Hi, I’m planning to build a small ecommerce website. The products would be delivered to Indian addresses, but orders can be made from anywhere in the world. The amount would ultimately be credited to the seller’s bank account in India (in Indian Rupees). I’m considering Paypal’s “website payments standard†as it is the cheapest option that I have. I have some basic questions about Paypal payments, and credit card transactions in general. Please look at the Math below. I'd be happy if someone here can answer my questions. Suppose a buyer from India purchases a product on my site costing 100$/5000Rs. Paypal would levy a transaction fee of 3.4% + 0.30$ which amounts to 3.70$. So, 100-3.70=96.30$ would be credited into my Paypal account at the end of the transaction. Is that all or are there any more deductions imposed by Paypal? When I withdraw the amount, I understand that I’ll get the INR equivalent of 96.30$ on that particular day. Since this is less than 7000Rs, Paypal will levy a withdrawal fee of 50Rs. When the amount gets transferred into an Indian bank account, will the bank add any further service charge, education cess, conversion charges, etc.? If yes, how much (in %) would these additional deductions sum up to? How much would the buyer’s credit card be charged in total? Will it just be 100$ or is there a forex factor involved as his Indian credit card is being charged in USD? Can you tell me, in %, how much is this charge? Finally, one basic question about credit cards. Lets say I buy something online for 100$/5000Rs. Paypal/Merchant's bank contacts the credit card company and the credit card company authorizes the payment. The item gets shipped. When would the amount be credited into the merchant's account? If that happens exactly at the time of purchase, the merchant would get 100$/5000Rs. But if that were to happen after 2days, and lets say the $ value drops to 48 Indian Rupees after 2 days. So, will the credit card company just transfer 100$/4800Rs to the merchant's account or will it transfer 5000Rs? This might sound silly, but I had this doubt since some of my credit card transactions appear with a latter date on my statement. I have never used my US credit card for purchases in India, so I don't know how it works. Paypal Gurus, pls clarify! Thanks in advance.
Adding one more question: Paypal does not accept payments in Indian currency. So, even though the price of the products on my website is displayed in Indian Rupees, when the payment is actually being made, Paypal would charge the customer's credit card with the US Dollar equivalent of the price in Indian Rupees. Two cases arise: 1. Indian buyer buys with his Indian credit card. Will there be a foreign transaction rate charged by his credit card company, in addition to the price of the product purchased? If yes, how much (in %) is that? 2. US buyer buys with his US credit card. Will there be any extra charges imposed by his credit card company, in addition to the price of the product purchased? Can an Indian (living in India) have a international credit card in US Dollars? If yes, then if he were to make a purchase with that credit card, would there be any extra charges?