Resources for Small Business

Sell International : Paypal the free International Payment Gateway

So, you are done setting up your online store. You want to go international, sell across the globe, to the far reaches of the Earth. But, how will your international customers buy your awesome products without an International Payment gateway?

Well, folks, have you heard about Paypal? The internationally renowned payment gateway used widely across the planet? Some of you must have read about it but unsure of how to go about it. Read on to find out more!

What is Paypal?

Just like we have popular payment gateways in our country like Pay U and DirecPay, Paypal is another payment gateway that allows online store owners like you receive transactions from across borders.

It is a widely used service and its presence brings in an added hint of trust towards your online store.

What are the transaction rates for PayPal?

PayPal charges you on every transaction that happens on your store through its service. For every transaction, you will have to pay a Transaction Deduction Rate (or TDR) of 4.4 % + 0.3$ on the total price of the products being sold.

A currency conversion charge is also applicable depending upon the country from which the payment is being made.

Example: Suppose you have a product worth Rs. 9500, and the product is bought from the U.S. Then, the total charges levied are :

4.4%(9500)+ 0.3$+ 3.5%(9500)[Conversion Charge for $] = Rs. 768.5

Therefore, the total amount that you will receive is Rs. 8731.5

All transactions happen through MasterCard/Visa Credit Card and Debit Cards; Net Banking option is not available on Paypal.

Can Paypal be my only payment gateway for all transactions?

No, unfortunately, due to RBI regulations, domestic transactions are not possible through Paypal. Therefore, only non – Indian customers can make purchases through your Paypal account.

However, your international customers can purchase your products and maintain the shipping address anywhere in India.

How long does it take for the amount to be reflected in my bank account?

Any transaction done through Paypal will be reflected in your bank account within 5-7 working days since the date of the transaction. However, for security reasons, Paypal has a 3 Step Criteria which mbe met before the said transaction time gets approved.

The three criteria are:

a. 20 transactions will be kept on hold till 21 days before the processing starts

b. A total amount of $200 has to take place from your account.

c. Your account must be 60 days old from the day of first transaction.

Once these criteria are met, you will be receiving your payments within 5-7 working days as promised by Paypal.

Does Paypal protect me from fraud ?

If you are worried about online fraudulent transactions or chargebacks, then relax, Paypal has introduced Seller Protection for the same.

Seller protection keeps you safe from Chargebacks and false claims of items not received. This is a free service that you can avail in case of tangible physical products.

All you need to do in such an event is provide a copy of the proof of delivery of the product and Paypal will work its way out to help you through. Make sure that the products you sell are shipped only to the address mentioned in Shipping Address section of the transactions page and not any other address.

How good is the customer service of Paypal?

Their support system maintains a 24 hour response time for Email and you can also reach them through their toll free support number: 1-800-212-3852

Can I integrate Paypal on my online store?

Yes, you have the option of using Paypal on your Zepo Online Store.

To integrate Paypal on your Zepo dashboard you can read the solution from our support knowledge base.

How do I get a Paypal account for my online store?

– Go to Paypal and select the Open a Business Account and then Get Started for free option.

– You can choose to sell under an individuals name or under your company’s name.

– After choosing the type of account you will have to fill the details like your name, address, phone number, etc.

– To receive payments, provide your PAN card, Bank Account and Purpose Corde details. The Purpose code is an option wherein you select the nature of the products that you intend to sell across borders.

– Paypal will transfer two small amounts of money to your bank account which you will have to enter to verify your account.

– Once these formalities are done, you can start accepting payment through your Paypal account.

 With this, we hope you get an idea about Paypal and how to proceed with it.

Happy Selling 😀

Looking to sell internationally? Give Zepo a try and start your online store in the next 5 mins. Sell to your customers across the globe.


Yes, I’d Like to Sell International with my Online Store

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Satat Mishra

Satat Mishra

  • Hi Hamida,

    There are legal requirements as such for selling online. They’ll more or less depend on what kind of products you’re looking to sell online. If you could tell us more about what you intend to sell, we could give a more detailed response.

  • Hamida

    What are the legal requirements for selling online?

  • Hi Rakesh,

    From experience, you can go ahead with the transaction. We don’t think there should be a hold-up. These are precautionary measures to check for fraudulent accounts and may not be put into action.

  • Rakesh Sarangi

    I just have to receive a one-time payment of $100. Won’t it be possible? The post says that 20 transactions will be kept on hold.