Updated: 14th November 2025 Foreign Inward Remittance Certificate (FIRC) is a key term for anyone in India receiving payments from abroad,&nbsp; be it exporters shipping goods overseas or freelancers offering services to international clients.

Are you dealing with international payments and confused by terms like FIRC? If you’ve ever received money from abroad for your business or freelance work, you might have been told to get a FIRC. Don’t worry – you’re not alone in finding this acronym puzzling. In this conversational guide, we’ll demystify Foreign Inward Remittance Certificates (FIRC) – explaining what they are (including the full form and meaning), why they’re important, who needs them, and how to obtain one. By the end, you’ll know exactly why FIRC matters for Indian exporters, freelancers, small businesses, and even accountants handling cross-border transactions. Plus, we’ll share tips on making the whole process much easier (hint: there are modern solutions that do the heavy lifting for you). Let’s dive in!

Let’s start with the basics: FIRC stands for Foreign Inward Remittance Certificate. It’s essentially an official document from an Indian bank that confirms you’ve received a payment from abroad. Think of it as a receipt or proof of an inward remittance (foreign money transfer) into your Indian bank account.

In practical terms, a FIRC contains details of the foreign payment you received – such as the amount in foreign currency and INR, who sent the money (the sender’s name and country), who received it (your name/business name), the date, and the purpose of the payment. It’s issued by your bank (specifically, banks authorized to deal in foreign exchange, known as AD Category I banks) whenever you receive money from overseas.

In simpler words: if a client overseas wires you funds for an export or a freelance project, the FIRC is the document from your bank saying “Yes, we’ve got the money from abroad, and here are the details.” It’s an official proof that foreign funds landed in India into your account.

Quick note: Sometimes people use “FIRC” loosely to also refer to similar documents like a foreign inward remittance advice (FIRA).&nbsp; Essentially, all these serve the same purpose – proving that an international payment was received. We’ll explain the differences in a bit, but generally if someone asks for a FIRC, they mean the proof of a foreign payment credit.

Whether you are an Indian exporter, a freelancer providing services globally, or a small business owner, obtaining a FIRC (or its equivalent advice) for your foreign earnings is very important. Here are the key reasons why a FIRC matters so much:

In summary, a FIRC is more than just a piece of paper. It’s crucial for compliance, unlocking financial benefits, and keeping clean records of your foreign income. In India’s regulated foreign exchange environment, this certificate (or its digital equivalent) becomes a cornerstone for anyone transacting internationally.

Now that we know why it’s important, you might wonder: “Do I actually need a FIRC?” If you fall into any of the following categories, the answer is likely yes:

In a nutshell, any Indian individual or business receiving money from outside India should obtain a FIRC for each such inward payment. This spans everyone from large export firms to freelance graphic designers paid via PayPal. It’s a best practice even if not mandatory in every case, because it’s your safety net and proof if questions arise later.

FIRC in India: RBI Guidelines and the Switch to FIRA

It’s important to understand how FIRCs are handled in India today, because there have been regulatory changes in the past decade. Historically, banks issued a physical FIRC on security paper for every foreign inward remittance received against exports. However, since 2016, the RBI changed the process for most cases. Let’s break down what that means:

You might also have seen the term e-FIRC. This is a bit tricky because e-FIRC isn’t a separate document you receive in hand – it’s more of a concept/number in the background banking systems.

For most small businesses or freelancers who use a single bank (or a single platform) to both receive funds and handle paperwork, you may not need to worry much about the term “e-FIRC” – your bank’s advice and the automated systems take care of it. Just know that it refers to the electronic trail of your remittance in RBI’s systems.

Two acronyms that often come up together in export finance are FIRC and BRC. They are related but serve different purposes, and it’s important not to confuse them:

In simpler terms, think of it as a two-step chain: First, you get the FIRC/FIRA when money comes in. Then, that leads to a BRC which connects the money to a specific export transaction.

For example, suppose you shipped 100 units of a product on a certain date (your shipping bill records this) and later you got USD 1,000 for that shipment. When the $1,000 arrives, your bank gives you a FIRA confirming receipt. You then inform the bank (or it knows via systems) that this $1,000 corresponds to that shipping bill. The bank updates the records and an e-BRC is generated which you can download from the DGFT portal as proof that the export transaction is closed with payment received. Why is BRC needed? Because to claim many export incentives or to fulfill export obligations, you have to show BRCs to the government – it proves you not only exported but also got paid for it.

Bottom line: FIRC (or FIRA) confirms money received; BRC confirms that money was tied to an export. Both are important for exporters of goods (first you get FIRC, then BRC to claim benefits). Freelancers and pure service exporters mostly just handle FIRCs unless they are in scenarios that require reporting exports formally.

&nbsp;You can use this decision tree to decide which one do you need.&nbsp;

FIRC Certificate Format:&nbsp; What Information Does it Include?

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

If you’ve never seen a FIRC or FIRA document, you might wonder what it looks like and what details it carries. While formats can vary slightly from bank to bank, a typical FIRC/FIRA document (usually a PDF or letter these days) will include the following key information:

A modern FIRA might not have the word “Certificate” on it, but it contains the same info as the old FIRC. Some banks still title it “Certificate of Foreign Inward Remittance” even if it’s a PDF. In any case, all the above details are what make it valuable – ensure everything matches your expectations when you receive one (more on that in a moment).

How to Obtain a FIRC (Procedure to Get the Certificate)

Obtaining a FIRC or FIRA for a foreign payment is not always automatic – often, you’ll need to request it from your bank. The process can vary slightly by bank, but here’s a general step-by-step guide for Indian businesses or freelancers:

1. Receive the Foreign Payment: This might sound obvious, but you can only get a FIRC after the money from abroad has credited to your bank account in India. So, first step – make sure the funds have arrived. Note down the transaction details like the date of credit, the amount in foreign currency and INR, and any reference number (UTR) if available. This info will be needed for the request.

2. Contact Your Bank to Request the FIRC/FIRA: Reach out to your bank’s branch or your relationship manager and let them know you need a FIRC (Foreign Inward Remittance Certificate) or advice for a particular transaction. Many banks have a specific form or format for this request. Depending on the bank, you might do one of the following:

In your request, you’ll generally need to provide:

Tip: If your bank has a mobile app or online banking, search for terms like “FIRC request” or “Remittance Certificate” – some banks have digitized this. Otherwise, a quick email to your branch manager with the details might do the trick.

3. Provide Supporting Documents (if required): Banks might ask for some documents to ensure the request is legit and to attach as proof of the transaction’s purpose. Common ones include:

Not every bank will ask for all of these – often if the transaction was straightforward and coded correctly, a FIRC request might go through with just the form. But don’t be surprised if they ask for an invoice copy or such, especially for higher amounts or the first time you’re requesting.

4. Pay the Bank’s Fee (if any): Here’s the part not everyone realizes: many banks charge a small processing fee for issuing a FIRC/FIRA. The fee varies by bank but is typically in the range of ₹200 to ₹500 per certificate, plus GST. For example, one bank might charge ₹300 + taxes for each FIRC. Some banks waive it for premium account holders or in special cases, but generally expect a fee. Usually, the bank will deduct this fee from your account or ask you to pay it upfront. When you fill the request form, it might mention the fee or your branch will inform you. (As a rough timeline, after you request, it often takes around 1–2 weeks for the bank to issue the FIRC. Some get it done in just a few days, but don’t bank on it – pun intended!)

Good News: If this process sounds a bit old-fashioned, you’re right – it can be tedious. But lately, some fintech platforms and modern banking services offer FIRA certificates for free and instantly as a perk. (We’ll talk more about that in a moment when discussing easier ways.)

5. Wait for the Certificate to be Issued: Once you’ve submitted the request (and any docs and fees), the bank’s forex operations team will verify the details. They’ll match the info you gave with the actual inward remittance record. If everything checks out, they will generate the FIRC (or FIRA). Nowadays, this is usually a PDF document on the bank’s letterhead with a digital signature, which they might email to you or make available for download (some still might print it for collection at the branch if you specifically need a hard copy). The time frame can vary:

Keep an eye on the email you provided (and check the spam folder just in case, since it’s often an automated email with a PDF attachment).

6. Verify the Details on the FIRC: When you finally receive the certificate/advice, do not skip this step! Carefully check all the details:

If you spot any error (typos in your name, wrong amount, incorrect purpose code, etc.), contact the bank immediately to correct it. It’s important the FIRC reflects the truth of the transaction. Banks can issue an amended FIRC if needed, but you may have to give proof of the correct info (for instance, if your name was spelled wrong, you might send a copy of your PAN or passport; if the amount in INR is off, maybe a statement copy). It’s best to catch errors early and have them fixed, so you don’t run into problems later when using the FIRC for official purposes.

7. Use the FIRC for Your Needs: Once you have the FIRC/FIRA in hand (or in email):

In short, use the FIRC anywhere you need to prove “I got paid from abroad for X purpose.” It’s your golden ticket for compliance and benefits.

8. Remember: One FIRC = One Transaction: If you receive multiple foreign payments, you will generally need to request separate FIRCs for each. Say you’re a freelancer who got five different payments from five clients – you’d have five FIRC documents (and possibly five fees…). Some payment aggregators or services might give a consolidated statement for multiple small payments, but banks usually treat each inward remittance as a separate record and issue individual certificates.

Getting FIRC the Easy Way (Automatic FIRC with Modern Platforms)

At this point, you might be thinking, “Wow, that’s a lot of steps and wait time just to get a certificate!” 🤯 Indeed, dealing directly with banks for FIRCs can be slow and involve charges. Here’s where fintech solutions come to the rescue.

Platforms like Skydo offer a much smoother experience for handling foreign payments. For instance, when you receive an export payment through Skydo, the FIRC (or FIRA) is generated for you automatically – and at no extra cost. It’s basically built into the process. You don’t have to file separate requests or wait weeks. As soon as the payment is received and processed, you can log into your Skydo dashboard and download the remittance advice instantly. All the details (amount, purpose, etc.) are neatly recorded, compliant with RBI rules, without you lifting a finger to request it.

This kind of solution is a game-changer for freelancers and small businesses: you get paid faster (since such platforms often streamline the transfer) and you get the FIRC document instantly for each transaction. No bank queues, no follow-ups, no fees per certificate. If you’re frequently dealing with international clients, using a modern global payments platform can save you a lot of headaches when it comes to compliance paperwork like FIRCs.

Is FIRC Mandatory for GST Refunds and Other Purposes?

One common question that arises is whether having a FIRC is mandatory for certain claims, especially the GST refunds on exports. The short answer: Yes, if you’re claiming a refund or benefit on the basis of an export, you’ll need proof of foreign inward remittance – usually in the form of FIRC/FIRA.

When you export goods or services from India, those exports are considered “zero-rated” for GST, meaning you don’t have to pay GST on the sale. However, you might have paid GST on inputs (input tax credit) and you’d want to get that refunded since your output was zero-rated. To process this refund, the tax authorities require evidence that you indeed received payment in convertible foreign exchange for that zero-rated supply. FIRC is that evidence. It authenticates that the money entered India’s banking system against your export.

Here’s how it typically works for a GST refund on exports:

If you don’t have a FIRC to show and try to claim a GST refund, the claim likely won’t be accepted because you haven’t furnished proof of realization of export proceeds. It’s a critical document for this purpose.

Similarly, for other schemes like certain subsidies or duty credits for exporters, the requirement is often to show the BRC or FIRC to prove that the export was completed monetarily.

For freelancers or service exporters who may not deal with GST refunds (if, say, you’re below GST threshold or exports of services under LUT), it might not feel “mandatory” day-to-day. But consider that under income tax or any scrutiny, you’d still want that FIRC as proof of earnings. Also, tomorrow if you do register for GST and want to claim something, having FIRCs from the past means you’re prepared.

In summary: For compliance and benefits, having FIRCs is effectively mandatory. It’s part of the paperwork you should maintain if you earn in foreign currency. And specifically for claiming GST refunds on exports, a FIRC is usually non-negotiable.

Conclusion:&nbsp; Making FIRC Hassle-Free

Dealing with cross-border payments can seem daunting at first – there’s compliance to consider and extra paperwork like FIRCs to manage. But understanding the ins and outs of FIRC means you’re now equipped to ensure every dollar, euro, or pound you earn overseas is properly documented without stress.

The good news is that you don’t have to wrestle with these processes alone. As the world of international business is evolving, so are the tools to manage it. Your focus should be on growing your business or honing your craft – not on chasing bank certificates. That’s exactly why platforms like Skydo exist: to simplify global payments and the red tape that comes with them.

With Skydo, for example, you can enjoy seamless international payments with no hidden fees, and every time you receive a cross-border payment, an auto-generated FIRC (remittance advice) is instantly available for you. No special requests, no fees per certificate, no delays – it’s just there, ready to download when you need it. This means you remain fully compliant with RBI rules effortlessly, and you can devote your energy to what truly matters: delivering great products or services and scaling your venture.

In conclusion, a Foreign Inward Remittance Certificate is a vital piece in the jigsaw puzzle of doing business globally from India. It ensures your hard-earned foreign revenues are officially recognized and securely in your pocket (or rather, your bank account). By staying informed and leveraging modern solutions, you can turn what used to be a cumbersome process into a minor footnote in your workflow. Happy exporting (or freelancing), and may all your international payments come with an easy FIRC! 🚀

What is FIRC? Learn the full form, meaning, and how Indian exporters & freelancers can get FIRC or FIRA to claim tax benefits and stay RBI-compliant.

FIRC Full Form, Meaning & Guide for Exporters

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

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Prashanth Kumar

Indian exports are booming,&nbsp;<a href="https://utkarsh.com/current-affairs/indian-export-touch-a-historic-high-of-usd-77821-billion-in-2023-24">USD 437 billion</a> in 2023-24. But finding international buyers is still the hard part.

This surge is getting more manufacturers and businesses excited about looking beyond our domestic borders. The government is pushing exports hard; the numbers show it's working. But here's the thing - finding overseas buyers is still an uphill climb, especially for newcomers.

We've been researching this space and talking to actual exporters who've made it work. In this guide, we'll share some lesser-talked-about ways to find buyers for your exports from India, whether you're just starting out or looking to expand your existing business.

Strategies for New Exporters and Businesses to Find Buyers for Goods Exports from India

Finding international buyers is challenging for Indian exporters, especially when starting out. The main issue isn't product quality but building trust and credibility with overseas buyers who don't know you. Most exporters make the mistake of cold emailing random companies or posting on generic B2B platforms, which rarely works. You need smarter, targeted approaches.

Register with FIEO and Your Industry EPC


Start by getting a membership with<a href="https://fieo.org/"> FIEO (Federation of Indian Export Organisations)</a>, which connects you to a network of over 200,000+ Indian exporters. You’ll gain access to buyer-seller meets where vetted global importers come specifically looking for suppliers.

These councils regularly host targeted trade events where you'll meet buyers already interested in your product category, making your outreach focused and meaningful.

Attend introductory events (even the small ones)

Apply for the MAI scheme funding to attend these government-sponsored events where pre-qualified buyers come looking for suppliers:

Research attendee lists beforehand and book meetings in advance. Smaller events often give you more face time with serious buyers.

Optimise your profiles on these platforms where international buyers actively search for Indian suppliers:

Include HS codes, certifications, and export experience in your listings. Respond to inquiries within 6 hours - speed matters to international buyers.

Check website age and government certifications before engaging

Before engaging with any potential buyer, always check how long their website has been active - it tells you how established they are in business. Also, ask for their government certificates and approvals upfront. 

This simple verification step helps you avoid time-wasters and scammers who, unfortunately, target new exporters looking to make their first international sale.

Strategies for Experienced Service SMEs to Find Buyers for Goods Exports from India

Once you've got our export operations up and running, it's time to get smarter and more strategic. The methods that worked when you were starting out need to evolve into data-driven, professional approaches that can scale our business significantly.

Master data-driven targeting with trade databases

Instead of shooting in the dark, let's use actual trade data to identify hot prospects.<a href="https://comtrade.un.org/"> UN Comtrade</a> and<a href="https://www.trademap.org/"> ITC Trade Map</a> are goldmines showing which countries and companies import your product.

&nbsp;For instance, if you export garments, you can see that US textile and apparel imports from India hit <a href="https://www.thehindu.com/business/textile-and-apparel-exporters-suggest-reduction-in-tariff-with-the-us/article69307291.ece#:~:text=In%202024%2C%20the%20U.S.%20T%26A,U.S.%20T%26A%20exports%20to%20India.">$10.8 billion</a> in 2024. But here's the smart part - these databases also reveal which specific companies are importing.

Use Trade Map's company database feature to find actual importer names and contact details. You can filter by country, product category, and import volumes to identify companies that are already buying what you sell, just from other suppliers. This beats cold emailing random companies by miles because you're approaching buyers who have proven demand and budget. The Govt launched a<a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=2191430&amp;utm_source=chatgpt.com"> Trade Intelligence &amp; Analytics (TIA) portal </a>on 18 Nov 2025 to make trade data easier for exporters/MSMEs to use for market discovery and decision-making.&nbsp;Use it to spot countries where demand for your HS code is rising, and shortlist markets before you spend on outreach/travel.”

💡Pro tip: Look for an overseas market where India's share is small but growing, indicating untapped potential for positioning yourself as an alternative supplier. For example, <a href="https://shenglufashion.com/2022/04/20/japanese-fashion-companies-continue-to-diversify-apparel-sourcing-base/#:~:text=Japanese%20fashion%20companies%20primarily%20source,and%20Taiwan%20($92%20million).">Japan</a> traditionally sources textiles heavily from China and Vietnam, creating opportunities for Indian exporters to position themselves as alternative suppliers.&nbsp;

Use buying agents and commission-based partnerships

Here's something that actually works based on real exporters' experience: Instead of chasing every buyer yourself, let local buying agents do the heavy lifting. A successful garment exporter mentioned buying offices that take <a href="https://www.reddit.com/r/IndiaBusiness/comments/1kmetmt/comment/ms9mb4n/?utm_source=share&amp;utm_medium=web3x&amp;utm_name=web3xcss&amp;utm_term=1&amp;utm_content=share_button">3-5%</a> commission but handle all the relationship building, saving massive travel and networking costs.

These agents already have established relationships with importers in specific regions. They understand local market preferences, handle negotiations in the buyer's time zone, and can provide market intelligence you'd never get on your own. Look for buying agents through industry directories, trade fairs, or LinkedIn searches for "[your product] buying agent [target country]."

The key is finding agents who specialise in your product category and have a proven track record. Ask for references from other Indian suppliers they represent, and start with non-exclusive agreements until they prove their worth.

Deploy advanced LinkedIn Sales Navigator techniques

Basic LinkedIn isn't enough anymore.<a href="https://business.linkedin.com/sales-solutions/sales-navigator"> LinkedIn Sales Navigator</a> gives you surgical precision in finding procurement managers abroad.&nbsp;

Use Boolean search strings like: "(Procurement OR Sourcing OR "Import Manager") AND (textiles OR apparel) NOT (assistant OR intern)" to find decision-makers in your industry.

The "connections of" filter on Sales Navigator helps you see who your existing clients are connected to in a particular industry. These warm connections are 10x more likely to respond than cold outreach because you have a mutual connection.

Export your leads using tools like<a href="https://evaboot.com/"> Evaboot</a> or<a href="https://prospeo.io/"> Prospeo</a> (which can find email addresses for up to 45% of LinkedIn profiles). Create targeted email sequences through your CRM, mentioning the mutual connection and being specific about why you're reaching out.

Remember geographic targeting, time your messages to land in their inbox during their business hours and use terminology they understand (American English for US buyers, British English for UK buyers).

Partner with complementary businesses for larger opportunities

Instead of competing alone, team up with other Indian exporters to bid for large contracts that no single company can handle. This is especially effective for government tenders or large corporate contracts where buyers need huge volumes or multiple product categories.

Create formal consortia with complementary businesses. Partner with accessory manufacturers, packaging companies, or logistics providers if you export textiles. This lets you offer complete solutions rather than just products, which buyers increasingly prefer.

Document these partnerships properly and present them professionally in your pitches. Large buyers love dealing with consortia because it reduces their vendor management overhead while ensuring consistent supply.

What are The Modern Digital Discovery Channels to find Overseas Clients for your Goods Exports?

Digital discovery has completely changed the game for exporters. You are no longer limited to trade fairs and cold calls - now you can identify, conduct market research, and connect with international buyers from our desks.&nbsp;

But here's the thing: everyone's doing "digital outreach" now, so you need to be smarter about it.

Apart from leveraging the LinkedIn Sales Navigator features, you can also do the following on this platform:&nbsp;

Smart cold outreach that doesn't feel cold

Traditional cold emailing has a 1-2% response rate, but personalized, research-backed outreach can hit 15-20%. The key is making it not feel cold at all.

Social media platforms beyond the obvious

As your digital outreach grows, you need systems to manage it all. Use a CRM like<a href="https://www.zoho.com/crm/"> Zoho</a> (India-made),<a href="https://www.hubspot.com/"> HubSpot</a> (free version available), or<a href="https://www.pipedrive.com/"> Pipedrive</a> to track every interaction.

The key to modern digital discovery is being systematic, not scattered. Pick 2-3 channels, master them completely, then expand. Quality beats quantity every time in international business.

Government Platforms and Schemes to help find overseas clients

The government runs several platforms and schemes to help exporters find overseas buyers, though they're spread across different departments and can be confusing to navigate.

Trade Connect e-Platform: The government's "ChatGPT for exporters"

DGFT's<a href="https://www.trade.gov.in/"> Trade Connect portal</a> launched in 2024, is what Commerce Minister Piyush Goyal calls "ChatGPT for our exporters." This isn't just another government website - it's a single dashboard that connects over 6 lakh IEC holders with 180+ Indian Mission officials and 600+ Export Promotion Council officials.

It's designed for MSMEs with small research budgets. Instead of hunting through 10 different websites for market information, you get everything on one platform. Plus, it connects you directly with commercial officers at Indian embassies who can introduce you to local importers.

Export Promotion Councils: Your industry insiders

Beyond basic registration, EPCs are goldmines for buyer connections that most exporters underuse. Many EPCs maintain buyer directories that they don't actively promote but are available to members. 

For instance, the<a href="https://hepcindia.com/"> Handloom Export Promotion Council (HEPC)</a> or<a href="https://www.eepcindia.org/"> Engineering Export Promotion Council (EEPC)</a> regularly gets inquiries from overseas buyers looking for specific products.

EPCs also facilitate international tenders. A successful handicrafts exporter mentioned how EPCH connected them with a major US retailer through a reverse buyer-seller meet. The retailer had specifically approached EPCH to look for authentic Indian handicraft suppliers, and because this exporter was an engaged member, they got the introduction.

Export Promotion Councils to focus on:

Financial schemes that make you more competitive

The<a href="https://www.commerce.gov.in/international-trade/trade-promotion-programmes-and-schemes/market-access-initiative-mai-scheme/"> Market Access Initiative (MAI) scheme</a> provides funds for international marketing, but most small exporters are unaware of it. MAI provides up to ₹75,000 (₹1,25,000 for Africa and the Americas) for economy airfare reimbursement when you participate in EPC-led international trade fairs.

You can participate in up to 3 MAI events per year. You can do five annual events in different markets for SC/ST/Women exporters and those with exports under ₹50 crores. This means the government is essentially subsidizing your international business development trips.

<a href="https://cleartax.in/s/rodtep-scheme">RoDTEP (Remission of Duties and Taxes on Export Products)</a> is the new export incentive that replaced MEIS. It refunds embedded taxes that you can't claim anywhere else - things like electricity duty, fuel taxes, mandi tax, and coal cess. The refund rates range from 0.01% to 4.3% of your FOB value, issued as transferable electronic scrips.

This makes your pricing more competitive because you're not absorbing these hidden costs. When you quote to international buyers, your prices can be 2-4% lower than competitors who aren't using RoDTEP effectively.

ECGC: Making foreign buyers comfortable with Indian SMEs

<a href="https://www.ecgc.in/">Export Credit Guarantee Corporation (ECGC)</a> provides export credit insurance that covers 80-90% of your export value if overseas buyers default. But here's the strategic angle most exporters miss: ECGC insurance makes foreign buyers more comfortable dealing with you.

When you tell an international buyer that your shipments are covered by ECGC insurance, it signals that you're a serious, government-backed exporter. Large buyers especially prefer suppliers who have export credit insurance because it reduces their supply chain risk.

Negotiating International Payment Terms: A Guide for Indian Exporters & Freelancers 

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India’s export story is a headturner: <a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=2126119">US$824.9 billion in FY 2024–25</a>, a promising 6% growth over the previous year.&nbsp; So if you are a freelancer or a business owner, this is the right time to take advantage of the momentum and expand your business overseas.

But, behind this impressive headline, there is a costlier reality. Many small Indian business working with overseas clients are giving their profits to hidden international transaction charges.&nbsp;

In this blog post, we'll uncover these hidden charges and provide practical tips to help you keep more of what you earn from foreign currency transactions.

Common International Transaction and Payment Charges

What are the different types of foreign transaction fees? When are they applied? What is the total cost? We answer all of these questions in this part of the blog.

When a client sends you money via a <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT transfer</a>, their bank typically applies an outward SWIFT fee, usually ranging from $15 to $30 per transaction.

In many business cases, this fee is either deducted from the payment amount or passed on to the recipient. Additionally, the payment may pass through multiple intermediary banks, each potentially charging its own fee, making the total cost difficult to predict.

Once the payment reaches your Indian bank, some banks may also levy an inward SWIFT fee, further reducing the final amount credited to your account.

While SWIFT transfers are widely used and secure, it’s important to be aware of these layered charges, as they can impact the net amount you receive.

When you receive international payments, banks usually convert the foreign currency to INR using a rate that includes a <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markup</a>, typically around 1% to 3.5% above the mid-market exchange rate (the actual rate you see on platforms like Google or XE).

This markup isn’t shown as a separate fee. Instead, it's baked into the exchange rate you're offered. For instance, if the mid-market rate is ₹83 = $1, your bank might convert it at ₹80.5, meaning you receive less per dollar.

Over larger transfers, this difference can add up. On a $10,000 payment, a 3% markup could result in nearly ₹25,000 less than what you'd get at the mid-market rate.

While this is standard practice across many banks and platforms, it's worth understanding how it affects your final payout, especially if you're receiving payments regularly.

As part of RBI compliance, anyone receiving international payments in India must obtain a <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">Foreign Inward Remittance Advice (FIRA)</a>, a document that confirms the inward remittance and serves as proof for audits, tax filings, or export benefits. This document is typically issued by the receiving bank in India, often for a fee. For example, HDFC Bank charges ₹200 + 18% GST per FIRA, while <a href="https://www.idbibank.in/pdf/IDBI-Trade-Current-Account.pdf">IDBI Bank</a> may charge up to ₹150 + GST per remittance.

While the fee might seem small, it can add up quickly for businesses or freelancers handling frequent international transactions, making it important to factor in when evaluating total payment costs.

Payment gateways like PayPal, Stripe make it easier for freelancers and businesses to receive payments from international clients. However, these platforms come with a mix of transaction and currency conversion fees that are important to understand.

For example, <a href="https://www.skydo.com/blog/paypal-transaction-fees-india">PayPal charges a 4.4% transaction fee </a>plus a fixed fee (typically $0.30 for USD). Additionally, a 4% currency conversion fee is applied on top of the prevailing exchange rate. This means the effective exchange rate you receive is usually lower than the market rate.

If a client sends $10,000, total deductions may be around $440.30, leaving you with $9,559.70. At an adjusted exchange rate of ₹81.6 per USD, the final amount in INR would be about ₹7,80,071. At the mid-market rate of ₹85/USD, the amount would have been ₹8,50,000, a difference of nearly ₹70,000.

While these platforms offer ease of use and global acceptance, it’s worth comparing fees and exchange rates, especially for larger payments or high volumes.

Hidden charges when receiving foreign payments in India

Many Indian businesses and freelancers assume they’re receiving the full payment their international client sent. But in reality, you often receive less than what was transferred, thanks to hidden charges that aren’t clearly disclosed upfront. Here’s where the money quietly slips away:

To understand the impact of these charges, let's see how much you would actually receive from a 10,000 US Dollars payment through different payment methods:

Bank (SWIFT Transfer) Fees: $30 SWIFT fee&nbsp; Forex Markup: ~2% Amount After Fees: $9,970&nbsp; Exchange Rate: ₹83.3 (mid-market ₹85 - 2%)&nbsp; Final Amount: ₹8,30,201

PayPal
 Fees: 4.4% ($440) + $0.30 fixed fee Forex Markup: ~4% Amount After Fees: $9,559.70 Exchange Rate: ₹81.6 (mid-market ₹85 - 4%) Final Amount: ₹7,80,071

Wise Fees: $162 (1.62% conversion fee) Forex Markup: None (mid-market rate used) Amount After Fees: $9,838&nbsp; Exchange Rate: ₹85&nbsp; Final Amount: ₹8,36,230

Skydo Fees: Flat $29 Forex Markup: None (mid-market rate used) Amount After Fees: $9,971&nbsp; Exchange Rate: ₹85 Final Amount: ₹8,47,535

🧾 Assumption: Mid-market USD/INR rate = ₹85

Note: A few additional charges might apply. Like banks and Wise, they charge a fee for issuing an FIRA. The amount differs from one bank to another, and for Wise, the per FIRA charge is $2.5.

How to Calculate Charges for International Payments?

International payments often come with multiple hidden charges that reduce the final amount you receive. Here's how to break it down:

Account for SWIFT or intermediary bank charges. If the payment is via international wire transfer, intermediary banks may deduct $10–$40 during the transaction, and you may not even be notified.

Want to avoid these losses?
Platforms like Skydo offer live forex rates and full transparency, so you know exactly how much you'll receive before the money lands in your account.

Tips to Reduce International Transaction Charges

Now that you know where hidden fees come from, here are some actionable ways to keep more of what you earn:

1. Monitor the Mid-Market Exchange Rate

Always check the live USD/INR rate on Google or XE before confirming a payment. This gives you a reliable benchmark to compare against what your bank or payment platform offers, and helps you spot any built-in markup.

2. Review Your FIRA or Credit Advice

Your Foreign Inward Remittance Advice (FIRA) or bank statement shows the exact rate applied. Compare this with the mid-market rate from the payment date to calculate the forex markup, it's often more than you think.

3. Negotiate with Your Bank (If You're Using One)

If you receive international payments frequently, speak with your bank about lowering forex markups or waiving inward SWIFT fees. Banks may offer better terms to customers bringing consistent foreign inflows, but only if you ask.

4. Use Virtual Accounts to Avoid SWIFT Fees

Platforms like Skydo and Wise offer virtual USD, EUR, and GBP accounts. These accounts allow your clients to pay you using local payment methods (like ACH or SEPA), avoiding SWIFT altogether. The result:

5. Choose Transparent Platforms 
 Avoid platforms that show only the “final amount” without explaining how it was calculated. Services like Wise use the mid-market rate and clearly list fees upfront. Skydo offers flat pricing till USD 10,000 and zero forex markup, so there are no surprises when the funds arrive.

Skydo: Transparent, Seamless International Payments

For Indian freelancers and businesses working with international clients, Skydo offers a cost-effective alternative to traditional banks and payment gateways. With Skydo, you benefit from:

Skydo is a transparent and cost-effective partner for freelancers and business owners with international clients. <a href="https://www.skydo.com/">Sign up now</a> to give it a trial.

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International transaction charges

BACS full form is Bankers’ Automated Clearing System. It is a 54-year-old payment system that’s been the backbone of UK (United Kingdom) banking. Operated by <a href="http://pay.uk">Pay.UK</a>, which is the organization responsible for overseeing the UK’s major payment systems, BACS is trusted by nearly all major UK banks for moving money electronically.

In this blog, we will help you understand what BACS is, how it works, and how you, as an Indian freelancer or business owner, can use BACS to receive payments in India from your UK clients.

BACS, or Bankers' Automated Clearing System, is the electronic payment system that manages everyday money transfers across the UK. It's trusted by individuals and businesses alike to send and receive funds securely between UK bank accounts. To give you a sense of scale, BACS processed<a href="https://www.wearepay.uk/wp-content/uploads/2024/11/Quarterly-Statistical-Report-2024-Q3.pdf"> 1.7 billion payments</a> with a total value of £1,473 billion in only the third quarter of 2024.

How BACS Payments Work (Timing and Process)

BACS payments follow a simple but structured process, so you always know when to expect your money.

A typical BACS transfer takes three working days from start to finish. Here’s how it works:

So, if a BACS payment is made on Monday, it will be credited to a user's account by Wednesday.

According to this timeline, BACS operates only on UK banking days (Monday to Friday). Payments submitted near weekends or public holidays will take longer. The BACS payment system advises users to download the<a href="https://www.bacs.co.uk/media/hvjgrldj/bacs-processing-calendar_2025.pdf"> processing calendar</a> so that they can plan their payments accordingly.

To receive a BACS Direct Credit, a user will need:

No <a href="https://www.skydo.com/blog/iban-number-meaning-full-form">IBAN </a>or <a href="https://www.skydo.com/swift-code-finder">SWIFT code</a> is required for BACS transfers, just these basic UK bank details.

If a company is dealing with BACS Direct Debit payments or setting up payroll, they also need a BACS Service User Number (SUN). The SUN is a unique six-digit number assigned to an organization, allowing it to collect payments through direct debits. But as a freelancer or exporter, you’ll mostly be working with Direct Credits.

Wondering about the costs and limits when using BACS? Here are a few aspects about BACS that you will find interesting:

BACS transfers are one of the cheapest ways to move money in the UK. Sending a payment usually costs between 5p and 50p per transaction as bank charges, depending on your bank or payment provider. That’s cheaper than other systems like CHAPS payments, which mostly cost £20–£30 per transfer. And<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide"> SWIFT international transfers</a> that cost anywhere from £5 to £25. BACS is designed for everyday business payments, so you keep more of the sender's earnings.

When someone receives a BACS payment, they don’t pay any fees. The sender covers all the costs, meaning if your client sends £1,000, you get the full amount in your account

BACS can handle payments of up to £1 million per transfer. This is much higher compared to<a href="https://www.skydo.com/blog/everything-about-fps-bacs"> Faster Payment Services (FPS)</a>, a popular system for near-instant UK transfers. This means if you’re invoicing your client for big projects, they can easily send that amount through the BACS payment method.

Easily Accept BACS Transfers from UK Clients with Skydo