PayPal is top payments option in India, but most of Indian people hate them, because they charge more fees compare to Payoneer. Here I will share one example, how much they charge for a specific amount. Most of times when you asked them in numbers like how much you will get Indian rupees for $200, then they refuse to answer, so at that time, you can use my example to understand how much they are going to charges and how much money you will get in your local bank. So Let’s start it.
Mainly they charges in two ways.
1. When you receive a payment from a company: For this, we can see currently they are charging $4.4 + Fixed price ($0.30). The rate might be changed in future, so please refer above link to know the exact number.
2. Currency convergence fees: At this time they are charging $2.5 for Indian user. This fee is not publicly displayed in PayPal website, you have to contact them to know how much they are going to charge, I have recently contacted them (Here is an email address - email@example.com) and at that time, they said they are charging $2.5, so please contact them to know about what is their current convergence fees.
So these are the two fees that PayPal are charged to any Indian user (The cross border fees might also include in currency fees). Now let’s see one real life example of $200, which we gonna converts into Indian Rupees, and we will know, how PayPal will charge for that.
PayPal Charges Example - Convert $200 USD to INR
Transaction fees - When you receive payment.
= Amount- (4.4 % of Amount + 0.30 as fixed price) = 200 - ( (200-4.4 %) + 0.30) = 200 - (8.8 + 0.30) = 200 - (9.1) = 190.9
So this is the actual amount will remain in your PayPal account. Now if you want to withdraw that amount in your local bank (Which is automatically done for all Indian PayPal users as per RBI new rule) then currency fees will apply, so let’s continue our calculation.
Currency convergence fees - When you withdraw money to a local bank.
In this example, we take 67 INR for one USD as an example, feel free to check out the current rate on the xe.com website.
= 67-(67-2.5 %) = 67-(1.675) = 65.325
So PayPal will use 65.325 rate when they transfer your remaining PayPal money to your local bank. Now let’s calculate the final amount that you will receive in your bank account.
= 190.9 * 65.325 = 12470.5425 INR
So this is the approximately money you will get in your local bank. Hope you guys understand my calculation about how PayPal charges Indian user.
I personally use Transferwise to receive a money, their rate are cheaper than payoneer. Talk to your payer if they can pay via transferwise, I bet you won’t disappoint.