Choosing between Wise vs PayPal for international payments 2025 can significantly impact your bottom line. As an Indian freelancer or business owner receiving money from abroad, every percentage point in fees matters.&nbsp;

While PayPal and Wise offer reliable ways to get paid, they differ dramatically in their approach to fees, exchange rates, and features.&nbsp;

Let's dive into a practical comparison to help you pick the platform that puts more money in your pocket.

Wise vs PayPal: Understanding the Differences

<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise (formerly TransferWise)</a> is a digital financial platform specializing in international money transfers. Wise stands out for using accurate mid-market exchange rates and transparent fee structures. For Indian businesses and freelancers, Wise Account offers multi-currency accounts that let you receive payments from over 50 countries as if you had a local bank account.

It started as a peer-to-peer remittance service allowing individuals to send and receive money without intermediaries like banks. Later, it grew as a business-to-business money transfer service for organizations to receive and make international business payments.&nbsp;&nbsp;In India, Wise Business lets you <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receive international payments</a> in multiple currencies, but you can’t use it to send business payments abroad. Also,&nbsp; Wise&nbsp; Debit card is not available to businesses in India.&nbsp;

Moving forward, we'll focus on comparing Wise Business and PayPal for receiving international payments, excluding Wise's peer-to-peer service

For r<a href="https://www.skydo.com/blog/wise-transfer-charges-in-india">eceiving payments in India:</a>

🔖<a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Learn about the Wise alternatives</a>

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal</a> is a payment platform serving over 400 million users worldwide. It functions primarily as an <a href="https://www.skydo.com/blog/payment-gateway-for-international-payments-india">international payment gateway</a>, letting you receive money from clients across 200+ countries. While PayPal offers extensive features globally, its services in India are explicitly focused on cross-border transactions.

<a href="https://www.skydo.com/blog/paypal-transaction-fees-india">For receiving international payments:</a>

🔖<a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">Learn about the PayPal alternatives</a>

Let's examine how Wise vs. PayPal compares when receiving international payments in India. With significant differences in their fee structures and features, choosing between these platforms can directly impact your earnings.&nbsp;

Here's a comprehensive breakdown of PayPal vs Wise to help you make an informed decision:&nbsp;

Skydo: An Affordable Alternative to Wise and PayPal&nbsp;

When comparing Wise vs PayPal, it's worth considering emerging alternatives that offer even better value. Skydo is an India-made solution designed explicitly for receiving international online payments with significantly lower fees than TransferWise and PayPal.

Skydo is a modern payment platform tailored for Indian businesses and freelancers receiving international payments. It provides virtual global bank accounts in 10+ different countries, including the United States, UK, Canada, and Australia. These accounts give you local banking details that clients can use to send payments as domestic transfers - eliminating SWIFT fees and international wire charges that typically cost $20-40 per transaction.

Curious if Skydo is the right fit for your business?<a href="https://www.skydo.com/">&nbsp;Sign up for a free demo&nbsp;</a>to find out.

large_Wise vs PayPal: Which is Better for International Payments 2025? 

medium_Wise vs PayPal: Which is Better for International Payments 2025? 

small_Wise vs PayPal: Which is Better for International Payments 2025? 

thumbnail_Wise vs PayPal: Which is Better for International Payments 2025? 

Wise vs PayPal: Which is Better for International Payments 2025? 

If you have been exploring platforms to receive payments from international clients in India recently, you might have come across PingPong Payments. It's a global money transfer service company founded in 2015 in New York with the global headquarters situated in Hangzhou, China.

Should you pick PingPong Payments to receive <a href="https://www.skydo.com/blog/cross-border-payments">cross-border payments</a>? We will help you answer this question by analyzing its features, its costs, and our expert opinion about it. At the end, we will also highlight how Skydo can be a better alternative for PingPong Payments.

PingPong Payment's global presence has made it a popular platform for e-commerce sellers and business owners to receive payments from foreign clients effortlessly. We have identified a few key points about PingPong payments that you must know while evaluating the platform.

If you are unaware of virtual accounts, we recommend reading our<a href="https://www.skydo.com/blog/virtual-account-numbers"> virtual bank account</a> blog to get complete details. In short, it's a digital account linked to your bank account and has an 18-digit bank account number that you share with your clients to accept payments. With PingPong payments, you can create virtual accounts in 15 different currencies. You also have the choice to receive payments in the same currency and then convert them into<a href="https://www.international.pingpongx.com/solutions/fintechs"> 25+ currencies</a>.

PingPong Payments is mostly sought after by e-commerce sellers because it integrates with major marketplaces and e-commerce platforms like Amazon, Shopify, Etsy, and Rakuten. That means if you're selling goods online on different platforms, you can manage payments of all these apps in a single place.

Even if you're not an e-commerce seller but pursuing some form of international trade, PingPong Payments could still be a good choice. For example, you can use it for making international payments to your suppliers in<a href="https://www.international.pingpongx.com/smb/ecommerce-sellers"> 195 countries</a> using SWIFT transfer.

PinPong Payments complies with international regulations like Anti Money Laundering (AML), Know Your Customer (KYC), and Payment Service Directive (PSD2). It also holds<a href="https://www.international.pingpongx.com/solutions/fintechs"> 60 financial payment licenses</a> in major economies like China, Hong Kong, Europe, and the US.

PingPong Fees to Receive International Payments in India

While PingPong Payments positions itself as a low-cost solution, the final costs can vary depending on the transaction amount and exchange rates. Here’s a quick breakdown to help you understand the fee structure better.

PingPong charges a 1% transaction fee on each payment you receive. While this may seem low at first glance, it can add up for higher-value transactions. For example, on a payment of USD 10,000, the transaction fee would be USD 100 (approximately INR 8,500, assuming an exchange rate of 1 USD = INR 85).

Additionally, PingPong does not publicly disclose the exact exchange rate applied during currency conversion. In general, platforms may include a markup on the mid-market rate, which is often around 1% to 2%. For instance, if the current mid-market rate is INR 85 per USD and a 2% markup is applied, the effective rate would be around INR 83.3. This means that for a USD 10,000 payment, you would receive approximately INR 8,33,000 instead of INR 8,50,000.

The same fee structure typically applies for Amazon Global Selling users receiving payments through PingPong.

We’ve summarized these examples into an illustration below to give you a clearer picture of what to expect when receiving US dollar payments via PingPong.

Integration with Multiple Marketplaces PingPong Payments’ easy integration with global selling platforms like Amazon, Shopify, and Etsy makes it convenient to expand business across borders without worrying about payment management.

Free VAT and Global Tax Payments The integrated tax management solution helps you pay VAT, GST, and other applicable taxes in 12 countries. This helps you make payments within the protocols and avoid penalties.

Free FIRA on Every Transaction A<a href="https://www.skydo.com/blog/importance-of-fira-for-freelancers"> Foreign Inward Remittance Advice (FIRA)</a> is an essential document as it proves you have received an international payment in India. Banks charge a fee for issuing FIRA every time, but platforms like PingPong Payments provide it for free within the PingPong dashboard.

Unavailability of Local Customer Support Like many other international payments platform, PingPong Payments doesn't have an India based support team, which can make resolution of queries a challenge for Indian customers..&nbsp;

PingPong Payments Review: The Good, Bad and Ugly

We dug into the reviews of PingPong Payments on Trustpilot, a software review website to bring out the good, bad, and ugly sides of it:

Customer Support PingPong Payments receives brownie points in this area. We found two reviews on the website that highlight the professional and helpful nature of the customer support team. One reviewer even goes to the extent of mentioning the names of the customer service executives who helped her<a href="https://www.trustpilot.com/reviews/649282738d146d7288d35aab"> resolve the issue</a>.

Users on review platforms have reported challenges in getting <a href="https://www.trustpilot.com/reviews/678c922cf87236b67d11504f">balance refunds </a>after closing their PingPong accounts. According to their feedback, the process often involved filling out multiple documents and repeated follow-ups, with no clear communication on timelines.

Some users also mentioned experiences where their payments or receivables were temporarily blocked. In<a href="https://www.trustpilot.com/users/6549434d146789001292b71f"> one instance</a>, a user described the difficulty of navigating the situation when access to their funds was restricted.

Please note: These insights are based on user reviews gathered from public platforms and do not reflect Skydo’s opinions.

Skydo: A Viable PingPong Alternative to Receive International Payments in India

PingPong payments have built a strong reputation globally, however, its high fees and low transparency make it an expensive choice for freelancers and exporters. In addition to that, the reviews about restricting refunds and blocking transactions are worrisome.

Skydo is a more affordable and transparent alternative to PingPong Payments. The fee structure is simple and there are no hidden charges. For receiving a payment of under USD 2,000 you pay a fee of USD 19. For amounts between USD 2,001 to USD 10,000, the fee is USD 29 and for USD 10,000+ the fee is 0.3% of the amount. Moreover, there are no markups on the exchange rate, so the conversion is done based on the live forex rate.

Skydo also offers other benefits like a highly secure platform, no additional fees for FIRA, and a responsive local customer support team. With our support team based in India and working during Indian business hours, it’s always easy to get on a call or chat with them in case you get stuck. This is a huge perk if you’re just starting as an exporter or a freelancer. Having a trusted team by your side helps you to scale faster.&nbsp;&nbsp;

If you're open to looking at platforms beyond PingPong payments that are more supportive and cost-effective for your business, Skydo could be the right choice.

large_PingPong Payments

medium_PingPong Payments

small_PingPong Payments

thumbnail_PingPong Payments

PingPong Payments

An MT103 is the standardized <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT message</a> for international wire transfers. Every time money moves across borders through the SWIFT network, an MT103 is generated at the sending bank to record the transfer. It is not the money itself, but it is the structured message that instructs and records the transfer, carrying all the key details of the transaction. This document becomes highly useful to track a payment, resolve disputes over a short amount or to reconcile your records.

What Information Does a SWIFT MT103 Contain?

An MT103 contains the following information:&nbsp;

Each of these sits in a specific field tagged with a code like :20: or :32A:. Once you know what each tag means, the document becomes easy to read.&nbsp;

Why Do We Need SWIFT MT103 in International Payments?

The MT103 is useful in four situations: proving a payment was sent, tracking a delayed payment, resolving a dispute over a short amount, and reconciling your records.

Tracking delayed payments:&nbsp;Every MT103 carries a UETR, a 36-character tracking code mandatory for all SWIFT payments. Share this with your bank and they can trace exactly where the payment is in the SWIFT network, provided all banks in the chain support SWIFT gpi.

Proof of payment:&nbsp;The MT103 proves whether a SWIFT wire was actually sent. It shows the date, amount, reference number, and which banks were involved. If a sender claims they paid and you have not received anything, this is the document that settles it.

Resolving payment disputes:&nbsp;Field 71A shows the charge arrangement between the sender and the receiver. OUR means the sender paid all fees and you should receive the full amount. SHA means charges are to be shared by the sender and the receiver. BEN means all charges fall on you. If you received less than invoiced, Field 71A tells you whether the deduction was due to the charge arrangement.

Reconciliation: The MT103 shows the original amount sent and the final amount settled between banks. If your client sent $5,000 but only $4,960 reached you, the MT103 shows the fees deducted along the way. If the payment involved a currency conversion, it may also show the exchange rate used.

Imagine you’ve paid an overseas supplier, but they claim the funds haven’t arrived. You check with your bank, and they confirm the SWIFT transfer was sent – now you’re stuck in the middle, unsure who to believe. This is where the MT103 comes in. By obtaining the MT103 document, you get a detailed record of the payment showing when and where the money was sent, and through which banks.

You can forward this to the beneficiary as proof of payment, and your bank can use the reference information in the MT103 to help trace the payment’s path and find any bottlenecks in the process. Often, just providing the MT103 to the beneficiary’s bank is enough for them to locate a pending credit in their system.

An MT103 contains numbered fields, each identified by a tag that begins with a colon. The fields appear in a standard sequence and each one carries a specific, consistent meaning regardless of which bank issued it.

Below is what a sample SWIFT MT103 looks like:

Here are some of the most essential fields you need to know to understand the SWIFT MT103 document.

Every MT103 has specific field tags as outlined above, and learning to read them can be useful. You don’t need to memorise every code, but knowing the key fields helps.

For most users, the critical things to check on an MT103 copy are:

Mandatory vs. Optional Fields in SWIFT MT103 Format

Some fields appear on every MT103, while others are optional or used only in certain cases. We have covered the common mandatory fields (like 20, 32A, 50, 59, 71A, etc.) here so that you can easily skim through them to get an undersatnding

These optional tags might not appear on every MT103, but they offer flexibility to include extra details when needed. For example, a Tag 72 might carry a note like “/INS/ intermediary bank fees to be charged to sender,” or other instructions that don’t fit in the standard fields.

The MT103 is generated and held by the sending bank. As the receiver, the only way to get it is to ask the sender to request a copy from their bank and share it with you. Here is a step-by-step process on how you can get a copy of the SWIFT MT103.&nbsp;

In some countries, the MT103 might be referred to by a different name. For example, in India, some banks might call it a “SWIFT Advice” or “SWIFT Copy” instead of using the code “MT103” – but it’s the same document. Don’t be confused by terminology; just clearly ask for proof of the SWIFT transfer or a SWIFT payment confirmation document if the bank seems unsure.

Since your client's bank may charge them for obtaining an MT103, ask for an MT103 only when you actually need it.

If the payment landed in your account without issues, you don't need it. Your bank's credit advice or account statement is sufficient for most purposes.

Only the sender can request an MT103, since it is generated by the sending bank and released only to their account holder. If you are the recipient waiting on proof of payment, you cannot get it directly from the bank. You need to ask your client to request it from their bank and forward it to you.

How To Track a SWIFT Payment Using MT103?

When a payment is delayed, you have two ways to trace it depending on what you have.

Using Field 20: Ask the sender to contact their bank and request a payment status update using the Field 20 transaction reference. The sending bank can query the SWIFT system and tell them where the payment is.

Using the UETR: The UETR is a 36-character code mandatory on all SWIFT payments since 2018. Unlike Field 20, it travels unchanged across every bank in the chain. The sender shares the UETR with you, and you can give it to your own bank's forex desk and ask them to run a gpi trace. If your bank supports SWIFT gpi, they can see the real-time status of the payment, whether it is still with the sending bank, in transit at a correspondent bank, or held at your bank pending compliance checks.

If the payment has been stuck for more than three business days after the value date in Field 32A, escalate formally using both references.

MT103 vs. SWIFT gpi: What’s the Difference?

It’s worth noting that SWIFT gpi is a newer initiative to modernise cross-border payments. MT103 is a message (a document) confirming the payment was sent. SWIFT gpi, on the other hand, is a tracking system/network upgrade that allows end-to-end visibility in real time.If we use a courier analogy, MT103 is like your shipment receipt and tracking number, whereas SWIFT gpi is the online tracking system you plug that number into, to see exactly where the package (payment) is.

Many banks now embed the UETR from SWIFT gpi into the MT103 message itself, effectively linking the two. The table below summarises it:

As of November 22, 2025, SWIFT replaced MT103 with PACS.008 on FINplus, its upgraded messaging network that supports the new ISO 20022 standard. Banks that have not yet migrated can still send MT103 messages, which SWIFT automatically converts to PACS.008 before delivery to the receiving bank. This is why you may still encounter MT103-formatted documents depending on which bank the sender uses.

PACS.008 is the ISO 20022 replacement for MT103. It carries the same core information, sender, recipient, amount, currency, routing, but uses a more structured data format that supports richer remittance details and handles Indian names and addresses correctly, which the old MT103 character set could not always do.

What Does This Mean for Indian Freelancers and Exporters?

Nothing changes practically. When you ask the sender to request a payment confirmation from their bank and share it with you, that document may now be formatted as PACS.008 rather than MT103. It serves the same purpose. When someone says "ask for the MT103," what they mean going forward is "ask for the SWIFT payment confirmation document."

When an international payment moves through the SWIFT network, two different messages are generated: the MT103, which carries the customer transaction details, and the MT202, which handles the settlement between banks behind the scenes. Both are part of the same payment, but they serve completely different purposes and are meant for completely different audiences.

MT103 is the customer transfer message. It carries all the details of the actual transaction: who sent the money, who receives it, the amount, and the purpose. This is the document you or your client would request as proof of payment.

MT202 is a bank-to-bank message. Banks use it to settle funds between themselves, often to cover an MT103 that's already been sent. It contains no customer details whatsoever, and it's never something you need to request or track.

For exporters and freelancers, the rule is simple: if someone asks for proof of an international payment, the document they want is the MT103. The MT202 exists, but it operates entirely within the banking system. You will never see it, and you will never need it.

How Virtual Account Platforms Eliminate the Need for MT103

When Indian exporters and freelancers use <a href="https://www.skydo.com/blog/virtual-usd-accounts-pros-cons">virtual usd account</a> platforms like Skydo, the need for MT103 in routine situations largely disappears. This is because virtual accounts receive payments through local rails, ACH in the US, SEPA in Europe, Faster Payments in the UK, rather than SWIFT. When a sender pays via local rails into a virtual account, no SWIFT message is generated, which means no MT103, but also no intermediary bank fees, no multi-day delays, and no need to chase documentation.

The platform itself provides the payment confirmation, generates your e-FIRA automatically, and gives you a clean record for compliance purposes. The SWIFT-and-MT103 process only becomes relevant when a sender insists on a traditional wire transfer.

Most of your international payments do not need to go through SWIFT at all. <a href="https://www.skydo.com/">Skydo</a> gives you local USD, GBP, EUR and SGD accounts so your clients pay locally and you receive faster, with zero intermediary deductions. Get your virtual account

MT103 swift message: Format, Fields and How to get it

large_MT103 swift message: Format, Fields and How to get it

medium_MT103 swift message: Format, Fields and How to get it

small_MT103 swift message: Format, Fields and How to get it

thumbnail_MT103 swift message: Format, Fields and How to get it

As Indian businesses expand globally, managing payments in multiple currencies has become more than just a convenience; it’s a competitive edge.

Whether you're an exporter billing clients in USD or a SaaS company offering subscriptions in EUR and GBP, a multi-currency account can simplify how you receive, hold, and manage your international earnings.

But what exactly is a multi-currency account? And why is it becoming essential for modern Indian businesses?

A multi-currency account (sometimes called a foreign currency account or international account) lets individuals or businesses receive, hold, and send money in multiple currencies from a single platform.

Unlike traditional bank accounts that immediately convert foreign currency to INR (often with heavy fees), multicurrency accounts let you:

For example, if you have received payment from an international client from the US in USD, you can hold the payment in USD in your multi-currency account. If you have to pay a client in USD, you can use the current funds for direct payment without converting your local currency to USD.

Some multi-currency accounts come with additional features which can help in increasing the return potential. For example, some multi-currency accounts may offer interest on the balances held in different currencies, while some may offer access to foreign exchange markets.&nbsp;

Which Currencies Can I Hold in a Multi Currency Account?

The accepted currencies in a multi-currency account range between 30-200, depending on the financial institution. However, a multi-currency account facilitates, at minimum, transacting in the following currencies.

Benefits of Multi-Currency Accounts for Indian Businesses

1. Save More by Converting When It Makes Sense

A big perk of a multi currency account is that you don’t have to convert money right away. You can hold on to your earnings in USD or EUR and convert them when the exchange rate is better. Over time, this can add up, especially compared to traditional bank accounts that charge ₹750–₹1000 per transaction just to convert your money.

2. Lower Fees, Less Money Lost in Conversion

If you’re dealing with international payments regularly, small fees can eat into your income. A multi currency bank account typically charges much less in <a href="https://www.skydo.com/blog/currency-conversion-fees">conversion fees</a> compared to regular methods, and that means you keep more of what you earn.

If you’re getting paid in different currencies, tracking it all can be messy. A multi currency account in India helps you keep everything in one place—whether it's dollars, euros, or pounds. That makes your bookkeeping and accounting a lot less painful.

When payments don’t need to go through currency conversion each time, they move faster. A multi currency bank account can help you get your money sooner, without the usual back and forth or waiting around.

Having a multi-currency account can make your business feel more established, especially to international clients. It shows that you're set up to work globally, which builds trust from the start.

6. A Smoother Experience for Your Clients

Getting paid should be easy, for you and for your clients. A multi currency account lets your clients pay in their own currency, which feels more familiar and hassle-free on their end.

7. Helps You Pay International Partners More Easily

Whether you’re working with vendors, freelancers, or service providers abroad, being able to pay them quickly, in their own currency, goes a long way. A multi currency account in India makes this part of the job feel a lot less complicated.

How Can You Get a Multi Currency Account in India?

Most leading banks in India, including HDFC, DBS, HSBC, and others, offer multi currency accounts. However, today, fintech platforms are truly leading the way with multi currency accounts right now. Platforms like Skydo, <a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">wise</a>, <a href="https://www.skydo.com/blog/stripe-india-charges-review-alternatives">stripe</a> offer mutli currency accounts, enabling businesses to manage their income and payments in multiple currencies. Here's why FinTech-led multi-currency accounts have an edge over multi currency accounts offered by traditional banks:

When deciding where to open your account, carefully assess factors like fees, services, and customer support from each institution. Additionally, ensure that the chosen account supports the currencies relevant to your usage.

Who Is Qualified for a Multicurrency Account?

You must be 18 and above to open a multicurrency account, and certain accounts are restricted to residents of specific countries. Meeting minimum balance requirements may also be necessary. Some multi-currency accounts cater to businesses or high-net-worth individuals, imposing relatively high minimum balance criteria.

Potential beneficiaries of multicurrency accounts include the following.

Final Thoughts: Why a Multi-Currency Account Isn’t Optional Anymore

If you work with international clients—whether you're a growing exporter, a SaaS founder, or a freelancer—sticking to traditional bank transfers or high-fee platforms like <a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">paypal</a> or SWIFT is holding you back.

A multi-currency account in India isn’t just a nice-to-have anymore—it’s a core tool for doing global business right.

In short: A good multicurrency bank account puts you in control of your money, your timelines, and your global growth.

Looking to switch? Skydo offers multi-currency accounts tailored to Indian businesses and freelancers, with no <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markup</a> and fast settlements.

The Benefits of Multi-Currency Accounts for International Payments TH

large_The Benefits of Multi-Currency Accounts for International Payments TH

medium_The Benefits of Multi-Currency Accounts for International Payments TH

small_The Benefits of Multi-Currency Accounts for International Payments TH

thumbnail_The Benefits of Multi-Currency Accounts for International Payments TH

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 <a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">paypal</a>. 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 <a href="https://www.skydo.com/blog/export-obligation-period">export obligations</a>, 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 <a href="https://www.skydo.com/blog/cross-border-payments">cross-border payments</a> can seem daunting at first – there’s compliance to consider and extra paperwork like FIRCs to manage. But understanding the ins and outs of <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">firc means</a> 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 <a href="https://www.skydo.com/blog/hidden-fees-in-bank-rates">hidden fees</a>, 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! 🚀

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

Growing Global

Understanding Global Payments blogs