Payments USA: Simple Guide for Indian Entrepreneurs
If you’re selling Indian products to the United States, the biggest hurdle is often moving money without a headache. You need a way to accept dollars from American buyers, pay suppliers, and keep everything legal. Below you’ll find the basics you can set up this week, no jargon, no endless paperwork.
Choosing the Right US Payment Processor
First, pick a processor that works for cross‑border deals. Stripe, PayPal, and Square all let you create a US‑based merchant account even if your business is registered in India. The steps are similar: sign up, verify your identity, and link a US bank account or a virtual one like Payoneer.
Why a US bank account matters? It reduces conversion fees and speeds up payouts. Many processors let you open an account remotely, but you’ll need documents such as your business registration, PAN card, and proof of address. Keep scans handy and be ready for a quick video call.
Next, compare transaction fees. Stripe typically charges 2.9% + $0.30 per successful charge, while PayPal can be a bit higher for international cards. If you sell high‑volume, low‑margin goods, look for a processor that offers volume discounts or a flat‑rate plan.
Don’t forget currency conversion. Some platforms convert dollars to rupees automatically, taking a 2‑3% markup. A better approach is to keep the money in USD until you need it, then use a service like Wise for cheap conversions.
Avoiding Common Payment Mistakes
One mistake many Indian sellers make is ignoring compliance. The US has strict AML (anti‑money‑laundering) rules, and processors will flag unusual activity. Keep clear records of every sale, shipment, and refund. If a big order looks out of the ordinary, be ready to explain it.
Another pitfall is not setting up proper tax handling. When you sell to US customers, you may need to collect sales tax in certain states. Services like TaxJar can automate this, but you still need to register for a sales tax permit in those states.
Chargebacks are another headache. American shoppers can dispute a charge within 60 days. To reduce risk, use tracking numbers, keep detailed invoices, and consider adding a small verification step for high‑value orders.
Finally, test your checkout flow. Use a real US credit card (or a test card from the processor) to confirm the payment goes through, the receipt looks right, and you get the expected confirmation email. A smooth checkout keeps customers from dropping out at the last second.
In short, start by signing up for a US‑friendly processor, verify your documents, link a US bank account, and watch your fees. Keep your records clean, stay on top of tax rules, and protect yourself from chargebacks. Follow these steps and you’ll move money between India and the USA without the usual stress.
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