TL;DR
- Stripe India: best developer experience, all major foreign cards, ~3.5% MDR. Default for SaaS.
- Razorpay International: works if already on Razorpay, settles to INR, similar fees.
- PayPal: still widely accepted, but 4.4%+ fees, slower settlement, painful disputes.
- FIRC: needed to prove forex receipt for tax purposes. Most gateways issue automatically now.
The 3 main options
Stripe India
Stripe India launched mid-2022, expanded card and UPI support through 2024-25. By 2026 it's the default for Indian SaaS selling internationally.
- Cards: Visa, Mastercard, Amex, Discover. Most international cards work.
- MDR: ~3.5% on international cards (vs ~2% domestic).
- Settlement: T+7 default, T+2 on volume. Settles to your INR bank account at RBI reference rate (no FX rate gouging).
- FIRC: Auto-issued via dashboard.
- Developer experience: Best in class. Webhooks reliable, docs excellent.
Razorpay International
If you're already on Razorpay for domestic, adding international is a settings toggle.
- Cards: Visa, Mastercard, Amex.
- MDR: 3% + ₹5 per transaction.
- Settlement: T+3 to T+5.
- FIRC: Auto-issued.
Pick if: you're already deep on Razorpay and don't want a second integration.
PayPal
PayPal is still the de facto choice for B2B services and freelancing — many US/EU clients prefer paying via PayPal.
- MDR: 4.4% + fixed fee per transaction (varies by country).
- Settlement: Held in PayPal balance; you withdraw to bank (T+1 to T+5). FX cut taken at withdrawal — known to be ~3% worse than mid-market.
- FIRC: PayPal does provide it, but the process is clunkier than Stripe/Razorpay.
- Disputes: Skewed strongly to buyer. PayPal disputes can freeze funds for 30-180 days. Painful.
Use only when: a specific client insists on PayPal. For everything else, Stripe.
FEMA compliance — what you actually need
RBI's FEMA (Foreign Exchange Management Act) governs how Indian residents accept foreign currency.
The minimums for SMEs and SaaS receiving forex
- Authorised Dealer (AD) bank account — your business bank that handles forex. Most major Indian banks (HDFC, ICICI, Axis, SBI) are AD Category-1.
- FIRC (Foreign Inward Remittance Certificate) — issued by your AD bank or gateway, proves forex receipt. Required for IT services exports tax exemption claims.
- Purpose code — when forex hits your account, your bank assigns a purpose code (P0802 = software services, P0805 = consulting, etc.). Wrong code = wrong tax treatment.
- EEFC account (optional) — Exchange Earner's Foreign Currency. Lets you hold up to 100% of forex earnings in USD/EUR for up to 1 month before converting. Useful if you have USD outflows (international SaaS subs, contractors).
If you're an LLP / Pvt Ltd exporting services
You can claim Section 10AA (SEZ) or other export benefits if structured right. Speak to a CA. Don't DIY — the paperwork at year-end is brutal if records are wrong.
What gateways handle for you
| Stripe India | Razorpay Intl | PayPal | |
|---|---|---|---|
| FIRC auto-issued | ✓ | ✓ | ✓ (manual download) |
| Auto-conversion to INR | ✓ | ✓ | Optional (you choose) |
| Purpose code handling | ✓ (defaults to P0802) | ✓ | You set on bank end |
| FX rate quality | RBI ref rate (best) | RBI ref rate | ~3% worse than mid-market |
Common mistakes
- Receiving forex into a personal account: classic founder mistake. Everything must go to a registered business account with AD-1 bank.
- Not collecting FIRC every month: at year-end your CA needs FIRCs for export tax exemption. Download monthly.
- Pricing in USD with no INR display: lose Indian customers. Use IP-based currency switching.
- Ignoring chargeback windows: international cards give buyers 60-180 days to chargeback. Keep funds in reserve for high-risk categories.
For Indian SaaS clients selling globally, our default stack: Razorpay (domestic) + Stripe India (international) + Chargebee (subscription orchestration on top). Two gateways, one billing layer, no operational mess. See SaaS MVP playbook →
FAQ
Can I receive payments to a Wise / Payoneer account?
Yes, but with caveats. They route through their own AD bank infrastructure. FIRC issuance is reliable; speed depends on the platform. Many freelancers use this. For an incorporated SaaS, Stripe directly is cleaner.
What about crypto?
Receiving crypto for services is a regulatory grey area in India in 2026. RBI is unfriendly; tax treatment is punitive (30% flat). Avoid for B2B services. If you must, route through a regulated exchange and convert immediately to INR.
Last reviewed: 16 April 2026 · FEMA rules and gateway features change quarterly. Confirm with your CA for filing.
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