Why is PayPal taking a fee

PayPal charges fees to cover the costs of operating its payment network, fraud protection, currency conversion, and maintaining regulatory compliance across different countries. When you receive international payments through PayPal, you typically pay a transaction fee (around 3% to 4.4%) plus a fixed fee, and if currency conversion is involved, PayPal applies its own exchange rate markup, which can add another 3% to 4% to the cost. These combined charges make PayPal pricing significantly higher than some alternatives built specifically for cross-border business payments.

Indian exporters and freelancers often find better value with platforms designed for their needs. Skydo, an RBI-authorised cross-border payment solution, offers transparent forex rates and lower fees, helping you retain more of your earnings while ensuring fast, compliant international transfers directly to your Indian bank account.