Earn Money Online

How to receive Money Online in India – 2015 Paypal Review

So you are thinking about working from home in India or have just found your first online job after or your cousin Venky who now lives in the United States and earns in US$ wants to return you the money that you lent him during your college days ?

Don’t worry, every blogger and Internet Entrepreneur since the dawn of the Internet has faced this dilemma. Today we have dozens of large online money transfer companies and start-ups in India who allow you to send and receive payments online but the million dollar questions still is

How do you securely receive money online in India with minimal transaction costs ?

You could receive money online through any of the dozens of services, but which is the best ? You might have a zillion other questions about receiving your first online payment, some of these might be :

  • How will the money be transferred into your bank account ?
  • What will be the conversion rate for US$ to Indian Rupee ?
  • What will be the transaction cost per transfer ?
  • How many days will it take to receive the money into your bank account ?
  • Do you need a Bank account to receive the money ?

In this article we will explore the answers to all these questions and more.

We will explain how easy it is to receive your first online payment from outside India. If you want to transfer money within India, you can use the local bank network comprising of private and public sector banks such as ICICI Bank, State Bank of India, HDFC Bank, Axis Bank , Canara Bank and others which are quite efficient and have a good branch network across India.

paypal india

Paypal has emerged in the last decade as the biggest and most reliable payment service online and is used by millions of entrepreneurs and freelance workers online. Paypal was started in 1998 and is an American company founded by the now famous Elon Musk. It was acquired by eBay in 2002 . We strongly recommend that you use Paypal as your first choice to receive payments online as it is currently the worlds largest online digital wallet and in 2014 transferred more than US$ 200 billion across 190 nations around the globe.

The company provides International Digital Wallets that allow you to receive and make payments online securely and without any hassles. They also have strong anti-fraud checking systems in place. Moreover if you feel you have been cheated you can always reverse the transaction and ask for a refund by opening a dispute at the Paypal Resolution Center.

Follow the steps below to receive your first online payment in India

First head to https://www.paypal.com/in/home the Paypal website for Indian users and click on the Sign Up button at the right upper corner of the screen. You will then be taken to the next screen which will appear as below :

paypal individual accounts

Click on the Get Started button under “Accounts for Individuals” if you want register the account in your name , if you have a registered proprietorship, firm or company and want to open a Paypal account in it’s name then choose “An Account for Businesses“.  After clicking on Accounts for Individuals you will be transferred to the next screen, where you will be required to enter your personal details such as Name, Date of Birth, Address, Mobile no etc. Kindly fill these up.

paypal registration screen

At this stage you might be asked for your credit card or debit card details. If you intend to use Paypal to make purchases online then you can provide this information or else you can skip it as it is an optional feature. Once you have filled in all the details click on the Agree and Create Account at the bottom of the page. You will receive a confirmation email from Paypal shortly.

Now you have a Paypal account for free which can be used to send and receive money from around the world.

Now follow the steps outlined below to receive your first payment online.

Log in to your newly created Paypal account and click on Request Money tab that you will see in the middle of the screen. Then click on the Request Money button below the navigation bar.

request money online

Next proceed to enter the email details of the person who has to make a payment to you and the amount that is required to be paid. Once you have filled in all the details click continue and Paypal will send an email to the person requesting money on your behalf.

Your employer can then make the payment online using his debit or credit card. When the payment is done you will receive an email confirming the amount that has been transferred to your account. Alternatively you can also ask your client to pay money to your email account which you have used to register for Paypal.

Once you receive the money you can withdraw it to your bank account by adding your Bank Account Information . To add a bank account to your Paypal account click on My Account –> Profile –> Link/Edit Bank Account.

After you receive money into your Paypal account it will be automatically be transferred to your bank account as per RBI guidelines.  It will take 3-4 days for the money to be credited in to your bank account. If there are any holidays in the US or India , then it might take an additional 2-3 days. Also bank’s don’t work on weekends so no transfers take place on Saturday and Sunday. I have also noticed that Private Banks in India are better at handling international transfers compared to Public Banks.

You need a bank account with a debit card issued by Visa or Mastercard to receive payments from Paypal. If you do not have a bank account you can open one now under the Jan Dhan Yojana.

Paypal India Fees – RBI Guidelines

Since Online Money Payments in India are subject to RBI Guidelines , Paypal India has several restrictions in place . Some of these are :

  • Paypal will deduct 4.4% of the amount you receive + $ 0.30 USD per transfer. So if you receive a payment of US $100 from your client, $ 4.40 + $ 0.30 = $ 4.70 will be deducted and you will receive $ 95.3 into your account.
  • PayPal account holders in India cannot receive payments exceeding $10,000.00 per transaction.
  • The money received cannot be used to make online purchases and has to be compulsorily withdrawn to your bank account as per RBI Guidelines. RBI has made it mandatory for compulsory withdrawal into your bank account because if users spend it then RBI cannot get any information about the transaction and it will result in creation of black money and money laundering.
  • The Currency will be converted at the prevailing market rate from US$ into Indian Rupees. You might also be charged a fee for conversion. Some Indian users of Paypal have complained about these fees in the past.

If you have any more questions about how to get payments online in India , do contact me or leave your feedback in the comments section below.

66 Comments

66 Comments

  1. Bhargav

    March 3, 2015 at 12:07 pm

    hello sir,
    online jobs as in amazon mechanical turk there are many HITs available which give rewards from $0.01-$0.10 and also more but with min. Wages given what will be the end price we receive after the 4.4% deduction + 0.30$ per transfer? As u can see the amount being deducted for transfer is more than the amount paid! Pls respond!

  2. Abhay Nayak

    Abhay Nayak

    March 4, 2015 at 9:55 am

    The fees will be deducted from total earnings and not from per HIT. Once your perform say 500 hits at the rate of 0.10 hits you will earn US$ 50, from this 4.4% + 0.30$ as trasnfer fee will be deducted.

  3. Bhargav

    March 4, 2015 at 12:32 pm

    Thank you sir!

  4. vinod kumar singh

    March 9, 2015 at 4:32 pm

    hello sir

    how type of works can we do for it. please advice me.

  5. aaftab

    March 13, 2015 at 11:08 am

    Next proceed to enter the email details of “the person who has to make a payment to you” and the amount that is required to be paid.”
    that person ..how will i get that person or customer ??

  6. Rakesh

    March 22, 2015 at 11:29 am

    Hi,
    Paypal is very helpful for me receiving payments from seoclerks and fiverr.
    Good post:)

  7. vaibhav

    April 10, 2015 at 8:04 pm

    helooo sir paypal has stopped the payments to and from INDIA then how can i get money in INDIA
    plz clarify sir it is so urgent to know
    and Is PayPal Income Taxable in India
    If we are earning web income through BlogAds, Text Link Ads, eLance, eBay or any other program where the money is deposited in PayPal,
    urgent reply sir

  8. Rashmi

    October 1, 2015 at 9:59 pm

    Hey,c
    Having a bank account is essential to get registered for PayPal.??

  9. K R Sheshadri

    October 24, 2015 at 8:23 pm

    the 4.4%+$0.30 is cost of transfer only (for received amt) or it includes cost of conversion from $ to INR. Do I have to pay again charges to my bank for transfer of this above dollars into my bank account? Is it not double charge? Pl. clarify.

  10. Lucky Eddy

    October 28, 2015 at 2:02 pm

    Hello Sir.
    Thank you for your article. It is most helpful. But I have one minor doubt that I want to clear up. I will be receiving some money via PayPal. Now my bank account that is linked to my PayPal account has not issued me a MasterCard/Visa Debit Card. It is actually a RuPay Debit Card. Will this factor affect my ability to receive the money?
    I should inform you that I have NOT linked my Debit Card with PayPal and I don’t want to. Please advise as soon as possible.
    Regards.

  11. Abhay Nayak

    Abhay Nayak

    October 29, 2015 at 3:19 pm

    Hello Lucky

    I don’t think paypal accepts Rupay Debit Cards. I don’t think you can receive money online until you link it to a Visa/Mastercard.
    Go to the Paypal Support forums and open a thread they will respond to your queries. Paypal Community Help.

  12. pravin chaudhary

    November 11, 2015 at 11:43 am

    dear sir,
    i have already added successfully hdfc bank paltinum chip debit card(visa card) and payment also send but payment not receive in my paypal account and paypal send one this mail said “your PayPal transaction was declined – here’s what to do” and more detail in email “You recently tried to pay with PayPal but the transaction was declined because your debit/credit card provider did not allow it to go through.” please help me and resolve my problem…

  13. Make Money Online

    Make Money Online

    November 11, 2015 at 12:57 pm

    Hello Pravin

    You should contact the bank that issued the card to know why this transaction was rejected.
    To prevent misuse of cards some banks disable online transactions on cards. Check with your
    bank if there is any such limits placed on your card.

    Regards

    Abhay

  14. pravin chaudhary

    November 11, 2015 at 5:31 pm

    dear sir,
    but my debit card is already enable to online international transaction and also online international limit is 50,000…..so what is the problem to not receive the money my paypal account

  15. Make Money Online

    Make Money Online

    November 11, 2015 at 5:44 pm

    You can try contacting the Visa Helpline below, they might be able to assist you further

  16. Make Money Online

    Make Money Online

    November 11, 2015 at 5:45 pm

    There is also a possibility that some settings in Paypal might need to be changed do login into your account and verify all settings and check to see the default payment option is Indian Rupees.

  17. pravin chaudhary

    November 11, 2015 at 7:42 pm

    dear sir,
    which kind of settings are changed and my Manage Currencies setting is US Dollar is primary currencies….please help me and resolve my problem …..
    please provide your email id or contact number i need help sir

  18. Abhay N

    Abhay N

    November 11, 2015 at 8:11 pm

    Hello Pravin

    I could provide you my email id but I don’t think I will be able to resolve your problem. Do contact paypal support staff by email by logging in to your account and then clicking on the following link :https://www.paypal.com/selfhelp/contact/email.

  19. pravin chaudhary

    November 11, 2015 at 8:36 pm

    ok sir,
    your paypal account you which bank account and which debit/credit (with full name of card type) card added and there is successfully work?

  20. pravin chaudhary

    November 12, 2015 at 9:52 am

    dear sir,
    paypal accept indian local bank account(national level bank) or required bank swift code? please reply me

  21. Neha @I2IFunding

    November 27, 2015 at 4:55 pm

    Does we have any other similar money transfer sites like paypal?

  22. Naveen Gaba

    December 7, 2015 at 11:02 am

    Hi, How much maximum money, we can receive against export per month and yearly. We have to pay any taxes on this amount ? Should i have to inform something to RBI or any other financial institutes regarding receive of payment.
    Awaiting prompt response. Thanks

  23. Naveen Gaba

    December 7, 2015 at 11:04 am

    hi,after receipt of payment thru paypal, can we send goods as commercial shipment & get drawback ? whats the export procedure for this?

  24. Abhay N

    Abhay N

    December 9, 2015 at 12:26 pm

    Paypal allows you to receive money directly into your bank account. So if will reflect in your bank account statements and you will need to disclose what type of income it is when you file your returns and pay the required tax on it. You don’t have to report anything to RBI.

    The maximum money you can receive for a new paypal account is US$10,000 per transaction. This feature is enabled once you verify the account using a debit card and link it to your bank account. Once this is approved then the limitations are removed and you can transact high volumes with a limit of US$ 10,000 per transaction.

    For more details refer to RBI notification
    http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8030&Mode=0

  25. Abhay N

    Abhay N

    December 9, 2015 at 1:23 pm

    You should contact paypal support or call their international helpline number they can provide you the details.

    Regards

    Abhay

  26. jack

    December 30, 2015 at 10:12 am

    We sell PayPal dollars and exchange $$$ from Skrill,
    Payoneer, Bank Wire, Western Union, MoneyGram and other third parties to PayPal,
    So Please contact us via Skype

  27. ravi roy

    February 12, 2016 at 4:58 am

    Hello abhay! can personal accounts receive payments over paypal now? cause i heard there is a lot of fuss between RBI and paypal lately.

  28. Abhay N

    Abhay N

    February 12, 2016 at 10:41 am

    Hello Ravi

    Yes, you can receive money into your paypal accounts but RBI currently doesn’t allow Indian Paypal users to accept payments from other Indian users. You can accept payments easily from foreign paypal users.

    Regards

    Abhay

  29. Sneha

    February 24, 2016 at 10:46 am

    Hi,Abhay, I am a freelance health writer in USA’s health magazine & on health website.So my question is PayPal is a safe method to receive money from USA or any other country? Can any one widraw money from my PayPal account without my notice?
    Thanks:Abhay
    Sneha

  30. Abhay N

    Abhay N

    February 25, 2016 at 1:43 pm

    Yes you can receive paypal money from anywhere in the world including the US. No body can withdraw money from your account unless your password is know to them. Also Paypal India has an auto debit feature where every payment you receive will be automatically credited to your bank account in India.

    Regards

    Abhay

  31. kasim hasan

    February 25, 2016 at 10:05 pm

    How to add rupay debit card in paypal

  32. Anita Gopinatb

    March 9, 2016 at 6:36 pm

    Hi could you confirm that a Swift Code etc to recieve international remittance is not required …..or a separate foreign currency account. …

  33. Nuzzo

    March 12, 2016 at 12:35 am

    Hello Abhay, would you recommend having Auction Essistance open me an account in a different country to avoid India restrictions?

  34. Abhay N

    Abhay N

    March 20, 2016 at 3:00 pm

    Sorry , I am unable to understand your question, please re-frame it ?

  35. Abhay N

    Abhay N

    March 20, 2016 at 3:06 pm

    Hello

    I can confirm no swift code is required as Paypal procures the information directly from the bank.

    Regards

    Abhay

  36. John

    April 3, 2016 at 5:13 am

    Abhay ,
    i do website designing and i am planning to get some projects from overseas like US , Can , Aus and UK .
    i don’t have a business bank account here in India and i wanted to know if i can use PayPal to get paid , how and when will i be able to get the money into my bank Account what all information do they require and can they also block my money , because i have come across places where people complaint that PayPal did not pay their money though the recieved it in their Account.

  37. Abhay N

    Abhay N

    April 3, 2016 at 9:40 am

    You don’t need a business bank account to receive money in India, you can accept payments in your savings account. If you are working from overseas then you should open an account in the country of your residence. Paypal rules differ from country to country depending on the guidelines issued by the banking regulator. In India, the banking regulator has made it mandatory that for all payments received, they have to be first transferred to a bank account. In other countries you can use Paypal as a wallet and use payments received online to make purchases. RBI has introduced these guidelines to prevent money laundering as cross border transactions remains unaccountable unless credited to your bank account.

  38. Surendhar

    April 14, 2016 at 3:13 am

    Hi,
    When I receive payments from my us clients via PayPal the amount is added to bank account and I pay my taxes in India for the income I received online. There are several customer in us paying for the service we offer through PayPal. My question is do I have to pay tax in US.

  39. Abhay N

    Abhay N

    April 14, 2016 at 10:41 am

    No you do not have to pay Taxes in the US. Taxes will be applicable only if you are a US citizen or you are living in the US under a Work Visa. Tax will also be applicable if you are withdrawing the amount to a bank account in the US.

  40. Shridhar Tandale

    April 30, 2016 at 5:33 pm

    We wish to use Paypal extension for sell of digital products for our client website. Will there be any problem in getting payment deposited in INR in clients account.

  41. sandip sharma

    May 3, 2016 at 1:41 pm

    Excellent …thanks for the detail explanation…Now as i am first time user i am little worried about few thing …Money matters a lot 🙂

    1) It says linked with card —i tried to do it with my Visa and it says we cant link this card ..dont know why ? if you have any idea then please share ..

    2) It is mandatory to share bank details for the withdraw ?

    3) What after i receive payment in account it says you need these details https://www.paypal.com/in/webapps/mpp/firc-certificate kindly share this is one time or every time we have to do this ..

    Thanks
    Sandip Sharma

  42. Abhay N

    Abhay N

    May 5, 2016 at 9:59 pm

    Hello Sandip

    Which bank’s debit card are you using ? ICICI and HDFC are easily accepted. SBI and other PSU banks usually block the card for international usage. Check with your bank.

    Yes, you can only withdraw money by bank. There is no other alternative.

    The foreign inward remittance certificate that Paypal is asking for is new, I never faced this requirement with my individual account. Have you registered for a Paypal account for your business firm, such as a pvt ltd company ? Then probably this is a new requirement. It is best that you contact paypal support.

    Regards

    Abhay N

  43. Nikhil Sontakke

    May 15, 2016 at 7:29 pm

    Hey thanks for article

    I started new PayPal account and asked my US friend to send few dollars. He send it under personal payment. But he couldn’t send it and it gives error that this person not allowed to receive personal payments.

    Can’t we receive personal payments in India? What if we helped someone with something or did some work and he willing to send some money?

  44. Abhay N

    Abhay N

    May 17, 2016 at 10:26 am

    You should be able to receive money from your friend. There could 2 scenario’s in which you will not be able to get the money.

    Your US friend has a Paypal India account ? In that case Paypal does not allow Indian users to transact among themselves.
    Another factor could be that you have not verified your account. Have you connected your account to a bank account and a debit card ?

  45. Ana

    May 24, 2016 at 8:19 am

    It looks like Paypal stopped the “Personal Payment Service” to and from India as of August 2015

    Could anyone tell me if a vendor in India can receive a payment in TWD (Taiwanese dollars)? Or if it has to be in US dollars?

    many thanks!

  46. Nil

    June 4, 2016 at 2:07 pm

    Hi abhay
    Can I know Rupay debit card is accessible for transferring the money from PayPal account?

  47. RAMU RAMISHETTY

    June 8, 2016 at 10:50 pm

    Abhay garu, thanks for concern in sharing the most useful information, with your motivation i have joined UPWORK.

    Works in UPWORK are challenging and very tempting. Unfortunately I am unable to Find jobs as my profile is yet to be approved. For three times i have resubmitted the profile but it is not approved.

    Is switching to “Freelancer Plus” membership plan helps ? Can you suggest me how to proceed further. Please help.

  48. VG

    June 10, 2016 at 11:29 pm

    I used to get paid in USD for work done for a Turkish company. Apparently paypal is not functioning in Turkey anymore. What is the next best way to get payment from Turkey to a bank account in India?

  49. Abibi Hassan

    June 15, 2016 at 8:12 am

    I cannot verify my PayPal since I cannot get my own card. Would you recommend getting a PayPal VCC from Auction Essistance?

  50. Abhay N

    Abhay N

    June 16, 2016 at 8:03 am

    Hello Hassan

    I am not sure if it will work ? I looked up the method and many users have been successful in using
    a Virtual Credit Card to register on Paypal but in India the banking system is highly regulated. So
    I would suggest you open a bank account and get a debit card. The VCC could be cancelled anytime if
    Paypal finds out.

    Regards

    Abhay

  51. manoj kumar

    July 3, 2016 at 4:03 am

    hi abhay
    i do not own a account yet im a student but i started to earn through online from foriegn clients ,i know that hdfc and icici would work good for paypal
    but my father is saying that we can only open bank accounts where we know someone to put security signature ..as this is the case
    my family members account is not in hdfc or in icici ..will i be still able to open a account
    another question
    what type of card should i get to attach withpaypal accounts
    (there are many cards called platinum ,silver etc i dont know which to choose )

  52. Abhay N

    Abhay N

    July 4, 2016 at 9:37 pm

    Yes, you can open account at any bank. The referrer for security is no longer asked in banks. You should not face any problem opening with ICICI Bank. I have ICICI platinum debit card and it works fine with paypal. You can consider getting it ?

    Regards

    Abhay

  53. MADAN MISHRA

    July 18, 2016 at 10:31 pm

    What are the transaction fees Indian banks charge for crediting or depositing money transferred from PayPal? Are the fees fixed and vary with amount of deposit?

  54. Tamal B

    July 19, 2016 at 1:18 pm

    Hello Abhay N,
    Its really great to get such support from you. I am facing a problem with my newly created PayPal account. I was supposed to receive a small amount from US against my services they had. But it seems that PayPal has set its policies for Indian market in a different way; they do not allow personal payments.Since I don’t own any company, I am a bit confused on how to receive the fund. I had issues confirming my Bank Account which the customer service has promised to solve but I need help and an idea, on the issue that I mentioned above, from someone like you. Please look into the matter. By the way you are doing a great job Abhay.

  55. sugandha chejara

    August 16, 2016 at 2:20 pm

    Nice information sir, but many time paypal don’t accept payment from visa cards. I think there are some problem in their API.

  56. crazyseller

    August 20, 2016 at 12:52 pm

    hi guys , please dont use paypal to receive payments. i just got scammed by a buyer in usa. i sold a game account to him , after 2 days he filed a chargeback that he didnt receive the account. so paypal sent me a message with three options
    1.give the refund to buyer
    2.show the proof of refund if given by other than paypal
    3.show the transaction id and tracking number of the delivery

    what is wrong with paypal ? are those options any useful for a seller ?
    i sold an online game account , how am i supposed to have tracking number and transaction number for it ? paypal doesnt listen to my arguments. after two days they simply returned my money to the buyer and they show a negative balance on my paypal account which is paypal transaction fee. well done paypal. good job screwing with my account.

    i read in paypal community forum , even if the sellers provided the tracking number and delivery confirmation proof from the courier companies the buyer claimed fake or wrongly sent goods and got the refund , and kept the goods. wow what a loser paypal is.
    my advice if you are sending or receiving money in between family members any money transfer method is safe. but if you are selling, listen carefully , you are the seller or you need to receive payment from others , go for a safest method possible. never use paypal for selling.

  57. Abhay N

    Abhay N

    August 22, 2016 at 11:35 am

    You are right with regard to the charge back many buyers misuse the facility and request a refund. In the case of digital goods it is impossible to prove the deliver of the said goods. This is a risk of this marketplace. How much cash did you lose ?

  58. Pulkit

    August 28, 2016 at 1:27 am

    How to accept Paypal Payment from India to India.

    Paypal says that we can only receive International Payments.

    Please reply.

  59. Abhay N

    Abhay N

    September 5, 2016 at 5:10 pm

    Hello Pulkit

    You can receive Paypal payments to an India based account because of RBI guidelines. If you need to get money from Indian paypal users open a US or UK paypal account but this is quite cumbersome.

    Regards

    Abhay

  60. Kishore

    September 24, 2016 at 10:35 pm

    Hello Abhay,

    Thank you for great information but still have a few doubts.

    There is a deduction of 4.7% for withdrawing US$ from freelancing sites to your paypal account along with the prevailing market rate amount for conversion from UD$ to INR for withdrawing from paypal into your bank acoount, right!

    Now my question to you is, do i need to worry about any other taxes from the govt. after all the deduction mentioned above regarding any amount of money i earn from freelancing or any other online sites per month or per year.

    Thank you.

  61. Nadia

    September 28, 2016 at 6:44 pm

    Hi..i’m from Malaysia & want buy goods from India. The seller charge me Rs1500 as transactions deduction charge. When I ask him:”Transactions decuction charges for what purpose?” He answered :”When you will transfer amount bank will charges 1500 INR for incoming amount from out of india”.Is that true?

  62. Interested reader

    October 7, 2016 at 2:13 am

    If the Indian government blocks foreign currency India will have a disaster. Is there something being done to rectify that?

  63. Siddharth

    October 12, 2016 at 6:44 pm

    Can i add my salaried bank account to paypal or should i create one personal bank acccount? And if added the salaried bank account will it affect in some kind of tax or what?

  64. Ankur

    October 13, 2016 at 11:07 pm

    Hi abhay, can I use Xoom for receiving dollar from usa client.

  65. Abhay N

    Abhay N

    October 20, 2016 at 2:20 pm

    Yes you can get money transferred through Xoom money transfer.

  66. faizan

    November 2, 2016 at 5:00 pm

    sir there is option of purpose code and there are options given from which we have to choose. can you help which option should if i need it only for making money online or maybe for shopping

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