A foreign client pays $2000, but you get ~$1700 in your bank account, less than what you expected.&nbsp;

Now, you are trying to calculate the foreign transaction fee and foreign exchange rate (FX rate) and understand what other hidden charges have been levied but are facing a hard time doing so.

Many small businesses lose money because of a lack of transparency in foreign payments and <a href="https://www.skydo.com/blog/hidden-fees-in-bank-rates?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">hidden fees charged by banks</a> and other payment platforms.

How can you overcome this challenge? Switch to transparent payment solutions like Skydo that tell the live FX rates. Let’s understand how you can check real-time FX rates with Skydo and reduce unnecessary deductions.&nbsp;

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According to a <a href="https://www.swift.com/swift-lvp/assets/pdf/small_payments_big_opportunity_july_2023.pdf">report by SWIFT</a>, the three primary reasons that frustrate small business owners while using an international payment platform are:

Skydo aims to resolve these issues. It provides live FX rates on its dashboard and charges zero-margin on currency exchange so you don’t end up paying extra costs. Moreover, Skydo charges <a href="https://www.skydo.com/blog/cut-international-transaction-costs-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">flat foreign transaction fees,</a> thus ensuring complete transparency in foreign payments.

Here is how understanding live FX rates on Skydo can help your business.

<a href="https://www.skydo.com/blog/why-do-banks-differ-from-live-fx-rates-in-currency-exchange?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Bank FX rates</a> are usually different from the live FX rates. For example, if the $1 amounts to ₹83 as per the prevailing market rate, banks offer ₹80 for every $1. This is called the forex markup fee.

Businesses have to negotiate the FX rates with banks to ensure maximum earnings. However, Skydo offers live FX rates and converts the currency as per the prevailing market rate. This boosts your earnings.

Moreover, many businesses try to negotiate a fixed payment in INR with foreign clients to reduce the FX rate fluctuation risk.&nbsp;

Rapid fluctuations in the foreign exchange market increase business risk. However, by viewing live FX rates, you can analyse when to apply hedging strategies to secure your earnings.

Moreover, you can calculate your exact earnings based on the real-time FX rates and optimise your cash flow accordingly.&nbsp;

Staying updated with currency fluctuations is extremely important for businesses to adjust their pricing.&nbsp;

For example, if the value of the domestic currency increases against the foreign currency, the price of your goods and services will become higher for foreign customers. This will result in low demand.

Therefore, you should track live FX rates to set competitive pricing and boost revenue.

Ensuring Financial Transparency with Skydo

Tracking foreign payments is hard for businesses. Banks and foreign payment platforms make it harder by gatekeeping various costs involved.&nbsp;

But, Skydo offers complete transparency.&nbsp;

You can open an international bank accounts account with Skydo within five minutes and receive payments from foreign clients in international bank accounts.

You can view the live FX rate before transferring the money to your domestic bank account. If the international market is volatile, you can hold the money in your foreign bank account to avoid currency conversion losses.&nbsp;

Use Skydo's <a href="https://fx-calculator.skydo.com/comparison?utm_source=linkedin&amp;utm_medium=skydohandle&amp;utm_campaign=fxcalculator&amp;utm_content=2">FX calculator</a> to see how much money you can save on your FX rates based on your monthly revenue.

2. View a Clear Breakdown of Exchange Rates and Associated Costs

With Skydo, you are always updated on why your money is being deducted. You can view a clear breakdown of the flat transaction fee levied, the GST application to the transaction fee, and the FX rates for each invoice.

Moreover, Skydo also marks a date and time stamp during currency conversion to ensure that the money is converted as per prevailing market rates.

3. Zero Margin on Currency Conversion&nbsp;

Most payment platforms like PayPal and Payoneer charge a 3-5% currency conversion fee on top of the foreign transaction fee. Moreover, banks also charge forex fees on every transaction.

These additional costs reduce your earnings significantly, especially if you deal with many foreign clients.&nbsp;

However, Skydo charges zero margin for currency conversion. It converts the total amount based on the prevailing market rate without changing any forex fee. This increases your FX savings by up to 50%.

3. Pay Zero Fees to Download FIRA Receipts

FIRA is a mandatory document for exporters for GST compliance. Banks charge ₹500 or more on every foreign transaction to generate FIRA.

However, Skydo automatically generates FIRA receipts for each invoice without charging an additional fee. Therefore, it helps you <a href="https://www.skydo.com/blog/get-the-most-out-of-your-forex-savings-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">maximise FX savings</a>.

Expanding your business globally helps you increase earnings and scale your business. However, high forex fees, foreign transaction fees and hidden fees charged by payment platforms impact your earning potential and slow down business growth.

Therefore, you can track live FX rates through Skydo to maximise your FX savings.&nbsp;

<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Sign up on Skydo today</a> to receive foreign payments at low costs!

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Foreign Inward Remittance Advice (FIRA) is a must-have for freelancers working with international clients. While global opportunities open doors to diverse revenue streams, they also come with added compliance requirements. Every foreign payment you receive requires a FIRA from your bank—a crucial document that proves you’ve received international funds.

In this blog, we’ll break down everything you need to know about Foreign Inward Remittance Advice, why it matters for freelancers, and how to navigate this essential process with ease.

A Foreign Inward Remittance Advice (FIRA) is a document issued by Indian banks to Indian exporters and freelancers who receive foreign payments.

Before 2016, banks issued <a href="https://www.skydo.com/blog/all-you-need-to-know-about-FIRC-a-complete-guide">Foreign Inward Remittance Certificates (FIRC)</a> as proof of receiving global payments. However, in 2016, the RBI introduced the Export Data Processing Management System (EDPMS) to digitally record all export-related data.

With <a href="https://www.skydo.com/blog/understanding-edpms-full-form-and-its-essential-role-in-export-management">EDPMS </a>in place, the RBI instructed banks to stop issuing FIRCs for export collections. Banks now provide FIRA (Foreign Inward Remittance Advice) instead of FIRCs for export collections and foreign payments. Anyone receiving foreign payments, including freelancers, needs to obtain FIRA.

<a href="https://juspay.in/blog/payments/foreign-inward-remittance-certificate">Failure to obtain a FIRA</a> can lead to monetary loss as you will have to pay GST on the export income received in India. However, you may face penalties for non-compliance with foreign exchange regulations at the time of audits if <a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">proper documentation</a>, such as FIRA, is not maintained.&nbsp;

Suppose you are looking for a loan from a financial institution. In that case, the institution asks for proof of income that serves as the reference point for the institution to either accept or reject the loan application. Here, you can submit FIRA as proof of income.&nbsp;

Furthermore, FIRA can also be used for VISA applications or anywhere as proof of income.&nbsp;<a href="https://www.linkedin.com/in/juhi-shah-633127154/?no_follow=true">Juhi Shah,</a> a seasoned Chartered Accounting professional states:

"FIRA plays a crucial role in establishing financial credibility and stability, particularly in cross-border transactions. These certificates serve as verifiable proof of income from international sources, bolstering confidence among lenders, investors, and immigration authorities."

By providing FIRA as supporting documentation, taxpayers demonstrate their commitment to compliance and reduce the risk of penalties or legal consequences for underreporting income.

Additionally, you can claim tax benefits or exemptions under the Double Taxation Avoidance Agreements (DTAA).

<a href="https://www.linkedin.com/in/ravi-mamodiya-5b635779/">Ravi Mamodiya</a>, a tax advisor highlighted the potential financial and legal implications of ignoring FIRAs:

"Ignoring FIRCs may result in inaccurate tax reporting, leading to penalties, fines, and potential legal actions by tax authorities. Additionally, non-compliance with tax laws erodes trust with regulatory agencies and may tarnish your reputation as a taxpayer. Hence, it is important to maintain FIRAs."

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

Getting a FIRA 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 FIRA for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRA ready to download, complete with all the details you need.

Freelancers have fluctuating incomes and are solely responsible for fulfilling the taxation and regulatory compliance for <a href="https://www.skydo.com/blog/how-you-can-streamline-international-transactions-for-your-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">inward and outward remittance</a>. In case a freelancer has foreign clients and receives foreign remittances, it is vital to obtain FIRA either for the bank or the <a href="https://www.skydo.com/?https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">digital currency platform.&nbsp;</a>

FIRAs streamline income reporting to tax authorities, reducing complexities and minimising the risk of penalties for non-compliance. By documenting foreign remittances, freelancers can accurately report their earnings, fulfil their tax obligations, and build credibility with regulatory agencies.

Q1. Can all banks issue physical FIRCs?&nbsp;

Ans: RBI has discontinued the permission for banks to issue physical FIRCs/FIRAs after 2016 unless it is against Foreign Direct Investment or Foreign Institutional Investment. Currently, only AD Category-I banks are allowed to issue e-FIRAs (FIRAs in electronic format).&nbsp;

Q2. Do I need a separate FIRA for each client or project?

Ans: No, you do not need a separate FIRA for each client or project. All foreign remittances received during a particular time frame, regardless of the client or project, can be covered by a single FIRA issued by your bank.

Q3. What documents do I need to apply for FIRA, and how long does it take?

Ans: If you are requesting FIRA from a bank, <a href="https://cleartax.in/s/foreign-inward-remittance-certificate">you need to provide information</a> included in the FIRC certificate format, such as beneficiary name, name and address of the payee, UTR number, recipient’s name, purpose, date and amount of transfer, and the recipient’s account number. However, if you are receiving foreign remittances through digital platforms like <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo,</a> you don’t have to submit any documents. FIRA is generated automatically and instantly with every payment.&nbsp;

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Are you a freelancer, an exporter, or someone receiving personal transfers from abroad? If yes, you’ve probably wondered: Can I receive money from abroad directly into my Indian bank account? The good news is, yes, you can—but it’s not always as straightforward as it sounds.

In this blog, we’ll break it all down receiving money from abroad in India. From the process, to the key factors you need to consider (like fees and conversion rates), we’ll also explore if there’s a smarter way to handle cross-border transfers. Let’s get started!

Can I receive money from abroad in my bank account in India?

The short answer? Absolutely! Indian citizens can receive foreign remittances directly into their savings bank accounts without restrictions, except under the <a href="https://jhpolice.gov.in/sites/default/files/ForeignContributionRegulationAct_1976.pdf">Foreign Contribution Regulation Act, 1976.</a>&nbsp;

Most international transfers today use the <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT network</a>. Here’s how it works: the sender initiates an <a href="https://www.skydo.com/blog/international-wire-transfer-all-you-need-to-know">international wire transfer</a> through their bank, providing your name, account number, and <a href="https://www.skydo.com/swift-code-finder">SWIFT code</a>. Once processed, you’ll typically see the funds in your account within 5 business days.

Banks have long been the go-to option for receiving money from abroad. But with growing demand for faster, cheaper, and more convenient alternatives, platforms like Skydo, <a href="ttps://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 becoming increasingly popular for receiving money from abroad in India. They offer international virtual accounts and simplified processes, which we’ll dive into later in this blog.

Should I Use My Savings Accounts to Receive Money from Abroad in India?&nbsp;&nbsp;

Yes, you can use your savings account to receive money from abroad. Under the foreign remittance scheme, there are no restrictions on the number of transfers or the amount, e<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">xcept for trade-related transactions, which have a cap of ₹15 lakh.</a>

But here’s where it gets tricky—if you’re receiving both <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">business payments</a> and personal transfers in the same account, things can get messy.

In India, income earned through business activities is taxable under the Income Tax Act. Mixing personal and business transactions in a single account can complicate tax reporting, making it harder to calculate business income and deductions accurately.

Additionally, businesses are required to file income tax returns, <a href="https://www.skydo.com/blog/gst-requirements-international-service-sale">GST returns,</a> and other financial statements. Using your savings account for business funds can create challenges in maintaining accurate records, potentially leading to compliance issues or penalties for errors.

To keep things smooth and stress-free, it’s often better to separate personal and business transactions. Platforms like Skydo offer dedicated virtual international accounts that can help you manage business payments more efficiently—saving you time, money, and unnecessary headaches.

Receiving Money From India via Banks: Step-by-Step Guide

Here is the detailed process for receiving money from abroad in India into your savings bank account.

Step 1: Provide Your Bank Account Information

Provide the sender with all the bank account information, such as your bank name, account number, branch name, SWIFT code, and <a href="https://www.skydo.com/blog/iban-number-meaning-full-form">IBAN </a>(if applicable).&nbsp;

Wait for the sender to initiate the fund transfer and send you a payment confirmation with the reference number and the expected amount.&nbsp;

International wire transfers via SWIFT may take up to 5 days to credit the money in your bank account. Ensure you get a credit confirmation for the funds, which you can communicate with the sender.&nbsp;

Step 4: Foreign Inward Remittance Advice (FIRA)

If you are receiving an international payment, you need to obtain <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA </a>from your bank for the same. It is a document issued by banks as proof of receiving international payments.&nbsp;To get your FIRA, you’ll need to contact your bank directly. However, most banks charge a fee for issuing this document, which can add to your costs.

Things to Note while Receiving Money from Abroad in India via Banks:&nbsp;

Banks are often the default choice for receiving money from abroad in India. However, if you are receiving international payments via banks, here are a few things you should consider:&nbsp;

International Virtual Bank Accounts with Skydo: An Alternate Way to Receive Payments from Abroad in India

Given these factors, a lot of exporters and freelancers are looking at alternatives like international virtual accounts to receive their payments from abroad in India.&nbsp; Skydo for example,&nbsp;provides 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. Skydo then consolidates these local payments and transfers them to the recipient’s personal bank account in about 24 hours.&nbsp;

In terms of fees, since there are no&nbsp;SWIFT transfers,&nbsp;no SWIFT fees apply. Skydo simply charges a flat rate of USD 19 for payments under $2,000 and USD 29 for payments between USD 2,001 to USD 10,000. And most, importantly it offers live exchange rates with no markup or hidden fees. Meaning if the current exchange rate is INR 84 for 1 USD, that is exactly what you will get.&nbsp;

And not just that, Skydo also offers instant FIRA for every international payment absolutely free of cost. Make the smart move with Skydo—receive money from abroad effortlessly, affordably, and without hidden fees

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Receiving money from abroad in India

Among various electronic <a href="https://www.skydo.com/blog/what-are-embedded-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">payment systems</a>, two prominent players in the United States are Fedwire and the Automated Clearing House (ACH) network. While both facilitate <a href="https://www.skydo.com/blog/ensure-rbi-guidelines-for-cross-border-transactions-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">electronic fund transfers</a>, understanding Fedwire vs ACH is crucial for deciding about which system best suits specific financial needs.

This blog will help you understand everything about ACH Vs Fedwire and help you choose the most suitable payment system.&nbsp;

Fedwire, also known as Federal Reserve Wire Network, is a payment system local to the United States, allowing entities to execute time-sensitive, large-value transactions. Fedwire is a well-known payment network for entities as it processes transactions in real-time (immediate fund transfers) with high transactional security.&nbsp;

<a href="https://www.frbservices.org/financial-services/wires#:~:text=The%20Fedwire%20Funds%20Service%20is,Federal%20Reserve%20Bank%20master%20accounts.">The US Federal Reserve</a> owns Fedwire and allows its participants to settle commercial payments for their accounts or on behalf of corporate or individual clients. Fedwire can also be used to settle positions with <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">banks and other financial institutions, </a>buy and sell federal funds, or submit federal taxes.&nbsp;

Fedwire is commonly used by financial institutions, businesses, and government agencies to settle USD on the same day of initiating the transactions. Financial institutions include US banks and some American branches of certain foreign banks or government groups maintaining an account with a Federal bank.&nbsp;

Automated Clearing House interbank payment system, or the ACH network, is an interconnected computer system that communicates with each other to help transfer or receive payments. The <a href="https://www.skydo.com/blog/everything-about-ach-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">ACH payment system</a> is native to the US and is used to complete transactions in USD among financial institutions with bank accounts in the US.&nbsp;

ACH payments do not restrict themselves to transferring person-to-person money, but individuals can use the ACH network to pay bills online, pay salaries to employees, pay mortgages and loans, and for tax refunds or payments.&nbsp;

ACH transfers involve three entities to execute the money transfer- the ACH operator, the ODFI, and the RDFI. The ACH operators can either be the Electronic Payments Network (EPN), run by a collective of 24 large banks, called The Clearing House, or FedACH, run by the Federal Reserve banks.&nbsp;

ACH is an open and inclusive system that allows various financial institutions to participate. This includes commercial banks, credit unions, savings banks, and other financial entities. As a result, ACH has become a standardised and universally accepted platform for electronic funds transfer.

Here is a detailed comparison between Fedwire and ACH transactions to help you choose the right method based on factors such as transaction amount, payment urgency, security, transfer frequency, and transaction limitations.

Fedwire and ACH are two prominent payment systems in the United States, each with its unique features and purposes. Fedwire excels in real-time settlement of high-value transactions, while ACH offers a versatile and cost-effective solution for various payment types, albeit with a longer processing time.

<a href="https://www.skydo.com/blog/choose-international-payment-gateway-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Choosing the appropriate payment method</a> is crucial, depending on the specific needs of the transaction. Fedwire's real-time settlement makes it a preferred choice for urgent and large-value transactions. On the other hand, ACH is ideal for recurring payments, payroll, and other non-time-sensitive transactions.

However, it is crucial for individuals and businesses to carefully consider the characteristics of each system and select the payment method that aligns with their specific requirements. Researching additional details or consulting with an expert can provide valuable insights and guidance on making informed financial and transactional decisions.&nbsp;

Q1. Is Fedwire different from wire transfer?

Ans: Fedwire is one of the most widely used wire transfer methods in the United States. However, it is not the same as wire transfer, as it is a broader term that refers to the electronic transfer of funds from one financial institution to another. Wire transfers can take various forms, and they are not limited to a specific system or network.

Q2. What is the difference between ACH, Fedwire, and SWIFT?

Ans: Although all of these are payment networks in the US, they differ in numerous factors such as transaction speed, transaction cost, processing times, etc. An example is that ACH takes 3-4 business days, <a href="https://www.skydo.com/blog/why-was-a-certain-amount-deducted-from-my-swift-payment?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">SWIFT</a> takes up to 5 business days, and Fedwire settles the transaction instantly.&nbsp;

Ans: Fedwire is an electronic payment system known as a Real-Time Gross Settlement (RTGS) system. In an RTGS system like Fedwire, transactions are settled immediately and individually.

Q4. Which is faster ACH or wire transfer?

Ans: Wire transfers are faster as they work on the Real-Time Gross Settlement (RTGS) system, settling transactions instantly. In comparison, ACH transfers (if not same-day ACH) take up to 3-4 business days to settle.&nbsp;

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Today, everything from hailing a ride to shopping for groceries or signing up for classes happens online. But behind this convenience lies a crucial need: making sure money moves smoothly behind the scenes.

That's where the <a href="https://www.skydo.com/blog/what-are-capital-and-current-account-transactions">Current Account</a> comes in. It's the protagonist in your business's financial story, making everyday transactions easy. However, it's not alone—special accounts like Nodal and Escrow accounts also play significant roles, handling the tricky money transfers that come with doing business online.

The blog covers the functions, advantages and framework for nodal, escrow, and current accounts. It will help you to choose the right tool to improve your financial management and ensure compliance.

Nodal accounts, mandated by the RBI, are specialised bank accounts tailored for businesses functioning as intermediaries in the online space. Its purpose is to safeguard the interests of customers and vendors, ensuring that payments are efficiently collected, processed, and disbursed to relevant vendors without unnecessary delays.

How Nodal Accounts Facilitate Fund Transfers

Nodal accounts act as temporary vaults, ensuring collected <a href="https://www.skydo.com/blog/choose-international-payment-gateway-2024">payments are processed promptly</a> and payouts to relevant stakeholders occur without delays. For example, when a customer pays for a product online, the nodal account handles payouts to the seller and manages funds for shipping partners and payment processors.

Industries and Scenarios Where Nodal Accounts are Commonly Used

Nodal accounts are popular in industries with complex interactions between customers, vendors, and payment gateways. It includes the following business categories.

From the Middle Ages, escrow means a deposit of trust or security. In modern times, an escrow account is a temporary financial vault managed by a trusted third party, securing funds on behalf of two parties bound by a contract.&nbsp;

The key characteristics of an escrow account are as follows.

Escrow accounts are common in business transactions, especially in real estate and online transactions. In real estate, a buyer deposits the total house value into an escrow account, with staged payments tied to project completion levels. For instance, 10% may be due upon laying the foundation.&nbsp;

Escrow is indispensable in unknown buyer-seller scenarios such as second-hand purchases. Serving as buyer protection, it ensures fund release only upon satisfactory product receipt, minimising disputes or chargebacks for the seller.&nbsp;

In an e-commerce transaction, the customer initiates a purchase and submits payment. When the funds reach the escrow account, the intermediary prompts the seller to dispatch the goods. Following shipment, the buyer receives the goods and verifies their satisfaction, confirming it to the intermediary.&nbsp;

Upon this confirmation, the intermediary transfers the funds from the escrow account to the buyer, completing the secure transaction process. The intermediary usually charges a fee to facilitate the transaction.&nbsp;

Legal and Regulatory Aspects of Escrow Accounts

Escrow agreements involving a buyer, seller, and escrow agent are contractual arrangements outlining terms for escrow payments. In India, specific transactions are legally bound to employ escrow accounts, emphasising the need for businesses to understand applicable laws.&nbsp;

These stringent regulations aim to protect the interests of all parties involved in escrow transactions in India.

Pros of Using Escrow Accounts for Business Operations

Cons of Using Escrow Accounts for Business Operations

A <a href="https://www.skydo.com/blog/what-is-a-zero-balance-current-account?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">current account</a> is a financial account that allows deposits, withdrawals, and daily transactions. It serves as a gateway for managing day-to-day financial activities, offering easy access to funds.

Features of Current Accounts for Businesses

Nodal and Escrow accounts share the principle of involving a third party for fund holding and settlements.

In contrast, the Current Account follows a different approach by channelling all payments through a single account. It is common for businesses to support online and offline transactions with no upper limit on daily transactions.&nbsp;

Considerations for Choosing a Current Account Provid

When to Use Nodal, Escrow, or Current Accounts

Choosing between Nodal, Escrow, or Current Accounts depends on a business's specific financial needs and operations. Each account type serves distinct purposes, addressing unique requirements in fund management and transactions.&nbsp;

Examples of businesses that benefit from these three types of accounts

Scenarios Where Escrow Accounts Are the Ideal Choice

In specific scenarios, opting for an escrow account is strategically sound, addressing various industries and transactions.

Advantages of Current Accounts in Specific Business Contexts

Overview of regulations governing nodal accounts

The Reserve Bank of India (RBI) issues guidelines to regulate nodal accounts that primarily focus on ensuring the security, transparency, and efficiency of payments within marketplace ecosystems. Here are some key aspects.

Compliance Requirements for Businesses Using Escrow Accounts

Regulatory framework for current accounts and its impact on businesses

The regulatory framework for current accounts encompasses various aspects impacting businesses. Below are some examples.

Factors to Consider When Choosing The Right Account Type

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For enterprises catering to a diverse global clientele, selecting an appropriate international payment gateway is essential. Such payment solutions streamline operations significantly by eliminating the need for a physical account in each country.&nbsp;

Furthermore, it provides accurate currency conversions, ensuring you receive payments in your preferred currency.

However, with numerous options in the market, selecting the right one requires thoughtful consideration. Here are the five best expert-picked payment solutions and things to consider before choosing the right one for your business.

Skydo is a modern international payment gateway that simplifies <a href="https://www.skydo.com/blog/skydo-cross-border-payment-challenges?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cross-border B2B payments.</a> It cuts foreign exchange charges by over 50%, making global transactions more cost-effective.

Through collaborations with leading banks worldwide, Skydo provides businesses with <a href="https://www.skydo.com/features/international-accounts">virtual foreign accounts,</a> eliminating tax and compliance complexities.&nbsp;

They offer real-time currency conversion at the live FX rate, free from markups, and a straightforward flat fee of just USD 19 for transactions up to USD 2000 and USD 29 for transactions above USD 2000 to USD 10000.

With a swift <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">5-minute onboarding process</a>, Skydo prioritises efficiency.&nbsp;

Businesses opting for Skydo find advantages in reduced foreign exchange charges, transparent pricing, and a user-friendly platform for seamless cross-border transactions.

2. <a href="https://wise.com/in/">Wise&nbsp;</a>

<a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Wise</a> is a prominent financial technology company specialising in international money transfer services. Through their platform, individuals and businesses can conduct cross-border transactions at more advantageous exchange rates.

The fee varies based on the currency. Typically, Wise charges around <a href="https://wise.com/in/pricing/">30.69 USD</a> for a 1000 USD transaction.

3. <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a>

<a href="https://www.skydo.com/blog/best-alternative-to-payoneer?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Payoneer</a> is a global financial services company offering online money transfer and digital payment services. Its mission is to simplify cross-border transactions, providing businesses and professionals with a seamless way to send and receive funds on an international scale.

Their transaction fees include a 2% foreign exchange markup per transaction.

4. <a href="https://www.salt.pe/">Salt.pe</a>

Salt.pe, a startup headquartered in Bengaluru, is dedicated to simplifying cross-border payments for Indian businesses. They enable Indian enterprises to receive payments from abroad effortlessly by providing local account details in seven foreign currencies: USD, GBP, EUR, HKD, AUD, SGD, and CAD.

Salt.pe applies a flat fee of <a href="https://www.salt.pe/paypal">1.75% per transaction</a>.

5. <a href="https://www.paypal.com/">Paypal</a>

<a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">PayPal</a> is a popular online payment platform that ensures secure financial transactions for users engaging in digital purchases, fund transfers, and receipt of payments.

PayPal applies a <a href="https://www.paypal.com/in/webapps/mpp/paypal-fees">transaction fee of 4%</a> of the transaction amount, with a fixed cost determined by the received currency. Furthermore, for transfers out of PayPal, they impose an additional 3.0% above the base exchange rate, with other associated merchant fees.

These solutions solve payment problems that you may currently have. But which one should you choose?

Things to Consider When Choosing Your <a href="https://www.skydo.com/blog/choose-international-payment-gateway-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Payment Solution</a>

For each processed transaction, payment solutions typically apply fees that vary based on payment method, transaction volume, and currency conversion.

It's crucial to compare transaction fees and rates across various payment gateways to identify the optimal choice for your business.

Select a payment solution that accommodates your customers' preferred payment methods like debit cards, credit cards, bank transfers, and currencies prevalent in your business's target markets.

3. Integration and seamless user experience

Prioritise a solution that depicts user-friendliness, ensuring a seamless and intuitive payment process for your valued customers.

This strategic choice enhances operational efficiency and contributes significantly to a positive customer experience.

Evaluate how well your payment partner delivers customer support. Swift and effective support is vital, especially when dealing with technical issues or resolving disputes.

The optimal global payment solution is a cornerstone for achieving operational excellence and fostering positive customer experiences.

Achieving a customised fit requires a deep dive into particulars such as transaction fees, supported payment methods, and the quality of customer support.

If you are searching for a payment solution, understand your and your customer’s payment needs, conduct comprehensive research, and make informed decisions. This approach ensures the integration of a solution that precisely aligns with your distinct requirements.

Q1. What are the biggest differences between the fees and exchange rates offered by these platforms?

Ans. Differences in fees and exchange rates exist across international payment gateways. It's essential to compare them, considering some may have lower transaction fees but less favourable exchange rates, while others might offer competitive rates with higher fees. Transparent fee structures should be a priority, as well as an understanding of any hidden charges.

Q2. Is there a minimum or maximum amount I can send/receive through any of these platforms?

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