How Much Paypal Charges Per Transaction in India

Paypal is an online payments system that lets you send money to anyone with an email address. And like any financial institution, Paypal charges you a certain percentage on every transaction you make. On top of that, if you make international transactions you’d have to bear the taxes of that nation too.

They usually charge 4.4% + fixed charges. But, it’s quite confusing as people don’t consider the taxes. For example, say you are using Paypal to receive $100 in India. According to Paypal fee calculator, you should receive $95.3 after deducting Paypal fees, but in reality, you will receive $94.45 (will come to that later on). The difference of $1, might not seem like a big deal, but it adds up over time and you end up losing more than estimated, especially for bigger transactions.

paypal-transaction

Paypal does do a good job of making it clear on their website. However, after exchanging a few emails with the Paypal customer service, I was able to get the hold of exactly how much do they charge.

How much PayPal charge per transaction in India

So, let’s take an example to understand, PayPal fees for receiving money in India

Say, you receive an amount of 100 USD

Transaction Fee 4.4% Fixed fee 0.30 cents – 4.7 USD

18% GST on 4.7 USD – 0.846

GST + Fees – 4.7+0.846 = 5.546 USD

Amount Received – GST and Fees – 100 USD – 5.546 USD = 94.45 USD

In simple words, if you charge $100 for your service, then you should ask for $105.546.

To give you a real-world example, a couple of days back, I received $220 on my Paypal account, using the above calculations, the fees come out of $11.77. So, after deducting the fee from the amount received, I should receive a net fee of 208.23 USD. (see the following screenshot)

Note: Paypal doesn’t charge anything from transferring money from your Paypal account to your bank account.

paypal-tansactions

So, if you are charging $1000 to your client, you should ask for $1052.274 on Paypal. Similarly, if you’re sending someone money overseas send them a few extra bucks just to compensate the difference.

Another quicker way to calculate how much PayPal charge per transaction in India is to use an online Paypal fee calculator services and add 18% GST on the fee amount. 

Amount After Paypal Fee
$100 $105.5
$150 $158.4
$200 $210.7
$250 $263.3
$300 $315.9
$350 $368.5
$400 $421.1
$450 $470.7
$500 $526.4
$1000 $1052.2

Should you use Paypal for larger transactions?

Paypal is essentially the easiest method that you can use to transfer money online but those seemingly hidden taxes sometimes come by a surprise and can be overwhelming sometimes for larger transactions. We gave you a basic outlook on what to take care of while making large transactions.

In general, I will only recommend Paypal for the transaction of a few hundred dollars. On the other hand, if you are receiving or making a frequent payment larger than thousands of dollar then opting for wire transfer would be a wiser decision.

Also Read: Best PayPal Alternatives

About Mrinal Saha

Mrinal is a tech geek who spends half of his day reading and writing about tech. While the nights are spent on shooting or editing YouTube videos. Feel free to geek out with him on-