How Much Paypal Charges Per Transaction in India.
Paypal is an online payment system that allows you to 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 will also have to bear the taxes of that country.
They usually charge 4.4% + flat fees. But this is confusing because people don’t take taxes into account. For example, let’s say you are using Paypal to receive $ 100 in India. According to the Paypal Fee Calculator, you should get $ 95.3 after deducting Paypal fees, but you will actually get $ 94.45 (more on that later). The $ 1 difference may seem insignificant, but it builds up over time and you end up losing more than you anticipated, especially on larger transactions.
Paypal does a good job of clarifying this on their website. However, after exchanging a few emails with Paypal support, I was able to find out exactly how much they charge.
How much does PayPal charge per transaction in India
So let’s take an example to understand the PayPal fees for receiving money in India
Let’s say you receive 100 USD
Transaction Fee 4.4% Fixed Fee 0.30 cents – 4.7 USD
18% VAT from USD 4.7 – 0.846
GST + Commissions – 4.7 + 0.846 = $ 5.546
Amount Received – GST and Commissions – $ 100 – $ 5,546 = $ 94.45
Simply put, if you charge $ 100 for your services, you should ask for $ 105,546.
To give you a real example, a couple of days ago I received $ 220 in my Paypal account using the above calculations, the commission is $ 11.77. So, after deducting the commission from the amount received, I should receive a net commission of $ 208.23. (see next screenshot)
Note. Paypal does not charge any funds for transferring money from your Paypal account to your bank account.
So, if you charge your customer $ 1,000, you should request $ 1,052,274 through Paypal. Likewise, if you are sending money to someone overseas, send them a few extra dollars to make up the difference.
Another quicker way to calculate how much PayPal charges per transaction in India is to use Paypal’s online fee calculator services and add 18% GST to your fee amount.
| Amount | After Paypal Commission |
| 100 USD | $ 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 simplest method you can use to transfer money online, but these seemingly hidden taxes sometimes come as a surprise and sometimes can be overwhelming for larger transactions. We have given you a general idea of ​​what to take care of when making large transactions.
In general, I will only recommend Paypal for a few hundred dollar transactions. On the other hand, if you receive or make frequent payments in excess of thousands of dollars, then choosing a bank transfer would be the smarter decision.
Read Also: Best PayPal Alternatives