PayPal's fees can eat into earnings, especially for international payments.
Fee Structure
Domestic US: 2.99% + $0.49. International: 4.49% + fixed fee. Currency conversion: 3-4% markup. Use our [PayPal Fees Calculator](/calculators/paypal-fees-calculator).
Indian Freelancer Example
$1,000 invoice from US client: ~$44 PayPal fee + ~$35 currency markup = ~$79 total (7.9%). To net $1,000, invoice ~$1,085.
Minimize Fees
1. Invoice in local currency. 2. Compare PayPal's exchange rate with your bank. 3. Withdraw larger amounts less frequently.
Alternatives
Wise: 0.4-0.8% fee + mid-market rate (~$5-8 on $1,000). Payoneer: 2% + 0.5% conversion. Wire transfer: $15-30 flat (best for $5,000+).
Tax
All PayPal income is taxable in India. GST if turnover >₹20L. PayPal fees are deductible business expenses.