Updated: 14th November 2025 Foreign Inward Remittance Certificate (FIRC) is a key term for anyone in India receiving payments from abroad,&nbsp; be it exporters shipping goods overseas or freelancers offering services to international clients.

Are you dealing with international payments and confused by terms like FIRC? If you’ve ever received money from abroad for your business or freelance work, you might have been told to get a FIRC. Don’t worry – you’re not alone in finding this acronym puzzling. In this conversational guide, we’ll demystify Foreign Inward Remittance Certificates (FIRC) – explaining what they are (including the full form and meaning), why they’re important, who needs them, and how to obtain one. By the end, you’ll know exactly why FIRC matters for Indian exporters, freelancers, small businesses, and even accountants handling cross-border transactions. Plus, we’ll share tips on making the whole process much easier (hint: there are modern solutions that do the heavy lifting for you). Let’s dive in!

Let’s start with the basics: FIRC stands for Foreign Inward Remittance Certificate. It’s essentially an official document from an Indian bank that confirms you’ve received a payment from abroad. Think of it as a receipt or proof of an inward remittance (foreign money transfer) into your Indian bank account.

In practical terms, a FIRC contains details of the foreign payment you received – such as the amount in foreign currency and INR, who sent the money (the sender’s name and country), who received it (your name/business name), the date, and the purpose of the payment. It’s issued by your bank (specifically, banks authorized to deal in foreign exchange, known as AD Category I banks) whenever you receive money from overseas.

In simpler words: if a client overseas wires you funds for an export or a freelance project, the FIRC is the document from your bank saying “Yes, we’ve got the money from abroad, and here are the details.” It’s an official proof that foreign funds landed in India into your account.

Quick note: Sometimes people use “FIRC” loosely to also refer to similar documents like a foreign inward remittance advice (FIRA).&nbsp; Essentially, all these serve the same purpose – proving that an international payment was received. We’ll explain the differences in a bit, but generally if someone asks for a FIRC, they mean the proof of a foreign payment credit.

Whether you are an Indian exporter, a freelancer providing services globally, or a small business owner, obtaining a FIRC (or its equivalent advice) for your foreign earnings is very important. Here are the key reasons why a FIRC matters so much:

In summary, a FIRC is more than just a piece of paper. It’s crucial for compliance, unlocking financial benefits, and keeping clean records of your foreign income. In India’s regulated foreign exchange environment, this certificate (or its digital equivalent) becomes a cornerstone for anyone transacting internationally.

Now that we know why it’s important, you might wonder: “Do I actually need a FIRC?” If you fall into any of the following categories, the answer is likely yes:

In a nutshell, any Indian individual or business receiving money from outside India should obtain a FIRC for each such inward payment. This spans everyone from large export firms to freelance graphic designers paid via PayPal. It’s a best practice even if not mandatory in every case, because it’s your safety net and proof if questions arise later.

FIRC in India: RBI Guidelines and the Switch to FIRA

It’s important to understand how FIRCs are handled in India today, because there have been regulatory changes in the past decade. Historically, banks issued a physical FIRC on security paper for every foreign inward remittance received against exports. However, since 2016, the RBI changed the process for most cases. Let’s break down what that means:

You might also have seen the term e-FIRC. This is a bit tricky because e-FIRC isn’t a separate document you receive in hand – it’s more of a concept/number in the background banking systems.

For most small businesses or freelancers who use a single bank (or a single platform) to both receive funds and handle paperwork, you may not need to worry much about the term “e-FIRC” – your bank’s advice and the automated systems take care of it. Just know that it refers to the electronic trail of your remittance in RBI’s systems.

Two acronyms that often come up together in export finance are FIRC and BRC. They are related but serve different purposes, and it’s important not to confuse them:

In simpler terms, think of it as a two-step chain: First, you get the FIRC/FIRA when money comes in. Then, that leads to a BRC which connects the money to a specific export transaction.

For example, suppose you shipped 100 units of a product on a certain date (your shipping bill records this) and later you got USD 1,000 for that shipment. When the $1,000 arrives, your bank gives you a FIRA confirming receipt. You then inform the bank (or it knows via systems) that this $1,000 corresponds to that shipping bill. The bank updates the records and an e-BRC is generated which you can download from the DGFT portal as proof that the export transaction is closed with payment received. Why is BRC needed? Because to claim many export incentives or to fulfill export obligations, you have to show BRCs to the government – it proves you not only exported but also got paid for it.

Bottom line: FIRC (or FIRA) confirms money received; BRC confirms that money was tied to an export. Both are important for exporters of goods (first you get FIRC, then BRC to claim benefits). Freelancers and pure service exporters mostly just handle FIRCs unless they are in scenarios that require reporting exports formally.

&nbsp;You can use this decision tree to decide which one do you need.&nbsp;

FIRC Certificate Format:&nbsp; What Information Does it Include?

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

If you’ve never seen a FIRC or FIRA document, you might wonder what it looks like and what details it carries. While formats can vary slightly from bank to bank, a typical FIRC/FIRA document (usually a PDF or letter these days) will include the following key information:

A modern FIRA might not have the word “Certificate” on it, but it contains the same info as the old FIRC. Some banks still title it “Certificate of Foreign Inward Remittance” even if it’s a PDF. In any case, all the above details are what make it valuable – ensure everything matches your expectations when you receive one (more on that in a moment).

How to Obtain a FIRC (Procedure to Get the Certificate)

Obtaining a FIRC or FIRA for a foreign payment is not always automatic – often, you’ll need to request it from your bank. The process can vary slightly by bank, but here’s a general step-by-step guide for Indian businesses or freelancers:

1. Receive the Foreign Payment: This might sound obvious, but you can only get a FIRC after the money from abroad has credited to your bank account in India. So, first step – make sure the funds have arrived. Note down the transaction details like the date of credit, the amount in foreign currency and INR, and any reference number (UTR) if available. This info will be needed for the request.

2. Contact Your Bank to Request the FIRC/FIRA: Reach out to your bank’s branch or your relationship manager and let them know you need a FIRC (Foreign Inward Remittance Certificate) or advice for a particular transaction. Many banks have a specific form or format for this request. Depending on the bank, you might do one of the following:

In your request, you’ll generally need to provide:

Tip: If your bank has a mobile app or online banking, search for terms like “FIRC request” or “Remittance Certificate” – some banks have digitized this. Otherwise, a quick email to your branch manager with the details might do the trick.

3. Provide Supporting Documents (if required): Banks might ask for some documents to ensure the request is legit and to attach as proof of the transaction’s purpose. Common ones include:

Not every bank will ask for all of these – often if the transaction was straightforward and coded correctly, a FIRC request might go through with just the form. But don’t be surprised if they ask for an invoice copy or such, especially for higher amounts or the first time you’re requesting.

4. Pay the Bank’s Fee (if any): Here’s the part not everyone realizes: many banks charge a small processing fee for issuing a FIRC/FIRA. The fee varies by bank but is typically in the range of ₹200 to ₹500 per certificate, plus GST. For example, one bank might charge ₹300 + taxes for each FIRC. Some banks waive it for premium account holders or in special cases, but generally expect a fee. Usually, the bank will deduct this fee from your account or ask you to pay it upfront. When you fill the request form, it might mention the fee or your branch will inform you. (As a rough timeline, after you request, it often takes around 1–2 weeks for the bank to issue the FIRC. Some get it done in just a few days, but don’t bank on it – pun intended!)

Good News: If this process sounds a bit old-fashioned, you’re right – it can be tedious. But lately, some fintech platforms and modern banking services offer FIRA certificates for free and instantly as a perk. (We’ll talk more about that in a moment when discussing easier ways.)

5. Wait for the Certificate to be Issued: Once you’ve submitted the request (and any docs and fees), the bank’s forex operations team will verify the details. They’ll match the info you gave with the actual inward remittance record. If everything checks out, they will generate the FIRC (or FIRA). Nowadays, this is usually a PDF document on the bank’s letterhead with a digital signature, which they might email to you or make available for download (some still might print it for collection at the branch if you specifically need a hard copy). The time frame can vary:

Keep an eye on the email you provided (and check the spam folder just in case, since it’s often an automated email with a PDF attachment).

6. Verify the Details on the FIRC: When you finally receive the certificate/advice, do not skip this step! Carefully check all the details:

If you spot any error (typos in your name, wrong amount, incorrect purpose code, etc.), contact the bank immediately to correct it. It’s important the FIRC reflects the truth of the transaction. Banks can issue an amended FIRC if needed, but you may have to give proof of the correct info (for instance, if your name was spelled wrong, you might send a copy of your PAN or passport; if the amount in INR is off, maybe a statement copy). It’s best to catch errors early and have them fixed, so you don’t run into problems later when using the FIRC for official purposes.

7. Use the FIRC for Your Needs: Once you have the FIRC/FIRA in hand (or in email):

In short, use the FIRC anywhere you need to prove “I got paid from abroad for X purpose.” It’s your golden ticket for compliance and benefits.

8. Remember: One FIRC = One Transaction: If you receive multiple foreign payments, you will generally need to request separate FIRCs for each. Say you’re a freelancer who got five different payments from five clients – you’d have five FIRC documents (and possibly five fees…). Some payment aggregators or services might give a consolidated statement for multiple small payments, but banks usually treat each inward remittance as a separate record and issue individual certificates.

Getting FIRC the Easy Way (Automatic FIRC with Modern Platforms)

At this point, you might be thinking, “Wow, that’s a lot of steps and wait time just to get a certificate!” 🤯 Indeed, dealing directly with banks for FIRCs can be slow and involve charges. Here’s where fintech solutions come to the rescue.

Platforms like Skydo offer a much smoother experience for handling foreign payments. For instance, when you receive an export payment through Skydo, the FIRC (or FIRA) is generated for you automatically – and at no extra cost. It’s basically built into the process. You don’t have to file separate requests or wait weeks. As soon as the payment is received and processed, you can log into your Skydo dashboard and download the remittance advice instantly. All the details (amount, purpose, etc.) are neatly recorded, compliant with RBI rules, without you lifting a finger to request it.

This kind of solution is a game-changer for freelancers and small businesses: you get paid faster (since such platforms often streamline the transfer) and you get the FIRC document instantly for each transaction. No bank queues, no follow-ups, no fees per certificate. If you’re frequently dealing with international clients, using a modern global payments platform can save you a lot of headaches when it comes to compliance paperwork like FIRCs.

Is FIRC Mandatory for GST Refunds and Other Purposes?

One common question that arises is whether having a FIRC is mandatory for certain claims, especially the GST refunds on exports. The short answer: Yes, if you’re claiming a refund or benefit on the basis of an export, you’ll need proof of foreign inward remittance – usually in the form of FIRC/FIRA.

When you export goods or services from India, those exports are considered “zero-rated” for GST, meaning you don’t have to pay GST on the sale. However, you might have paid GST on inputs (input tax credit) and you’d want to get that refunded since your output was zero-rated. To process this refund, the tax authorities require evidence that you indeed received payment in convertible foreign exchange for that zero-rated supply. FIRC is that evidence. It authenticates that the money entered India’s banking system against your export.

Here’s how it typically works for a GST refund on exports:

If you don’t have a FIRC to show and try to claim a GST refund, the claim likely won’t be accepted because you haven’t furnished proof of realization of export proceeds. It’s a critical document for this purpose.

Similarly, for other schemes like certain subsidies or duty credits for exporters, the requirement is often to show the BRC or FIRC to prove that the export was completed monetarily.

For freelancers or service exporters who may not deal with GST refunds (if, say, you’re below GST threshold or exports of services under LUT), it might not feel “mandatory” day-to-day. But consider that under income tax or any scrutiny, you’d still want that FIRC as proof of earnings. Also, tomorrow if you do register for GST and want to claim something, having FIRCs from the past means you’re prepared.

In summary: For compliance and benefits, having FIRCs is effectively mandatory. It’s part of the paperwork you should maintain if you earn in foreign currency. And specifically for claiming GST refunds on exports, a FIRC is usually non-negotiable.

Conclusion:&nbsp; Making FIRC Hassle-Free

Dealing with cross-border payments can seem daunting at first – there’s compliance to consider and extra paperwork like FIRCs to manage. But understanding the ins and outs of FIRC means you’re now equipped to ensure every dollar, euro, or pound you earn overseas is properly documented without stress.

The good news is that you don’t have to wrestle with these processes alone. As the world of international business is evolving, so are the tools to manage it. Your focus should be on growing your business or honing your craft – not on chasing bank certificates. That’s exactly why platforms like Skydo exist: to simplify global payments and the red tape that comes with them.

With Skydo, for example, you can enjoy seamless international payments with no hidden fees, and every time you receive a cross-border payment, an auto-generated FIRC (remittance advice) is instantly available for you. No special requests, no fees per certificate, no delays – it’s just there, ready to download when you need it. This means you remain fully compliant with RBI rules effortlessly, and you can devote your energy to what truly matters: delivering great products or services and scaling your venture.

In conclusion, a Foreign Inward Remittance Certificate is a vital piece in the jigsaw puzzle of doing business globally from India. It ensures your hard-earned foreign revenues are officially recognized and securely in your pocket (or rather, your bank account). By staying informed and leveraging modern solutions, you can turn what used to be a cumbersome process into a minor footnote in your workflow. Happy exporting (or freelancing), and may all your international payments come with an easy FIRC! 🚀

What is FIRC? Learn the full form, meaning, and how Indian exporters & freelancers can get FIRC or FIRA to claim tax benefits and stay RBI-compliant.

FIRC Full Form, Meaning & Guide for Exporters

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

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Prashanth Kumar

Cross-border collaboration is now everyday business. A design team in Berlin works with a marketing agency in Bengaluru, a US SaaS company pays support teams in Manila, and enterprises run truly global vendor and partner networks. However, they also expose firms to fraud, money laundering and complex regulatory risks. Legacy compliance systems (manual reviews, static rules, rigid blacklists) struggle to cope, and traditional fraud detection can become “too slow”, “too rigid”, and “too costly”. 

For example, by the time an irregular payment is flagged under old processes, fraudsters may have long moved the money. In today’s fast-moving market, enterprises need smarter, faster compliance – and that’s where AI in compliance comes in. In fact, <a href="https://www.aiprise.com/blog/ai-powered-compliance-revolutionizing-risk-management#:~:text=That%27s%20why%20AI%20compliance%20software,reduce%20reliance%20on%20manual%20review">68% of financial services</a> firms now list AI-driven compliance and risk management as a top priorityaiprise.com. By continuously learning payment patterns and regulatory changes, AI can identify suspicious activity before damage occurs, rather than reacting after the fact

AI shifts fraud detection from a reactive to a proactive, contextual model. Instead of relying on fixed thresholds or historical blacklists, modern AI systems learn live transaction patterns and “contextualise behaviour”&nbsp;For instance, suppose an Indian exporter usually receives $10,000 a month but suddenly gets $200,000 from a new client. AI-led compliance can flag this anomaly and then automatically analyse the details – checking past payment history, industry norms, and the sender’s profile, rather than outright blocking the transfer. In practice, the system might verify questions like: Has this exporter ever seen such a payment before? Is this amount typical for their industry? Does the payer have a solid history in similar transactions? If anything seems off, AI immediately escalates the case for review. This contextual monitoring greatly reduces blind spots that static rules miss.

Together, these capabilities turn AI into a “predictive firewall” for payments.&nbsp;Fraud is detected before it materialises, false alarms are minimised, and compliance becomes a real-time process rather than a paperwork chase. Importantly, AI doesn’t replace human judgment – it enables teams to work faster and smarter. As Skydo’s experts put it, AI is a “co-pilot” that flags genuine risks while letting human officers concentrate on high-risk cases

Skydo applies these AI capabilities within a modern cross-border payments platform built for exporters. Instead of standard SWIFT wires, Skydo provides virtual multi-currency accounts. When a business signs up, it instantly receives local bank accounts in major currencies (USD, EUR, CAD, SGD, etc.)

From the payer’s view, they simply wire money as if sending a domestic transfer to a familiar bank in their country. For example, U.S. clients pay into a Skydo USD account at a real U.S. bank (Community Federal Savings Bank in New York), European clients use a local IBAN at Barclays, and so on. Behind the scenes, Skydo collects the funds, converts at the real-time mid-market rate, and settles the exporter’s INR account, providing the necessary FIRA/GST paperwork for RBI compliance on the receipt.&nbsp;

In short, Skydo’s platform makes receiving cross-border payments as easy as domestic transfers, but with full audit trails for regulators.

Under the hood, Skydo builds strict compliance right into its platform and adds AI on top. The system is ISO 27001 certified and SOC 2 compliant, meaning it meets top industry standards for data protection and system reliability. 

All payment data is encrypted (at rest and in transit), two-factor authentication is enforced, and 24/7 monitoring detects unusual activity. Skydo is also RBI-authorised (Payment Aggregator – Cross Border), so it must follow rigorous audit and anti-fraud rules just like PayPal or Wise.&nbsp;&nbsp;In practice, this means thousands of compliance and security checks have been built into the platform’s DNA.

Importantly, Skydo’s AI doesn’t operate in a vacuum. It works hand-in-hand with humans. When AI identifies a red flag, compliance staff step in to review the case – but routine alerts are triaged by machine. This hybrid approach minimises false positives and speeds up legitimate payments. As noted above, rather than blocking every match on a sanction list, Skydo’s AI assigns a risk score and only pauses truly high-risk flows.&nbsp; 

Compliance teams can then focus on verifying these real threats, while low-risk transactions sail through. In effect, AI is a compliance copilot – streamlining document checks, sanction screenings, and ongoing monitoring – so the “compliance teams can focus on high-risk cases while AI handles routine screening”

The combination of AI compliance and streamlined rails also makes Skydo’s service remarkably fast and cost-effective. Since Skydo uses local transfers instead of chained wires, payments often settle within a day or two&nbsp;(versus several days for SWIFT). Exporters from India benefit from flat, low fees: Skydo charges a fixed fee (e.g. $19 for payments up to $2,000, $29 up to $10,000) and promises zero hidden markup. By avoiding SWIFT fees and FX spreads, businesses typically cut costs by ~50% compared to banks. And every transaction is fully transparent – the receiver can track the payment end-to-end in real time, eliminating uncertainty.

In practice, this means companies save on fees and get their cash sooner. There are no surprise charges: you pay the invoice amount plus one flat fee, and you receive the full agreed foreign currency (since Skydo never skims an extra margin on the FX rate). This financial efficiency, combined with AI-backed security, lets businesses send or receive cross-border payments “as safe as any major bank transfer", but without the typical delays and costs.

AI in compliance is powerful, but it’s not a magic bullet – Skydo’s approach recognises that. Every AI-generated alert or decision in the system is backed by traceable logic and human review. The platform logs detailed decision trails for each transaction, so auditors can always answer “why” a payment was approved or flagged. And models are regularly updated and tested. The engineering team uses AI even to bolster security (generating test cases, simulating attacks, etc.), but compliance officers remain the final arbiter of high-risk cases.&nbsp;&nbsp;In short, Skydo’s motto is “compliance by design”; security and regulatory checks are built into every service layer from day one.

By taking this holistic approach, Skydo demonstrates that AI in compliance can keep cross-border money both clean and fast. Machine learning stops fraudsters and speeds approvals without adding extra paperwork for legitimate users. Meanwhile, certifications (ISO, SOC2, RBI licensing) and real bank partnerships ensure the system is trustworthy and fully auditable. Today, Skydo serves over 30,000 Indian exporters and handles hundreds of millions of dollars in cross-border flows. For enterprises expanding internationally, Skydo’s AI-powered solution shows how advanced technology and smart processes can turn a compliance headache into a competitive advantage – keeping global payments secure, streamlined, and swift.

AI in Compliance: How Skydo Keeps Cross-Border Money Clean (and Fast)

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What is a PayPal Business Account (for Indian exporters)?

For Indian exporters, a PayPal Business account is a simple, trusted, and convenient way to get paid from clients in 200+ countries. You might have heard about a PayPal Individual account, which can be used for receiving personal remittances and shopping online. 

A PayPal Business account is more tailored for commercial use as it offers invoicing, payment links, and business branding. But, since April 2021, it only supports receiving export payments; <a href="https://www.thehindu.com/business/Industry/paypal-to-shut-domestic-payments-business-in-india/article33756609.ece">domestic INR transfers are not supported.
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PayPal is also regulated by RBI as an Online Payment Gateway Service Provider (OPGSP) and recently <a href="https://newsroom.apac.paypal-corp.com/2025-05-28-PayPal-Receives-In-Principle-Approval-to-Operate-as-Cross-Border-Payment-Aggregator-in-India">got the in-principle approva</a>l to operate as a Payment Aggregator for Cross-Border Exports (PA-CB-E).
PayPal Business is popular with Indian freelancers, agencies, SaaS platforms, and D2C exporters. Understanding its features, fees, and compliance will help you decide if it is the right choice for your emerging export business.

Key features (what exporters actually get)

This list will tell you about the features you will have access to when you open a PayPal Business account:

Fees &amp; FX: the real cost for Indian exporters

There are several components in the PayPal Business account fee structure. We have done a neat breakdown with an example, so you know exactly how much money you will be paying in fees for every foreign payment.

Here’s an example to wrap up the calculation:
Suppose you invoice a U.S. client $1,000 and the mid-market exchange rate is ₹86 per USD.

Compliance &amp; documentation (India-specific)

The section is divided into two parts: documents required to open a PayPal Business account in India, and how PayPal takes care of the compliance required for international payments.

List of documents to open a PayPal Business account

Key compliance obligation supported by PayPal

How to open a PayPal Business Account (simple steps)

Follow this exact process to open a PayPal Business account stress-free:

When a PayPal Business Account works well (use cases)

PayPal Business is a great fit, especially if you’re working with a new client or handling a temporary, one-off project. Here’s when choosing PayPal really pays off:

When to consider switching from PayPal to Skydo (or using both)

PayPal Business offers advanced features for exporters, and its fee structure is aligned with small or one-off projects. But does it make sense to pair PayPal with another payment platform like Skydo? Let’s walk through a few practical scenarios:

Based on what we have covered so far, here’s a simple snapshot comparison of PayPal and Skydo:

Keep the most of your export earnings with Skydo

A PayPal Business account is worth considering, given its presence and reputation. But as your business grows, and you start accepting larger payments, its fee structure takes a deep cut from your income. You must look for payment alternatives that are better suited for Indian exporters.


Skydo is an India-based fintech company designed keeping in mind the challenges of Indian businesses. It offers <a href="https://www.skydo.com/blog/virtual-account-numbers">virtual bank accounts</a> in USD, EUR, GBP, and more, so you can receive payments from overseas clients like a local vendor. If most of your clients are in the US, Skydo’s InstaLinks offering is worth exploring. It works like a PayPal Link, but costs a lot less. You share a customized payment link with a client on email or WhatsApp, and they tap on the link to complete the payment using their Credit Card or net banking.&nbsp; No sign up required.
Skydo’s transparent flat fees and live mid-market currency rates mean you keep more of your foreign earnings. Plus, our India-based support team assists you with onboarding, compliance, and ongoing operations to help you grow your business.

Here’s a quick look at how the fees compare for typical international payments:

Sign up for Skydo to maximise your export earnings and simplify international payments.

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What is FIRA (and how the terminology evolved)

In banking, FIRA is your AD bank’s written confirmation that foreign currency was received against your export of goods/services. Many branches still use “FIRA/FIRC” interchangeably, which causes confusion—the function for exports is FIRA.

Freelancers &amp; agencies (service exporters)

If you offer services to overseas clients—IT/engineering, design, content, marketing, consulting—every inward foreign payment should be backed by a FIRA. It proves the income is export revenue, not a personal transfer, and supports GST refunds and audits.

If you are working for an international company and getting paid directly from them in foreign currency, you would need FIRA.&nbsp;

For global subscriptions or license sales, FIRA underpins revenue recognition and audit trails (monthly or one-off). Course creators and other digital products fall here, too.

Goods exporters &amp; marketplace sellers

If you export physical products (direct or via marketplaces like Amazon/eBay), FIRA is the first step; then, eBRC is generated to complete the documentation.

Simple rule: If you receive foreign income, you should have a FIRA for each payment.

Takeaway: Service exporters typically rely on FIRA; goods and SOFTEX-covered software exporters need FIRA + eBRC.

Skydo: instant, automated FIRA (and clear pricing)

If you receive payments through Skydo, FIRA is generated automatically for every inward remittance—no branch visits or follow-ups. You also get live mid-market FX with clear, flat fees (no hidden markups), plus India-based support.

Why exporters pick Skydo for compliance + cost control

Want a link-based flow with automatic FIRA and predictable FX? Try InstaLinks for US clients, or use Skydo’s virtual USD/EUR/GBP accounts for broader collections.

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If you get paid by US clients, ACH is often the easiest way for them to pay you, because it’s a domestic US bank transfer, not an international wire.

For Indian freelancers, agencies, and exporters, the practical question isn’t “What is ACH?”
It’s: How do I accept ACH payments from the US without opening a US entity or dealing with SWIFT delays and unpredictable deductions?

This guide answers that—clearly, end-to-end.

ACH stands for Automated Clearing House, the US network that moves money electronically between bank accounts.

Think of it as the “default rail” for:

ACH is built for volume and cost-efficiency, not instant settlement. It processes payments in batches during the day (with same-day options depending on the bank’s setup).&nbsp;

ACH Credit vs ACH Debit (and why it matters)

The biggest confusion is who initiates the payment.

Your client initiates the transfer from their bank account to yours.
This is the most common setup for freelancers/exporters getting paid by US businesses.

You (or your payment provider) initiates collection from the client’s bank account, only after authorisation. Debits have higher dispute/return risk than credits, so authorisation + clean records matter.

You don’t need to memorise acronyms, but understanding the flow helps when a payment is “stuck.”

The ACH network operates nearly the full banking day and settles multiple times daily.

What you need to receive ACH payments (and what NOT to share)

Use invoices, a client portal, or secure payment links. Avoid sending bank details in random screenshots or public chats.

How long does it take to receive ACH payments in India?

When people say “receive ACH in India,” they usually mean: how long until the money lands in my Indian bank account (INR) — not just when it reaches US banking rails.

1) US-side ACH processing (client → your US/virtual US account)

2) India-side payout (your provider → your Indian bank)

This depends on how you’re receiving ACH:

The real catch: returns, reversals, and dispute windows

ACH is cheap, but not “final” the way some people assume.

Many return reasons (wrong account, closed account, insufficient funds) are typically returned quickly, often within ~2 banking days, depending on the code.&nbsp;

For certain unauthorised consumer debit scenarios, the return/dispute timeline can extend to ~60 days and often requires a formal unauthorised statement process.&nbsp;

How to set up to receive ACH payments (2 practical options)

Option A: Receive ACH with a US bank account

If you already have a US-domiciled bank account that supports ACH:

Option B: Receive ACH using a FinTech virtual US account (common for India)

If you’re in India and don’t want to set up a US entity/bank relationship, many businesses use a virtual US account that provides:

Where Skydo fits (positioning without the hard sell)

Skydo is built for Indian businesses receiving international payments, especially from the US.

A practical “receiving ACH” playbook (templates)

1) Invoice payment instructions (paste into invoices)

“Please send payment via ACH transfer to:
 Routing Number: [ ] Account Number: [ ]
 Account Type: [Checking/Savings]
 Recipient Name: [Exact legal name on account]
 Payment Reference: [Invoice number / Project ID]”

“Sharing ACH details for the invoice payment:
 Routing Number: [ ]
 Account Number: [ ]
 Account Type: [ ]
 Recipient Name: [ ]

Please include the invoice number in the reference/memo field. Happy to help if your bank asks for any additional fields.”

Always require a unique reference (invoice number / contract ID). It saves hours later.

Conclusion: the simplest way to accept ACH

If your US clients want to pay via bank transfer, ACH is usually the most practical rail—cheap, familiar to US finance teams, and ideal for invoices/retainers.

If you already have a US bank account, setup is straightforward.
If you don’t (which is most Indian freelancers/exporters), a virtual US account route is typically the cleanest way to let clients pay via domestic ACH—without forcing SWIFT on them.

And if you want a setup that’s built specifically for Indian businesses receiving from the US, Skydo is designed to handle that workflow end-to-end: US receiving details, tracking/reconciliation, and settlement to INR at live forex rate, that too within 24 hours. Sign up today and see the difference for yourself.&nbsp;

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Accept ACH payments

In 2025, enterprise finance teams are waking up to a simple fact: the old ways won’t suffice anymore. Checks are fading fast, but digital rails haven’t fully taken over. The latest AFP Digital Payments Survey shows that only 26% of B2B disbursements are still made by check – a sharp drop from 33% just three years ago. In other words, checks now make up roughly one-quarter of B2B spend, down 7 points since 2022. Meanwhile, a full <a href="https://www.financialprofessionals.org/training-resources/resources/survey-research-economic-data/Details/digitalpayments#:~:text=%2A%20Looking%20ahead%2C%2076,in%202022">76% of organisations</a> report they will “update their payments strategy” within the next three years.&nbsp; Finance leaders increasingly recognise that a modern enterprise payment strategy must evolve beyond legacy systems and manual processes.

However, a deeper look at the data reveals a disconnect.  Only about 22% of companies say “most of their eligible B2B payments are digital” – roughly the same share as in 2019.  In short, even as check usage retreats, the pace of overall digital adoption has flat-lined.  This gap suggests that many firms still rely on checks or paper-based methods for a large slice of transactions, even as they plan to overhaul their payments programs.  Finance teams need to ask: What’s holding us back, and how can we reset our core payments approach?

Over the last two decades, checks have gone from dominant to minority status. The <a href="https://www.jpmorgan.com/content/dam/jpmorgan/images/payments/afp-digital-payments-survey-2025/2025-afp-digital-payments-survey-report-ada.pdf?">AFP survey </a>charts show that in 2004, over 80% of B2B payments were by check – today it’s only 26%. For corporate collections (incoming payments), the trend is similar: just 25% of customers now pay by check, down from 30% in 2022.

Source: <a href="https://www.jpmorgan.com/content/dam/jpmorgan/images/payments/afp-digital-payments-survey-2025/2025-afp-digital-payments-survey-report-ada.pdf">2025 AFP Digital Payments Survey Report, Underwritten by JP Morgan</a>

 This shift reflects growing trust in digital payments – faster networks, ERP systems, and bank integrations – but also the aftermath of external pressure.  For example, a 2025 U.S. Executive Order mandates that federal disbursements go fully electronic by Sept. 2025, sending a strong signal.

Despite the clear downward trend, the real surprise is how slow the flip has been. The survey notes that “the trend toward moving all eligible payments to digital methods has shown only modest growth”. In 2022, 24% of U.S. firms said most of their supplier payments were already digital; by 2025, that number fell to 22%. In other words, the share of companies fully embracing digital B2B payments hasn’t budged. That plateau suggests many organizations have digitized the easy part of their payments, but the last miles (smaller payees, legacy flows, edge cases) still run on paper.

The stubborn reliance on checks (and similar manual methods) isn’t due to ignorance – it’s a mix of practical barriers. <a href="https://www.nacha.org/news/over-21-years-massive-drop-b2b-check-payments-study-finds#:~:text=What%E2%80%99s%20holding%20back%20the%20stragglers%3F,accepting%20new%20processes%20and%20technologies">Survey respondents </a>highlight that vendors and customers often resist change. Many small suppliers “do not have the overhead to process several forms of electronic payment,” and may lack the necessary infrastructure or simply prefer the familiarity of checks. In fact, industry analysts note that common hurdles include the high cost of replacing old technology, the difficulty of onboarding small trading partners, and the straightforward comfort of familiar check workflows.

Other roadblocks stem from corporate IT.  Legacy accounting and ERP systems can be expensive to retool, making even migrating payment file formats (e.g. updating batch files to ISO-standard XML) a major project.  Many firms still lack real-time payment confirmation tools, so they stick with what they know.  A finance director quoted in the AFP survey put it bluntly: “We recognise the long-term benefits of digital payments – cost savings, speed and transparency – but the short-term disruption and upfront cost create a barrier to rapid adoption.”

In short, the barriers to going digital are often cultural and technical: smaller suppliers reluctant to change, entrenched legacy systems, and established check-based approval workflows.  These factors keep many organisations from fully committing to accounts payable automation and straight-through processing.  Until these obstacles are addressed, the bulk of B2B payments will not move online.

Rethinking Your Enterprise Payment Strategy

The good news is that nearly three-quarters of companies realize they need a new playbook.  According to the AFP, 76% of enterprises plan to refresh their payments strategy within three years.  That’s a mandate to action.  Finance and treasury leaders are now defining a baseline: what mix of payment rails do we use today, and what do we need tomorrow?  They’re also exploring new payment rails and channels – everything from real-time payments and RTP® networks to blockchain pilots and expanded global wires – to find faster, more secure alternatives.

Key strategic steps emerge from the survey insights.  Companies are focusing on:

These priorities are not pie-in-the-sky – they reflect practical projects Treasury and AP teams can do.  For example, defining baseline rail usage might start as a simple internal audit of AP/AR flows.  Expanding file formats could mean working with your bank or TMS to accept ISO files.  Each step lays the groundwork for broader change.

One concrete tactic many organisations are pursuing is check-to-ACH conversion.  Replacing outgoing checks with ACH transfers is low-hanging fruit: it cuts fraud risk, automates reconciliation, and is supported by virtually all suppliers.  Some companies even set policies like “max 10% of AP volume by check” to force migration.  Accounts payable teams can accelerate this by offering incentives (like earlier payment terms) for ACH invoices, or by implementing vendor portals that make ACH enrollment easy.

At the same time, accounts payable automation is becoming central to the strategy reset.  AP automation tools (often cloud-based) let firms route invoices, approvals and payments electronically, without rekeying.  In practice, this means invoices hit an AP portal or workflow instead of an inbox.  Once digital, payments can be routed via the best rail automatically (for example, client bills go via ACH, vendor refunds via RTP®).  This reduces human touch points and makes it easier to enforce payment policy changes.

Naturally, any major AP overhaul requires change management, but many recent surveys find that the ROI on AP automation is persuasive.  Fewer checks means fewer manual sign-offs, less postage, and lower error rates.  And with audit trails and reporting built in, controllers get visibility they never had with paper.  As one finance executive put it, the real gain isn’t just cost savings – it’s freeing up team bandwidth for strategic tasks.

The Digital Plateau: Addressing the Flatline

Despite these efforts, the AFP data remind us that digital adoption has stalled at around 20–25%.  Why?  Even companies on board with the vision often find only incremental progress.  For instance, the survey notes that the proportion of firms expecting to “convert all eligible payments to digital” over the next three years is still only about 72% – hardly higher than 2022.  Many organisations have already digitalised their large payments (high-volume, repeat suppliers) but struggle with the tail of low-volume vendors.

To break through the plateau, some treasurers are taking bold steps.  They negotiate with their 80/20 of suppliers, or invest in onboarding services for small businesses (outsourced banking portals, OCR for checks, even digital wallets).  Others implement flexible rails for small vendors – for example, sending B2B payment links or using virtual cards with dynamic limits.  Essentially, the goal is to make it as easy as possible for any payee to accept non-check funds.

Conclusion: Modernizing Without the IT Headache

Reimagining enterprise payments doesn’t always require a ground-up system rewrite.  Many firms are proving that incremental, focused changes to the core can pay off immediately.  For example, a mid-market company might start by automating vendor enrollment onto ACH, updating its ERP to support ISO files, and retraining AP staff on new policies.  Over time, those steps accumulate into a real transformation.

In fact, platform solutions are emerging to help organisations “operationalise” modern B2B payments without a massive IT lift.  These cloud-based hubs connect ERPs, banks and suppliers to multiple rails and currencies.  For instance, platforms like Skydo now offer virtual global accounts, automated invoicing, and multi-rail payment routing.  A finance team in India can use such a platform to receive international payments, international invoices (achieving “check to ACH” or cross-border transfers) while automatically generating compliance docs – without rebuilding their back-end.  The key is that these tools plug into existing workflows, gradually phasing out paper checks.