How to Receive International Payments in India: A 2025 Guide for Freelancers & Businesses

Contents

Bank Wire Transfer (SWIFT)

Remittance Services (Western Union, Wise P2P, etc.)

Online Payment Gateways (PayPal, Stripe, etc.)

Virtual Multicurrency Accounts (Skydo, Payoneer, Wise Business)

Comparison of Methods

RBI Compliance: Purpose Codes & FIRC/FIRA

Why Choose Skydo (Recommended)

How to Receive International Payments in India: A 2025 Guide for Freelancers & Businesses

Q: Which banks in India support international transactions?

All AD Category I Banks including ICICI Bank, HDFC Bank, Axis Bank, Yes Bank and many more support international payments.

Q: What are the fees for accepting international payments in India?

The charges for receiving international payments in India depend on how you are receiving them. Banks typically charge a SWIFT fee and levy a forex markup. PayPal levies, a fixed fee along with a transaction. and currency conversion fee. Skydo charges a flat fee of USD 19 for payments under USD 2000 and USD 29 for payments between USD 2001-10,000

Q: Is Money from abroad taxable

Personal transfers aren't taxable. However, international income is taxable at slab rate

Q: How to receive international salary in India?

You can receive international salary via banks, Paypal or virtual accounts by platforms like Skydo.

Q: Can I receive international payments in India without PayPal?

Yes, beyond Paypal, you can accept international payments via banks or virtual accounts with platforms like Skydo.

Q: What is the cheapest way to receive money from abroad?

Virtual accounts are fast emerging as an affordable way to receive payments from abroad. Skydo, for example, only charges $19 for payments up to $2000, $29 for payments between $2001 and 10,000 and 0.3% for payments upwards of $10,000. No swift fee or any forex markup involved.

Q: How long do international transfers to India take via different methods?

Banks can take upto 7 business days to settle your international payments, while with PayPal, it can take up to 5 days for the payment to reflect in your Indian bank account. Skydo typically settles payments between 24-48 hours.

Q: PayPal vs. Wire Transfer: Which is better for freelancers

. PayPal is widely used, easy to set up, and familiar to international clients, making it a convenient option for freelancers handling smaller or recurring payments. That said, it does come with higher fees, including transaction and currency conversion charges. Wire transfers are often preferred for larger payments due to their direct nature and lower percentage-based fees. However, they can be slower, may require more paperwork, and banks on both ends may charge fixed fees. Freelancers today also have access to newer options like virtual accounts—offered by platforms such as Skydo—which aim to balance speed, compliance, and affordability. The best choice depends on your specific needs, including payment volume, client preferences, and cost sensitivity.

Q: how to get paid by international clients from India?

If you're based in India and working with global clients, here are a few reliable ways to receive payments: SWIFT Transfer to Your Indian Bank Account. Your client can use your bank’s SWIFT code to wire the money directly. This method works, but it’s often slow (2–5 days), expensive, and includes poor forex rates. Payment Gateways (e.g., PayPal, Stripe): Popular for one-time invoices or recurring payments. However, both platforms charge high fees, and Stripe provides essential compliance documents like FIRA or eBRC. Virtual Accounts from Fintech Platforms (like Skydo). These platforms offer you a local account in your client’s currency (like USD or EUR). Your client pays as if it’s a domestic transfer (e.g., ACH), and you receive INR in your Indian bank account within 24–48 hours, at live forex rates with no hidden markup. Plus, you get auto-generated FIRA for compliance. 👉 Pro Tip: For freelancers and businesses, using a platform that combines transparent pricing with automated compliance docs helps simplify tax filing and avoids surprises.

Prashanth

17 April 2025

Prashanth17 April 2025

No forex markup. No hidden deductions. Just your full payment

TL;DR:

International payments can arrive via bank SWIFT transfers, online gateways (PayPal, Razorpay), money transfer services (Western Union, Wise), or virtual multicurrency accounts (Skydo, Wise, Payoneer).
SWIFT bank transfers are universal and secure, but often slow (3–7 business days) and expensive (fixed charges + high FX markups)skydo.com.
Payment gateways like PayPal and Stripe are convenient for online sales but charge ~3–4% fees plus currency conversion spreads.
Remittance services (Western Union, Wise, etc.) work well for smaller or personal transfers, with quick pickup options but generally poorer exchange rates and no formal receipts (FIRCs) for businesses.
Virtual multicurrency accounts (e.g. Skydo, Wise Business, Payoneer) let you hold US/UK/EUR accounts. Clients send in their local currency; you get INR. These often have low flat fees and provide instant FIRC/FIRA compliance certificates.
Always declare the correct RBI purpose code (e.g. P0802 for software export, P1006 for royalties) on each transfer, and obtain the FIRC/FIRA (Foreign Inward Remittance Certificate/Advice) as proof of payment for taxes/GST
Google Pay UPI is emerging as a cross-border option

International receipts involve extra steps and rules. You must pick a suitable channel, share the right details (account number/Swift code or invoice link), and follow RBI/FEMA regulations (purpose codes, FIRC).

Below, we’ll compare each method and highlight Skydo: an RBI-approved fintech among others- so you can choose the fastest, cheapest, and most compliant option.

No forex markup. No hidden deductions. Just your full payment

Bank Wire Transfer (SWIFT)

Using your Indian bank account’s SWIFT/BIC code is the traditional way. You share your account number and SWIFT code with the sender. The sender’s bank uses the SWIFT network to move funds to your account.

Timeline: Typically 3–7 business days to credit. Multiple correspondent banks may slow it down.
Fees: Sender and intermediaries pay fees (often $15–$50 each), which can be passed to you. Indian banks charge extra – e.g. a foreign-exchange markup (say you get ₹82/USD instead of the actual ₹84/USD) and fixed fees for paperwork. Banks often also charge for the FIRC (Foreign Inward Remittance Certificate), e.g. Axis Bank charges ~₹250.
Ideal For: Large transfers by established businesses who want maximum safety. SWIFT is universal and works for any currency and country.

Pros and Cons

Pros: Works everywhere; widely accepted and safe, can receive multiple currencies.

Cons: Slow and costly – banks add hidden forex markups and service charges, and they usually take upto 5 business days to arrive, which can hinder cash flow

Remittance Services (Western Union, Wise P2P, etc.)

These are money-transfer services primarily for personal or casual transfers.

Western Union / MoneyGram: Foreign sender visits an agent (or online), sends money for cash pickup or bank deposit in India. Transfer time depends on the respective payment and receipt method, but can range between 1-3 business days. Service fees and forex markup can make it expensive; you might lose 5–10% of the value. These services don’t issue FIRAs, so they’re not ideal for business exports. They’re mostly used by individuals (e.g. NRIs sending family support).

Wise p2p (formerly TransferWise): Wise p2p is a great way for personal transfers. It offers a mid-market exchange rate (plus ~1–2% fee) and quick settlement; however, please note that using p2p services for business payments is not recommended, as it can cause compliance issues.

Other P2P Services: Remitly, Xoom (PayPal’s service), InstaReM, etc., offer similar benefits. Fees vary but are generally lower than banks for like currencies.

Pros and Cons:

Pros: Fast and user-friendly for small amounts; often better FX rates (especially Wise). Good for sending money to personal accounts or paying freelancers.

Cons: Not all support business invoicing. Less official paperwork – most remittance platforms do not issue FIRA. It is recommended to use these platforms for personal transfers only.

Online Payment Gateways (PayPal, Stripe, etc.)

Gateways let clients pay invoices or buy products online. You simply send a PayPal invoice or use Stripe’s checkout links.

PayPal: Funds hit your PayPal wallet instantly. However, withdrawing to your INR bank takes 1–3 days and incurs fees. PayPal’s India business fees are high – about 4.4% of the amount + $0.30, plus a ~4% currency conversion spread. PayPal issues a monthly FIRA covering all receipts, which helps with GST compliance.
Stripe: Stripe allows for deep integration and customisation, but currently, it is only invite-only in India. Stripe fees include a 4.3% transaction charge along with a 2% forex markup. Striope doesn't issue FIRA; instead, it issues payment advice, which you need to submit to the bank to get your FIRA.

Pros and Cons:

Pros: Global acceptance; strong APIs for SaaS/tech businesses; built-in invoicing and subscription management.
Cons: Fees add up (4–8% effective for foreign clients); INR settlement can take several days; Stripe doesn't offer FIRA, plus it is currently invite-only in India.

Virtual Multicurrency Accounts (Skydo, Payoneer, Wise Business)

This modern method gives you real bank accounts in foreign countries. When a client in the US/EU/UK pays you in local currency, it lands in that virtual account; the fintech then converts and remits INR to you.

Skydo: An RBI-licensed platform for Indian businesses. You get real US, EU, UK, CAD, and AUD accounts in minutes. Incoming payments use live mid-market FX rates with ZERO markup. Fees are flat and transparent: $19 per transaction up to $2,000, $29 up to $10,000, and 0.3% above $10k. No percentage fee for small transfers means you save on every payment. Skydo also provides instant GST-compliant invoices and immediate electronic FIRA for each receipt.

Wise Business: Multi-currency accounts with real banking details in USD, EUR, GBP, AUD, etc. Wise uses the mid-market rate (no hidden spread) and charges ~1.6–2% on transfers. It also issues digital FIRA for every payment at USD 2.50/ FIRA.

Payoneer: Gives you receiving accounts (USD, EUR, GBP, JPY) and a multi-currency balance. Fees include a ~3% forex markup when converting to INR, plus additional fees basis the mode of payment. It also levies an annual account fee for inactivity. The platform issues free digital FIRA. It’s popular with marketplaces (Amazon, Fiverr, Upwork) that integrate Payoneer.

Pros and Cons:

Pros: Speed & low cost. No SWIFT delays or hidden FX spread. Receipts post in 1–2 days, and you get FIRC/FIRA for compliance. Ideal for frequent cross-border invoices.

Cons: Varries across platforms, Skydo doesn't support outward remittance, Payoneer levies forex markup and has a complex fee structure. Wise charges for issuing FIRA and can only support 10k/invoice

Comparison of Methods

	Banks	Payment Gateway	Virtual Account	Remittance Platforms
Settlement time	Upto 7 business days	1- 5 business days	24-48 hours	1-3 business days
Fees	SWIFT fee+ forex markup+ ancillary fee	Paypal fee: 4.4% fee+fixed fee+ 4% currency conversion feeRazorpay Fee: 3%	No SWIFT fee. Skydo charges $19 (<$2,000), $29 ($2,001–$10,000), 0.3% (>$10,000).	Variable, often includes forex markup
Compliance	100% compliant but have to seperately request and pay for FIRA	FIRA provided	Digital FIRA provided	No FIRA provided
Usability	Can be time consuming and Frequently requires followups	Easy to use, User friendly interface	New age platforms providing seamless User experience	Easy to use
Suited for	Big businesses with large payment volume	Online businesses, ecommerce, freelancers	small to medium businesses and freelancers	Personal transfers

Each option suits different needs: banks for large safety, gateways for integration, remittance for convenience, and virtual accounts for cost/efficiency.

RBI Compliance: Purpose Codes & FIRC/FIRA

All foreign receipts must comply with RBI rules under FEMA. Two key requirements are:

RBI Purpose Code: This is an alphanumeric code (e.g. P0802, P1401, P1301) that declares why the money is coming in (salary, export of software, gift, etc.). RBI mandates that every inbound remittance carry the correct purpose code. Banks capture it for FEMA reporting. Using the right code is critical: it avoids delays or returns and ensures your paperwork (GST filings, audit trail) is clean. For example, a freelancer exporting IT services might use P0802 (Software Services). Always tell your sender the code before they initiate the transfer (most online platforms allow entering it)

FIRC/FIRA: After the money arrives, the bank issues a Foreign Inward Remittance Advice (FIRA) or FIRC, as it is sometimes still called. This document shows the sender's details, the amount, and the purpose. It’s essential for accounting, GST claims, or export incentives. Traditional banks charge for FIRAs (e.g. Axis Bank ~₹250). Digital services (Skydo, Payoneer) typically issue an electronic FIRA instantly at no extra charge. Keep all FIRCs safe. If the bank asks, submit any requested docs (invoices, contracts, Form 15CA/15CB, etc.) so they can complete the certificate quickly.

Complying with these requirements is as important as choosing the right transfer method,

Why Choose Skydo (Recommended)

Skydo stands out as an India-made solution focused on receiving (inbound) payments:

RBI-Approved & Secure: Skydo is RBI-licensed and partners with leading banks

Transparent Fees:. You pay a flat fee (e.g. $19 for payments up to $2k, $29 for $2k–$10k and 0.3% for payments above $10k) and get the live mid-market rate (same as Google’s rate). Many users report huge savings per transaction vs. banks

Instant Compliance: Skydo provides instant, GST-compliant invoices and FIRA certificates for every transfer. These appear in your dashboard automatically, so you never miss documentation.

Real Multicurrency Accounts: Create US, EU, UK, Canada, and Australia accounts in minutes. Clients pay like they’re paying a local business.

Fast Settlements: Funds arrive in your Indian account typically within 24 -48 hours, with real-time tracking

Support & Tools: Skydo offers personal onboarding, analytics, reminders, and more for growing businesses

In short, Skydo simplifies compliance and slashes costs on each invoice. It’s ideal for freelancers and exporters who want full payment, zero surprises

Frequently asked questions