Most Indian businesses know their payment platform's stated rate. Very few understand their actual all-in cost. Cross-border payment fees for Indian businesses are layered — there are processing fees, forex markup fees, settlement fees, platform subscription fees, compliance fees, and in some cases offshore entity compliance costs that add up to the true number.
This guide breaks down every category of fee Indian businesses pay on international payments, with real numbers for each major platform.
Layer 1: Processing Fees (The Stated Rate)
This is what payment platforms advertise. It's the first number, not the whole number.
International card processing (2026):
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Playto Pay: 4% flat
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Razorpay International: 3% base
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Cashfree International: 3.5% base
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Stripe (via US LLC): 2.9% + $0.30 per transaction
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PayPal receive fee: 4.4%
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Paddle/Lemon Squeezy/Dodo Payments: 5% + $0.50 VBA wire receipt processing:
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Playto Pay VBA: 1% flat
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Skydo: $19-$29 flat or 0.3% above $10K
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Razorpay Cross Border VBA: 1-2% base
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Wise: 0.5-1.7% (varies by currency) This is where most comparisons stop. It's where the comparison should begin.
Layer 2: Forex Markup (The Hidden Fee)
Forex markup is the spread between the mid-market exchange rate and the rate your payment platform actually applies when converting foreign currency to INR.
Why it's hidden: Platforms quote a processing fee percentage but don't always state the forex markup separately. The markup is embedded in the conversion rate you receive vs the rate you could have gotten.
How to calculate it:
- Check the mid-market USD/INR rate at time of settlement (Google or XE.com)
- Check the rate your payment platform applied (from your settlement statement)
- Difference as a percentage = forex markup Forex markups by platform (2026):
- Playto Pay: Zero forex markup (settles at mid-market rate)
- Skydo: Zero forex markup
- Wise: Near-zero (0.3-0.4% markup on USD/INR, varies by route)
- Razorpay International: 1-2% forex markup on top of base processing rate
- Cashfree International: 1-2% forex markup
- PayPal: 3-4% forex markup (the biggest hidden cost on PayPal)
- Bank SWIFT wire: 2-3% bank forex spread
- Stripe (via US LLC + Wise withdrawal): Wise conversion ~0.3-0.5% markup on USD/INR The PayPal example in practice:
PayPal advertises 4.4% receive fee. But their forex markup adds another 3-4% when converting USD to INR. Total effective cost: 7.4-8.4%. The receive fee is not the whole story.
The Razorpay International example:
Razorpay advertises 3% base rate. Add 1-2% forex markup: 4-5% effective. Not dishonest — the markup is disclosed in their rate card — but comparing their 3% to Playto Pay's 4% misses the point.
Layer 3: Fixed Per-Transaction Fees
Some platforms charge a fixed fee per transaction in addition to the percentage:
- Stripe: $0.30 per transaction (3% + $0.30). On a $10 transaction: effective rate = 6%. On a $1,000 transaction: effective rate = 3.03%.
- Paddle/Lemon Squeezy/Dodo Payments: $0.50 per transaction
- Skydo: $19-$29 flat (beneficial on large wires, unfavorable on small wires)
- Playto Pay: No fixed per-transaction fee (4% flat only) Impact of fixed fees at different transaction sizes:
| Transaction Size | Stripe $0.30 Impact | Paddle $0.50 Impact | Playto Pay No Fixed Fee |
|---|---|---|---|
| $10 | +3% (6% effective) | +5% (10% effective) | 0% |
| $50 | +0.6% (3.5% effective) | +1% (6% effective) | 0% |
| $100 | +0.3% (3.2% effective) | +0.5% (5.5% effective) | 0% |
| $500 | +0.06% (2.96% effective) | +0.1% (5.1% effective) | 0% |
| $1,000 | +0.03% (2.93% effective) | +0.05% (5.05% effective) | 0% |
Fixed fees punish low-ticket transactions severely. Playto Pay's pure-percentage model is most predictable across transaction sizes.
Layer 4: Platform Monthly Subscription Fees
Some platforms charge a monthly fee regardless of transaction volume:
- Playto Pay: ₹0/month
- Skydo: $0/month (fees per transaction only)
- Razorpay, Cashfree: $0/month for standard tiers
- Circle (community platform): $99-$419/month
- Stripe via Stripe Atlas: No monthly fee but US LLC maintenance Monthly fees add significant cost at low revenue. A $99/month platform adds $1,188/year. On $500/month revenue, that's 20% overhead before processing fees.
Layer 5: Settlement Fees and Withdrawal Costs
Some platforms charge to move funds from their platform to your bank:
- Playto Pay: No settlement fee (included in processing fee; daily INR direct)
- Skydo: No settlement fee (included in flat fee)
- Wise (to Indian bank): No additional fee once funds are in Wise account; the conversion fee is included in the percentage
- Deel (SWIFT withdrawal): $20-$30 flat withdrawal fee
- PayPal (to Indian bank): No withdrawal fee, but PayPal forex markup applies on conversion
- Stripe (US LLC) to Indian bank via Wise: Wise conversion fee ~0.3-0.5%
Layer 6: FIRA Request Fees
For Indian businesses, FIRA documentation per international transaction is required for GST compliance. Some platforms charge for this:
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Playto Pay: Auto-generated, ₹0
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Skydo: Auto-generated, ₹0
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Wise: ~$2.50 per manual FIRC request
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Payoneer: Manual request, operational cost
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Bank SWIFT: Manual request to bank, ₹200-₹500 per certificate at some banks At 50 international transactions/month:
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Playto Pay: ₹0 FIRA cost
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Wise: $125/month FIRC fees
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Bank SWIFT: ₹10,000-₹25,000/month FIRA costs
Layer 7: Offshore Entity Compliance Costs
For businesses using Stripe via offshore US LLC:
- US LLC incorporation (one-time): $500-$2,000
- US registered agent: $100-$300/year
- US tax filings (Form 5472, 1120, state): $500-$2,000/year via US CPA
- US banking: Mercury/Brex has no monthly fee for standard usage
- Transfer to Indian entity (Wise): ~0.3-0.5% per transfer Total offshore entity overhead: $1,000-$3,000/year (not including Stripe processing fees). On $5K monthly international revenue, this adds ~1.7-5% to your all-in cost annually.
Layer 8: Reverse Charge GST on Foreign Platform Fees
For Indian businesses paying fees to foreign-entity payment platforms:
- Paying Stripe, PayPal, Paddle, Lemon Squeezy, Wise fees may trigger Reverse Charge GST under Indian rules for GST-registered businesses
- RCM at 18% on service fees paid to foreign entities
- Example: $500 monthly Stripe fees = ₹42,000 × 18% = ₹7,560 RCM liability India-built platforms (Playto Pay, Razorpay, Cashfree, Skydo): No RCM trigger — both parties are Indian entities. Standard Indian GST invoice structure.
True All-In Cost Comparison
On $5,000 monthly international card revenue (100 transactions at $50 each):
| Platform | Processing | Forex Markup | Fixed Fees | FIRA | Monthly Sub | RCM GST | True Monthly Cost |
|---|---|---|---|---|---|---|---|
| Playto Pay | $200 (4%) | $0 | $0 | $0 | $0 | $0 | $200 |
| Razorpay Intl | $150 (3%) | $50-$100 (1-2%) | $0 | $0 | $0 | ~$27-$54 | ~$227-$304 |
| Stripe via LLC | $145 (2.9%) | $0 (no forex, USD) | $30 ($0.30×100) | $0 | ~$100 LLC overhead | ~$78 | ~$353 |
| Paddle | $250 (5%) | $0 (USD payout) | $50 ($0.50×100) | $0 | $0 | ~$135 | ~$435 |
| PayPal | $220 (4.4%) | $150-$200 (3-4%) | $0 | ~$12 (FIRC) | $0 | ~$135 | ~$517-$567 |
Playto Pay's true all-in cost is the lowest, and significantly lower than PayPal or Paddle when all fee layers are included.
FAQ
What are all the fees Indian businesses pay on international payments?
Processing fee (stated rate), forex markup (hidden spread), fixed per-transaction fees, platform monthly subscription, settlement/withdrawal fees, FIRA request fees, offshore entity compliance (if using Stripe via LLC), and Reverse Charge GST on foreign platform fees.
What is forex markup and how much does PayPal charge?
Forex markup is the spread between mid-market exchange rate and the rate applied during INR conversion. PayPal applies ~3-4% forex markup on USD/INR conversion on top of their 4.4% receive fee = 7.4-8.4% effective all-in rate.
Does Playto Pay charge a forex markup?
No. Playto Pay settles at mid-market rate with zero forex markup. The 4% flat processing fee is the complete cost on card transactions, with no additional conversion spread.
What is Reverse Charge GST on payment platform fees?
GST-registered Indian businesses paying service fees to foreign entities (Stripe, PayPal, Paddle, Wise) may owe 18% RCM on those fees. India-built platforms (Playto Pay, Razorpay, Cashfree, Skydo) are Indian entities and don't trigger RCM.
How do I calculate my true all-in payment cost?
Add: processing fee % + forex markup % + (fixed fees ÷ transaction size) + (monthly platform fee ÷ monthly revenue) + (FIRA fees per transaction) + (offshore LLC annual cost ÷ annual revenue) + RCM on platform fees. Sum = true all-in percentage.
Is Playto Pay really cheaper than Razorpay International?
On card processing: Playto Pay is 4% flat with zero forex markup. Razorpay International is 3% base + 1-2% forex markup = 4-5% effective. Playto Pay is generally 0-1% cheaper all-in on international card receipts.
Why is Stripe via US LLC not always cheaper than Playto Pay?
Stripe's card processing rate (2.9% + $0.30) looks cheaper, but adds US LLC annual overhead ($1,000-$3,000/year), Wise conversion fees (~0.3-0.5%) to get USD to Indian bank, and RCM on Stripe fees. Total all-in often exceeds Playto Pay for businesses below $20K monthly international revenue.
What is the cheapest payment gateway for Indian businesses receiving international payments?
For VBA wires above $10K: Skydo at 0.3%. For mixed card + wire at typical business scale: Playto Pay at 4% cards / 1% VBA, zero forex markup, zero FIRA fees, zero RCM trigger. PayPal is always the most expensive once all fee layers are included.