Question 1

Which payment gateway has the lowest fees for freelancers?

Accepted Answer

Wise (TransferWise) has the lowest fee at 1.5% for international transfers. For domestic payments, UPI and bank transfers are free. Razorpay and Cashfree charge around 2% for domestic transactions.

Question 2

Are payment gateway fees tax-deductible?

Accepted Answer

Yes, all payment gateway fees, including PayPal, Stripe, and Razorpay charges, are fully deductible as business expenses when filing your income tax return.

Question 3

Do I need to pay GST on international gateway fees?

Accepted Answer

Yes, GST at 18% applies on fees from international gateways like PayPal and Stripe under the reverse charge mechanism. This GST is also deductible as a business expense.

Question 4

How can I minimize payment gateway charges?

Accepted Answer

For amounts above $5,000, use Wise or wire transfer instead of PayPal. For Indian clients, use UPI or direct bank transfer. Negotiate volume discounts for high-value transactions.

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