How to receive money from the USA to India?
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!
What Are the Ways to Receive Money from the 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
For personal remittances, bank transfers and P2P /remittance platforms may be a convenient way to receive money from the US. However, for receiving payments from the US, 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!
How Long Does It Take to Receive Money from USA to India?
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 the SWIFT network involves multiple intermediary banks, and delays can occur due to bank holidays, incorrect details, or currency conversions.
In the case of PayPal, payments may appear quickly in your PayPal account, but it can take up to 5 business days to show in your bank account.
Virtual accounts process payments from the US faster than traditional methods. For instance, Skydo settles payments within just 24-48 hours.
What Are the Fees for Receiving Money from USA to India?
For receiving money from USA to India, especially for payments it is important to be mindful of fees and charges that are levied on the same as they can significantly eat into your earnings. Here are some common fees to watch out for:
Banks
SWIFT transfers from the US via banks will invite SWIFT fees which may range from ₹500 to ₹1,000 per transaction. The most important thing to look out for however is forex markup. Banks often provide less favourable exchange rates compared to the market rate. For instance, if the real rate is 1 USD = ₹84, banks might offer ₹82, leaving you with less money per transaction.
PayPal and Payment Gateway:
PayPal charges a 4.4% transaction fee and an additional 4% for currency conversion, meaning you'll pay close to 8.5% in fees when receiving payments from the US to India.
Virtual International Accounts
Payments from the US via virtual accounts do not incur any SWIFT fees; however, each platform applies its own charges.
- Wise: Charges a 1.6–1.8% fee for receiving payments from the US, along with an additional fee for digital FIRA.
- Payoneer: Fees range from 4% to 7% of the transaction amount, depending on the payment method
- Skydo: Offers a transparent flat-fee structure—USD 19 for payments under USD 2000 and USD 29 for payments between USD 2001 and USD 10,000.
How to Avoid Hidden Fees When Receiving Money from the USA?
Receiving payments from the USA to India can quickly turn into an expensive affair if you're not careful. Hidden fees, sneaky forex markups, and inflated charges can eat into your earnings without you even realizing it.
Here’s the secret: choose a platform that’s upfront about its pricing and offers live forex rates with zero markup. Why should you settle for anything less than the rate you see on Google?
Take Skydo, for example. We don’t play games with your money. With Skydo, you get:
- Live Forex Rates: No hidden markups. The rate you see is the rate you get.
- Flat Fees: Whether you're receiving $3,000 or $10,000, our fee stays the same—transparent, simple, and predictable. Higher payment shouldn't mean higher fee.
What Documents are Needed to Receive Payments from USA in India?
When receiving payments from the US, ensure you have the following documents and meet these compliance requirements:
- Identification proof: Any government-issued document that proves you’re a citizen of the country falls in this category. So your Passport, Aadhar Card and Voter ID will qualify.
- Bank account details: Your bank name, account number, branch location, and IFSC code are the three most important information you must share with the remitter to receive foreign inward remittance
- Purpose Code: A purpose code is an alphanumeric code that identifies the reason for each international transaction. For example, if you're a tech service provider receiving payment from your US clients for providing software consultancy, you should use code P0802. Note that quoting the correct purpose code on your invoice is mandatory to avoid delays or rejections.
- FIRA (Foreign Inward Remittance Advice): This document proves you’ve received funds from abroad. It’s essential for freelancers, service providers, and exporters for tax filings and compliance.
- BRC (Bank Realization Certificate): If you’re exporting goods or software that come under SOFTEX, you may need a BRC to validate that payments align with exports. However, freelancers and general service providers including many software exporters outside this category typically don’t require it.
- Form W8BEN and W8BEN E: Form W8 BEN and Form W8 BEN-E are crucial for Indian residents and businesses earning income from U.S. clients. These IRS forms ensure you don’t pay more tax than necessary by letting you claim reduced withholding rates under U.S. tax treaties. Here’s a detailed guideand a on how to fill Form W8BEN and W8BEN E as an Indian individual or business.
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: The Traditional Route:
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:
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.
PayPal and other Payment Gateways: 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 5 business days to reflect in your bank account.PayPal’s fees 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
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.
Payoneer charges 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.
Wise charges a 1.6–1.8% Wise fee but uses 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.
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!
What is the cheapest way to receive money from USA to India?
Virtual international accounts offered by platforms like Skydo offer low fees and live forex rates, saving money compared to traditional banks.
Do I need a SWIFT code to receive money from the USA?
Are there tax implications for receiving money from the USA?
Can I track my money transfer from the USA to India?
