Are you an Indian freelancer, exporter, or business owner working with US clients? If so, one of the most important questions you’ve likely asked is: How to receive money from the USA to India?

Getting paid by US companies or individuals comes with its own set of challenges—be it fees, delays, or the right payment method. In this blog, we’ll dive into all the ways you can receive money from USA efficiently, securely, and at the best rates. Let’s help you find the option that works best for you!

How to Receive Payments from USA to India?

When it comes to getting paid by US clients, you have a few key options:

Banks: The traditional route for receiving payments via wire transfers from USA to India.

PayPal and other payment gateways: A popular choice for freelancers and small businesses.

International Virtual Accounts: Offered by platforms like Skydo, Wise and Payoneer

Remittance Platforms Like Wise P2P and Western Union&nbsp;

But before you pick a method, it’s important to weigh a few critical factors—like fees, speed, and ease of use. Choosing the right option can help you keep more of your hard-earned money while avoiding unnecessary hassle. Let’s break down what you need to consider!

What to Know Before Receiving Payments from the USA to India?

Getting paid by US clients might sound simple, but it’s not as seamless as local UPI transfers or NEFT. From longer timelines to compliance requirements and hidden fees, there are a few things you need to keep in mind to make the process smooth and cost-effective. Let’s break it down:

Unlike instant domestic payments, international transfers can take anywhere from 1 to 7 business days to reflect in your account depending on the method of transfer. For example, wire transfers from USA to India can take upto 5 business days because <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">the SWIFT network</a> involves multiple intermediary banks, and delays can occur due to bank holidays, incorrect details, or currency conversions. Patience is key when dealing with cross-border transactions.

Handling international payments comes with strict compliance rules to prevent issues like money laundering. Here’s what you should know:

Taxes are a critical part of receiving international payments. Here’s what you need to keep in mind:

Hidden charges can eat into your earnings if you’re not careful. Here are some common fees to watch out for:

These fees can quickly add up, so choosing a payment method with lower costs—like international virtual accounts—can help you keep more of your earnings.

Choosing the Best Way to Receive Money from the USA to India

There’s no one-size-fits-all answer to the question of how to receive payments from the USA to India. The best method depends on what matters most to you—whether it’s faster transfers, lower fees, better exchange rates, or simplified compliance. Let’s take a closer look at your options to help you make an informed choice.

Banks are the go-to option for many when it comes to receiving money from USA to India. However, they come with their own set of pros and cons:&nbsp; Transfers via the SWIFT network can take anywhere from 2 to 7 business days, often delayed by intermediary banks, incorrect details, or currency conversion issues. Banks charge SWIFT fees (₹500–₹1,000 per transaction) and impose forex markups. For instance, if the market rate is 1 USD = ₹84, you might only get ₹82, losing ₹10,000 on a $5,000 payment. They also charge additional fees, like ₹250 for a FIRA or ₹500 for tracking a payment. While banks are reliable and secure, obtaining compliance documents like FIRA can be a hassle, often requiring follow-ups and additional charges. If you prioritize security and have time to spare, banks may be a reasonable option.

Banks are also a preferable choice for big businesses handling high volumes of cross-border payments, as they often offer competitive exchange rates and personalized services that smaller clients might not receive.&nbsp;

PayPal and other Payment Gateways:&nbsp;Convenient But Pricey

PayPal is popular for its global reach and ease of use, especially for freelancers and small businesses. Beyond PayPal, there are other payment gateways as well that are opted by freelancers to receive payments from the US.

If your payment amount is small, say under USD 1000, and your clients prefer using a credit card, this could be a suitable option for you.

Payments may reflect quickly in your PayPal account however, it can take upto<a href="https://www.paypal.com/in/cshelp/article/how-do-i-transfer-funds-to-my-bank-account-help394"> 5 business days to reflect in your bank account</a>.<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal’s fees</a> add up quickly.

They charge a 4.4% transaction fee, a fixed fee based on currency, and a 4% forex markup. For example, if the market rate is ₹84 per USD, PayPal’s rate would be ₹80.64, resulting in significant losses on larger payments. PayPal provides a monthly digital FIRA, covering all transactions from the previous month. However, it’s only available by the 15th of the following month, which may not work for those needing immediate documentation. PayPal is ideal for quick payments but less suitable if you’re looking to maximize your earnings due to its high fees.

Online remittance platforms like Western Union and Wise P2P provide an option to receive money from the USA to India. While they work well for personal transfers, they may not be ideal for business payments as they don’t issue FIRAs, which are essential for compliance.

Virtual International Bank Accounts: A Modern Solution

Platforms like Skydo, Wise, and Payoneer, offer virtual bank accounts in countries like the US, allowing clients to send payments as local transfers. This eliminates the complexities and costs of traditional international transactions. Payments are typically settled within 0–2 business days. For example, Wise transfers funds within 48 hours, while Skydo and Payoneer process payments within 24 hours. 

While international virtual bank accounts don’t encompass SWIFT fees, platforms levy their respective fee.

<a href="https://www.skydo.com/blog/payoneer-fees-india-guide">Payoneer charges</a> a 1% fee if you receive USD payments via virtual accounts. Further, there’s a 3% forex markup on withdrawals, a 3.2%+ $0.49 fee on credit card payments, and 1% for ACH transfers if your US clients pay you via ACH.&nbsp;&nbsp;

<a href="https://www.skydo.com/blog/wise-transfer-charges-in-india">Wise charges</a> a 1.6–1.8% Wise fee but using the mid-market exchange rate with no hidden markups. Skydo offers a simple pricing model—USD 19 for payments under $2,000 and USD 29 for payments between USD 2,001 and USD 10,000, with live exchange rates and no markups.&nbsp;

These platforms provide FIRA for regulatory purposes, with Skydo and Payoneer offering it instantly and free of charge, while Wise charges a fee for the same.

How Skydo Makes Receiving Money from the USA to India Effortless

For freelancers and businesses working with US clients, navigating international payments can often feel like a hassle. That’s where Skydo steps in, making the process simple, cost-effective, and seamless. Setting up an international virtual account with Skydo takes just five minutes, giving you access to markets like the US, Europe, Singapore, and Australia without the complexities of traditional banking.

Skydo eliminates hidden fees and currency markups by offering live Forex rates, ensuring you get the best value for your hard-earned money. Compliance is a breeze too—you’ll receive instant FIRA downloads after every transaction, keeping you aligned with RBI regulations without any extra effort. And to make things even better, you’ll have a dedicated representative ready to assist whenever you need support.

If you’re tired of high fees, slow settlements, and complicated processes, Skydo is the smarter choice for receiving international payments. Focus on growing your business while Skydo handles the rest!

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How to receive money from USA to India? 

Karbon Business (formerly Karbon Card) hit the market in 2019, aiming to simplify B2B payments for Indian businesses and freelancers. They’ve since expanded into international payments too. But what exactly does Karbon bring to the table? In this blog, we’ll break down their features, pricing, and how they stack up against alternatives. Let’s dive in!

What does Karbon Business (Formerly Karbon Card) do?

Karbon Business initially started as a corporate card platform, hence the name Karbon Cards. However, since then they have expanded into other b2b offerings including facilitating international business payments for companies and freelancers. It offers both inward and outward remittance services. Let's take a quick look at Karbon Card’s offerings, compliance and pricing:&nbsp;

Karbon Business lets freelancers and businesses receive international payments directly into their Indian bank accounts within 24-48 hours. They’ve partnered with big names like IDFC Bank, Visa, and JP Morgan Chase to streamline cross-border transactions.

But here’s the catch—Karbon business <a href="https://www.karboncard.com/accept-international-payments-india">only supports payments in USD</a>. If you work with clients outside the US, this could be a deal-breaker. While they plan to add 12 more currencies soon, it’s still a limitation for many global businesses today.&nbsp;

With Karbon,&nbsp; businesses make international payments in over 30 currencies. Whether it’s paying employees, contractors, or vendors abroad, Karbon promises a competitive and compliant way to make cross-border payments.&nbsp;&nbsp;

Karbon Business provides corporate cards and payout services tailored for businesses. With Karbon Card, you get up to ₹15 Cr in free credit and unlimited employee cards. Their Karbon Payouts feature enables vendor payments on credit, 24/7 payouts, and more, offering flexibility for business transactions.

Karbon Business is a reliable option for receiving international payments in India. It is backed by partnerships with trusted global institutions and adheres to strict safety and privacy protocols to protect your funds.

Coming to compliance, Karbon Business also offers&nbsp; <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA for each transaction</a>.

What is Karbon Business (Formerly known as Karbon Cards) Fees?

Karbon Business offers live forex rates with a <a href="https://www.karboncard.com/accept-international-payments-india">flat 1% fee</a> for receiving international payments. While the pricing sounds competitive, the costs can stack up quickly for larger transactions. For example, receiving $10,000 would cost you ₹8,449 in fees—a steep price for high-value payments.

For outward remittance too, Karbon business charges a <a href="https://www.karboncard.com/outward-remittance-india">fee of upto 1%</a>.&nbsp;

Here’s a quick overview of the pros and cons of Karbon Business as a means to facilitate international transactions:&nbsp;

Karbon Business Alternatives for Receiving International Payments&nbsp;

Now that we’ve explored Karbon Business, its fees, and features, let’s dive into some alternatives to see if there’s a better option for receiving international payments.

Founded in 2005, <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a> is a leading payment solution for businesses and freelancers worldwide. It facilitates international transfers by providing users with virtual bank accounts in multiple currencies and integrating with leading marketplaces like&nbsp; Amazon and Walmart&nbsp;

In terms of fees, Payoneer offers free account setup, but transaction fees apply: Payoneer-to-Payoneer payments are free, <a href="https://www.payoneer.com/en-in/about/pricing/">credit card payments</a> incur a 3.2% + $0.49 fee, ACH Bank Debits (US) cost 1%, and virtual account payments are free for EUR/GBP but up to 1% for USD.&nbsp; Withdrawals to local bank accounts attract up to a<a href="https://www.payoneer.com/en-in/about/pricing/"> 3% fee for different currencies.</a> Extra charges like bank or intermediary fees may apply. An annual fee of $29.95 is charged if total payments received are below $2,000 in a year.

To simplify compliance, Payoneer offers free digital FIRAs to Indian businesses and freelancers. However, users have expressed dissatisfaction with <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-5364712">Payoneer's customer support</a> which some have found to be virtually non-existent.&nbsp;

Skydo is a global payment solution designed to simplify cross-border payments for freelancers and businesses in India. It offers virtual international bank accounts in under 5 minutes and provides a comprehensive payments ecosystem, including payment tracking, invoice generation, and more.

Skydo stands out with live Forex rates and zero currency conversion fees or hidden charges, offering a transparent fee structure that makes it a strong Karbon business alternative in India.

To ensure compliance with RBI and government regulations, Skydo provides free, instant FIRAs available for download after every transaction. Each user is also assigned a dedicated representative to assist with onboarding and address any queries promptly.

However, Skydo currently supports only inward remittances to India, meaning Indian businesses cannot use it for outward payments.&nbsp;

<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise (formerly TransferWise) </a>operates in over 80 countries, offering multi-currency accounts for individuals and businesses. Originally a peer-to-peer remittance platform, it has evolved into a global money transfer solution.&nbsp;

Wise stands out for using mid-market exchange rates without markups, charging a conversion fee averaging around 1-2% of the transfer value. It also provides <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">digital FIRAs </a>for compliance (e.g., $2.50 for USD transfers), making it a strong alternative to Karbon Business.

While <a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Wise</a> boasts a<a href="https://www.forbes.com/advisor/in/banking/wise-review/"> user-friendly interface </a>and efficient transfers, some users have reported <a href="https://www.g2.com/products/transferwise/reviews?utf8=%E2%9C%93&amp;filters%5Bnps_score%5D=1#survey-response-9454134?no_follow=true">occasional challenges with customer support</a> responsiveness. Here’s a quick rundown of Wise’s pros and cons:

In today’s world, where domestic payments are as easy as a quick scan, international transactions should be just as effortless. At Skydo, we’re not just offering a payment platform—we’re building an ecosystem designed to simplify every step of the process. Let us take care of the payment logistics so you can focus on scaling your business globally.

Before choosing an international payment provider, always compare fees, exchange rate markups, features, and reliability. Your business deserves nothing but the best!

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Karbon Business : Review

International wire transfer is one of the most popular methods of cross-border payments. Rapid growth in India’s exports and globalization of the economy are two main driving factors for its popularity. In addition, it’s faster and safer compared to risky options like cash, checks, and demand drafts.

So if you’re curious about how international wire transfer works, the documentation process, duration, and fees, this blog is the right guide for you. 

An international wire transfer is just a way to send money across borders electronically—no physical cash involved. All you need is to share your bank account details with the sender, and the money moves directly from their account to yours.

Most of these transfers happen through the <a href="https://skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT network </a>(Society for Worldwide Interbank Financial Telecommunications). Think of SWIFT as a global messaging system for banks, helping them send money securely using unique SWIFT codes.

If you’re in India, you’ll need your bank account details and a <a href="https://www.skydo.com/blog/is-ifsc-and-swift-code-same">SWIFT code</a> to receive international payments, whether it’s for personal reasons or business..

How do International Wire Transfers Work?

Wire transfers operate by sending a secure message from the sender’s bank to the recipient’s bank, instructing them to deposit the specified funds into the recipient’s account. The sender pays for the transaction upfront, and the funds are transferred electronically. 

Upon receiving the message, the recipient’s bank deposits the funds into the recipient’s account. The two banks then settle the payment on the back end, ensuring a secure and efficient transfer process. This method ensures that the funds are transferred quickly and safely, making wire transfers a reliable option for sending money.

What Documents and Information Do You Need for an International Wire Transfer?

If You’re Receiving an International Wire Transfer: Provide the following details to the sender:

If You’re Sending an International Wire Transfer: In addition to the receiver’s details, you’ll need to provide accurate details about the recipient's bank:

Additional Documentation Requirements: Depending on the transfer amount or purpose, your bank may ask for additional documents:

How to Make an International Wire Transfer?

After having discussed the required documents, let’s see the different ways through which you can make an international wire transfer. One popular method is using an international money transfer service, which partners with digital wallets to facilitate secure and efficient <a href="https://www.skydo.com/blog/how-you-can-streamline-international-transactions-for-your-business">cross-border transactions</a>.

Transferring money using online banking services

This is the best option if your bank has online international wire transfer facilities or if you use a money transfer service. It saves your time from visiting the branch and you can do it from anywhere using an internet connection

These are current fees for some of the popular Indian Banks:

Keep in mind that while your bank may charge a single fee, additional costs can arise from one to three intermediary banks and the recipient’s bank. Additionally, the recipient may receive a reduced amount due to forex markups commonly applied by banks.

International wire transfer using a banking app or phone services

A banking app works like an online banking service. After downloading the app, you can log in and follow the same steps above. 

Few banks also offer phone banking services for wire transfers. In this method, you must call the call centre and share personal and banking details with the phone banking staff. They will guide you with the remaining steps.

International wire transfer by in-person visit to your bank

If your bank doesn’t offer online services for international transfers or you’re more comfortable with in-person visits, you can visit your nearest bank branch and follow the below steps:

International wire transfer using a third-party service provider

International money transfer service providers are not the only option to make international wire transfers. Several stand-alone platforms like <a href="https://skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal</a> and <a href="https://skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise</a> also allow you to make and receive international wire transfers and more often than not they can do it faster than banks. However, it is important to be aware of the charges that these platforms levy on international wire transfers including the exchange rate that they are offering.

Through Skydo, you can receive international wire transfers via SWIFT from over 150 countries that too at live forex rate.

Yes, international wire transfers are generally safe as they use secure networks like SWIFT, which rely on encryption and monitoring to protect transactions. However, there are some risks to be aware of. Once a wire transfer is completed, it cannot be reversed, so it’s essential to double-check the recipient’s bank details, including the SWIFT code, before you send money overseas. Additionally, while the transfer process is secure, phishing risks can arise if the recipient’s details are compromised. Verifying all information beforehand can help ensure a smooth and secure transaction.

What Are the Compliance Regulations Around International Wire Transfers?

The <a href="https://skydo.com/blog/compliance-guideline-for-inward-remittance">Reserve Bank of India (RBI) monitors wire transfers</a> in India, ensuring compliance for sending money abroad. RBI implements compliance requirements based on the <a href="https://enforcementdirectorate.gov.in/fema">Foreign Exchange Management Act (FEMA), 1999</a>.

Some of the compliance regulations are as follows:

It’s mandatory to mention the <a href="https://skydo.com/blog/rbi_purpose_code_for_inward_remittance">purpose code</a> whether you’re sending or receiving an international wire transfer

What Are the Fees Charged by Indian Banks for International Wire Transfers?

Banks charge various fees for international money transfers. Here’s an overview of the different categories of fees and how much you will end up paying if you choose to wire transfer via popular banks in India:

These charges are associated with using the SWIFT network to wire funds. SWIFT fee can be charged as a flat fee or a certain percentage of the transaction value. Either way, the fee ranges between INR 500-1000.

Most banks don’t offer live forex rates and instead apply a markup. For example, say you’re receiving an international wire transfer of <a href="https://www.skydo.com/convert-usd-to-inr?amount=2000">USD 2,000</a> from your U.S.-based client, with the current exchange rate at <a href="https://www.skydo.com/convert-usd-to-inr?amount=1">1 USD = INR</a> 84. Instead of INR 84, however, your bank might apply a lower exchange rate, such as INR 82, reducing your effective income from INR 168,000 to INR 164,000—meaning you lose out on INR 4,000.

The calculation of this fee depends on the intermediary banks that facilitate the transaction. Therefore it cannot be calculated upfront.

<a href="https://www.skydo.com/blog/importance-of-fira-for-freelancers">FIRA</a> charge

This is applicable when you receive a payment from overseas via an international wire transfer from an international client. You need to procure <a href="https://skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA for every international payment</a>, however, most banks charge a fee for providing the same, For example, <a href="https://axisbank.com/Docs/default-source/default-document-library/schedule-of-charges-for-foreign-exchange-transactions.pdf">Axis Bank </a>charges ₹250 for issuing a FIRA

Service tax is not fixed and differs from one bank to another

This does not apply to every bank, but a few might do it. For example, HSBC charges INR 100 plus tax if you cancel a wire transfer

How much do popular banks charge for wire transfers?

<a href="https://www.icicibank.com/personal-banking/online-services/funds-transfer/outward-remittance/branch-transfer/wire-transfer">ICICI</a>

Note that these charges do not include intermediary bank charges.&nbsp;

Note that these charges do not inclAt first glance, most banks seem to offer free <a href="https://skydo.com/blog/inward-remittance-in-india">inward remittance </a>services, but the reality is different. Banks often charge a forex markup fee, meaning the exchange rate they offer is lower than the actual market rate.

For example, if your international client sends you <a href="https://www.skydo.com/convert-usd-to-inr?amount=5000">USD 5000</a>, and the prevailing exchange rate is INR 84 per USD, you would expect to receive INR 420,000. However, due to the bank's forex markup, you might get a lower rate, say INR 82 per USD, leaving you with only INR 410,000—a loss of INR 10,000.

Additionally, for <a href="https://skydo.com/blog/how-to-receive-international-payments-in-india">international payments</a>, clients often pass on the SWIFT fees to the receiver, further reducing the amount you receive. These hidden costs can significantly impact your earnings, especially for freelancers and businesses receiving payments from abroad. Banks also charge additional fee for ancillary services like issuing <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRC</a> and FIRA

If you're curious about how much you must pay while receiving a wire transfer, check our<a href="https://fx-calculator.skydo.com/comparison?utm_source=Social%20Media&amp;utm_medium=Skydo&amp;utm_campaign=FX%20Calculator"> FX calculator</a> to easily get accurate information.

How Long Does It Take to Receive an International Wire Transfer?

The time it takes to receive an international wire transfer typically ranges from 1 to 5 business days depending on bank processing time, intermediary banks, currency conversion and more.&nbsp;

How to Reverse an International Wire Transfer?

Reversing a wire transfer can be challenging, but it is possible in certain situations. If the sender realizes an error has been made, they should contact their bank immediately to request a reversal. However, if the funds have already been deposited into the recipient’s account, reversing the transfer becomes more difficult. In such cases, the sender may need to contact the recipient directly and request the return of the funds. Acting quickly is crucial, as the chances of recovering the funds are higher if the issue is addressed promptly. Always double-check the recipient’s bank details before initiating a wire transfer to minimize the risk of errors.

Alternatives to International Wire Transfer

While international wire transfers are a popular way to send and receive money across borders, they’re not always the best option. Thankfully, there are other platforms with unique advantages and drawbacks.

PayPal: PayPal is a well-known platform that lets you send and receive international payments for both personal and business purposes. However, it comes with some limitations:

Payoneer, Wise, and Skydo: For businesses, platforms like Payoneer, Wise, and Skydo offer a smarter alternative. These platforms provide international virtual bank accounts, making cross-border payments faster, easier, and more affordable compared to traditional wire transfers. They eliminate many of the hassles, like high fees and delays, often associated with wire transfers, while also simplifying the process for business owners.

Receive fast and secure International Payments with Skydo

When receiving international payments, getting paid quickly and minimizing fees are top priorities. While banks are often the default choice, they fall short in both speed and cost-efficiency.

Virtual accounts offer a smart alternative, connecting directly to your real bank account while bypassing costly SWIFT fees and delivering funds faster. Skydo makes this easy, providing international virtual accounts where your U.S. clients can pay you locally. With Skydo, you’ll benefit from flat fees, live forex rates without markups, and free FIRAs with every transaction.

Switch to Skydo to experience faster, more affordable payments that put more money in your pocket.

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International Wire Transfer

How to receive international payments in India smoothly is a challenge that many global businesses, exporters, and freelancers face. From finding clients to managing inventory and setting competitive prices, there’s already a lot to juggle. Yet even experienced exporters often overlook the importance of choosing the right payment method.

Getting this part right can save you thousands, prevent compliance issues, avoid payment delays, and spare you unnecessary stress.

In this blog, we’ll explore the best ways to receive international payments in India, helping you find the ideal solution for hassle-free transactions.

What are the best ways to receive international payments in India?

Here are the main ways to receive cross-border payments :

1. <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">Banks</a> 2. <a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal</a> 3. International virtual bank accounts via platforms like Wise, Payoneer, Skydo etc.&nbsp;

Before deciding on how to receive international payments in India, it’s essential to consider a few key factors. Evaluating these parameters will help you choose the most suitable method to maximise your earnings seamlessly. So let’s take a look at what these parameters are.

Things to Note Before Receiving International Payments in India

Unfortunately, international money transfers, especially payments aren’t as straightforward as domestic ones. Different countries have different regulations and multiple financial institutions are involved in the process as well. 

So here are a few things to watch out for before receiving payments from abroad:

In India, we’ve become accustomed to instant payments thanks to UPI—just a quick scan, and it's done. Even bank transfers settle within a few hours. However, international payments are a different story, often taking longer due to the lack of a unified global payment system. Depending on the international payment method, cross-border transfers can take 1 to 7 business days to settle.

One of the key things you need to consider while asking how to receive international payments in India is compliance. Due to concerns around money laundering and terror financing, international transactions must meet strict compliance standards. Here’s what you need to know:

A <a href="https://www.skydo.com/blog/what-is-purpose-code-and-why-is-it-required" target="_blank">purpose code </a>is an alphanumeric code that identifies the reason for each international transaction. If you’re receiving cross-border payments, quoting the <a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance" target="_blank">correct purpose code</a> on your invoice is mandatory to avoid delays or rejections.

<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide" target="_blank">FIRA </a>is a document issued by banks as proof that you’ve received cross-border payments. It is essential for exporters and freelancers to keep this document for tax and regulatory purposes.

<a href="https://www.skydo.com/blog/bank-realisation-certificate-all-you-need-to-know" target="_blank">BRC </a>confirms that the funds received align with the goods or services exported. It’s mostly required for goods exporters and software exporters under SOFTEX regulations. Freelancers or service exporters outside this category usually don’t need to worry about obtaining a BRC.

Before we start receiving international payments, it is important to be aware of <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">taxes on foreign remittances in&nbsp; India.</a>&nbsp;Here's a quick explainer:

Exports under the GST regime are treated as <a href="https://www.skydo.com/blog/decoding-gst-on-foreign-exchange#1-inward-remittances" target="_blank">zero-rated,</a> meaning no GST applies since the goods or services are consumed outside India.

Charges are one of the key factors when deciding on how to receive international payments in India.&nbsp; You need to be aware of bank fees for receiving foreign money as well as the fee that is charged by payment gateways for international payments. Knowing these charges helps you maximise your payments effectively.

Banks, for instance, apply markups on exchange rates—if the actual rate is 1 USD = ₹84, they might offer ₹82, with the small difference adding up over multiple transactions. Similarly, platforms like <a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">PayPal </a>charge a steep 4% currency conversion fee, along with an additional 4.4% transaction fee and a fixed fee, further eating into your payout. While some costs are unavoidable, being aware of these charges allows you to make smarter choices and maximize your earnings by opting for more cost-effective payment methods.

What’s the Best Way to Get Paid in India?

There’s no one-size-fits-all answer to the question of how to receive international payments in India—it all depends on what matters most to you. Whether it’s faster settlement, favourable exchange rates, easy compliance, or other factors, the right option will vary.&nbsp;

 In this section, we’ll break down the different payment methods based on these key parameters to help you decide which one fits your needs best.

Banks are often the traditional answer to the question of how to receive international payments in India, and online banking has made money transfer services more convenient as well. However, to know if banks are the best bet for you to get your global payments let’s take a look at how they fare on the parameters listed above:

<a href="https://www.skydo.com/blog/international-wire-transfer-all-you-need-to-know">International bank wire transfers</a> typically run through the SWIFT network and can take up to <a href="https://www.hdfcbank.com/personal/resources/learning-centre/pay/how-long-does-a-wire-transfer-take" target="_blank">5 business days—or longe</a>r—especially when intermediary banks are involved. These intermediaries step in when the sending and receiving banks don’t have a direct relationship. Delays can also happen due to bank holidays, incorrect details, or currency conversions, making the process slower than expected.

Banks are of course one of the safest ways to handle international transactions. They issue FIRA for every foreign payment but it is not a default or free service. You have to follow up with your bank to get your FIRA and banks often levy a fee for the same. <a href="https://www.axisbank.com/docs/default-source/default-document-library/small-business-banking/schedule-of-charges-for-trade-and-forex-transactions.pdf" target="_blank">Axis Bank for example charges INR 250 for every FIRA and an additional INR 100 for duplicate FIRA. </a>&nbsp;Once you receive the FIRA, you can submit it to the bank to get your BRC.&nbsp;

Although banks are the go-to option for receiving cross-border payments, bank fees for receiving foreign money can definitely raise eyebrows. Here's why:

Banks charge a SWIFT fee for every international transfer. While this fee is technically on the sender, it often gets passed on to the receiver—typically the exporter or freelancer. For instance, <a href="https://www.axisbank.com/docs/default-source/default-document-library/small-business-banking/schedule-of-charges-for-trade-and-forex-transactions.pdf" target="_blank">Axis Bank charges ₹500 to ₹1,000 per SWIFT transfer.</a>

This is where banks make the most profit. Let’s say you receive $5,000, and the real exchange rate is 1 USD = ₹84, so you expect ₹420,000. Instead, the bank offers a lower rate of ₹82 per USD, leaving you with ₹410,000—a loss of ₹10,000 on just one transaction.

Beyond SWIFT and forex fees, banks tend to charge extra fees for various services. For example, <a href="https://www.axisbank.com/docs/default-source/default-document-library/small-business-banking/schedule-of-charges-for-trade-and-forex-transactions.pdf" target="_blank">Axis Bank</a> charges ₹250 for issuing a FIRA and ₹500 to track SWIFT payments. These small fees can quickly add up, cutting deeper into your earnings. So if you're looking for the cheapest way to receive foreign payments, banks may not be your best bet.&nbsp;

Which banks allow international payments in India?

AD Category I banks are allowed to receive international payments in India. These are banks licensed by RBI to buy and sell foreign exchange for specific purposes. Some of the leading AD Category I Banks are ICICI, HDFC Bank, Axis Bank and many more. 

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal's</a> credibility and global reach make it a popular choice for online money transfers as well as for receiving international payments in India. So is Paypal the answer to, "How to receive international payments in India?" Let's find out:&nbsp;

How quickly you get your international payments via PayPal depends on how it’s sent. For bank deposits, transfers up to ₹5 lakh usually arrive in minutes, while anything above ₹5 lakh takes around 2 hours. However, depending on multiple factors, this can take longer as well.&nbsp;

Broadly, PayPal India’s charges for receiving cross-border payments can be categorised under the following heads:

When you receive an international business payment via PayPal in India, the platform charges a <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees" target="_blank">4.40% transaction fee</a>. For example, if you receive USD 1000 from a US client, PayPal will deduct USD 44 as a transfer fee.

Along with the transaction charges, PayPal also levies a <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees" target="_blank">fixed fee</a> depending on the currency of the transaction.

PayPal India also adds a 4% currency conversion fee to the prevailing exchange rate when converting foreign currency to Indian rupees. This means you receive a lower exchange rate than the market rate.

For example, if the current market rate is INR 84 per USD, PayPal’s effective exchange rate would be 4% less, which is INR 80.64. You read in detail about Paypal’s pricing<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives" target="_blank"> right here</a>

PayPal provides a monthly digital FIRA to businesses and freelancers. This FIRA covers all international transactions from the previous month, and it is only available by the <a href="https://www.paypal.com/in/webapps/mpp/firc-certificate" target="_blank">15th of the subsequent month.</a>

Virtual International Bank Accounts&nbsp;

New-age fintech platforms like <a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Wise,</a> Skydo, and <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer </a>are making cross-border payments seamless with international virtual accounts. These platforms provide users with virtual bank accounts in countries like the US, UK, and Australia. Clients in these countries can send payments to these virtual accounts as local transfers, avoiding the hassle and cost of international transfers.

The platforms then consolidate these local payments and transfer them to the recipient’s personal bank account.&nbsp; Let's explore whether virtual accounts could be the answer to how to receive international payments in India.

Once the payment hits your virtual account, it’s quickly transferred to your personal bank account. For example, <a href="https://wise.com/help/articles/71lNXW0Ls3gEFhUH8PtodV/receiving-payments-for-indian-businesses#:~:text=Bank%20transfers%20from%20your%20clients,take%202%E2%80%935%20working%20days." target="_blank">Wise deposits funds within 0-2 business days</a>, while <a href="https://www.payoneer.com/en-in/payoneer-account/#:~:text=When%20you%20register%20with%20Payoneer,hours%20to%20your%20bank%20account." target="_blank">Payoneer </a>and Skydo mostly settle payments within 24 hours—all much faster than traditional bank transfers.

Since virtual bank accounts skip <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT transfers,</a> no SWIFT fees apply. However, each platform has its own charges:

For a detailed breakdown, check <a href="https://www.skydo.com/blog/payoneer-fees-india-guide" target="_blank">Payoneer’s fees here.</a>

<a href="https://www.skydo.com/blog/wise-transfer-charges-in-india" target="_blank">You can read more about Wise’s pricing right here.&nbsp;</a>

Most platforms offering international virtual accounts in India also provide FIRA to their users. While Wise charges a fee for issuing FIRA, both Payoneer and Skydo offer it free and instantly, making the process smoother and more convenient for users.

If you’re a large business handling high volumes of cross-border payments, banks might be the answer to how to receive international payments in India. They often offer competitive exchange rates and personalized services that smaller clients might not receive.

Many businesses and freelancers also prefer PayPal for its global credibility and acceptance, offering a payment option their international clients are familiar with.

For individual freelancers and small to medium businesses, international virtual accounts are often the most practical choice. These fintech platforms provide a seamless payment experience without the hassle of dealing with banks. By bypassing the SWIFT network, they eliminate SWIFT fees and typically offer faster settlements. Many platforms also include FIRA to simplify compliance. However, before deciding on how to receive international payments in India, carefully review their fees, foreign currency conversion rates, and customer support to ensure they meet your needs.

How to Get Paid by International Clients in India with Skydo?

While there are several ways to receive international payments in India, virtual bank accounts are quickly becoming the preferred option for businesses and freelancers due to their simplicity and affordability. With Skydo, setting up an international account takes just five minutes, helping you easily do business in markets like the US, Europe, Singapore, and Australia.

Skydo streamlines your payments by offering live Forex rates with no hidden fees or currency markups. To keep things hassle-free and compliant with RBI regulations, you’ll get instant FIRA downloads after every transaction. Plus, each user benefits from a dedicated representative who’s ready to provide guidance and support whenever you need it.

If you're looking to avoid high fees on international transfers and make your foreign payments seamless and compliant, Skydo is the perfect solution!

How to receive international payment in India

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Inward remittance simply means receiving funds from abroad in your bank account in India. As per <a href="https://publications.iom.int/books/world-migration-report-2024">Global Migration Report</a>,&nbsp;India stands as the largest recipient of inward remittance globally, thanks to globalization which has enabled Indians to travel outside for work as well as enabled Indian residents to work with global clients remotely.

Getting money from abroad—whether it’s payment from a client or a transfer from family—can feel a bit overwhelming. It’s not as straightforward as domestic transfers, thanks to forex rates, international systems, and RBI guidelines.

But don’t worry. In this blog, we’ll break down everything about inward remittance—what the rules are, how to keep your money safe, how long it takes, and the easiest ways to manage it. Plus, we’ll show you how Skydo can make receiving global payments faster, simpler, and more affordable. Let’s dive in!

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