Best Way to Transfer Money Internationally: Methods, Costs & Compliance
TL;DR - Summary
- What is the best way to transfer money internationally? - For Indian freelancers and exporters receiving payments from overseas clients, a specialised receiving platform is often the most practical option because it can combine competitive fees, transparent exchange rates, faster INR settlement and payment documentation.
- What does an international transfer actually cost? - An international money transfer can involve a transfer fee, a foreign-exchange markup, and intermediary-bank charges. The actual cost entirely depends on both the provider's stated fee, the exchange rate and charges applied to the transaction.
- What rules apply to sending and receiving money internationally from India? - Resident individuals sending money abroad may use the RBI's Liberalised Remittance Scheme (LRS), which currently permits remittances of up to USD 250,000 per financial year, subject to applicable rules. Businesses and freelancers receiving overseas payments into India need to follow the applicable FEMA, RBI and tax requirements for inward remittances.
- Is there a cheaper way for Indian freelancers to receive foreign payments? - Yes. Specialised receiving platforms can cost less than traditional bank transfers by using flat transaction fees and avoiding large FX markups. The actual saving depends on the provider, payment amount and currency.
What Is an International Money Transfer?
An international money transfer is the process of sending money from one country to another, usually with a currency conversion when the sender and recipient use different currencies.
In India, individuals can send money abroad for permitted purposes such as education, medical treatment, travel, employment, business visits, gifts and donations, subject to applicable RBI rules and documentation.
The basic process involves choosing the amount and currency, entering the recipient's bank details, completing KYC and other required checks, and sending the funds through an authorised payment channel. The exact steps, requirements and processing times on how long an international wire transfer take can vary between banks and digital payment providers.
What Are the Different Ways to Transfer Money Internationally?
The main ways to transfer money internationally include bank wire transfers, online money transfer platforms, cash-based services, bank drafts or foreign-currency cheques, and international money orders. The most suitable method depends on the destination, amount, delivery method and how quickly the recipient needs the funds.
- Bank Wire Transfers via SWIFT: SWIFT transfers move money electronically between banks using the SWIFT messaging network. Indian residents sending money abroad may need to complete KYC checks and the applicable A2 and LRS documentation. A typical international wire transfer can take around 1 to 5 working days, depending on the banks and countries involved.
- Online Money Transfer Platforms: Services such as Wise, Western Union, MoneyGram, XE, WorldRemit and Xoom allow users to arrange international transfers online. Depending on the provider and destination, funds can be sent to bank accounts, mobile wallets or cards. Transfer times vary widely, i.e., a few minutes to several working days. Wise can take seconds to 2 working days, while Western Union bank transfers can take minutes to 5 working days. MoneyGram can take around 1 hour to the next working day, and WorldRemit transfers are often completed within minutes.
- Cash-Based Transfers: Services such as Western Union also let recipients collect cash from participating agent locations rather than receiving funds in a bank account. Depending on the destination and transfer method, cash pickup can take from a few minutes to around 4 working days.
- Bank Drafts / Foreign-Currency Cheques: These are traditional alternatives to electronic transfers. The sender generally arranges the draft or cheque through a bank before it is delivered to the recipient, making the process slower and more manual than an electronic transfer. Availability varies by bank and currency.
- International Money Orders: Money orders are another traditional method of sending funds internationally. They are less common today and can take longer to process than electronic payment methods.
For Indian freelancers and exporters receiving international payments, the payment flow is different when money is coming into India rather than being sent abroad. A suitable virtual foreign-currency account or receiving platform can accept payments from overseas clients and settle the funds into the recipient's Indian bank account, depending on the provider and payment route.
Once again, the right payment method can affect the cost, processing time and documentation involved. Hence, it is advisable to understand the major differences between ACH vs wire transfer vs card before choosing one.
What Does It Actually Cost to Transfer Money Internationally?
The cost of an international money transfer is more than the fee shown at checkout. Depending on the provider and payment route, you may also pay through the exchange rate and intermediary-bank charges. By the end, the amount you send and the amount the recipient receives can differ.
- Transfer Fee: This is the upfront charge a bank or payment provider applies for processing the transaction. It may be a fixed amount or a percentage of the transfer.
- Exchange-Rate Cost: Some providers build a margin into the exchange rate instead of charging it as a separate fee. Others, such as Wise, use the mid-market rate and charge a separate conversion fee.
- Intermediary Charges: International bank transfers can pass through correspondent banks, which may eventually deduct charges along the route. These costs depend on the banks and payment corridor involved.
Say, for an international payment, the costs can look very different depending on the provider:
| Provider | Published / Typical Fee Structure | FX Cost | FIRA / eFIRC | Settlement |
|---|---|---|---|---|
| Skydo | $19 for payments up to $2,000, $29 for payments from $2,001 to $10,000, and 0.3% for payments above $10,000 | No FX margin | Instant FIRA | Payments received in less than 24 hours |
| Bank transfer | Varies by bank and corridor | Bank-specific markup may apply | Depends on the bank/payment route | Typically 1–5 working days |
| Wise | Variable fee | Mid-market rate | eFIRC available for eligible Indian business transfers | Can be under 90 minutes during business hours on supported routes |
| Western Union | Varies by destination and transfer method | Exchange-rate margin may apply | Depends on payment route | Varies by destination and method |
| PayPal | 4.40% + fixed fee for receiving international commercial payments in India | Currency conversion spread may also apply | Not positioned as an eFIRC/FIRA provider | Varies by transaction and withdrawal route |
Speed can affect pricing too. If you are a freelancer and need the money to arrive urgently, an express transfer may cost more than a standard option. Make sure you compare both the delivery time and total international bank transfer fees before choosing a route.
Additionally, documentation can matter just as much for Indian freelancers and exporters. Check what proof of the incoming payment your provider supplies and whether you would need to contact a bank separately for any required FIRA or other remittance records.
When we were choosing a payment provider, three things mattered to us: knowing exactly what would reach our account, getting the money quickly, and having FIRA compliance taken care of without constant follow-ups. Skydo gave us clarity on all three, which made the decision a lot easier
What Are the RBI Rules for Sending and Receiving Money Internationally?
The RBI regulates international money movement involving India under FEMA, while the Liberalised Remittance Scheme (LRS) sets the framework for permitted outward remittances by resident individuals.
- For Money Sent Abroad: A resident individual can generally remit up to USD 250,000 per financial year under LRS for permitted current and capital account transactions, including education, medical treatment, travel, gifts and investments. Remittances above the applicable LRS limit generally require prior RBI approval. The authorised dealer may also require Form A2, KYC and other supporting documents depending on the transaction.
- TCS on Outward Remittances: Tax Collected at Source (TCS) can apply to certain LRS remittances, depending on the purpose and amount. The applicable rate should be checked for the relevant financial year and type of remittance, as the rules and rates have been revised. TCS collected can generally be claimed as tax credit when filing the income-tax return.
- For Money Received from Abroad: Indian freelancers and exporters receiving payments from overseas clients are not subject to the USD 250,000 LRS limit, since LRS governs outward remittances by resident individuals. Inward receipts are instead subject to the applicable FEMA, RBI, banking and export-realisation requirements.
- For Payment Documentation: Depending on the payment route, the receiving bank or payment provider may provide documentation such as a FIRA (Foreign Inward Remittance Advice). Exporters should confirm what documentation their particular payment channel provides and whether it meets their applicable GST, tax and export-record requirements.
* Nepal and Bhutan: Transactions involving Nepal and Bhutan are subject to separate foreign-exchange provisions and are not handled under the ordinary LRS framework in the same way as other international remittances.
How Does Skydo Make International Money Transfers Simpler for Indian Exporters?
Skydo simplifies the process of receiving international business payments by combining global receiving accounts, flat-fee pricing, zero FX margin, faster INR settlement and automated payment documentation in one platform. With Skydo, you get:
- Lower and Predictable Costs: Skydo charges $19 for payments up to $2,000, $29 for payments from $2,001 to $10,000, and 0.3% for payments above $10,000, with zero FX margin. GST applies to the transaction fee.
- Global Virtual Accounts: Indian businesses and freelancers can get local virtual accounts in supported markets. This allows overseas clients to pay through local banking methods. Skydo accounts can be set up in about 5 minutes and have no maintenance cost.
- Automatic FIRA: Skydo provides instant, free FIRA with each payment, which can be downloaded from the dashboard or received in the user's inbox.
- Export Documentation Support: For applicable exporters, Skydo supports workflows around EDPMS and eBRC, including mapping inward remittance records to shipping bills and generating eBRCs. EDPMS is particularly relevant to goods and software exporters, rather than every freelancer.
- Faster Settlement and Local Support: Skydo payments are settled into the Indian bank account within 24 hours, while the time taken for the client's payment to reach the global receiving account can vary by country and payment method, sitting somewhere around 2-5 working days. It also offers India-based support via WhatsApp, call, and text.
Who Can Use It: Skydo currently supports Indian export businesses and freelancers receiving international payments, including sole proprietorships, partnerships, LLPs and private limited companies. It also supports Amazon Global Selling withdrawals through its global accounts.
✅ PRO TIP
Before choosing a payment provider, check whether the service gives you the inward-remittance documentation your business needs. Automatic FIRA can make payment reconciliation and record-keeping much simpler.
How to Receive an International Payment as an Indian Freelancer or Exporter?
How to receive an international payment with Skydo
Hover over a step to see more.
Create your Skydo account
~5 minSign up and complete the required KYC.
A one-time setup, done entirely online.
Get your global receiving account
Share the account details with your overseas client.
Give each client the details that fit their country and payment method.
Client makes the payment
They pay into the receiving account with a local method.
Such as ACH or SEPA where supported, so there is no cross-currency step on their side.
Skydo converts the payment
Zero FX marginConverted at the live FX rate, with a flat transaction fee.
No hidden currency markup on top of the rate.
Receive INR and your FIRA
Within 24 hrsINR lands in your Indian bank account, FIRA generated instantly.
The FIRA comes free with every payment, no branch visit needed.
If you are an Indian, and are receiving money from the USA or any other country, Skydo makes the process simple for freelancers and exporters. Follow these steps to receive your payment:
- Step 1: Create your Skydo account: Sign up and complete the required KYC. It takes about 5 minutes.
- Step 2: Get your global receiving account: Skydo provides account details for supported markets. Share the relevant details with your overseas client based on their payment method and country.
- Step 3: Have your client make the payment: Your client pays into the provided receiving account using the available local banking method, such as ACH or SEPA where supported.
- Step 4: Skydo converts the payment: Once received, Skydo converts the foreign currency using the live FX rate with zero FX margin and applies the applicable transaction fee.
- Step 5: Receive the INR settlement and FIRA: The INR funds are transferred to your Indian bank account within 24 hours, with free FIRA generated instantly for the payment.
What is the cheapest way to transfer money internationally?
The cheapest way depends on whether the transaction is sending or receiving. For sending, online platforms like Wise typically offer rates close to mid-market with lower flat fees than banks. For Indian freelancers and exporters receiving foreign payments, Skydo charges a flat fee, $19 to $29 for most transactions, with zero FX markup. This makes the total cost predictable and lower than banks or PayPal, which charge up to 8% combined.
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