, which acts as proof of receiving international payment.&nbsp;

Additionally, PayPal offers<a href="https://www.paypal.com/in/webapps/mpp/paypal-buyer-protection?no_follow=true"> buyer protection program</a> which reimburses buyers for purchases that either do not arrive or do not match the seller's description.

Similarly, PayPal provides <a href="https://www.paypal.com/in/brc/article/what-is-seller-protection#:~:text=Here's%20how%20sellers%20can%20get,delivery%20generally%20within%2010%20days.?no_follow=true">seller protection</a> for businesses in cases of unauthorized transactions or undelivered shipments. Sellers must provide proof of shipment to qualify for this protection.

The platform also enforces strict security measures, including 24/7 account monitoring, to ensure the safety of funds.

PayPal works in India. However, it's important to note that not all its services are available in every country including India.

<a href="https://www.paypal.com/in/legalhub/archive-policies-full#:~:text=Effective%3A%201%20April%202021%20We,domestic%20payment%20services%20in%20India?no_follow=true">PayPal does not support domestic transactions</a> or local transfers in India meaning businesses cannot receive local payments in INR via PayPal. Businesses can receive international payments but <a href="https://developer.paypal.com/docs/payouts/standard/reference/country-feature/?no_follow=true">cannot send payouts internationally from India.</a>&nbsp;

Individuals i.e. personal users can use <a href="https://www.paypal.com/in/webapps/mpp/send-payments-online#:~:text=You%20can%20send%20a%20payment,a%20link%20to%20sign%20up?no_follow=true">PayPal to make international payments</a>. You need the seller's email address, and they’ll need a PayPal account to receive the payment. However, note that features like Buy Later and PayPal Credit are not available in India.

PayPal is generally safe to use in India, offering end-to-end encryption, secure vaults, real-time transaction monitoring, and buyer-seller protection.

While PayPal’s security is often considered unparalleled, a recent breach has raised concerns about its safety in India.

Earlier this year, some <a href="https://www.itnews.asia/news/csa-issues-alert-on-scam-involving-compromised-paypal-accounts-605218?no_follow=true">PayPal users in Singapore</a> received automated notifications via email or PayPal inbox messages about activities like profile changes and transaction receipts. Upon checking their accounts, some victims discovered unauthorised deposits or transfers to unfamiliar bank accounts added by cybercriminals.

Although this incident raised eyebrows, it appears to be an isolated case and does not reflect the overall security of PayPal in India.

PayPal Charges for receiving money in India

PayPal’s convenience and range of services come with a relatively hefty price tag. Broadly, PayPal India’s charges for receiving international payments can be categorised under the following heads:

When you receive an international business payment via PayPal in India, the platform charges a<a href="https://www.paypal.com/in/webapps/mpp/merchant-fees?no_follow=true"> 4.40% transaction fee.</a> For example, if you receive USD 1000 from a US client, PayPal will deduct USD 44 as a fee. You can factor this fee into your invoice, pay it yourself, or split it with your client, either way, the high transaction fee makes receiving international payments relatively expensive through PayPal in India.&nbsp;

Along with the transaction charges, PayPal also levies a <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees?no_follow=true">fixed fee</a> depending on the currency of the transaction.&nbsp;

Here are a few examples of the fixed fees for some popular currencies:

You can find the full list of fixed fees across different currencies right <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees?no_follow=true">here</a>.&nbsp;

However, that’s not the whole story. PayPal India also adds a <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees?no_follow=true">4% currency conversion fee</a> to the prevailing exchange rate when converting foreign currency to Indian rupees. This means you receive a lower exchange rate than the market rate.

For example, if the current market rate is INR 84 per USD (as of July 18, 2024), PayPal’s effective exchange rate would be 4% less, which is INR 80.64.

 In summary, receiving international payments through PayPal India involves:

4.4% transaction fee + fixed fee (varies by currency) + 4% currency conversion fee.

How much PayPal charges for converting USD to INR

To better understand PayPal India’s charges, let’s imagine you’re receiving an international payment of USD 5000 from your US-based client. Here’s how much you’ll pay in fees with PayPal India:

Firstly, there’s a 4.4% transaction fee, totalling:

On top of that, a fixed fee of 0.30 USD is applied, making the total fee before currency conversion USD 220.3. &nbsp;Now after deducting USD 220.30 from USD 5000, we are left with USD 4779.70, which will be converted to INR

Considering the current exchange rate of 1 USD to INR 84 (approximately as of July 18, 2024), PayPal India also adds a 4% currency conversion fee, resulting in an effective exchange rate of 80.64. So, USD 4779.70 as per the effective exchange rate would be INR 385,435.01

In total, you’ll receive approximately INR ​​385,435 for your payment of USD 5000 in India. This means PayPal India will charge you close to USD 411 (or INR 34,655) for receiving this payment and depositing it in your Indian bank account.&nbsp;

PayPal Review in India: Security, pricing, support and more

PayPal is undeniably one of the leading names in global payment solutions. So, let's delve into some PayPal reviews to gauge the opinion of users on various aspects of PayPal in India.

PayPal is widely regarded for its <a href="https://www.g2.com/products/paypal-paypal/reviews?utf8=%E2%9C%93&amp;order=g2_default&amp;filters%5Bsentiment_snippet%5D=215811?no_follow=true">ease of use</a>. Its user-friendly interface, seamless integrations, and diverse payment options make it a popular choice for global business transactions. Additionally, PayPal’s robust <a href="https://www.g2.com/products/paypal-paypal/reviews?utf8=%E2%9C%93&amp;order=g2_default&amp;filters%5Bsentiment_snippet%5D=214445?no_follow=true">security measures</a> inspire confidence, contributing to its widespread acceptance around the world.

Despite its extensive offerings, PayPal's services come with a significant price tag. Users of PayPal in India have noted the platform's high transaction fees, combined with currency conversion charges and other associated costs, making it a <a href="https://www.g2.com/products/paypal-paypal/reviews?utf8=%E2%9C%93&amp;filters%5Bsentiment_snippet%5D=214404?no_follow=true">relatively expensive option</a> for receiving international payments in India.&nbsp;

Users have mixed opinions about PayPal’s <a href="https://www.g2.com/products/paypal-paypal/reviews?utf8=%E2%9C%93&amp;order=g2_default&amp;filters%5Bsentiment_snippet%5D=214154?no_follow=true">customer support</a>. While some find it helpful, others find it unsatisfactory. A common complaint is the sudden freezing of PayPal accounts for security reasons without prior notice, coupled with the inability of customer support to resolve this issue. Many also report that the support team lacks the expertise to handle more complex problems effectively.&nbsp;

Alternatives to PayPal in India to take note of

Despite its global acceptance and credibility, PayPal’s high charges and instances of limited customer support have prompted users to seek <a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">alternatives for receiving international payments in India.</a>

Skydo emerges as a strong alternative, offering a fast, secure, and cost-effective solution for businesses. With its flat fee structure, which is often 8x less expensive than PayPal, along with dedicated customer support and seamless onboarding, Skydo has become a go-to choice for companies and freelancers to manage their global payments. Additionally, platforms like Wise Payments Limited. and Payoneer are also viable substitutes to PayPal India for receiving international payments and transferring them to your local bank account.

When selecting your international payment provider, consider the following factors:

Pricing: International transactions can be expensive, and there's no standard pricing model. Look for a provider with competitive rates and transparent fee information so you can keep more of your hard-earned money.

At Skydo, we offer a fast, secure, and less-expensive solution for you to receive international payments. Switch to Skydo today and enjoy the best in global payment solutions for your business.

PayPal in India: Charges, Review and Alternatives

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PayPal India is one of the top choices for businesses and freelancers looking to receive international payments in India. With features like e-commerce integration, invoicing, and international money transfers, it’s a go-to platform for global transactions.

However, this comprehensive solution comes with significant costs. PayPal’s fees include a <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees?no_follow=true">4.4% transaction fee</a>, a USD 0.30 flat fee, and a<a href="https://www.paypal.com/in/webapps/mpp/paypal-fees#no-fee?no_follow=true"> 4% markup on the exchange rate,</a> which can add up while receiving cross-border payments. Given the steep fee, you might want to consider a few PayPal India alternatives.&nbsp;

To ease compliance, PayPal provides a monthly digital FIRA to businesses and freelancers. This FIRA covers all international transactions from the previous month, and it is only available by the <a href="https://www.paypal.com/in/webapps/mpp/firc-certificate?no_follow=true">15th of the subsequent month.</a>

That said, while PayPal is known for its convenience, there are some concerns about the quality of its <a href="https://www.g2.com/products/paypal-paypal/reviews/paypal-review-9475980?no_follow=true">customer support</a> including a lack of training and long wait times.&nbsp;

Here’s a snapshot of PayPal India’s offerings, pricing, and a rundown of its pros and cons

Before finalizing PayPal as your global payment solution, explore these PayPal alternatives that can help you receive international business payments in India with ease.

5 PayPal India Alternatives for Receiving International Payments

Stripe, an Irish-American company, is a renowned payment processing and merchant services platform. Accepting over 135 currencies, it stands as a solid alternative to PayPal for international payments. Stripe offers a comprehensive suite of payment solutions, enabling businesses to manage subscriptions, payments, taxes, and accounting all in one place.

Stripe's fee for international transfers can be expensive as it includes a 4.3%% transaction fee and an additional 2% currency conversion fee. 

Skydo is a global payment solution simplifying cross-border payments for freelancers and businesses in India. It offers virtual international bank accounts to its users in under 5 minutes and also supports an entire payments ecosystem consisting of payment tracking, invoice generation and more.&nbsp;

Skydo simplifies payment conversions by using live Forex rates without any currency conversion fees or hidden charges. It provides a clear and straightforward fee structure making it a viable alternative to PayPal In India.&nbsp;

Additionally, to ensure adherence to RBI and government regulations, Skydo offers free and instant FIRA, ready to download after every transaction. Each user is assigned a representative to assist with the onboarding process and to address any questions at any time. However, Skydo currently supports only inward remittances into India. This means that Indian businesses cannot send money outward via Skydo.&nbsp;

Founded in 2005, <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a> is a leading payment solution for businesses and freelancers worldwide. It facilitates international transfers by providing users with virtual bank accounts in multiple currencies and integrating with leading marketplaces like&nbsp; Amazon and Walmart&nbsp;

Payoneer's pricing includes 2% forex markup on the exchange rate for withdrawal in different currency and a fixed fee for withdrawal in same currency. There is also a 3% transaction fee for credit card payment and 1% fee for ACH Bank Debit.&nbsp; Additionally, there is a USD 29.95 annual account fee for 12 months of inactivity, making it a comparable PayPal alternative.&nbsp;

To simplify compliance, Payoneer offers free digital FIRAs to Indian businesses and freelancers. However, users have expressed dissatisfaction <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-5364712?no_follow=true">with Payoneer's customer support</a> which some have found to be virtually non-existent.&nbsp;

Wise (formerly TransferWise) is a global money transfer platform operating in over 80 countries.&nbsp; Initially a peer-to-peer remittance service, Wise now offers multi-currency accounts for both individuals and businesses. <a href="https://wise.com/in/business/receive-money?no_follow=true">However, Wise has temporarily halted the onboarding of new businesses in India</a>, and using Wise’s P2P transfer for business payments may not comply with Indian regulations.&nbsp;&nbsp;

Wise is known for using the mid-market foreign exchange rate with no markups, though it charges a currency conversion fee and a transaction fee which varies depending on the currency. For businesses, Wise provides digital FIRCs (compliance certificates) for an additional fee making it a viable Paypal Alternative. While Wise offers a <a href="https://www.forbes.com/advisor/in/banking/wise-review/?no_follow=true">user-friendly interface</a> and efficient money transfer services, some users have noted that customer support <a href="https://www.g2.com/products/transferwise/reviews?utf8=%E2%9C%93&amp;filters%5Bnps_score%5D=1#survey-response-9454134?no_follow=true">can occasionally fall short in addressing and resolving issues effectively.</a>

Here’s a quick overview of Wise’s offerings, pricing, and its pros and cons:

Established in 2015, PingPong is a popular name in the cross-border payments arena, aiming to simplify international payments for freelancers, businesses, and e-commerce sellers. It offers multiple virtual accounts in global currencies and allows businesses to pay VAT/GST and other taxes with no additional costs.

PingPong charges a competitive 1% transaction fee, which is attractive but can become substantial for larger transactions. Additionally, since there is a lack of clarity around Ping Pong’s forex rate, there is a possibility of a markup on that rate. 

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