How to Receive International Payments in India

Going global as a business, exporter, or freelancer comes with a lot to juggle: finding clients, managing inventory, setting the right prices, and more. But one thing even experienced exporters sometimes overlook is deciding how to receive international payments.

Nailing this part can save you thousands of dollars and spare you from compliance headaches, payment delays, and unnecessary stress.

In this blog, we’ll walk you through the different ways to receive international payments and help you find the best option to keep things smooth and hassle-free.

Ways to Receive International Payments in India

Here are the main ways to receive international payments :

Before deciding which option works best for you for international money transfer, 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, cross-border payments aren’t as straightforward as domestic ones. Different countries have different regulations and multiple financial institutions are involved in the process as well. Do there are a few things to watch out for when making international payments.

Timelines

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 payment method, cross-border transfers can take 1 to 7 business days to settle.

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 purpose code is an alphanumeric code that identifies the reason for each international transaction. If you’re receiving cross-border payments, quoting the correct purpose code on your invoice is mandatory to avoid delays or rejections.

FIRA is a document issued by banks as proof that you’ve received international payments. It is essential for exporters and freelancers to keep this document for tax and regulatory purposes.

BRC 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.

Tax Implications 

Exports under the GST regime are treated as zero-rated, meaning no GST applies since the goods or services are consumed outside India.

Charges 

Navigating compliance and cross-country regulations adds costs to foreign remittances. 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 PayPal charge a steep 4% currency conversion fee, along with an additional 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.

Save 50% on every international transfer

Receive from 150+ countries

Get global accounts

Zero forex margin

Sign up

Banks, PayPal, or Virtual Accounts: What’s the Best Way to Get Paid in India?

There’s no one-size-fits-all solution for receiving international payments—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. 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

Banks are the traditional means for receiving international payments 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:

Timeline

International bank wire transfers typically run through the SWIFT network and can take up to 5 business days—or longer—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.

Compliance 

Banks 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. Axis Bank for example charges INR 250 for every FIRA and an additional INR 100 for duplicate FIRA.  Once you receive the FIRA, you can submit it to the bank to get your BRC. 

Charges

Although banks are the go-to option for receiving foreign payments, they’re far from the most affordable. Here's why:

SWIFT Fees

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, Axis Bank charges ₹500 to ₹1,000 per SWIFT transfer.

Forex Markups

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.

Additional Fees

Beyond SWIFT and forex fees, banks tack on extra fees for various services. For example, Axis Bank charges ₹250 for issuing a FIRA and ₹500 to track SWIFT payments. These small fees can quickly add up, cutting deeper into your earnings.

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.

PayPal

PayPal's credibility and global reach make it a popular choice for online money transfers as well as for receiving international payments in India. However, let us take a look at how Paypal fares on the following parameters:

Timeline

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. 

Charges

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

Transaction Fee

When you receive an international business payment via PayPal in India, the platform charges a 4.40% transaction fee. For example, if you receive USD 1000 from a US client, PayPal will deduct USD 44 as a transfer fee.

Fixed Fee

Along with the transaction charges, PayPal also levies a fixed fee depending on the currency of the transaction.

Currency Conversion Fee

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 right here

Compliance 

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 15th of the subsequent month.

Virtual International Bank Accounts 

New-age fintech platforms like Wise, Skydo, and Payoneer 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.  Now let us see if virtual accounts are the way to go for you to receive international payments:

Timelines

Once the payment hits your virtual account, it’s quickly transferred to your personal bank account. For example, Wise deposits funds within 0-2 business days, while Payoneer and Skydo mostly settle payments within 24 hours—all much faster than traditional bank transfers.

Charges: 

Since virtual bank accounts skip SWIFT transfers, no SWIFT fees apply. However, each platform has its own charges:

Payoneer:

For a detailed breakdown, check Payoneer’s fees here.

Wise:

You can read more about Wise’s pricing right here. 

Skydo:

Compliance

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 international payments, banks might be your best option. 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 choosing a payment partner, carefully review their fees, foreign currency conversion rates, and customer support to ensure they meet your needs.

Set Up your International Virtual Accounts 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.

Make your international payments smoother and more efficient—explore the benefits of Skydo today.