PayPal payment gateway All you need to know

3 minute read

As it stands now, Indian merchants may find that PayPal is an available option for receiving international payments, but for servicing domestic customers, there may be Indian payment gateways that offer more diverse options. Even so, international customers may find the PayPal exchange rates unclear and expensive. If you are a business looking to send and receive money with transparent pricing and exchange rates, look no further than Wise.

PayPal has been a player in financial services since the late 1990s. The Northern California company has expanded tremendously around the globe to now be available in over 200 markets. They allow consumers and business owners to receive money in more than 100 currencies, withdraw in 56, and hold PayPal balances in 25 currencies¹.

Want a cheaper option than PayPal that also helps you also manage global teams? Wise can be your partner for all your international business needs.

PayPal payment gateway pricing and charges

PayPal Business has made their pricing simple for purchases in the country. There are no setup, cancellation or maintenance charges to get started. There is a per-transaction fee so that you only get charged when there are sales on your site. The fee per transaction for domestic Indian purchases is as 2.5% of the transaction and a fixed fee (₹3).²

Sending business payments internationally? Wise is upto 19x cheaper than PayPal and banks

In July 2019, independent research agency Alderson Consulting (Bristol) Ltd found that businesses could save up to 19x compared to PayPal when sending GBP, EUR or USD to business accounts through Wise. The research shows how Wise’s low fees and transparent exchange rate can help save businesses money when transferring funds using your Wise Business account on these routes.

Wise also has flexible plans to match your business. So whether you are a freelancer, a small business or a large enterprise, you can enjoy benefits like local invoicing, make batch payments for your payroll or connect to our API to power your large cross-currency volumes of payments.

Payment options supported with PayPal payment gateway

PayPal accepts PayPal wallet payments, Visa, MasterCard, and AMEX debit or credit cards. Your customer does not need to have a PayPal account in order to use your website’s PayPal checkout.

Many other local Indian digital payment options are not supported by PayPal, such as e-Wallets, UPI, Bharat QR, BHIM or Netbanking. So while PayPal can be convenient for international transactions, local Indian customers may want a payment gateway with more options for payment.

To note, to receive local and international payments you may need to provide the following documents to PayPal to get started³:

  • PAN (Permanent Account Number) of the business owner
  • Proof of address
  • A Purpose Code
  • Proof of bank

PayPal payment gateway international payments

PayPal is more apt in accepting international payments. PayPal allows for payments in 26 different currencies from 200 countries. PayPal’s exchange rates are set by the company and its partners and are updated every day⁴. and If you would like multi-currency options on your site, you will need to enable the multi-currency option which can be done by contacting your developer, or contacting PayPal at 1800 121 1001 for help.

The charges for receiving international payments on PayPal payment gateway is as follows⁵:

Monthly sales International customers (per transaction)
Up to $3,000 USD 4.4 % + fixed fee based on the currency
$3,000.01 USD - $10,000 USD 3.9% + fixed fee based on the currency
$10,000.01 USD - $100,000 USD 3.7% + fixed fee based on the currency
$100,000.01 USD and over 3.4 % + fixed fee based on the currency

On top of the fixed fee based on currency, there is also a currency conversion fee that is applicable. Also, when an international customer purchases from your website, the money will appear in your account in the customer’s local currency- not Indian rupee. To bring it into Indian rupees, you will have to pay a conversion charge at the exchange rate that PayPal decides.⁶

Want to send and receive money internationally with just one low fee and the exchange rate you see on Google? Wise Business is ready to help you expand globally with only one fee and the real mid-market exchange rate.

PayPal payment gateway settlement

All payments received into your PayPal business account in Indian rupees will be deposited to your local bank account on a daily basis. There may be additional processing time depending on your local bank. Any international payments will be held in the originating currency until you convert it into INR.⁷

PayPal payment gateway customer care

PayPal customer care is available through multiple different channels. You can use your dashboard to resolve any issues, as well as emailing or calling the help centers. The customer service can be reached by phone at 1-800-419-9833 from 9:00 AM IST to 9:00 PM IST, Monday to Sunday. With email, you can expect to receive a response in 24 hours. There is also a healthy discussion forum within the PayPal community that can help you troubleshoot any questions or issues you may have.

Let Wise take care of your international payments

Doing business around the world does not need to be difficult or expensive. With Wise Business, you can send, receive and spend using the real exchange rate in over 40 currencies. That means that the rate you see on Google or Reuters is the rate you get when buying inventory, handling payroll or receiving new sales.

You get your own UK, Eurozone, Australian, New Zealand, and US bank details for free in minutes — without a local address. You can use them to get paid or withdraw money from platforms like Amazon for free or hold that money in your account for future payments or move it to your bank. It is doing business globally for the 21st century.

Sources used for this article

  1. PayPal About
  2. PayPal Fees
  3. How to Receive PayPal Payments
  4. PayPal Merchant
  5. PayPal Seller Fees
  6. New Currency Balance
  7. PayPal Manage My Account

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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