Guide for Service Exporters
Menu
Payments

PayPal, Wise or Payoneer: What FIRC and RBI Rules Mean for Receiving Foreign Payments in India

Author:
Editorial team, serviceexportguide.com
Verified by:
Editorial team
Published
Last modified
Fees checked on
Reading time
8 min read

Short answer

Rule 89(2)(c) of the CGST Rules names FIRCs or bank realisation certificates as GST refund evidence.14 From 1 October 2026, every service exporter files an EDF with its AD bank.1 Proceeds must arrive within nine months of the invoice.2 Wise is an RBI-authorised PA-CB.6 PayPal charges 4.40% plus a fixed fee per international commercial payment.40

Applies toRules involvedPlatforms comparedLast verified
Indian freelancers, agencies and companies receiving payment for services from abroad11FEMA (Export and Import of Goods and Services) Regulations, 2026; PA Master Direction 11(d); FETERS purpose codes; CGST rule 89(2)(c)15814Skydo, Razorpay, Karbon Business, Payoneer, PayPal, Wise631 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.

PayPal, Wise and Payoneer are the three names Indian freelancers compare first when they start receiving money from abroad. They work differently: PayPal is a wallet and checkout, Wise gives local account details, and Payoneer combines receiving accounts with marketplace payouts.384344 This page compares them with the lowest-cost providers in this site's USD cost model and explains the Indian rules that apply to every receipt.

The heading asks what "RBI's FIRC rules" mean, and one correction is needed. RBI does not publish a rule that sets how a FIRC is issued. A Foreign Inward Remittance Certificate is a bank certificate, and the rule that names it is rule 89(2)(c) of the CGST Rules, for GST refunds on exported services.14 The RBI rules that govern foreign payments for services are the 2026 export Regulations, the purpose code reporting system and the Payment Aggregator Master Direction.158 Confirm your own setup with a chartered accountant (CA).

How do PayPal, Wise and Payoneer compare for receiving foreign payments in India?

PayPal, Wise and Payoneer compare differently on cost and status: PayPal charges 4.40% plus a fixed fee before conversion, Payoneer converts at 1% to 4%, and Wise, an authorised PA-CB, does not publish its INR conversion fee as a percentage.6374045 The table orders providers by estimated cost on USD 5,000 from published fees, cheapest first, then providers without enough published pricing, A to Z.2228313740

PlatformBest forFeeFX markupSettlementFIRARBI PA-CB statusSource
SkydoLocal bank transfers from major markets21USD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to USD 10,000; 0.3% plus GST above2223Product page: mid-market rate, 0% markup; terms: retail rate set by Skydo or its partner banks2425Within 24 hours per product page; T+1 to T+3 business days per terms2425Free FIRA on every payment2426PA-CB-I & O, authorised 8 January 20266Skydo fee FAQ22
RazorpayLocal transfers from the US, UK and eurozone27MoneySaver: 1% plus GST, flat ₹1,000 below ₹1,00,000280% markup at the live rate on MoneySaver bank transfers28T+1 for push bank transfers27FIRS within 24 hours after settlement2729PA-CB I & O6Razorpay docs27
Karbon BusinessUS bank transfers and marketplace payouts301% transaction fee on its PayPal alternative page310% on its freelancer page; 0.5% to 1.0% on its PayPal comparison page303124 to 48 hours30FIRA for every transaction30Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB632Karbon pages30
PayoneerMarketplace payouts such as Amazon or Upwork38Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page); card payment requests 2.90% plus $0.4936371% to 4% when converting to INR37Within 24 hours (multi-currency account page); within 48 hours (pricing page)3637Free digital FIRA from a partner AD bank35Registered OPGSP; in-principle PA-CB authorisation on 22 January 2026; RBI Table E as on 16 October 202673334Payoneer pricing37
PayPalClients paying by card or PayPal balance394.40% plus a fixed fee, such as 0.30 USD, per international commercial transaction403.0% or 4.00% above the base rate; the page does not say which applies to INR withdrawals40Up to 5 business days41Free weekly digital FIRA from February 202642Existing PA-CB that can operate, with in-principle authorisation, as on 16 October 20267PayPal fee page40
WiseBank transfers to local account details442 USD equivalent for the e-FIRC transfer per the help article; free e-FIRC per the pricing page; 18% GST on fees4445Mid-market rate plus a currency-dependent fee; no INR percentage published4546INR within 1 to 2 days44e-FIRC per transfer within 3 working days44PA-CB-I, authorised 12 March 20266Wise help article44

See PayPal vs Payoneer and Wise vs PayPal for two-way comparisons.

Which RBI rule governs foreign payments received in India?

Foreign payments for services received in India are governed by the FEMA (Export and Import of Goods and Services) Regulations, 2026, RBI's purpose code reporting under FETERS, and, where a provider collects the money, the Payment Aggregator Master Direction.158

RuleBest forPlain meaningSource
2026 Regulations, regulations 3 and 4Every service exporter from 1 October 2026EDF to the AD bank within 30 days from the end of the invoice month; non-software exporters may file by the payment date1RBI1
2026 Regulations, regulation 5 as amendedEvery foreign invoiceRealise within nine months of the invoice date, or twelve months in rupees2RBI2
2026 Regulations, regulation 13Exporters with long-unpaid invoicesProceeds unrealised more than a year after the due date restrict further exports to full advance or irrevocable LC1RBI1
RBI Circular No. 84 of 29 February 2012Every inward paymentReceipt purpose codes are P plus four digits, reported by the bank8RBI8
PA Master Direction, paragraphs 11(d) and 11(h)Payments through a PA-CB₹25 lakh per transaction; the PA-CB gives your AD bank your documents5RBI5
Deposits and Accounts Master Direction, paragraph 3.1Exporters keeping foreign currencyEEFC account may take up to 100% of export earnings10RBI10

These rules apply equally to PayPal, Wise, Payoneer and a direct bank wire.

What does each option charge to receive a foreign payment?

Each option charges differently to receive a foreign payment: fixed-band fees at Skydo, about 1% at Razorpay and Karbon, a 1% to 4% conversion fee at Payoneer, and a percentage plus fixed fee plus conversion fee at PayPal.2228313740

OptionBest forEstimated cost on USD 5,000What drives the costSource
SkydoLarger invoices by bank transfer0.68%USD 29 fixed fee plus GST22Skydo2223
RazorpayRegistered businesses1.00 to 1.18%1% fee plus GST28Razorpay28
Karbon BusinessExporters incorporated in India1.00 to 1.18%1% fee plus GST31Karbon31
PayoneerMarketplace sellers and freelancers1.00 to 4.00%Conversion fee to INR37Payoneer37
PayPalCard and wallet payers7.27 to 8.23%4.40% plus fixed fee, then a conversion fee40PayPal40
WiseBank transfers to local detailsNot estimatedINR conversion fee not published as a percentage45Wise45

A bank wire to your own account is priced in the bank's published charges policy under regulation 19.1

Which option is cheapest at $2,000, $5,000 and $10,000?

The cheapest option at $2,000, $5,000 and $10,000 changes with invoice size, because Skydo charges fixed fees while Razorpay and Karbon charge a percentage.222831 The table below works out rupees received at today's rate from published fees.

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.

For example, Skydo's USD 19 fee is about 0.95% of a $2,000 invoice before GST, against Razorpay's 1% plus GST, while at $10,000 Skydo's USD 29 fee falls to about 0.29% before GST.2228 PayPal stays above 7% at every size on its published fees.40

What documents do you get from PayPal, Wise and Payoneer?

PayPal, Wise and Payoneer each issue an advice or certificate for foreign payments, but in different forms and at different intervals.354244

DocumentBest forIssued by and whenSource
PayPal weekly FIRAPayPal business accountsFree weekly digital FIRA since February 2026; custom FIRA for a fee, issued by Citibank42PayPal42
Wise e-FIRCWise Business receiptsOne per transfer, emailed within 3 working days44Wise44
Payoneer digital FIRAPayoneer receiptsFree PDF per transaction from a partner AD bank within 24 to 72 hours35Payoneer35
FIRCGST refund claimsReceiving bank's certificate, named in rule 89(2)(c)14CBIC14
e-BRCExporters with an IECSelf-certified on DGFT from the bank's IRM1617DGFT16
EDFEvery service exporterFiled with the AD bank from 1 October 20261RBI1
LUTGST-registered exportersFORM GST RFD-11 each financial year15GST portal15

Payoneer adds that the e-FIRA or IRM in RBI's export monitoring system comes from the exporter's own bank, which may ask for the FIRA plus export documents.35 Work for a client abroad is an export of services only when all five conditions of section 2(6) of the IGST Act hold.11 Under rule 96A, IGST with interest falls due on LUT exports not paid within one year or the FEMA period, whichever is later.13 See FIRC vs FIRA vs e-BRC.

What changes in 2026 for receiving foreign payments in India?

Receiving foreign payments in India changed in 2026 with new RBI export Regulations from 1 October 2026, a return to nine-month realisation and the Income-tax Act, 2025 from 1 April 2026.1219

  • 2026 Regulations: The 2026 Regulations replaced the FEM (Export of Goods and Services) Regulations, 2015 on 1 October 2026.1
  • EDF for services: Every service exporter files an EDF, and RBI Circular No. 20 supersedes the SOFTEX circulars from that date.14
  • Realisation period: The period went to 15 months in November 2025 and is back to nine months from the invoice date.23
  • Provider status: RBI authorised Wise as a PA-CB on 12 March 2026, and Payoneer received in-principle authorisation on 22 January 2026.634
  • PayPal FIRA: PayPal moved from monthly to free weekly digital FIRAs in February 2026.42
  • GST Council: The 57th GST Council meeting on 8 October 2026 recommended omitting condition (v) of section 2(6); that needs a law change and is not in force.18
  • Income tax: Foreign tax credit for tax year 2026-27 is claimed in Form 44.20

For the full method-by-method guide, read how to receive international payments in India.

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: Notification FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  3. [3]RBI: Notification FEMA 23(R)/(7)/2025-RB dated 13 November 2025 (15-month realisation period, later reversed)
  4. [4]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (supersedes the SOFTEX circulars from 1 October 2026)
  5. [5]RBI: Master Direction on Regulation of Payment Aggregator dated 15 September 2025, paragraph 11(d) (₹25 lakh per transaction) and 11(h) (documents to the AD bank)
  6. [6]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007 (payment aggregators and cross-border in-bound money transfer operators), list dated 16 October 2026 (checked 2026-10-28) and list dated 30 October 2026 (checked 2026-10-31)
  7. [7]RBI: Status of applications received under the Payment and Settlement Systems Act, 2007, as on 16 October 2026, Tables D and E (checked 2026-10-28)
  8. [8]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, reporting under FETERS (purpose codes)
  9. [9]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 2026-10-28)
  10. [10]RBI: Master Direction, Deposits and Accounts (FED Master Direction No. 14/2015-16), updated as on 2 September 2026, paragraphs 3.1 and 5.1
  11. [11]CBIC: IGST Act, 2017, section 2(6) (export of services)
  12. [12]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  13. [13]CBIC: CGST Rules, 2017, rule 96A (export under bond or Letter of Undertaking), clause (1)(b) as substituted by Notification No. 12/2024-Central Tax, 10 July 2024
  14. [14]CBIC: CGST Rules, 2017, rule 89 (application for refund), sub-rule (2)(c)
  15. [15]GST portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
  16. [16]DGFT: eBRC system, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023
  17. [17]DGFT: FAQs (Self-Generation of eBRC), Version 1.0, March 2024
  18. [18]GST Council: Press release, 57th meeting, 8 October 2026 (recommendation on condition (v) of section 2(6))
  19. [19]PIB: Income-tax Act, 2025 in force from 1 April 2026 (tax year replaces previous year and assessment year)
  20. [20]Income Tax Department: Income-tax Rules, 2026 (notified 20 March 2026), rule 76 and Form 44
  21. [21]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  22. [22]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  23. [23]Skydo, home page fee table (checked 2026-10-28)
  24. [24]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  25. [25]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)
  26. [26]Skydo FAQs, What is accepted for GST filings and banks between FIRA and FIRC? (checked 2026-10-28)
  27. [27]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  28. [28]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  29. [29]Razorpay Docs, FIRS Automated Process (checked 2026-10-28)
  30. [30]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  31. [31]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  32. [32]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  33. [33]Payoneer India, Payoneer's multi-jurisdictional licenses (checked 2026-10-28)
  34. [34]Payoneer press release, Payoneer receives in-principle authorization as Cross-Border Payment Aggregator in India, 22 January 2026
  35. [35]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  36. [36]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  37. [37]Payoneer India, Payoneer Fees (checked 2026-10-28)
  38. [38]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  39. [39]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  40. [40]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  41. [41]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  42. [42]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  43. [43]PayPal India Help, How do I receive payments through PayPal? (checked 2026-10-28)
  44. [44]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-31)
  45. [45]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  46. [46]Wise India, Receive international payments (checked 2026-10-28)
  47. [47]Wise India, Receive pricing (personal accounts) (checked 2026-10-28)

Frequently asked questions

What is the best way to receive foreign payments in India as a freelancer?+

The best way to receive foreign payments in India as a freelancer depends on how clients pay. Bank transfers to local account details from a PA-CB usually cost least on published fees, PayPal suits clients paying by card or PayPal balance, and a SWIFT wire suits clients who only pay internationally. Compare fees, FX markup and FIRA.1222840

Is a FIRA from PayPal or Payoneer the same as a FIRC?+

A FIRA from PayPal or Payoneer is an advice confirming a foreign payment, while a FIRC is a certificate from the receiving bank. Both record the same payment. Rule 89(2)(c) of the CGST Rules names FIRCs or bank realisation certificates for GST refunds, so ask what your GST officer accepts before filing.143542

Can I receive foreign payments into a Wise personal account in India?+

Wise says personal accounts in India cannot receive money. Indian freelancers and businesses receive through Wise Business, which gives local account details in 11 currencies and international details in 13 more, converts each payment to INR and sends it to the verified Indian bank account.4447

Which purpose code should I use for foreign payments for services?+

The purpose code depends on the service: for example, P0802 is "Software consultancy/implementation (other than those covered in SOFTEX form)", P1006 is "Business and management consultancy and public relations services" and P1007 is "Advertising, trade fair service". Receipt codes are five characters, P plus four digits, from RBI Circular No. 84 of 29 February 2012.89

Is PayPal legal for receiving export payments in India?+

PayPal's India user agreement says it provides export payment services as an online payment gateway service provider under RBI Circular No. 16. RBI's status list as on 16 October 2026 shows PayPal Payments Private Limited as an existing cross-border payment aggregator that can operate, with in-principle authorisation granted.739

Can I keep foreign payments in dollars instead of converting them?+

You can keep foreign payments in dollars by crediting them to an Exchange Earners Foreign Currency (EEFC) account with an AD bank, which can take up to 100% of export earnings. Balances earn no interest, and each month accruals must be used or converted by the end of the following month.10

Do I need GST registration to receive foreign payments?+

You do not need GST registration to receive foreign payments, but you need it to file an LUT and invoice exports without IGST. The LUT is filed by a registered person in FORM GST RFD-11 for each financial year, and exports are zero-rated under section 16 of the IGST Act.1215

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.

Keep reading

Payments

How can Indian freelancers and service businesses receive international payments?

Bank wires, RBI-authorised cross-border aggregators, PayPal and card gateways compared for Indian freelancers and agencies: fee types, FIRA and compliance.

RBI and FEMA

What is the difference between FIRC, FIRA and e-BRC for service exporters?

What FIRC, FIRA and e-BRC are, who issues each, how e-BRC works on the DGFT portal, and which documents Indian service exporters should keep for GST and tax.

Glossary

What is a FIRC?

A FIRC is a Foreign Inward Remittance Certificate from your Indian bank confirming a payment from abroad. Uses for GST refunds and how it differs from FIRA.

Compare

PayPal vs Payoneer (2026): Which Is Better for Receiving International Payments in India?

PayPal vs Payoneer for Indian freelancers and agencies: verdict by use case, INR received on $2,000 to $10,000, fees, FX markup, FIRA, RBI status and settlement time.

Compare

Wise vs PayPal (2026): Which Is Better for Receiving International Payments in India?

Wise vs PayPal for Indian freelancers and agencies: verdict by use case, INR received on $2,000 to $10,000, fees, FX markup, FIRA, RBI status and settlement time.