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PayPal, Wise or Payoneer: What RBI's Export Rules Mean for Getting Paid by a US Client

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Editorial team, serviceexportguide.com
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Short answer

A US client's payment for services falls under the FEMA (Export and Import of Goods and Services) Regulations, 2026 apply from 1 October 2026.1 The money must be realised within nine months of the invoice.2 In 2026 RBI lists Wise as an authorised PA-CB and Payoneer and PayPal with in-principle authorisation.34 Each PA-CB payment is capped at ₹25 lakh.5

Applies toRules involvedPlatforms comparedLast verified
Indian freelancers, agencies and companies invoicing US clients for services6FEMA 2026 Regulations (EDF, nine-month realisation), PA Master Direction (₹25 lakh cap), IGST Act section 2(6)1256Skydo, Razorpay, Karbon Business, Payoneer, PayPal, Wise331 October 2026

1,000 USD = ₹94,243 at the reference rate for 13 November 2026 (European Central Bank data).

Estimated rupees received, on published fees

Sorted by estimated rupees received, highest first. Only providers that publish both their fee and their conversion markup for this currency and method can be estimated.

#Provider and routeBest forFee (+GST)MarkupYou receiveCost
1Karbon BusinessLowest estimated costBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹942plus GST, rate not stated0%₹93,131 to ₹93,3011.00 to 1.18%
2RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,000plus GST, rate not stated0%₹93,063 to ₹93,2431.06 to 1.25%
3WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)Local transfers with a published per-payment fee₹1,4350%₹92,8091.52%
4SkydoPayment link (InstaLinks) paid by ACH debitLocal bank transfers from major markets₹1,885plus GST, rate not stated0%₹92,019 to ₹92,3582.00 to 2.36%
5PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹0no GST stated1 to 4%₹90,473 to ₹93,3011.00 to 4.00%
6PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹4,175no GST stated3 to 4%₹86,465 to ₹87,3667.30 to 8.25%

Not estimated because pricing is not fully published: Cashfree Payments, Dodo Payments, PingPong, Stripe, Tazapay, TransFi, Wise.

Where a provider says GST applies to its fee but not at what rate, the range runs from no GST to 18%, the rate Skydo, Stripe and Winvesta state on their pages. Estimates use each provider's published fee, conversion markup, GST on fees and FIRA charge, checked 2026-10-28, against the reference rate. They exclude charges taken by intermediary banks and your own bank, and the rate a provider actually applies at the time of conversion. Check the provider's pricing page before you choose. The order is calculated only from these published numbers; no provider can pay to change its position, and there are no affiliate links.

A US client can pay an Indian freelancer or agency through PayPal, through Wise or Payoneer account details, or by a SWIFT wire to an Indian bank. Whichever route the client uses, the payment is an export of services, and the same RBI and GST rules apply from 1 October 2026.1

This page compares the options on published fees and RBI status, then sets out the rules. For the step-by-step process, read how to receive payment from a US client in India. Your facts decide the answer, so confirm your position with a chartered accountant (CA).

How do PayPal, Wise and Payoneer compare for getting paid by a US client?

PayPal, Wise and Payoneer differ mainly in how the US client pays (card or PayPal balance against bank transfer), in the published fee and conversion cost, and in their RBI status. The table adds the three lowest-cost providers for USD on published fees, ordered by estimated cost on a $5,000 receipt, cheapest first, with Wise last because it does not publish its INR conversion fee.16

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
SkydoLocal bank transfers from major markets17USD 19 up to USD 2,000, USD 29 from USD 2,001 to USD 10,000, 0.3% above, plus GST180% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)1940Within 24 hours (product page); T+1 to T+3 business days (terms)1940Free FIRA on every payment19PA-CB inward and outward, authorised 8 January 20263Skydo fee FAQ and product page1819
RazorpayLocal transfers from the US, UK and eurozone201% plus GST on bank transfers, flat ₹1,000 below ₹1,00,000210% on bank transfers, per Razorpay21T+1 for bank transfers20Foreign Inward Remittance Statement within 24 hours of settlement20PA-CB inward and outward3Razorpay pricing and docs2120
Karbon BusinessUS bank transfers and marketplace payouts221% transaction fee230% (freelancer page); 0.5% to 1.0% (PayPal alternative page)222324 to 48 hours22FIRA for every transaction from a partner bank22Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB243Karbon pages2223
PayoneerMarketplace payouts such as Amazon or Upwork25Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page); 1% to 4% to withdraw to INR2627Not published separately; inside the 1% to 4% withdrawal fee27Within 24 hours (multi-currency account page); within 48 hours (pricing page)2627Free digital FIRA per transaction12In-principle PA-CB authorisation, 22 January 2026284Payoneer India pricing and help2712
PayPalClients paying by card or PayPal balance74.40% plus a fixed fee such as 0.30 USD per international commercial transaction293.0% or 4.00% above the base exchange rate29Up to 5 business days to the bank30Free weekly digital FIRA from February 202610In-principle PA-CB authorisation in RBI's status list4PayPal India fee page and help2930
WiseBank transfers to local account details11Equivalent of 2 USD per transfer to the INR account (help article); free e-FIRC (receive pricing page); 18% GST on fees1116Conversion fee depends on the currency; no INR percentage published161 to 2 days to the Indian bank after pay-in11e-FIRC for each transfer within 3 working days11PA-CB inward, authorised 12 March 20263Wise help and pricing1116

The platform cost comparison applies the same criteria to every provider, and Wise vs Payoneer and PayPal vs Payoneer go deeper on two pairs.

Which RBI rule governs money from a US client?

Money from a US client for services is governed by the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations), in force from 1 October 2026.1 When a provider such as Wise collects the money first, RBI's Master Direction on Regulation of Payment Aggregators also applies.5

RuleBest for (who it applies to)Plain meaningSource
2026 Regulations, regulations 3 and 4Every service exporterGive an Export Declaration Form (EDF) to your bank within 30 days from the end of the invoice month, or for non-software services on or before the payment date1RBI notification1
2026 Regulations, regulation 5, as amended on 22 September 2026Anyone with an unpaid invoiceRealise the payment within nine months of the invoice date, or twelve months for rupee invoices2RBI amendment2
PA Master Direction, paragraph 11(d)Exporters paid through Wise, Skydo, Razorpay or another PA-CBEach cross-border aggregator transaction is capped at ₹25 lakh5RBI Master Direction5
A.P. (DIR Series) Circular No. 84 of 2012Every inward paymentThe bank reports each receipt under a purpose code, P plus four digits13RBI circular13
IGST Act, section 2(6)GST-registered exportersA supply counts as an export only when all five conditions hold6CBIC6

Your bank, the authorised dealer (AD) bank, can extend the realisation period, and banks must publish their documents, timelines and charges on their website.1

What does each option charge a US client payment?

Each option charges differently by how the US client pays: bank transfer to account details, card, or PayPal balance. The table separates the routes using each provider's published pricing.

PlatformBest forBank transfer from the USCard or PayPal paymentSource
SkydoLocal bank transfers from major markets17Slab fee plus GST as above18No card fee published; ACH debit links 2%, minimum $931Skydo FAQs1831
RazorpayLocal transfers from the US, UK and eurozone201% plus GST21International cards up to 3% plus 18% GST32Razorpay pricing32
Karbon BusinessUS bank transfers and marketplace payouts221% transaction fee23Not published22Karbon pages23
PayoneerMarketplace payouts such as Amazon or Upwork25Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page); 1% to 4% to withdraw to INR2627Credit card 2.90% plus $0.49 through a payment request27Payoneer pricing27
PayPalClients paying by card or PayPal balance7Not a bank transfer route4.40% plus fixed fee, plus 3.0% or 4.00% conversion29PayPal fee page29
WiseBank transfers to local account details112 USD equivalent per transfer (help article); free e-FIRC (receive pricing page); 6.11 USD per USD wire or Swift payment in Wise's general business fee table113316Card acceptance not offered to India-based businesses34Wise help and pricing1134

US clients usually send domestic payments over ACH, the nationwide network banks use for batches of electronic transfers, so USD account details from a provider let them pay as they pay a local supplier.35

Which option is cheapest at $500, $2,000 and $5,000?

The cheapest option changes with invoice size, because fixed fees weigh more on small invoices and percentage fees weigh more on large ones. The table below works out the INR received from each provider's published fees at today's rate.

PlatformBest forINR on USD 2,000INR on USD 5,000INR on USD 10,000Cost on USD 5,000
SkydoMost INRTransfer to Skydo local account details or international SWIFT accountLocal bank transfers from major markets₹1,86,373₹4,67,991₹9,39,2060.68%
Karbon BusinessBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,86,262 to ₹1,86,601₹4,65,655 to ₹4,66,503₹9,31,311 to ₹9,33,0071.00 to 1.18%
PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹1,80,947 to ₹1,86,601₹4,52,367 to ₹4,66,503₹9,04,734 to ₹9,33,0071.00 to 4.00%
PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹1,72,958 to ₹1,74,760₹4,32,436 to ₹4,36,940₹8,64,899 to ₹8,73,9087.27 to 8.23%

Not estimated because pricing for USD is not fully published: Wise.

Ranked by INR received on USD 5,000. Reference rate: European Central Bank data for 13 November 2026. Fees, conversion markup, GST on fees and FIRA charges as published by each provider, checked 28 October 2026. Ranges appear where a provider publishes a range or does not state its GST rate. Intermediary bank charges are excluded. See the methodology.

  • At $500: Skydo's USD 19 fee plus GST is about 4.48% of the invoice, and PayPal's 4.40% plus 0.30 USD is about 4.46% before its 3.0% or 4.00% conversion fee.1829
  • At $2,000: Skydo's USD 19 plus GST is about 1.12%, and Razorpay's 1% plus GST is 1.18%.1821
  • At $5,000: Skydo's USD 29 plus GST is about 0.68%, while Razorpay stays at 1.18%.1821

For example, a Pune UX designer billing a US startup $5,000 pays about 0.68% through Skydo's published slab, 1.18% through Razorpay's MoneySaver fee with GST, and 4.40% plus 0.30 USD plus a 3.0% or 4.00% conversion fee through PayPal.182129 Wise and Payoneer cannot be worked out exactly because Wise does not publish its INR conversion fee and Payoneer shows its 1% to 4% withdrawal fee in the account.1627

What documents and GST apply to a US client payment?

A US client payment needs proof of receipt (FIRA or e-FIRC), an e-BRC, an EDF and, if you are GST registered, a Letter of Undertaking (LUT). A US client may also ask for Form W-8BEN.136159

DocumentBest forWhat it doesSource
FIRA or e-FIRCEvery receiptProves the foreign payment reached you; each provider above issues one in its own way19111210Provider pages
e-BRCExporters claiming export statusSelf-certified on the DGFT portal from the bank's inward remittance data36DGFT36
EDFEvery service exporter from 1 October 2026Declares the export to the AD bank1RBI1
LUT (FORM GST RFD-11)GST-registered exportersLets you invoice the export without IGST for the financial year15GST portal15
Form W-8BENIndividuals with US clientsGiven to the US payer to document foreign status9IRS9

Exports of services are zero-rated under IGST Act section 16.14 Under an LUT, if payment is not received within one year of the invoice or the FEMA period, whichever is later, IGST with interest becomes payable.37 See W-8BEN for Indian freelancers and FIRA for freelancers.

What changes in 2026 for Indian exporters paid by US clients?

Five changes in 2026 affect Indian exporters paid by US clients: new export regulations, an EDF for every service export, the nine-month realisation period, new RBI authorisations for providers, and the Income-tax Act, 2025.1338

  • New regulations: The 2026 Regulations replaced the 2015 Regulations from 1 October 2026.1
  • EDF for all services: Every service exporter files an EDF from 1 October 2026, and Circular No. 20 supersedes the SOFTEX circulars from that date.139
  • Realisation: The period is nine months from the invoice date, twelve months for rupee invoices.2
  • Provider status: RBI authorised Skydo on 8 January 2026 and Wise on 12 March 2026 as PA-CBs, and Payoneer received in-principle authorisation on 22 January 2026.328
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026, and tax year 2026-27 runs from 1 April 2026 to 31 March 2027.38

The export realisation period and EDF for service exporters pages explain the deadlines in full.

How did we verify this?

We checked this page against the sources below on 31 October 2026. Provider fees, conversion markups and RBI payment aggregator (PA-CB) status were checked on 28 October 2026. Rupee amounts use European Central Bank reference rates for 13 November 2026. Read our methodology or report an error.

  1. [1]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026 (regulations 3, 4, 5, 13 and 19)
  2. [2]RBI: FEMA (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification No. FEMA 23(R)/(1)/2026-RB dated 22 September 2026 (regulation 5: nine months, twelve months for rupee invoices)
  3. [3]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators list dated 16 October 2026 (checked 2026-10-28)
  4. [4]RBI: Status of Applications received under the Payment and Settlement Systems Act, 2007, as on 16 October 2026 (checked 2026-10-28)
  5. [5]RBI: Master Direction on Regulation of Payment Aggregators, 15 September 2025, paragraph 11(d)
  6. [6]CBIC: IGST Act, 2017, section 2(6) (export of services)
  7. [7]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  8. [8]IRS: Nonresident aliens, sourcing of income
  9. [9]IRS: Instructions for Form W-8BEN
  10. [10]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  11. [11]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  12. [12]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  13. [13]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS (purpose codes)
  14. [14]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  15. [15]GST portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
  16. [16]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  17. [17]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  18. [18]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  19. [19]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  20. [20]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  21. [21]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  22. [22]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  23. [23]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  24. [24]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  25. [25]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  26. [26]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  27. [27]Payoneer India, Payoneer Fees (checked 2026-10-28)
  28. [28]Payoneer press release, Payoneer receives in-principle authorization as Cross-Border Payment Aggregator in India, 22 January 2026
  29. [29]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  30. [30]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  31. [31]Skydo FAQs, What are the fees for using Payment Links? (checked 2026-10-28)
  32. [32]Razorpay, Pricing, International Payments and International Bank Transfers tabs (checked 2026-10-28)
  33. [33]Wise India site, Wise Business pricing, fees at a glance (checked 2026-10-28)
  34. [34]Wise Help Centre, Getting paid to your Wise Business by card, Apple Pay or Google Pay (checked 2026-10-28)
  35. [35]Federal Reserve Board: Automated Clearinghouse Services (checked 2026-10-28)
  36. [36]DGFT: eBRC services page (IRM data from banks; Trade Notice 33/2023-24 dated 10 November 2023)
  37. [37]CBIC: CGST Rules, 2017, rule 96A (export under bond or LUT), as substituted by Notification No. 12/2024-Central Tax
  38. [38]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  39. [39]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (supersedes the SOFTEX circulars from 1 October 2026)
  40. [40]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)

Frequently asked questions

How can I receive payments from my US client in India?+

A US client can pay an Indian exporter by SWIFT wire to an Indian bank, by ACH to US account details from a payment provider, or through PayPal. Every route ends at an Indian bank, and the export must be realised within nine months of the invoice under the 2026 Regulations.2

Is PayPal, Wise or Payoneer legal for export payments in India?+

RBI's 16 October 2026 list shows Wise Payments India as an authorised PA-CB for inward payments.3 RBI's status list shows Payoneer India and PayPal Payments with in-principle PA-CB authorisation, and PayPal says it works as an online payment gateway service provider under RBI rules.47

Does my US client need to deduct tax before paying me?+

The IRS says compensation for services is sourced where the services are performed, so work done in India by a non-resident alien is generally foreign-source income.8 A US client may ask for Form W-8BEN from an individual, which is given to the payer and not sent to the IRS.9

Do I get a FIRA from PayPal, Wise and Payoneer for US payments?+

PayPal offers a free weekly digital FIRA from February 2026.10 Wise emails an e-FIRC for each transfer within 3 working days.11 Payoneer issues a free digital FIRA for each transaction through its partner AD bank.12 Keep each one with the matching invoice for GST and bank records.

Which purpose code do I use for a US client payment?+

Purpose codes for receipts are five characters, P followed by four digits, under RBI A.P. (DIR Series) Circular No. 84 of 29 February 2012.13 The code depends on the service, so a developer and a consultant may use different codes. The [purpose code finder](/tools/purpose-code-finder) maps services to codes.

What if my US client pays more than ₹25 lakh in one payment?+

RBI's Payment Aggregator Master Direction caps each PA-CB export transaction at ₹25 lakh.5 Wise returns payments above ₹25 lakh or equivalent to the sender.11 For a larger invoice, ask the provider how it handles split payments, or have the client pay by SWIFT wire to your bank.

Do I charge GST to a US client?+

A supply to a US client is an export of services when all five conditions of IGST Act section 2(6) are met.6 Exports are zero-rated, and a registered supplier can invoice without IGST under a Letter of Undertaking filed in FORM GST RFD-11.1415

This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.

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