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Set up a PayPal account (available to residents of India) and use PayPal’s merchant tools to accept credit cards and sell online. The downside is that you can’t directly withdraw PayPal funds to a bank in India (though you can request a check). But you can transfer US dollars in a PayPal account to Remit2India (www.remit2india.com), a service of the Times of India. They convert it into Indian Rupees and deliver it to your designated recipient. Costs are the PayPal recipient fee of 2.95% plus 3% to 5% fees for Remit2India. See details in their FAQ.

http://www.timesofmoney.com/remittance/jsp/toi_faq.jsp?uiId=TOI&partnerId=TOML&faq=paypal