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Help with Paypal fees

Discussion in 'Business & Tax Advice' started by dragonme, Jun 7, 2017.

  1. dragonme

    dragonme Newbie

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    I started a fiverr like site using one of the available scripts online . Revenue model is that I take 10% of the job purchased , 10% goes to affiliate and 80 % goes to the buyer.

    Here is where the real problem comes. I live in India, so whatever money that comes into my paypal account gets automatically transferred to my local bank as Indian paypal accounts are not allowed to hold money in their wallet

    So when a buyer purchases a service for 100$. I receive 95.3$ in my paypal account ( Paypal transfer fees 4.4% + $0.30 USD) and 5,908 rupees gets transferred to my bank account ( 1$= 62 rupees , this includes paypal conversion fee). Seller gets the 80$ in site credit in his account and the affiliate gets 10 $ credit.

    When they both withdraw money from my site , I manually send them through paypal ( Now the exchange rate is 1$=67 rupees) So totally I send them 90*67= 6,030 rupees .

    My total profit is 5908-6030 = -122.
    I end up making a loss of Rs 122 ( Nearly 2$ ) instead of making a profit.

    Moreover I am not able to accept payments from Indian users as paypal does not allow transactions within India.

    Here are my questions
    1.Will buying a verified non Indian paypal account solve my problems ?
    2.Is it safe to buy paypal accounts ? If yes, where can I buy one.
    3. Can I use personal account for this purpose as I can avoid transfer fees ?
     
    Last edited: Jun 7, 2017
  2. MrBusiness

    MrBusiness Newbie

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    Option 1 : You split the rest between the affiliate & buyer using the Rupees rate of the day you received the money.
    Option 2 : You keep using only one currency / Stop using PayPal