If you’ve ever received an international wire transfer and noticed the amount was less than expected, an intermediary bank was likely involved.

But what is an intermediary bank, and why does it take a cut from your payment?

Intermediary Bank Meaning (Simple Explanation)

An intermediary bank is a third-party bank that helps route international payments when the sender’s and receiver’s banks don’t have a direct relationship.

For example,
if a client in the US pays you in USD, and your Indian bank doesn’t have a direct relationship with the US bank, the payment travels through one or more intermediary banks before reaching your account.

These banks work behind the scenes, which means you don’t usually know when they’re involved. But they can silently eat into your earnings by deducting hidden charges during the transfer.

Intermediary banks are used when international transfers are made through the SWIFT network, especially in the following situations:

If your Indian bank doesn’t maintain a <a href="https://www.skydo.com/blog/nostro-account-international-transactions">Nostro account</a> (foreign currency account) with the sender’s bank, intermediary banks are used to bridge the gap.

Many Indian banks don’t have a direct <a href="https://www.skydo.com/blog/how-to-receive-money-from-usa-to-india">USD clearing arrangemen</a>t. The payment is routed through intermediary banks that can handle USD transactions.

If your client is paying in a currency their bank doesn’t directly support (like Swiss Franc to INR), the bank uses an intermediary to settle the payment.

Intermediary Bank Charges: How They Eat Into Your Payments

Here’s the tricky part: intermediary bank fees are deducted silently.

💡 Example:
Your client sends $1,000.
After two intermediary banks take $14 each, you receive only $972, with no breakdown to show why.

Why It Matters for Freelancers and Exporters

Intermediary bank deductions may seem small, but they add up:

You can’t skip intermediary banks every time, but here’s how to reduce or eliminate the charges:

Intermediary Bank vs Beneficiary Bank: Quick Note

Your beneficiary bank is the one that receives the funds on your behalf.
An intermediary bank is just a middleman that helps route the funds, and quietly charges a fee along the way.

How Skydo Helps You Avoid Intermediary Bank Fees

Skydo offers a smarter, cleaner alternative to traditional SWIFT transfers.

✅ Virtual bank accounts in the US, UK, EU, Canada, and Singapore. &nbsp;These accounts are powered by Skydo’s partnerships with major global banks like Community Federal Savings Bank (US), Barclays (EU), DBS (Singapore), etc.

✅ No intermediary banks involved
 Payments are collected locally and credited to your Indian account,&nbsp; fast and fee-free.

✅ Transparent fee structure
 Flat fee, no hidden charges, no FX markup , conversion happens at the live mid-market rate.

✅ Fully compliant
 Skydo is authorised by the RBI under the Payment Aggregator Cross Border (PA-CB) framework and follows all required regulations.

Intermediary banks are often invisible, but they can cost you more than you think,&nbsp; in both money and time.

Skydo helps you bypass them entirely, giving you faster, cheaper, and transparent global payments.

👉 Ready to stop losing money to invisible fees?


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When deciding between <a href="https://www.skydo.com/blog/everything-about-ach-payments">ACH</a> payments and wire transfers, understanding the differences between ACH and wire transfers is crucial for Indian freelancers. ACH transactions are limited to the US banking system, whereas wire transfers can cross international borders. The question of which is better, ACH or wire, depends on whether you can receive the payment directly into your Indian bank account.

What’s ACH, and Why Can’t You Receive It from the US?

<a href="https://www.skydo.com/blog/everything-about-ach-payments">ACH stands for Automated Clearing House</a>, and it's essentially a US domestic network that only connects American banks to other American banks.

ACH is like a local bus system that only operates within one city. It works perfectly for moving money between US bank accounts, but it simply doesn't have routes that extend to Indian banks. This is why most Indian freelancers and agencies can't receive ACH directly using their regular Indian bank account details.

The only way to receive ACH payments as an Indian freelancer is by using a platform that provides you with a virtual US bank account.&nbsp;

Services like Skydo, Wise, and Payoneer essentially give you an American address in the banking world. Your US client can send an ACH payment to this virtual account, and the service will then transfer the money to your actual Indian bank account.

Here's the critical clarification that trips up many freelancers and service exporters: if your US client says they'll "send an ACH," you need to provide US receiving account details from one of these platforms, not your Indian bank details. Your Indian bank account number and IFSC code won't work for ACH payments, no matter how many times you share them.

Wire transfers are the global highway of the banking world, though they can work domestically too. Unlike ACH payments, which stay within US borders, wire transfers utilise the<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide"> SWIFT network </a>to connect banks across different countries. This global system enables your US client to send money directly to your Indian business account, eliminating the need for middleman services.

The process is straightforward - your client provides their bank with your Indian bank's <a href="https://www.skydo.com/swift-code-finder">SWIFT code</a> and account details, and the money travels through the international banking network to land in your account. It works globally, which is why wire transfers remain the go-to option for most international business payments.

However, wire transfers come with their own set of challenges.&nbsp;

How to Receive ACH Payments via Skydo: Step-by-step Process

Setting up ACH payments through Skydo is straightforward, but knowing the exact steps helps you get started quickly and avoid common mistakes.

Step 1: Create your Skydo account&nbsp;

Sign up on Skydo's platform and complete the verification process. You'll need to provide your business documents, PAN card, and bank account details for your Indian account where you want to receive the final payment.

Step 2: Get your US virtual bank account details&nbsp;

Once verified, Skydo provides you with US bank account details, including account number, routing number, and bank address. These details function similarly to a regular <a href="https://www.skydo.com/blog/how-to-receive-money-from-usa-to-india">US bank account</a> for your clients.

Step 3: Share the correct details with your client&nbsp;

Give your client the US bank account details from Skydo, not your Indian bank information. Please ensure that they send an ACH payment to the following US account details.

Step 4: Client sends an ACH payment&nbsp;

Your client processes the ACH payment through their US bank using your Skydo account details. This typically takes 1-3 business days to process within the US system.

Step 5: Automatic conversion and transfer&nbsp;

Once Skydo receives the ACH payment, they convert it at live forex rates with zero margin and transfer the money to your linked Indian bank account. This usually happens within 24 hours.

Step 6: Compliance documentation&nbsp;

Skydo automatically generates your <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA (Foreign Inward Remittance Advice) </a>and links the payment to your invoice for compliance purposes. You can download these documents from your dashboard at any time.

The entire process typically takes 2-4 business days, from when your client initiates the ACH payment to when you receive the funds in your Indian account - faster and more predictable than traditional wire transfers.

How This Affects Your Payment as a Freelancer or Exporter

The payment method your client chooses directly impacts how much money actually reaches your account and how quickly you can access it.

If the client sends via ACH to a platform like Skydo:

✅ Faster settlement - ACH processes quickly within the US system, then platforms transfer to your Indian account

✅ No intermediary bank fees - you avoid the maze of banks taking cuts along the way

✅ More predictable amounts - platforms offer competitive exchange rates and clear fee structures upfront

If the client wires directly to your Indian bank:

❌ Intermediary banks take cuts - money passes through multiple banks, each charging handling fees

❌ Forex markup costs - your bank adds margin to exchange rates, reducing your final amount

❌ Unpredictable arrival amounts - you can't plan cash flow since fees vary and aren't disclosed beforehand

How you frame the payment request to your client makes a huge difference in what lands in your account.

Say: "Can you pay via ACH to my US account on [Skydo/Wise/Payoneer]?"

This approach works because it's simpler for your client - ACH payments are cheaper and easier for them to process than international wire transfers. Meanwhile, it's better for you because you receive the full payment with live exchange rates instead of bank markup rates, and you avoid SWIFT deductions that intermediary banks typically charge on wire transfers.

The key is to position it as a win-win rather than just your preference. Most US clients prefer ACH anyway, as it saves them money and integrates seamlessly with their accounting systems.

After comparing both payment methods, the choice becomes clear for Indian exporters and freelancers working with US clients.&nbsp;

Platforms like Skydo bridge the gap by giving you a US virtual bank account that receives ACH payments while converting at live forex rates with zero margin. You avoid SWIFT and intermediary bank fees, get instant <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">FIRA for compliance</a>, and enjoy predictable payment amounts.

ACH through Skydo offers lower fees, faster delivery, and better control over your earnings compared to expensive, unpredictable wire transfers. The key insight is that you don't have to accept whatever payment method your client suggests.&nbsp;

Most US businesses prefer ACH anyway since it's cheaper for them too. Guide your client toward ACH payments - it creates a smoother experience for both of you and is part of running a professional freelance business.

Based on their current pricing, you pay a flat $29 for payments between $2,001 to $10,000, which often works out better than the percentage-based fees and hidden charges you'd face with traditional wire transfers.

<a href="https://www.skydo.com/">Explore Skydo!</a>

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A Vostro account is a bank account in Indian Rupees that an Indian bank holds for a foreign bank. It helps process international payments coming into India.

You don’t need to open or manage one yourself, but every time a client from abroad pays you, a Vostro account might be quietly working in the background. It affects how quickly you get paid, how much you lose in fees, and how easy it is to get compliance documents like FIRA or e-BRC.

In this blog, we’ll break it down simply, what a Vostro account is, how it works, and why it matters if you get paid from international clients.

“Vostro” is a Latin word, meaning “yours.”&nbsp;

In banking, a Vostro account is an account that a domestic bank in India maintains on behalf of a foreign bank, in Indian Rupees, to settle international payments. So it is essentially "your account" in "my bank". A Vostro account makes it possible for international clients to pay Indian freelancers, exporters, or businesses directly in INR.&nbsp;

Why Vostro Accounts Matter for Indian Exporters, Freelancers and MSMEs

Vostro accounts allow Indian banks to hold foreign payments on standby. Instead of going through multiple intermediate banks (which delays transfers), the funds move directly into your INR account, reducing settlement time and uncertainty.

Since Vostro transactions bypass some SWIFT intermediaries, there are fewer cuts taken out. That often means better effective exchange rates and lower fees compared to traditional SWIFT transfers.

Because the money arrives through official Vostro channels, your payment qualifies for RBI-compliant documents like FIRA and e-BRC, essential for taxes and export subsidy claims. No more manual follow-ups with the bank.

With Vostro infrastructure, you can get paid in foreign currencies like USD, GBP, EUR, even though you only hold an INR account in India. It’s the easiest way for Indian users to receive international payments.

How Does Skydo Leverage Vostro Accounts to Simplify International Payments?

You may not see it, but every time you get paid via Skydo, there’s a powerful Vostro-backed infrastructure working for you behind the scenes.

We’ve built our infrastructure on top of Vostro accounts held with globally trusted banks, like Barclays (UK/EU), Community Federal Savings Bank (US), and Digital Commerce Bank (Canada). These accounts let us receive international payments directly in local currencies and settle them to your Indian account seamlessly.

So, while most businesses and freelancers don’t ever see a Vostro account, at Skydo, it’s what keeps your payments fast, compliant, and frustration-free.

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Many apparel and textile exporters still lose profit margins due to embedded state and central taxes that aren't refunded through GST.&nbsp;

RoSCTL (Rebate of State and Central Taxes and Levies) replaced the earlier <a href="https://www.dgft.gov.in/CP/?opt=meis">MEIS scheme</a> for the textile sector, helping Indian exporters stay cost-competitive by refunding these hidden taxes.

The India scheme covers state and central levies not addressed under GST, providing relief that can be the difference between profit and loss for businesses with thin margins. While the application process requires proper documentation, the margin improvement makes it worthwhile.

This guide covers the RoSCTL scheme benefits, its eligibility, and how to claim it.

Who Is Eligible for the RoSCTL Scheme (2025 Guidelines)

Many apparel and textile exporters still lose out on margins due to embedded state and central taxes that aren't refunded through GST. RoSCTL replaced the earlier MEIS for the textile and garment sector, helping the Indian export sector stay cost-competitive in global markets.

The scheme is only available to exporters of Apparel (Chapter 61 &amp; 62 of <a href="https://www.dgft.gov.in/CP/?opt=itchs-import-export">ITC-HS codes</a>) and Made-ups (Chapter 63).&nbsp;

You're likely covered if you're exporting t-shirts, bed linen, scarves, or other fabric-based goods. The scheme refunds embedded indirect taxes like electricity duty, VAT on fuel, and central excise duty on raw materials that GST doesn't address.

RoSCTL provides duty credit scrips - digital certificates issued by DGFT website that function like tradeable vouchers for paying customs duties. These scripts can:

For many MSME exporters, these scrips can add up to 3 - 6% of the FOB value, significantly boosting net margins by refunding embedded state and central taxes.

The RoSCTL process is straightforward and entirely digital, flowing seamlessly from export declaration to credit availability. Understanding this workflow helps exporters maximise their benefits efficiently.

Here are the steps to successfully claim RoSCTL:&nbsp;

Step 1: Ensure IEC, GST, and ICEGATE registration. You need a valid IEC (Import Export Code) and GSTIN for GST compliance, and you must be registered on ICEGATE with at least one GSTIN attached to access export incentive schemes like RoSCTL.

Step 2: File export under chapters 61–63 with the correct RoSCTL declaration. Submit the shipping bill through ICEGATE, ensuring the HS codes (61, 62, 63) are correct. Declare RoSCTL in the shipping bill using specific scheme codes at the item level.

Step 3: Track RoSCTL scrip issuance in ICEGATE (under Rebate Mechanism). Once the EGM is filed and processed, a scroll with all individual Shipping Bills for the admissible amount will be generated and made available in your ICEGATE account under the E-Scrip Module.

Step 4: Download and use scrips via the customs portal or trade. The duty credit amount will be available within the ledger created for the IEC holder in their ICEGATE login to claim and convert into duty credit scrip, which can be used for paying Basic Customs Duty or transferred to other entities.

Step 5: Maintain a record for GST, refund, and income tax purposes. Exporters must maintain records of shipping bills and all export-related documents for three years from the date the scrip was issued for post-issue scrutiny and recovery purposes, and ensure proper GST compliance through GSTR-1 filing.

RoSCTL (an initiative by the government of India) rates are notified via <a href="https://www.dgft.gov.in/CP/">DGFT </a>and <a href="https://taxinformation.cbic.gov.in/view-pdf/1003137/ENG/Circulars">CBIC circulars</a>, varying by HS code and product. The Ministry of Textiles notifies rates under the scheme in four schedules. Schedules 1 and 2 specify the Central and State taxes and levies for apparel and made-ups, while Schedules 3 and 4 give the Central and State taxes applicable for apparel export products when fabric has been imported duty-free under the Special Advance Authorisation Scheme.

💡Pro tip: Match the HS code in your invoice and shipping bill exactly with the notified RoSCTL code for accurate credit calculation, as benefits are calculated based on declared export FOB value or up to 1.5 times the market price, whichever is less.

Understanding the differences between these export incentive schemes helps Indian textile exporters make the right choice and to achieve maximum benefits.

If you're exporting both garments and packaging (e.g., cotton bags), split your RoSCTL and RoDTEP claims accordingly, use RoSCTL for textile items under eligible chapters and RoDTEP for other products like packaging materials that fall outside the textile classification.

Even small errors can lead to significant delays or loss of benefits. Here are the most frequent mistakes exporters make when claiming RoSCTL:

Filing under wrong HS codes or chapters - Ensure your products are classified under the correct chapters 61, 62, or 63 of ITC-HS codes, as RoSCTL is only available for apparel and made-ups under these specific classifications. Hence, make sure to input accurate information&nbsp;

Forgetting to tick the RoSCTL declaration in shipping bills - You must make a specific declaration in the shipping bill using appropriate scheme codes at the item level, as the absence of proper scheme codes means the RoSCTL benefit would not be available

Not checking ICEGATE regularly for issued scrips - RoSCTL scrips are typically issued within 2-4 weeks after customs clearance, and you need to actively monitor your ICEGATE account under the E-Scrip Module to claim and convert credits into duty credit scrips

Assuming RoSCTL auto-applies, you must declare it during export filing. The scheme requires active declaration by the exporter in the shipping bill at the time of filing, as benefits are not automatically processed without proper claim submission and scheme code selection

💡Pro tip: Double-check your HS codes against the RoSCTL rate schedules before filing, and always verify that your RoSCTL declaration appears correctly in your shipping bill to avoid processing delays.

While RoSCTL helps reduce your export costs through tax rebates, managing international trade and payments efficiently is equally crucial for your export business success.

Skydo streamlines your export payment process with:

Why this matters for RoSCTL exporters: Since you need to maintain proper documentation of foreign exchange receipts for RoSCTL compliance, <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">Skydo's instant FIRA</a> and real-time tracking ensure you have all necessary records for scheme benefits and GST refunds.

Combine RoSCTL tax savings with Skydo's payment efficiency to maximise your export profitability. Through RoSCTL, you can save on embedded taxes while reducing FX costs and processing delays through smarter payment solutions.

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Most Indian freelancers, exporters, and even startups have never heard of a Nostro account. Yet this behind-the-scenes banking mechanism quietly affects how fast you get paid from abroad, what fees get deducted, and how smooth your compliance documentation (like FIRA/eBRC) process is. 

In this article, we’ll break down in plain English what a Nostro account is, how it works, and why it matters when you’re receiving money from overseas.

What Is a Nostro Account? (Meaning in Banking)

A Nostro account is essentially a foreign currency bank account that one bank holds in another country’s bank. In other words, it’s “our account” held with your bank in your country’s currency.&nbsp;&nbsp;

For example, an Indian bank like HDFC might hold a USD account with Citibank in the U.S.; that USD account is HDFC’s Nostro account (from HDFC’s perspective). It allows HDFC to park and move funds in U.S. dollars abroad on behalf of its customers. From Citibank’s perspective, the same account is called a Vostro account (since it’s “your account” in their books)&nbsp;(We’ll focus on Nostro here; Vostro is basically the flip side, which we cover in another blog.)

In simple terms, a Nostro account lets banks handle foreign currency transactions without needing a physical presence in that foreign country. It’s how your Indian bank can send/receive dollars, euros, etc., even though you don’t hold those currencies yourself. The bank uses its Nostro accounts with correspondent banks abroad to do that.&nbsp;&nbsp;This is a common practice in international banking, forming the backbone of correspondent banking networks.

Only banks (and authorised financial institutions) can open Nostro accounts.&nbsp;Individuals or normal businesses cannot open one directly. In India, RBI-authorised banks (known as AD Category-I banks, e.g. SBI, HDFC, ICICI) maintain Nostro accounts in major foreign currencies to facilitate their customers’ international transactions. You, as a freelancer or company, do not need to open a Nostro account yourself; your bank handles that behind the scenes.

How Does a Nostro Account Work? (Step-by-Step Example)

Let’s illustrate how a Nostro account functions with a simple example:

Scenario: Ramesh is a freelance consultant in India, and his client John in the USA wants to pay him $1,000 for a project. Ramesh uses HDFC Bank in India to receive the payment.

Here’s what happens behind the scenes when John pays Ramesh $1,000:

Payment Initiation: John sends $1,000 from his U.S. bank (say, Citibank) to Ramesh’s account. This international payment (often via a SWIFT wire) is not sent directly to Ramesh’s INR account. Instead, it’s directed to HDFC Bank’s USD Nostro account in the USA (for example, HDFC’s Nostro with Citibank)

Funds Received in Nostro: The money lands in HDFC’s USD Nostro account at Citibank. Essentially, Citibank credits HDFC’s account on its books with $1,000 on behalf of Ramesh.&nbsp; HDFC now has an extra $1,000 in its U.S. account.

Confirmation &amp; Transfer to India: HDFC Bank gets confirmation of the credit in its Nostro account. It will then transfer the funds from the Nostro account to India (often through internal networks or the SWIFT system) to convert and credit Ramesh’s local account. (In practice, this may involve HDFC instructing Citibank to send the $1,000 to HDFC’s account in India or adjusting balances accordingly.)

Currency Conversion: Before crediting Ramesh, HDFC converts the USD 1,000 into Indian Rupees. They use the prevailing exchange rate on that day. For example, if the rate is ₹82 per USD, the $1,000 would convert to ₹82,000 (minus any applicable charges or FX margin the bank applies).

INR Credit to Ramesh: Finally, HDFC credits Ramesh’s local INR account with the converted amount (around ₹82,000 in this example). Ramesh sees the payment in rupees in his account statement. The original $1,000 never directly touched Ramesh’s hands – it was handled by HDFC’s Nostro account abroad and then exchanged to INR for him.

Throughout this process, Ramesh didn’t need to deal with foreign banks or hold a dollar account. HDFC’s Nostro account in the U.S. acted as the receiving bucket for the dollars and took care of conversion. This is how you receive foreign client payments seamlessly into your Indian bank account without any foreign currency account of your own.

Key points: The use of Nostro accounts means the payment often travels through the international banking network (e.g. via SWIFT) to the Indian bank’s correspondent account, then to your account. Every major Indian bank has such Nostro tie-ups to handle remittances from different countries/currencies.

Why Nostro Accounts Matter (Benefits for Freelancers, Exporters &amp; Businesses)

Even though you don’t manage the Nostro account yourself, it has important implications for your international payments. Here’s why Nostro accounts matter for anyone receiving money from abroad in India:

So, while you, as an exporter or freelancer, don’t manage Nostro accounts, knowing that your bank or payment platform uses reliable Nostro channels gives confidence. It means your money will likely arrive faster, with fewer deductions, and with proper RBI-compliant records – all without you having to do anything extra.

Skydo Tip: Get Paid Faster with Local Virtual Accounts (Nostro in the Background)

Modern fintech platforms are leveraging Nostro accounts to simplify international payments further. For instance, Skydo provides a solution where you get a local receiving account in your client’s country, but the heavy lifting is done via Skydo’s Nostro accounts. Let’s understand how this works with an example:

Example: Riya is a freelance designer in India. Her client, Matt, is in the US and owes her $1,000 for a project. Riya uses Skydo to receive the payment. Here’s what happens behind the scenes:

Skydo offers such virtual receiving accounts not just in USD but also in other major currencies like GBP, EUR, SGD, CAD, etc., backed by trusted global banking partners (e.g. Barclays in the UK/Europe, Digital Commerce Bank in Canada, DBS in Singapore, among others). This Nostro-backed system lets freelancers, SaaS businesses, and agencies get paid faster, avoid hidden forex markups, and stay fully compliant, without any back-and-forth with your bank for each payment.

Want to see how it works for you? You can create your free Skydo account in just 5 minutes and start receiving global payments with ease. 🚀

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Imagine you’re an international buyer,&nbsp; say, a U.S. company, and your Indian supplier has sent an invoice asking you to pay into a “Skydo Virtual Account” instead of a traditional Indian bank. It’s natural to wonder: Is this safe and legal? The short answer is yes. 

In fact, you’d be in good company: Amazon, Stanford University, Microsoft, and many others already use Skydo’s <a href="https://www.skydo.com/blog/virtual-account-numbers">virtual accounts</a> to pay their Indian vendors. Skydo’s virtual accounts are simply local bank accounts set up for each currency (USD, EUR, CAD, SGD, etc.) and are backed by real regulated banks. Paying into a Skydo account means you’re actually sending money to a major bank (in the U.S., Europe, Singapore, etc.), not into some anonymous wallet.

In practice, you wire dollars to a Community Federal Savings Bank (New York) account or send euros to a Barclays<a href="https://www.skydo.com/blog/iban-number-meaning-full-form">/IBAN account,</a> and Skydo’s system credits the Indian exporter and provides them with the required digital paperwork (<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">the FIRA</a>) for RBI&nbsp; (India’s central bank, regulating the financial system) compliance. This process is faster, cheaper and more transparent than a traditional <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">wire/swift transfer</a>,&nbsp; and it comes with industry-grade security.

How Virtual Accounts Work – Faster, Cheaper, Transparent

A “virtual account” in Skydo’s terms works like this: when your vendor signs up with Skydo, they instantly get bank accounts in 10+ countries (USD, EUR, CAD, GBP, AUD, SGD, etc.). From the payer’s perspective, you just wire money to a normal-looking bank account in your country or region.&nbsp;

Behind the scenes, Skydo’s platform collects that money, converts it at real-time mid-market rates with a minimal fee, and remits INR to the exporter’s Indian account. This avoids the usual multi-bank wire chain and opaque fees of traditional FX. For example, Skydo charges a flat USD $19 for payments up to $2,000, or $29 up to $10,000, with zero hidden markups.&nbsp; The exporter covers the fee, so you can pay the full invoice amount without worrying about extra charges or deductions.

Unlike international wire transfers to Indian bank accounts, payments to&nbsp; Skydo's local virtual account are treated as local transfers. That means you skip SWIFT fees, avoid lengthy settlement timelines, and don’t have to deal with repeated follow-ups from your supplier. Funds typically clear within 24–48 hours.

One reviewer of Skydo noted that using it was “an amazing experience … completely hassle free” for international invoicing In short, paying to a Skydo virtual account means your money moves as if it were a local transfer (often clearing in 24 hours) while the exporter still gets the correct tax-compliant confirmation (FIRA) on their end.

Skydo runs on global financial rails, partnering with banks you already know and trust.

For example, <a href="https://www.bankingcircle.com/banking-circle-partners-with-skydo-to-accelerate-cross-border-collections-for-indian-businesses/">Banking Circle (a fully licensed next-generation bank with central bank access in Europe) has entered a strategic partnership with Skydo</a> to expand payment options for UK/EU and&nbsp; Australian clients.&nbsp;

In Asia, Skydo uses accounts at DBS Bank (Singapore). For USD payments, Skydo issues accounts via Community Federal Savings Bank (a New York bank). For Canada, it uses Digital Commerce Bank (a regulated Canadian bank), and for Europe/UK, it taps banks like Barclays and other IBAN providers.&nbsp;

In India, Skydo partners with HDFC Bank (one of India’s largest private banks) to reconcile the rupees on the exporter’s side. It even leverages Currencycloud (a Visa company) for multi-currency accounts.&nbsp; In short, every virtual account is held at a major bank – you’re not sending money into thin air, but into real bank rails.

“We’re constantly in search of global rails that make payments faster, cheaper and more compliant,” says Skydo’s CEO Srivatsan Sridhar, about their Banking Circle tie-up.&nbsp; By “rails”, he means real bank accounts and networks. Thanks to these partnerships, US and European buyers pay in dollars or euros as normal. Skydo’s system handles the rest, offering local payment details for multiple currencies in just a few minutes

Beyond the banks, Skydo invests heavily in security and compliance. The platform is ISO 27001 certified and AICPA SOC 2 compliant, meaning it meets top industry standards for data protection and system reliability. All payment data is encrypted in transit and at rest, with strict access controls. Skydo also requires two-factor authentication on logins and continuously monitors for any suspicious activity.

Skydo’s team (with AI-powered tools) actively flags anomalies in real time: every transaction is screened against AML/KYC rules, and any unusual pattern is immediately investigated. As Skydo notes, “if anything seems amiss, we immediately investigate to ensure your data’s integrity and our platform’s security” Put simply, paying via Skydo is as safe as any major bank transfer – probably safer, since their systems are built for secure global flows.

Skydo is also fully approved by regulators. It recently received in-principle authorisation from India’s Reserve Bank (RBI) to operate as a Payment Aggregator – Cross Border (PA-CB) entity. This is the same RBI framework that governs other licensed fintechs such as<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives"> PayPal</a>, <a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Transferwise</a> etc. to process cross-border flows in India; it means Skydo must follow strict rules on transaction security, compliance and audit. In short, RBI has vetted Skydo’s model. By now, Skydo serves over 20,000 Indian exporters and processes hundreds of millions of dollars annually, so your payments become part of a well-established system, not a back-alley workaround.

Key reasons to trust Skydo’s virtual accounts:

In short, paying into a Skydo virtual account is simply a modern, regulated way to move money internationally. It offers the same level of security as wiring to a major global bank, while being far more convenient for both you and the exporter. By using trusted global banks and following global compliance, Skydo makes cross-border invoicing as seamless as domestic payments. The next time an Indian partner asks you to pay via Skydo’s virtual account, you can be confident it’s secure, compliant, and in fact better than the old wire-transfer route.

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Skydo's virtual accounts

If you're an Indian exporter, SaaS startup, freelancer, or agency receiving payments from abroad, chances are you've used SWIFT wire transfers.

SWIFT has been the global standard for cross-border payments for decades, and it's still widely used by banks worldwide. But for many modern businesses, especially in India, it can be slow, expensive, and layered with hidden costs.

From high transfer fees and intermediary deductions to delays in receiving funds and getting compliance documents like <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA</a> or <a href="https://www.skydo.com/blog/what-is-e-brc">eBRC</a>, traditional methods often create friction.

Today, there are faster, simpler, and more transparent alternatives that better fit the needs of Indian service exporters.

Let’s explore the best SWIFT payment alternatives and why Skydo is built specifically to serve Indian exporters, freelancers, and agencies.

If you're doing client projects, exports, or product sales internationally, you’re leaving money on the table with every SWIFT transfer.

What Are the Best Alternatives to SWIFT Payments?

Here are some of the top alternatives that modern Indian exporters are using:

1. Skydo – Swift Payment Alternative Built for Indian Exporters

Skydo offers virtual global bank accounts in the US, UK, and EU — so your clients can pay you locally, and you get the money in INR.

Growing Global

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