Guide for Service Exporters
Menu
Payments

Wise, Payoneer or PayPal: What RBI's Inward Remittance Rules Mean for Payments Without High Fees

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

Short answer

PayPal charges 4.40% plus a fixed fee on international commercial payments, before a 3.0% or 4.00% conversion fee.1 Payoneer charges 1% to 4% to withdraw to INR.2 Wise charges a 2 USD equivalent per transfer (India help article; its India receive pricing page describes a free e-FIRC) plus an unpublished INR conversion fee.34 RBI caps each PA-CB payment at ₹25 lakh in 2026.5

Applies toRules involvedPlatforms comparedLast verified
Indian freelancers and businesses receiving payment for services from abroad6FEMA 2026 Regulations, PA Master Direction (₹25 lakh cap), Circular No. 84 purpose codes758Skydo, Razorpay, Karbon Business, Payoneer, PayPal, Wise931 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.

High fees on international payments usually come from three places: the provider's transaction fee, the markup on conversion to rupees, and charges taken by banks in the chain. Wise, Payoneer and PayPal price these differently, and the RBI rules on inward remittances apply whichever one you use.7124

This page compares the options on published fees and sets out the rules. For the lowest-cost routes ranked by invoice size, read the cheapest way to receive USD in India. Confirm your position with a chartered accountant (CA).

How do Wise, Payoneer and PayPal compare for low-fee payments from abroad?

Wise, Payoneer and PayPal differ in how they charge: Wise uses a fixed fee plus a conversion fee, Payoneer a withdrawal fee of 1% to 4%, and PayPal a percentage plus a fixed fee and a conversion fee.321 The table adds the three lowest-cost USD providers on published fees, ordered by estimated cost on a $5,000 receipt, cheapest first, with Wise last because its INR conversion fee is not published.4

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 GST100% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)1835Within 24 hours (product page); T+1 to T+3 business days (terms)1835Free FIRA on every payment18PA-CB inward and outward, authorised 8 January 20269Skydo1018
RazorpayLocal transfers from the US, UK and eurozone191% plus GST on bank transfers, flat ₹1,000 below ₹1,00,000110% on bank transfers, per Razorpay11T+1 for bank transfers19Foreign Inward Remittance Statement within 24 hours of settlement19PA-CB inward and outward9Razorpay1119
Karbon BusinessUS bank transfers and marketplace payouts201% transaction fee210% (freelancer page); 0.5% to 1.0% (PayPal alternative page)202124 to 48 hours20FIRA for every transaction from a partner bank20Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB229Karbon2021
PayoneerMarketplace payouts such as Amazon or Upwork23Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page); 1% to 4% to withdraw to INR242Not published separately2Within 24 hours (multi-currency account page); within 48 hours (pricing page)242Free digital FIRA per transaction13In-principle PA-CB authorisation, 22 January 20262526Payoneer213
PayPalClients paying by card or PayPal balance274.40% plus a fixed fee such as 0.30 USD13.0% or 4.00% above the base exchange rate1Up to 5 business days to the bank28Free weekly digital FIRA from February 202629In-principle PA-CB authorisation in RBI's status list26PayPal129
WiseBank transfers to local account details3Equivalent of 2 USD per transfer to the INR account (help article); free e-FIRC (receive pricing page); 18% GST on fees34Conversion fee depends on the currency; no INR percentage published41 to 2 days after pay-in3e-FIRC for each transfer within 3 working days3PA-CB inward, authorised 12 March 20269Wise34

Wise vs PayPal and Wise vs Payoneer compare the pairs in more depth.

Which RBI rule governs an inward remittance for services?

An inward remittance 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 2026.7 Providers that collect the money for you fall under RBI's Master Direction on Regulation of Payment Aggregators.5

RuleBest for (who it applies to)Plain meaningSource
2026 Regulations, regulations 3 and 4Every service exporterFile the Export Declaration Form (EDF) within 30 days from the end of the invoice month, or for non-software services by the payment date7RBI7
2026 Regulations, regulation 5, as amendedAnyone waiting on paymentRealise within nine months of the invoice date; twelve months for rupee invoices30RBI30
2026 Regulations, regulation 19Exporters paid by bank wireBanks publish their documents, timelines and charges on their website7RBI7
PA Master Direction, paragraph 11(d)Exporters paid through a PA-CB₹25 lakh limit per transaction5RBI5
A.P. (DIR Series) Circular No. 84 of 2012Every inward remittanceReported under a purpose code, P plus four digits8RBI8

Read what an inward remittance is for the bank's side of the process.

What does each fee layer cost with each option?

Each option's total cost is the sum of its transaction fee, its conversion markup, any FIRA charge and GST on its fees. The table splits these layers out from published pricing.

PlatformBest forTransaction feeConversionFIRA chargeSource
SkydoLocal bank transfers from major markets17Fixed USD slab plus GST100% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)1835Free18Skydo10
RazorpayLocal transfers from the US, UK and eurozone191% plus GST110% on bank transfers11No separate charge published15Razorpay11
Karbon BusinessUS bank transfers and marketplace payouts201%210% (freelancer page); 0.5% to 1.0% (PayPal alternative page)2021Not published20Karbon21
PayoneerMarketplace payouts such as Amazon or Upwork23Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page)2421% to 4% on withdrawal to INR2Free digital FIRA13Payoneer2
PayPalClients paying by card or PayPal balance274.40% plus fixed fee13.0% or 4.00%1Weekly FIRA free; custom FIRA 100 INR plus GST per transaction29PayPal129
WiseBank transfers to local account details32 USD equivalent (help article), 18% GST; free e-FIRC (receive pricing page)34Not published for INR4e-FIRC included4Wise34

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

The cheapest option changes with invoice size: fixed fees weigh most on a $500 invoice, and percentage fees weigh most on a $5,000 one. The table below works out INR received from published fees at today's rate.1011

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: Wise's 2 USD equivalent (India help article; its India receive pricing page describes a free e-FIRC) plus 18% GST is about 0.47% before its conversion fee, and Skydo's USD 19 plus GST is about 4.48%.3104
  • At $2,000: Skydo's fee with GST is about 1.12% and Razorpay's is 1.18%.1011
  • At $5,000: Skydo's USD 29 plus GST is about 0.68%; PayPal's 4.40% plus 0.30 USD stays above 4.4% before conversion.101

For example, a Jaipur video editor paid $2,000 a month through PayPal pays 4.40% plus 0.30 USD plus a 3.0% or 4.00% conversion fee, while the same amount by bank transfer through Razorpay costs 1.18% including GST.111

What documents do you get from each option?

Each option gives a different proof of receipt, and that document supports your e-BRC, GST return and bank records.31

DocumentBest forWho issues itSource
FIRA (Skydo)Skydo usersSkydo, free on every payment18Skydo
Foreign Inward Remittance Statement (Razorpay)Razorpay bank-transfer usersRazorpay, within 24 hours of settlement19Razorpay
Digital FIRA (Payoneer)Payoneer usersPayoneer's partner AD bank, per transaction13Payoneer
Weekly digital FIRA (PayPal)PayPal business accountsPayPal, from February 202629PayPal
e-FIRC (Wise)Wise Business usersEmailed within 3 working days3Wise
e-BRCEvery exporterSelf-certified on DGFT from the bank's inward remittance data31DGFT

A GST-registered exporter also files a Letter of Undertaking in FORM GST RFD-11 each financial year to invoice without IGST.32 See what a FIRA is.

What changes in 2026 for inward remittances for services?

Inward remittances for services are affected by the 2026 Regulations, the EDF for every service export, the nine-month realisation period and new RBI authorisations for providers.7309

  • New regulations: In force from 1 October 2026, replacing the 2015 Regulations.7
  • EDF: Every service exporter files an EDF from 1 October 2026; Circular No. 20 supersedes the SOFTEX circulars from that date.733
  • Realisation: Nine months from the invoice date, twelve months for rupee invoices.30
  • Authorisations: Skydo was authorised on 8 January 2026 and Wise on 12 March 2026; Payoneer received in-principle authorisation on 22 January 2026.925
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026.34

The platform cost comparison recalculates the totals at today's rate.

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]PayPal India, PayPal Merchant Fees (page last updated 28 March 2024) (checked 2026-10-28)
  2. [2]Payoneer India, Payoneer Fees (checked 2026-10-28)
  3. [3]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  4. [4]Wise India, Fees for getting paid (Wise Business receive pricing) (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]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)
  8. [8]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS (purpose codes)
  9. [9]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, Payment Aggregators list dated 16 October 2026 (checked 2026-10-28)
  10. [10]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  11. [11]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  12. [12]CBIC: IGST Act, 2017, section 16 (zero-rated supply)
  13. [13]Payoneer Help Center, Digital FIRA FAQ (checked 2026-10-28)
  14. [14]Stripe India, Pricing (checked 2026-10-28)
  15. [15]Razorpay, Pricing, International Payments and International Bank Transfers tabs (checked 2026-10-28)
  16. [16]Stripe Docs, Accept international payments from India (checked 2026-10-28)
  17. [17]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  18. [18]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  19. [19]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  20. [20]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  21. [21]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  22. [22]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  23. [23]Payoneer, How to use Payoneer in India (last modified 18 September 2026, checked 2026-10-28)
  24. [24]Payoneer India, Multi-currency account page and FAQs (checked 2026-10-28)
  25. [25]Payoneer press release, Payoneer receives in-principle authorization as Cross-Border Payment Aggregator in India, 22 January 2026
  26. [26]RBI: Status of Applications received under the Payment and Settlement Systems Act, 2007, as on 16 October 2026 (checked 2026-10-28)
  27. [27]PayPal India, User Agreement for PayPal Services (last updated 13 January 2025) (checked 2026-10-28)
  28. [28]PayPal India Help, How do I transfer funds to my bank account? (checked 2026-10-28)
  29. [29]PayPal India, Foreign Inward Remittance Advise (FIRA) (checked 2026-10-28)
  30. [30]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)
  31. [31]DGFT: eBRC services page (IRM data from banks; Trade Notice 33/2023-24 dated 10 November 2023)
  32. [32]GST portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
  33. [33]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (supersedes the SOFTEX circulars from 1 October 2026)
  34. [34]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  35. [35]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)

Frequently asked questions

How do I receive payments from abroad without high fees?+

Ask clients to pay by bank transfer to local account details instead of card or PayPal, compare the fee and the FX markup together, and check whether a FIRA costs extra. Published bank-transfer fees run from Skydo's fixed slab to Razorpay's 1% plus GST.1011

Why is PayPal more expensive than Wise or Payoneer for freelancers?+

PayPal's India fee page lists 4.40% plus a fixed fee per international commercial transaction and a 3.0% or 4.00% currency conversion fee.1 Payoneer's INR withdrawal fee is 1% to 4%, and Wise charges a 2 USD equivalent per transfer (India help article; its India receive pricing page describes a free e-FIRC) plus a conversion fee.234

What is an FX markup on an inward remittance?+

An FX markup is the gap between the mid-market rate and the rate a provider gives you when it converts to rupees. Some providers publish it, such as Razorpay's 0% on bank transfers, and some do not, such as Wise for INR.114 The [FX markup calculator](/tools/fx-markup-calculator) works it out.

Is GST charged on Wise, Payoneer or PayPal fees?+

Wise says 18% GST applies to its fees.3 Razorpay and Skydo quote their fees plus GST.1110 GST on a provider's fee is separate from your export, which stays zero-rated under IGST Act section 16 when the section 2(6) conditions are met.126

Do I need a purpose code for every inward remittance?+

Yes. Banks report each inward remittance under a five-character purpose code, P plus four digits, under RBI A.P. (DIR Series) Circular No. 84 of 2012.8 Payoneer applies the code you choose in its settings to every payment and prints it on the FIRA.13

Are Stripe and Razorpay cheaper than PayPal for international payments?+

For cards, Stripe India lists 3% for Visa and Mastercard cards issued abroad plus 2% if conversion is needed, and Razorpay lists up to 3% plus GST.1415 Razorpay's bank-transfer fee is 1% plus GST.11 Stripe onboards Indian businesses by invite only.16

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

Compare

What is the cheapest way to receive USD in India?

What each provider and bank publishes for receiving US dollars in India: receiving fees, INR conversion, FIRA cost, GST and bank charges, on the same criteria.

Payments

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

PayPal, Wise and Payoneer compared for Indian exporters paid by US clients in 2026: fees, FX, FIRA, RBI PA-CB status, EDF, 9-month realisation and W-8BEN.

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.

Compare

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

Wise 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.

Glossary

What is an inward remittance?

An inward remittance is money sent into India from abroad and credited by an Indian bank. What it means for service exporters: purpose codes, IRM, FIRA, e-BRC.