I am thinking about using PayPal as a payment gateway, but one problem I have is that it does not directly support the currency that I need to use on the website (Indian Rupee). How do I go about this? q1. Is there any way to display prices in this currency (Indian Rupee)? If so, how? q2. Do I need to convert this to USD before the customer makes the payment? If so, how? Is there some kind of tutorial to set up PayPal payment form or process so that it seems that it support this currency not directly supported by PayPal (Indian Rupee)?
Yes I think there is a parameter in PayPal IPN script where you can set your default currency so no need to convert the INR to USD.
one way is also to have some kind of script that would calculate your currency to USD before payment is made.
Actually, I don't think it would really be a good idea to do this especially if your customers may see the discrepancy in the exchange rates or a different currency when they use their credit card to pay. All payments at Paypal will be done in the US$ or the currency you set up as default in Paypal. So it would be a good idea to show the actual US$ rate and if you want to add the Indian Rupee, place that only as an estimation.
this should be easy to program, you just need to have feed for current exchange rate and then you convert price in USD, of course it is good to have price also in USD so that client will know how much they would be charged from their paypal in USD