As an Indian exporter, navigating the complexities of international transactions and compliance can feel like solving a complex puzzle. Today, we'll explore a crucial piece of that puzzle: FIRC

FIRC full form is Foreign Inward Remittance Certificate. It is a document issued by banks as proof of receiving international payments. Over the years, regulations around FIRC have changed significantly, creating confusion and mystery around this important document. Let's clear the air and decode the what, who, and why of FIRC.

FIRC or Foreign Inward Remittance Certificate serves as a proof of foreign money transfer for exporters in India. Until 2016, <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">AD (Authorised Dealer) Category I Banks</a> were authorised to issue FIRCs to exporters for receiving payments from foreign sources. This document was essential for exporters to obtain after each cross-border payment. It served not only as proof of payment receipt but also as a crucial document for claiming export-related incentives, such as tax exemptions on foreign currency payments received in India.

As we've covered, the full form of FIRC is Foreign Inward Remittance Certificate and for a long time it served as proof of export income from abroad. However, with changing regulations, the function of FIRC has also changed significantly. Let's take a look:

FIRA is often still referred to by its old name, FIRC. While both documents serve the same purpose, FIRC is technically only issued for returns on&nbsp;Foreign Direct Investment (FDI )or Foreign Institutional Investment (FII). For all other export collections, FIRA/BIRC is what you need.

For clarity, we'll use the term FIRC moving forward, but it refers to FIRA throughout.

Anyone receiving foreign payments needs FIRC.&nbsp; Beyond goods and service exporters engaging in international trade, many individuals and entities may receive international payments without realising it.&nbsp;

Overall, the following typically require a FIRC:

Beyond compliance, here’s why FIRC is crucial for exporters:

FIRCs are issued by AD Category I banks. You can contact your bank to get your FIRC after receiving your foreign payment. <a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Alternatively, you can also use platforms like Skydo to get your FIRC instantly after every payment.&nbsp;</a>

Who Needs FIRC and Why It’s Important for Exporters?

FIRC (Foreign Inward Remittance Certificate) is essential for anyone receiving foreign payments, including:

Exporters, in particular, rely on FIRC for two key reasons:

FIRC is issued by Authorized Dealer (AD) Category I banks, and businesses can obtain it directly from their bank. However, it is usually a cumbersome process requiring multiple follow-ups and most banks charge around INR 500 to issue each FIRC.&nbsp;In contrast, platforms like Skydo offer a fast, hassle-free solution, providing an instant FIRC for free after every foreign payment—no manual requests, no extra costs.

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: 

Receiving your export payment directly through your bank can make obtaining an FIRC a lengthy process. You need to submit a request to the bank, and the bank typically takes 7-15 days to provide the FIRC. You may also need to follow up multiple times, and banks often charge at least INR 400 to issue the FIRC, depending on the institution.

<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Getting a FIRC</a> might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRC for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRC ready to download, complete with all the details you need. 

In conversations around FIRC, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">eFIRC?</a>

What is the difference between eBRC and FIRC?

Generally speaking, e-BRC applies mostly to goods and software exporters (under <a href="https://stpi.in/en/home?no_follow=true/">STPI</a>). If you are one of them, you can use this simple decision tree to understand which documents you will need:

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRC, claiming a GST refund may not be possible

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRC is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

FIRC full form is Foreign Inward Remittance Certificate. Learn what FIRC is, its importance for exporters and freelancers, and how to obtain it easily

FIRC: Full form, meaning and RBI guidelines

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

Expanding your business globally has never been easier, thanks to the internet and social media. Sitting in India, you can easily work with clients from the US, UK, Australia, or anywhere in the world. As per the <a href="https://www.commerce.gov.in/wp-content/uploads/2025/02/PIB-Release-January-2025-fin.pdf">Ministry of Commerce and Industry</a>, the estimated value of services export for January 2025 is USD 38.55 Billion as compared to USD 31.01 Billion in January 2024.

But the question of "How to receive international payments in India" continues to challenge businesses. However, cracking this can save you thousands, prevent compliance headaches, and ensure smooth, timely payments.

In this blog, we’ll break down the different ways to receive international payments in India, compare their costs and processing times, and help you find the best option for your business.

&nbsp;How to Accept International Payments in India?

Here are the main ways to receive international payments in India

1.&nbsp; International virtual accounts via Skydo, Payoneer, Wise:&nbsp; Most suited for small to medium businesses and freelancers prioritizing quick settlement, lower fees and seamless process.&nbsp; 2. Payment Gateways like&nbsp;PayPal: Most suited for freelancers and e-commerce platforms prioritizing multiple payment methods, integrations and global acceptability. 3. Banks: Most suited for big businesses having large payment volumes

4. Remittance platforms like Western Union and Wise P2P: More suited for personal transfers rather than business payments

Before deciding on your preferred way, it is important to evaluate each method on parameters like timeline, fees etc to find out which fits your needs the best. So let's understand these parameters in some detail:

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. However, international payments are a different story and the settlement time depends on the mode of payment primarily. For example, banks may take upto 7 business days to settle your payment while international virtual accounts can do it within 48 hours.

International payments often undergo strict scrutiny due to concerns around money laundering and terror financing. Hence, when choosing your international payment platform, check if it is approved by the RBI, <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">provides FIRA</a>&nbsp;and has the necessary security certifications. For example, In January 2025, Skydo received <a href="https://economictimes.indiatimes.com/tech/startups/skydo-secures-rbi-licence-to-offer-cross-border-payments/articleshow/117413507.cms?from=mdr">in-principle authorisation from the Reserve Bank of India (RBI) </a>to operate as a Payment Aggregator-Cross Border (PA-CB) entity ensuring the highest level of compliance and security.

Charges are one of the key factors when deciding on how to receive international payments in India. You need to be aware of the fees associated with each payment platform and make sure there are no hidden fees that are sneaking in. For example, most platforms including banks apply a markup on the ongoing exchange rate&nbsp;—if the actual rate is 1 USD = ₹84, banks 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.

Do I Have to Pay Tax on International Payments in India?

Exports in India are considered zero-rated supplies, meaning you don't have to pay <a href="https://www.skydo.com/blog/how-does-gst-affect-foreign-payments">GST on your export income </a>if you receive your payment in foreign currency.&nbsp;

However, note that regardless of whether you receive a salary from an overseas employer or payments from foreign clients as a freelancer or business, your income will be taxed in India based on the applicable income tax slab rates.

&nbsp;Best Way to Receive International Payment 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 is the best way to receive international payments in India.&nbsp;

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, here are a few things that you need to know before deciding if banks are the right fit for you to receive international payments:

International bank wire transfers can take upto 5 business days or even longer&nbsp;due to reasons like multiple intermediary banks, bank holidays, incorrect details etc.&nbsp;

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.&nbsp;Axis Bank for example charges INR 250 for every FIRA and an additional INR 100 for duplicate FIRA.

Bank fees for international payments include a SWIFT fee which while levied on the sender is often passed on to the receiver. It might cost your client anywhere around USD 15-50 to send the international payment and more often than not, it will be passed on to you. 

Further, as we've mentioned banks mostly levy a forex markup, giving you a lower exchange rate than the market exchange rate.&nbsp;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.&nbsp;Beyond SWIFT and forex fees, banks tend to charge extra fees for various services. For example,&nbsp;Axis Bank&nbsp;charges ₹250 for issuing a FIRA and ₹500 to track SWIFT payments.

<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;

If your client pays you via PayPal, the amount appears in your PayPal account almost instantly, but it can take up to 5 business days to reach your bank account.

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.

PayPal fees for receiving international payments border on the steep side, which includes a 4.40% transaction fee, plus a&nbsp;fixed fee&nbsp;depending on the currency of the transaction along with 4% currency conversion fee to the prevailing exchange rate.&nbsp;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..&nbsp;

Virtual International Bank Accounts&nbsp;

New-age fintech platforms like Skydo,<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons"> Wise</a>, 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, 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..

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

Since virtual bank accounts skip&nbsp;SWIFT transfers,&nbsp;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>

Which platform should you choose to receive international payments in India?

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.

Here's a quick comparison chart to help you decide the best way to accept international payments in India based on your needs:

How to Receive International Payments 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 means receiving money from abroad in your bank account in India. However, inward remittance, especially foreign payments aren't as straightforward as a domestic transfer due forex rate, RBI guidelines and international systems.&nbsp; In this blog, we’ll break understand what inward remittance is, what are the rules, charges, and timelines around it. So let us begin!&nbsp;&nbsp;

Inward remittance is simply money sent to your bank account in India from someone living abroad. It could be funds from an NRI family member helping with education or medical bills, or even a foreign employer or client paying your salary or invoices.

The money arrives in foreign currency and gets converted into Indian Rupees at the current exchange rate. Whether it’s personal support or business payments, understanding how inward remittance works makes it easier to manage and maximize what you receive.

What are the Rules and Guidelines for Receiving&nbsp; Inward Remittance in India?

Since inward remittance involves movement of money across national borders, it comes with its own set of rules and guidelines.&nbsp;In India, the RBI and <a href="https://enforcementdirectorate.gov.in/fema">FEMA</a> (Foreign Exchange Management Act) have set out <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">specific guidelines</a> for receiving inward remittances in India:&nbsp;

<a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">&nbsp;Only Authorised Dealer Category I&nbsp;</a>(AD Cat I) banks are allowed to receive foreign inward remittances in India.&nbsp; The AD Cat I banks are financial institutions that hold a license issued by the Reserve Bank of India (RBI) to buy and sell foreign currency for capital and current account transactions.

Each foreign inward remittance must contain a<a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance"> purpose code.</a>&nbsp;The code defines the purpose of inward remittances like education, investments, remuneration, travel, insurance and more.&nbsp;For example:

If your inward remittance is payment for selling goods/services abroad then it must be accompanied by an FIRA. <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA&nbsp;</a>is proof that you have received a <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">foreign payment </a>in India and is issued by the AD Category I banks.

Transfers related to lottery winnings, gambling, and other illegal activities are prohibited under FEMA guidelines.

For most foreign inward remittances, there’s no<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#do-you-have-to-pay-tax-on-remittance"> tax liability</a> in India. However, if the remittance is income from sources like investments, salary, or business, it will be taxed according to your applicable income tax slab rate.

We've briefly touched on the compliance requirements associated with inward remittance. You can find the <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">detailed explanation of the compliance requirements here</a>

What Documents Are Required for Receiving Inward Remittance in India?&nbsp;

While receiving your inward remittance, you may need to furnish the followig documents

You fall into this category if you’re an exporter, freelancer or someone who provides services to international clients. Here’s the document list:

You can find a detailed explanation of the<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#what-are-the-documents-required-for-inward-remittance-in-india"> documents required for inward remittance in India right here</a>

How Do You Receive Inward Remittance in India?

There are three primary means to receive foreign inward remittances in India:

Let’s explore each medium and the steps in collecting inward remittances in India.&nbsp;

Banks are one of the most popular ways of transferring money from overseas to India. To receive inward remittance you must share your Indian bank account details like account number, bank and branch name, and <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT code</a> with the sender. You can find the<a href="https://www.skydo.com/swift-code-finder"> SWIFT code of your bank right here.&nbsp;</a>

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal supports</a> over 100 currencies and has gained popularity in India as a medium to receive inward remittances. You can use the PayPal website or download their app to receive foreign remittances. Link your bank account to PayPal, so that you can withdraw money when you like.

I<a href="https://www.skydo.com/blog/virtual-account-numbers">nternational virtual accounts</a> are like digital gateways linked to your real bank account. They don’t store money themselves—when funds are credited, they’re transferred to your bank account. With platforms like Skydo, you can use virtual accounts to receive payments in different foreign currencies, making cross-border transactions simple and hassle-free.

The cost of processing inward remittances varies across banks and can include charges like SWIFT fees, forex markups, and additional service fees. For business payments, it’s crucial to understand these charges, as they are often borne by the recipient.

Here’s a breakdown of inward remittance charges at popular Indian banks:

Understanding these fees can help you plan your payments better and avoid unexpected deductions.

PayPal Charges for Receiving Inward Remittance

PayPal also comes with a hefty price tag for receiving foreign remittances in India especially when it comes to business payments. It charges a flat 4.4% transaction fee on every transaction. Additionally, you have to bear a fixed fee, which depends on the currency and a currency conversion fee of 4% on the current exchange rate. To get an in-depth explanation of each charge, check out our blog on<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives"> PayPal India Charges</a>.

International virtual accounts Charges for Receiving Inward Remittance

Virtual accounts do not charge SWIFT fees because it’s treated as a local transfer making it a more affordable option. Here’s a quick breakdown of how much Skydo charges for receiving international payments via virtual accounts:&nbsp;

With Skydo, for payments up to USD 2,000, you pay $19. For payments between 2,000 to 10,000, you pay $29 and for payments above USD 10,000 only 0.3% fee is levied. So for a USD 5000 inward remittance, you can expect to receive INR 5,424 more compared to banks and INR 32, 862 more compared to PayPal.

Is There Tax on Inward Remittance in India?

Are you supposed to<a href="https://www.skydo.com/blog/decoding-gst-on-foreign-exchange"> pay taxes on inward remittances</a>? According to the income tax rules for international remittances, it depends on the purpose of the remittance. We have covered three different scenarios to give you a snappy overview:

Find out <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">how to receive foreign payments in India.</a>&nbsp;

How Much Inward Remittance is allowed in India?

According to the framework set by RBI for<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> Online Payment Gateway Service Providers</a> (OPGSP), there are no limitations on personal transfers.&nbsp; However, <a href="https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx?Id=1692#:~:text=There%20is%20no%20limit%20on,lakh%20for%20trade%20related%20transactions.">as per RBI</a>, there is a cap of INR 15.00 lakh for trade-related transactions.

Receive Business Inward Remittance Seamlessly with Skydo

For an exporter or a freelancer, paying hefty charges for inward remittances is a huge loss to their earnings. They deserve a platform that offers transparent pricing and advanced features for invoicing.<a href="https://www.skydo.com/"> Skydo</a> fits the requirements perfectly and is a trusted partner for business owners looking to scale their revenue from international clients.

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Foreign Remittance in India

India’s tech exports hit a massive <a href="https://www.ibef.org/industry/information-technology-india">$199 billion in FY24</a>—a clear sign of how resilient and innovative India’s tech sector is, even in tough global times. This growth is putting India on the map as a global leader in technology and services.

But let’s be honest: while the numbers look great, the reality for Indian exporters can be challenging. One of the biggest pain points? Getting paid. Despite all the advancements, receiving international payments is still slow, complicated, and often way too expensive.

So, how do you, as a tech professional, keep your cash flow healthy and focus on growing your business globally? That’s where Skydo comes in. We take the headache out of receiving international payments, cutting through the delays and unnecessary costs, so you can focus on what really matters—your growth.

Limitations of Existing Payment Channels in India

The existing international payment landscape in India is extremely cumbersome and time-consuming for businesses.&nbsp;

The majority of <a href="https://www.pwc.in/industries/financial-services/fintech/dp/the-evolving-landscape-of-cross-border-payments.html">international remittances</a> take place through the following channels:

The following are the challenges that tech exporters face while receiving international payments through these channels:

Steep Fees and Unfavourable Exchange Rate:&nbsp;

Receiving international payments via SWIFT comes with its own set of costs. You’ll encounter SWIFT fees ranging from INR 500 to 1,000, along with additional charges like tracking fees and FIRA fees. But the real issue lies in the unfavourable exchange rates offered by banks.

Unlike live exchange rates, banks often provide lower rates. For example, if the market rate is 1 USD = INR 86, a bank might offer you a rate of 84. On a payment of USD 10,000, this means you’d receive INR 8,40,000 instead of INR 8,60,000—a loss of INR 20,000, simply due to poor exchange rates. And the worst part? You might not even realise it.

Complex and Time-Consuming FIRA Process:

FIRA, or Foreign Inward Remittance Advice, is a critical compliance document that every exporter must secure after receiving cross-border payments. It serves as proof of the international payment you’ve received for your services.

However, obtaining FIRA from banks is far from simple. The process often involves repeated follow-ups, long waiting times, and, to make matters worse, most banks charge an additional fee for issuing the document. This not only adds to the complexity but also increases the overall cost of managing international payments.

When it comes to customer support, banks often fall short—understandably so, given the sheer volume of customers they handle daily. However, this leaves exporters like you in a tough spot. Even a straightforward query can take weeks to resolve, requiring multiple follow-ups along the way. For busy tech exporters juggling countless priorities, this lack of timely support can quickly become a source of frustration.

Receiving a SWIFT transfer can take upto 5 business days, longer if there are multiple intermediary banks involved. This wait time can not only be frustrating but can also cause a cash crunch for exporters.&nbsp;

Why is Skydo Important, and What Does it Solve?

Skydo is transforming the way businesses handle international payments with innovative, affordable solutions. With features like automatic FIRA generation, automated invoicing, flat transaction fees, and responsive customer support, Skydo takes the hassle out of cross-border payments, letting you focus on growing your business.

We understand the unique challenges tech exporters face when dealing with international transactions—hidden fees, delays, and endless follow-ups. That’s why Skydo is designed to tackle these issues head-on, making global payments fast, transparent, and stress-free.

Here’s how Skydo addresses common pain points and becomes your go-to solution for international payments.

One of the most significant benefits of the <a href="https://www.skydo.com/blog/a-quick-guide-to-using-the-skydo-platform?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Skydo payment platform</a> is the flat transaction fee for receiving international payments.&nbsp;

For payments above USD 10,000, Skydo charges a 0.3% fee, much more affordable than most other payment platforms.&nbsp;

You can view the exact transaction fee when you generate an invoice. Thus, Skydo ensures transparency and helps you save unnecessary hidden charges levied by other payment gateways.

2. Seamless payment processing within a few hours

Skydo provides you with virtual international accounts in multiple key regions including the US. UK, Europe, Australia, Singapore and more. So, in these regions, your clients pay you in these virtual accounts, making it a local transfer rather than an international one. Skydo then consolidates these payments and settles it in your Indian bank account within just 24 hours—no more long wait times, just smooth and consistent cash flow. Plus, with our real-time payment tracking feature, you’ll always know exactly where your payment is at every step of the process.

Skydo converts the payment received in international currency into INR as per the live foreign exchange rates without levying any additional fee. This means that you get the exact amount in your bank account as per the prevailing currency rate without any deductions.&nbsp;

4. Invoice generation and payment reminders with the auto-generated invoice number

Invoicing is one of the best features of the Skydo payment platform. It helps you save on time and manual efforts by creating automatic invoices. 

Skydo provides customisable professional invoice templates to suit your business requirements. The payment platform automatically adds the invoice number every time you generate an invoice.&nbsp;

Moreover, you can track the real-time status of all your invoices on a single dashboard and send payment reminders to clients through Skydo.

Learn more: <a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo">Transforming Your Invoicing Experience With Skydo</a>

5. Compliance with Indian regulations - Automated FIRA

<a href="https://www.skydo.com/blog/all-you-need-to-know-about-FIRC-a-complete-guide?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Foreign Inward Remittance Advice (FIRA) certificate</a> provides complete details of all foreign services provided by Indian exporters. It is essential for businesses to maintain all FIRA receipts to reconcile their financial statements and for tax compliance purposes.&nbsp;

Skydo automatically generates FIRA certificates for all transactions, making it easier for you to comply with tax laws.

The intuitive dashboard has been designed to help users easily navigate through Skydo's payment platform. It provides you access to all the details related to your transaction within a few seconds.

How Does Skydo Ensure 100% Safe and Secure Payments?

Questions around safety and security become paramount when it comes to international payments. Here's how Skydo ensures 100% compliant payments every time.&nbsp;&nbsp;

1. Skydo's Collaboration with Indian and Foreign Financial Institutions

Skydo has partnered with renowned financial institutions around the world including HDFC and Banking Circle and many more to simplify international payments for Indian exporters and service providers. We are also actively in talks with many other renowned institutions to be able to offer virtual accounts in more regions

Learn More: <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts">Enjoy Seamless Payment Experience by Creating International Bank Accounts in Just 5 Minutes</a>

Skydo is now <a href="https://www.business-standard.com/companies/start-ups/fintech-skydo-receives-in-principle-approval-to-operate-as-pa-cb-entity-125012101362_1.html">RBI-approved as a Payment Aggregator for Cross-Border Payments (PACB)! </a>This milestone reflects our commitment to making your payments secure, seamless, and fully compliant with RBI regulations.

We’re also SOC 2 certified, meaning your data’s safety is non-negotiable for us. With end-to-end encryption, secure storage, and regular security checks, we ensure your data stays private and protected—always.

3. Ensuring Compliance with Reserve Bank of India (RBI) Guidelines

We understand how important it is to comply with RBI’s strict guidelines, not just for us but for our tech exporters too. That’s why Skydo provides free and instant FIRA for every transaction, eliminating the need for repeated bank visits and ensuring your payments are always RBI-compliant—without the extra hassle.

4. How Skydo Streamlines Know Your Customer (KYC) Processes

One thing business owners despise the most about payment and banking platforms is the tedious KYC process. With Skydo, the process is simple.&nbsp;

As soon as the users enter the business PAN, the platform automatically extracts relevant details such as the company's name, GSTIN, and CIN from the Ministry of Corporate Affairs database.&nbsp;

Even when the directors upload their PAN, the platform automatically collects information from the uploaded file. Thus, Skydo offers smooth and quick KYC processes.

4. Auto-generated Purpose Code based on RBI Guidelines

As per the RBI guidelines, all invoices related to the export of goods or services must have a purpose code to identify the type of service provided. Without the purpose code, the banks reject the payment received from an overseas account.&nbsp;

There is a long list of different purpose codes that you can find online. Entering the purpose code manually for every transaction is time-consuming and leaves scope for error.&nbsp;

Skydo's payment platform prefills the purpose code in your account post-registration. This code is then automatically available in a drop-down based on the services rendered in that invoice. This ensures that you send accurate invoices and receive payments on time.

Harshal, founder of Mobiprise, and a proud Skydo customer, couldn't contain his enthusiasm when he said, "Compliance with Skydo is not only good but great! It’s been very painful all these years." With Skydo, you too can experience the benefits of hassle-free cross-border payments.

While businesses are keen on expanding their services globally, challenges related to international payments act as restraints. Add to this multiple regulatory processes and banking norms. Consequently, payment gets delayed, making it difficult for merchants to scale their business.&nbsp;

Skydo streamlines the payment process by providing automated invoicing services and charging flat transaction fees. It also has a vast network of Indian and foreign bank accounts, enabling businesses to open a local bank account in the US. This facilitates quick receipt of international payments to your local bank account in India.&nbsp;

<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Request a demo</a> today to expand your business internationally with Skydo!

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Most new exporters find the trade paperwork overwhelming. First, the volume and second, the lack of experience, lead them into a spiral of confusion.

If you're experiencing a similar situation, we might have the right blog to start cutting through this confusion. Among the various documents, the proforma invoice is one of the most frequently used by exporters worldwide. Is it the same as a formal invoice? Not really. It plays a different role.&nbsp;

We suggest reading this comprehensive guide to find out everything about proforma invoices. It breaks down all the details, from their basic definition and purpose to practical formats and examples. 

A proforma invoice is a preliminary bill of sale that provides a detailed estimate of costs before the sale is confirmed. It defines the key transaction details upfront so that the buyer and seller understand the proposed terms before the transaction is initiated. This helps to streamline the sales process and avoid going back and forth.

A proforma invoice typically includes detailed information like item descriptions, prices, shipping weights, and transport charges. It’s important to remember that it is only a provisional document and must be followed up with a commercial invoice to request payment from the buyer.&nbsp;

Here’s a scenario to help you understand the practical application of a proforma invoice. Imagine a textile exporter in India receiving a bulk order of 1,000 meters of silk fabric. The exporter is new and eager to close the deal but is unsure about the exact shipping cost and&nbsp;customs duties. So, they share a proforma invoice that includes the fabric cost, estimated shipping to the U.S., potential customs duties, and other handling fees.

By providing this, the exporter gives the buyer a clear picture of the total cost. The buyer can use this information to negotiate with the exporter and make a more informed decision. They can also use it to arrange import permits or financing.

Here are the most common reasons why exporters choose to use a proforma invoice in international trade:

Negotiation and Transparency: It provides a clear preview of the proposed international transaction and invites open discussion about prices, terms, and conditions

Professional Commitment: The invoice shows the seller's willingness to provide goods at the agreed price and duration, which establishes trust with potential customers

Buyer Acknowledgement: It formally recognizes the buyer's intent to purchase and outlines the mutual understanding of the transaction

Streamlined Process: By defining transaction details upfront, proforma invoices reduce back-and-forth communications, saving time for both parties.

Internal Approvals: Buyers use proforma invoices to get internal purchase approval and help their finance and procurement teams understand the transaction details.

Cost Efficiency: Proforma invoices help businesses reduce administrative overhead by simplifying the quote-to-cash process - the entire cycle from the buyer showing interest to receiving the payment.

Here are two sample proforma invoices to give you an idea about the presentation of the above details:

You must have observed the following details present in both the images, which resonates with what we covered in the previous section:What we covered in the previous section:

You might have also observed that while both the proforma invoice templates are acceptable, they differ in design. The first is more modern and has a spacious layout. It also covers only the basic shipping information, like the port of loading and discharge. The second is more compact in design and looks more traditional, but it covers detailed shipping information, including the number of packages, weight, and carrier name.