This I am writing from our experience of WorkMonk which we had with paypal. Most of the startup founders already know this but for those of you who don’t, there are some serious problems with using paypal as a mode of payment due to continuous change in paypal policies related to Indian accounts. You just can’t run a professional business with all the shenanigans that Paypal pulls but most of the businesses have no other option because of lack of other quality options.
If you are a startup in India who get payment from abroad, you can and should never trust paypal as the only payment option on your site and should move to Credit Card payment as soon as possible. There is heavy integration and maintenance fees involved with Credit Card payment gateways of ICICI and CITIBank but if you can, you should take it as paypal deducts about 8% on every transaction for Indian accounts (regular fees + currency conversion)
Now We have 3 payment options for our clients
1. Paypal (love or hate it, there is no choice to keep it)
2. 2Checkout (had no other option but to use it, charges 5.5% which is very high, also has keeps some money in reserve)
3. Credit Card (direct payment gateway)
all this setup costed us lot of time and money but we had put this as our highest priority as we wanted to make sure in case of any failure of one option, there are others to keep everything running smoothly.