ACH Payment vs Wire Transfer: Which Is Better for Indian Exporters and Freelancers?
ACH vs Wire Transfer: Quick Overview
When deciding between ACH 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.
| Feature | ACH | Wire Transfer |
| Used For | Domestic (US-to-US) only | Primarily international transfers |
| Speed | 1–3 business days | Up to 5 business days |
| Cost | Low or free (usually under $5) | $15–$40 per transfer |
| Who Uses It | US-based businesses for domestic payments | Global transfers via SWIFT network |
| Can Indian freelancers receive it directly? | ❌ No - requires US bank account | ✅ Yes - works with Indian banks |
| Reversibility | Can be reversed more easily | Difficult to reverse once sent |
What’s ACH, and Why Can’t You Receive It from the US?
ACH stands for Automated Clearing House, 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.
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.
What’s a Wire Transfer?
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 SWIFT network 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 SWIFT code 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.
- They're expensive compared to ACH payments, often costing $15 to $40 per transaction
- They're also slower than you might expect for something that sounds so direct - typically taking one to five business days
- The real surprise for many freelancers comes in the form of hidden intermediary fees and forex markup that banks don't always mention upfront, which can eat into your final payment amount
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
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
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 US bank account for your clients.
Step 3: Share the correct details with your client
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
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
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
Skydo automatically generates your FIRA (Foreign Inward Remittance Advice) 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
What You Should Ask Your Client To Do
How you frame the payment request to your client makes a huge difference in what lands in your account.
Instead of asking: "Wire me the money"
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.
How Skydo Helps You Get the Best of Both
After comparing both payment methods, the choice becomes clear for Indian exporters and freelancers working with US clients.
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 FIRA for compliance, 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.
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.
What is the difference between ACH and wire transfer?
ACH is a US domestic payment method, while wire transfers support both domestic and international transactions. ACH is typically low-cost but slower; wire transfers are faster and suited for global payments.
Can Indian freelancers and exporters receive ACH payments directly?
Which is better for Indian exporters and freelancers — ACH or wire transfer?
What is the cost difference between ACH and wire transfer?
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