When you get a new export order, you normally agree to get paid after 60 to 120 days. That’s considered standard payment terms in the export industry. But this creates a problem: you need working capital to buy raw materials, manufacture, and ship your products. It is at this point that export packing credit steps in.&nbsp;&nbsp;

Export packing credit bridges this cash gap by providing you with pre-shipment funds at concessional interest rates, far cheaper than standard bank loans.

In this blog, we discuss what export packing credit is, why this loan facility matters for Indian exporters, how to apply for such a loan, and what are its different types.&nbsp;

Export packing credit is a short-term pre-shipment finance facility. It provides you with enough working capital to cover expenses such as procuring raw materials, manufacturing products, labeling, packing, and even warehousing or inland transportation. A SaaS exporter can use this money to meet operational costs like wages, travel expenses, and utility payments.

An export packing credit differs from a working capital loan that banks provide. First, you can only use the money to fund specific export transactions and not general business expenses. Second, banks offer this credit at concessional interest rates, significantly lower than standard working capital loans or overdrafts.

Lastly, because this loan is self-liquidating, it’s repaid directly from your export proceeds once your buyer pays.

For example, an exporter in India gets an order from a US buyer for $100,000 worth of garments. Before shipping the order, the exporter needs money to:

Since the buyer will only pay after the shipment, the exporter uses export packing credit to fund these expenses and repays the loan once the export payment arrives.

The payment cycle in international trade stretches anywhere between 30 to 120 days after shipment. Meanwhile, your costs for raw materials, labor, and packaging start the moment you accept the contract. Using the internal cash flow to fund these expenses compels you to turn down large orders because you’re hardly left with money to support production.

Export packing credit changes this dynamic by offering short-term finance at a lot cheaper rate. If you’re an MSME manufacturer, the upside is even greater. You can take advantage of the <a href="https://www.skydo.com/blog/interest-equalisation-scheme-in-india">Interest Equalisation Scheme</a> to get an additional 3% reduction in your interest rate.

The best way any exporter can pass on the benefit of low interest rates is by pricing their products competitively in international markets. You also have the confidence to take on more orders without missing deadlines because of financial constraints.

You have two choices for structuring export packing credit. The right choice comes down to your currency risk and whether you qualify for government subsidies.

This is the standard option if your production costs are primarily in Indian rupees.

Pre-Shipment Credit in Foreign Currency (PCFC)

Exporters who invoice their buyers in a foreign currency (like USD, EUR, or GBP) and have confirmed receivables, meaning payments contractually due from the buyer, opt for this method.

You can also use these specialized facilities to take care of export financing:

• Advances against Letters of Credit (LC): A confirmed LC from your buyer’s bank often leads to faster approvals and more flexible terms.

• Advances against Duty Drawback / Incentives: Banks can advance funds against your expected RoDTEP or duty drawback claims to keep your cash moving.

• Against Advance Licence: If you hold an Advance Licence for duty-free imports, you use the packing credit to import raw materials for production

The interest rate depends on how your bank calculates it. Below is a breakdown of that calculation for each type of credit:

To help you get the best deal on your financing, here is a simplified look at how these interest rates actually work for your business:

Interest Equalisation Scheme — extra savings on export credit

The Interest Equalisation Scheme (IES) is a government-led initiative providing a direct subsidy on the interest rates charged for rupee packing credit.

Here are the key points you need to know about how this scheme functions:

The Interest Equalisation Scheme is transitioning into a broader and more modern framework:

Monitor the RBI/DGFT notifications and check with your bank to know about the availability status.

Who is eligible for export packing credit?

You must meet a few baseline requirements to qualify for this low-interest financing. Banks follow a strict checklist to ensure you use the funds for legitimate trade.

Usually, banks require a confirmed export order before approving an export credit. However, if you are an established exporter with a solid track record, you can apply for a “Running Account Facility”. Under this setup, the bank releases credit to you upfront, on the condition that you will share the actual export orders within a specific timeframe, typically 30 days.

Well-established exporters with strong credit histories may qualify for unsecured limits backed only by their export documentation. For others, banks typically take primary security over your raw materials, work-in-progress, and finished goods. ECGC insurance cover reduces the bank’s risk and often lowers collateral demands. For MSMEs, the Credit Guarantee Scheme for Exporters (CGSE) provides 100% guarantee coverage, giving them collateral-free access for their export needs.

How to apply for export packing credit — step by step

Follow these exact steps to get export credit on your next export order:

Everything starts with a confirmed export order or an irrevocable Letter of Credit (LC) from your buyer. This anchors your entire application process.

Talk to your bank or any AD bank. Share your company’s profile, your funding needs for this specific order, and your past export performance with them.

Banks require a paper trail to prove your business is legitimate and the order is real. You will typically need to provide:

Banks calculate your credit limit, which can be between 75% and 90% of the order’s FOB (Free On Board) value.

Step 5: Funds are disbursed and monitored

Once sanctioned, you either get the funds in one go or in stages matching your production cycle. Banks may even pay your suppliers directly or move the money into a dedicated packing credit account to monitor the end-usage.

Step 6: Ship your goods and repay the loan

After you ship your goods and the buyer pays the amount, the loan gets self-liquidated, meaning it gets credited from your export proceeds. You have 180 days (can be extended to 360 days sometimes) to ship goods and submit the bills, and close the loan. You can also use alternative funding like existing proceeds in the <a href="https://www.skydo.com/blog/eefc_account_overview_full_form_meaning_eligibility_benefits">Exchange Earners’ Foreign Currency (EEFC)</a> account to repay the loan.

How is the packing credit limit calculated?

The most critical part of export packing credit limit calculation starts with the FOB (Free On Board) value of your specific export order or Letter of Credit.

Banks commonly fund between 75% and 90% of this value, requiring you to provide the remaining 10% to 25% as your own.

If your contract with the buyer is on CIF (Cost, Insurance, and Freight) terms, the bank will automatically deduct 10% for sea freight and 1% for insurance to find the actual manufacturing value to finance.

Banks also evaluate your past export performance, your industry’s specific risks, and your general credit history to ensure you have the capacity to deliver. If it’s satisfactory, you may qualify for a running account facility where your limit is determined by your total annual turnover. Banks may also provide an aggregate limit if you have multiple export orders.

Securing ECGC insurance cover is a smart move to encourage banks to sanction higher limits with more flexible collateral terms.

To see how this works in the real world, imagine you receive an order for furniture worth $100,000 on a CIF basis.

Final Limit: Your eligible packing credit for this order would be $70,000 (or approximately ₹56,00,000 depending on the exchange rate).

Export packing credit vs Letter of Credit vs post-shipment finance

While these terms are often used in the same breath, they serve very different purposes in your export cycle.&nbsp; Here is how export packing credit, Letter of Credit (LC), and post-shipment finance compare:

How repayment works (and what happens if you’re late)

Here is how you handle the repayment and liquidation process:

Note that for credit taken before August 31, 2025, the RBI has provided extra flexibility to allow liquidation from any legitimate alternate source.

If you exceed these timelines without an extension, here is exactly what happens:

Interest rates spike retrospectively: Your bank will withdraw your concessional interest rate ab initio (from day one) and reprice the entire loan at much higher commercial rates.

PCFC crystallisation: Bank will crystallise a PCFC loan. Meaning the debt amount will be converted into Indian Rupees at the prevailing exchange rate.

Your credit profile takes a hit: Your account falls into the risk of becoming a Non-Performing Asset (NPA). This triggers recovery measures and makes it much harder to get export credit in the future.

Common mistakes with export packing credit

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A cross-border payment is any transaction where the sender and receiver are in different countries.

So your client is the sender, and you’re the receiver, but before the money hits your Indian bank account, it may move through international payment networks (often SWIFT + correspondent banks), and then get processed by your Indian AD bank.

A good cross-border payments setup prioritises:

Cross-border payments work by moving money from your client's bank in one country to your bank in another through a network of authorised banks, with the funds converted into your local currency before they are credited. The payment is initiated by the sender, may pass through one or more intermediary banks if there is no direct relationship between the two banks, and is finally credited to your account by your Indian AD bank after compliance checks. 

Your client instructs their bank to send money using your beneficiary details (name, account number/IBAN where relevant, and SWIFT/BIC for wires). For a SWIFT wire, the transfer is typically communicated using SWIFT customer credit transfer messaging like <a href="https://www.skydo.com/blog/mt103-what-is-it-why-it-matters-and-how-to-get-one">mt103</a> (or ISO 20022 equivalents).

Step 2: Intermediary/correspondent banks may get involved

If the sender’s bank doesn’t have a direct relationship with your bank, the payment may hop through one or more correspondent banks. Each intermediary may apply its own fees and processing timelines.

Step 3: Indian AD bank credits you after checks

Once the funds reach India, your bank may run compliance checks (KYC/AML/sanctions screening + purpose/payment context). If all is clean, funds are converted (if needed) and credited to your account

What are the common cross-border payment methods?&nbsp;

There are four common cross-border payment methods: bank wires over SWIFT, card or checkout payments, local collection accounts (also called virtual accounts), and marketplace payouts. Each differs in speed, cost, trackability, and how much compliance work it leaves you with. Here is how they compare.

Reliable for larger <a href="https://www.skydo.com/blog/b2b-payments-strategy-checks-to-digital">b2b payments</a> — but often:

Great for SaaS/e-commerce and online checkout flows, but fees can be higher (gateway + cross-border + chargeback exposure + FX spread).

3) Local Collection Accounts (Virtual Accounts)

You get local bank details abroad (like US ACH rails). Often faster and more predictable than SWIFT, depending on provider/currency/country.

Amazon/other platforms pay out on their own cycles; reconciliation and export documentation become the bigger pain.

Cross-border payments power much of how money moves around the world, connecting people and businesses across different countries for everyday and large-scale needs alike. Some of the most common use cases include:

Global trade: Companies that buy or sell across borders rely on these payments to settle invoices with overseas suppliers and collect money from international customers.

Sending money home: Many people working abroad use cross-border payments to support family and friends back home, a lifeline for households and local economies in many developing nations.

Overseas investments: Investors use them to buy foreign assets such as shares, bonds, or property, and to bring back the returns those investments generate.

Travel spending: When people travel internationally, these payments let them book flights, settle hotel bills, and pay for tours and experiences in another currency.

Giving across borders: Individuals and organisations use cross-border payments to fund charities and nonprofits operating in other countries, backing causes worldwide.

What are the fees in cross-border payments?

Fee instruction matters: OUR vs SHA vs BEN

On SWIFT wires, the sender can choose who bears charges:

This is a big lever for exporters: if you’re receiving wires, push large buyers toward OUR to protect your margins.

There isn’t one universal timeline — it depends on rail, corridor, cut-off times, intermediary chain, and compliance checks.

Typical timelines by method (practical view)

What are cross-border payment challenges and how to fix them?

Receiving cross-border payments is difficult because the money passes through multiple banks that each deduct fees, gets converted at marked-up exchange rates, and carries compliance paperwork like purpose codes and FIRCs that must be completed for every transaction. For an Indian exporter collecting from overseas clients, the friction usually shows up in a few predictable places:

Money gets lost in transit: A payment from your US or EU client rarely travels in a straight line. It often passes through one or more intermediary banks, and each can take a cut along the way. The result is that a $5,000 invoice can land as significantly less, with little clarity on where the deductions happened.

Forex markups eat into earnings: Most banks convert your dollars or euros at a rate marked up over the real mid-market rate. This spread is rarely shown as a line item, so it quietly reduces what you receive on every single payment.

Compliance paperwork piles up: Every inward payment needs the correct purpose code, FEMA-compliant documentation, and a FIRC or FIRA for your GST refunds and tax filing. Banks often issue these only after repeated follow-ups, which holds up your compliance.

Tracking is hard: Once your client hits send, visibility drops. You often cannot tell whether the payment is sitting at an intermediary bank or clearing compliance checks at your Indian bank, which makes reconciling receivables a guessing game.

Time zones slow things down: When your client's bank operates 10 or more hours behind India, a query raised on their end can mean waiting a full day for a response, stretching out an already slow settlement.

Tracking a cross-border payment relies on SWIFT's tracking layer called SWIFT gpi. For gpi-enabled flows, every payment carries a UETR (Unique End-to-End Transaction Reference), which works like a parcel tracking number that follows the payment from sender to receiver.

There is one important catch. Even when gpi exists, you as the receiver usually cannot see the tracking yourself unless your bank provides a tracker or portal, or your bank shares updates when you give them the UETR or MT103 details. Some banks do offer trackers built around the UETR, so it is worth asking yours directly.

There is also SWIFT Go, designed for low-value cross-border payments in consumer and SME use cases. It supports transfers up to $10,000 equivalent, but only works if both banks involved offer it. For most exporter wires, it is not the default option.

If you need to trace a payment, ask your client for these details first:

UETR (Unique End-to-End Transaction Reference), the sender bank name and SWIFT/BIC, the value or transfer date, the amount and currency, and the beneficiary name and account number exactly as sent.

If they cannot find the UETR, ask for a copy of the MT103 or the SWIFT payment confirmation, which often contains the UETR in gpi flows.

What are compliance requirements for cross-border payments in India?

How to choose a cross-border payment provider

Receiving cross-border payments in India with Skydo

Skydo is built for Indian exporters and freelancers who want a receiving setup that’s predictable: clear fees, clear FX, and clear payment status.

Instead of chasing MT103s, Skydo positions dashboard tracking (initiated → in transit → credited) so the receiver can monitor progress directly. 

2) Transparent fees + live FX positioning

Skydo positions flat fees (instead of % pricing) and no <a href="https://www.skydo.com/blog/forex-markup-fee-explained">fx markup</a> / live FX — so exporters can estimate net INR more reliably before the payment lands.

Skydo positions instant FIRA availability per payment from the dashboard, reducing bank follow-ups.

4) Latest RBI PA-CB authorisation (trust layer)

Skydo received final RBI authorisation to operate as a Payment Aggregator – Cross Border (PA-CB) in January 2026. 

Bottom line:
The best setup isn’t just “receive money.” It’s: receive + track + stay compliant — without guessing what happened in between.

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PayGlocal works for some flows. For Indian exporters who need flat fees and instant FIRA, Skydo fits better.

If you're an Indian business looking to accept payments from international customers, you've probably come across PayGlocal. It's one of the <a href="https://www.skydo.com/blog/cross-border-payments">cross-border payment</a> platforms built specifically for the Indian market.

This review covers what PayGlocal offers, how its pricing works, and how it compares to alternatives like<a href="https://www.skydo.com"> Skydo</a>, so you can make an informed decision.&nbsp;

PayGlocal is a financial services company that provides international payment solutions for Indian businesses. Its core offerings include credit card acceptance, multi-currency accounts, and tools for managing foreign exchange, payment tracking, and fraud prevention.

The platform serves e-commerce, travel, and export businesses of different sizes. It holds RBI authorization (PA-CB I&amp;O and PA-O licenses) and supports more than 120 currencies across its gateway and multi-currency account products.

PayGlocal Technologies Private Limited was incorporated on March 18, 2021, in India. It was founded by Prachi Dharani, Rohit Sukhija, and Yogesh Lokhande, all ex-Visa professionals.

PayGlocal has raised a total of $17M across funding rounds. The first was a seed round in November 2021 led by Peak XV Partners (formerly Sequoia Capital India &amp; SEA), with participation from BEENEXT.&nbsp;

PayGlocal's payment gateway is built for cross-border transactions. Its orchestration engine handles international card routing separately from domestic payments, with the goal of improving acceptance rates and reducing payment risk.&nbsp;

It integrates with WooCommerce, Magento, and Shopify, and also supports direct API and hosted checkout connections.

Apple Pay was added to the gateway in October 2025. It supports one-tap payments from 80+ countries, with tokenization and biometric verification (Face ID / Touch ID) on each transaction. They also support global methods like Klarna, Sofort, Trustly, and GrabPay, as well as UPI for inbound payments from India.

<a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">fira</a> is auto-generated after every settlement and downloadable from the dashboard at no additional charge. And for teams that prefer custom integrations, PayGlocal also offers well-documented APIs and SDKs for building payment flows directly into your platform.

PayGlocal's multi-currency account lets businesses collect payments in 33 currencies across 180+ countries. You can collect locally in major currencies (USD, GBP, EUR, CAD, AUD) or use a global currency account for a broader range of markets. The dashboard provides tracking and notifications on fund status, and eFIRA/<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">firc</a> documentation is provided after settlement.

With its PA-O license from the RBI, PayGlocal now also supports domestic payment processing. Domestic payment options include UPI Intent Flow, UPI Collect, and Dynamic QR.&nbsp;

Fees are based on the transaction amount:

These are the rates on the date of publishing. Make sure to check with PayGlocal on the current rates before you sign up.

<a href="https://www.skydo.com">Skydo</a> is built for Indian freelancers, consultants, and service exporters who need a cost-efficient way to <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receive international payments</a>. If you primarily receive payments via bank transfers, which are significantly cheaper than card transactions, Skydo is worth exploring. And unlike percentage-based models that take a larger cut as your invoice size grows, Skydo charges a flat fee per transaction, so your cost stays predictable regardless of how much you're receiving.

Skydo also covers a wider range of regions, including UAE and African markets, and multiple payment rails that make it easier for clients across geographies to pay you. Beyond the cost, Skydo removes the usual paperwork headache. You get your FIRA instantly on your dashboard the moment a payment is received, no chasing your bank for documentation. And with real-time payment tracking, you always know exactly where your money is.&nbsp;

<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">wise</a> is well-known for its multi-currency accounts and low FX margins. It's primarily designed for personal use and small businesses receiving international payments, not for merchant checkout or high-volume gateway needs.

<a href="https://www.skydo.com/blog/payoneer-vs-wise">payoneer</a> is popular with freelancers and marketplace sellers. It offers multi-currency accounts and integrates well with platforms like Amazon and Upwork. That said, fees can add up for smaller transactions, and withdrawal fees apply.

If your primary need is simply receiving international payments via low-cost bank transfers instead of cards, a platform like Skydo may be a better fit.

Questions to Ask Before Choosing a Cross-Border Payment Platform

What are the total costs? Look beyond the headline rate, factor in <a href="https://www.skydo.com/blog/forex-markup-fee-explained">fx markup</a>, scheme fees, dispute fees, and any hidden charges.

Which countries and currencies are supported? Make sure the platform covers the markets you actually sell to.

How easy is it to receive international payments? Consider the onboarding process, integration complexity, and settlement timelines.

Can you receive payments from regions you are interested in and what is the time taken for settlement? There could be vast differences in coverage and the settlement times between various providers. Make sure to check them before choosing a platform.

Is the platform compliant and secure? Look for RBI authorization and data security certifications like PCI DSS.

Does it integrate with your existing tools? Check compatibility with your website platform, ERP, or accounting software.

What support is available? Response times and quality of support matter when payments go wrong.

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You’ve set up your store, put your products live, and finally get your first international order.

Not because your product isn’t good, but because:

This is why choosing ecommerce payment gateways for an Indian business isn’t “just pick Stripe/<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">paypal</a> and move on.” The “best payment gateway for Indian e-commerce” depends on how you sell (your own site vs marketplaces like Amazon), where your customers pay from, and how you want to handle FX + export compliance.

Why global payment gateways matter (more than you think)

Picture this: you’re selling a ₹5,000 product to a UK buyer.

Now they’re doing mental math, wondering what their bank will charge, and whether the final amount will match what they saw. Most people don’t “think it through.” They exit.

Multi-currency and local-friendly checkout isn’t a “nice-to-have.” It directly impacts:

How payment gateways actually work (in one minute)

Payment gateway charges for e-commerce websites: what you’re actually paying

Most sellers compare only the headline “% per transaction” and miss the expensive parts.

Here’s the clean way to think about total cost:

The fee that quietly hurts the most: FX markup

A provider can advertise a low gateway fee and still take a margin via the exchange rate. That’s why you should always compare:

The decision that makes everything simpler: where do you sell?

Most Indian sellers fall into one (or a mix) of these paths:

Path A: You sell on your own website (Shopify/WooCommerce/custom)

You need a true e-commerce payment gateway that:

Path B: You sell on marketplaces (Amazon Global Selling, Etsy, etc.)

You don’t control checkout. You control how you receive payouts.
Your decision is basically:

Best ecommerce payment gateways for Indian sellers (Own website)

1) Stripe (great product, but India sellers should check setup constraints)

<a href="https://www.skydo.com/blog/stripe-india-charges-review-alternatives">stripe</a> is a strong choice if you want a clean UX and developer-friendly integrations. Stripe’s own support notes that India-based Stripe accounts can accept international payments in 135+ foreign currencies, and also mentions needing a valid IEC for international payments. However, note that Stripe is currently "invite-only" in India. New businesses need to get approved before being onboarded on Stripe.&nbsp; &nbsp;

If you’re India-based, also note Stripe has different fee plans for cross-border sellers (Stripe describes “Mainly Domestic” vs “Mainly International” approaches).

Best for: sellers who want a modern checkout + have technical support.

2) PayPal (trust unlocks conversions, but watch conversion economics)

PayPal can lift conversion simply because buyers recognize it. For sellers, PayPal publishes separate fee tables and cross-border/currency conversion considerations (fees can apply when conversion is involved)

Best for: overseas trust + as a backup wallet option.
Watch out for: conversion spreads + cross-border fee add-ons (varies by corridor).

3) 2Checkout / Verifone (broad global coverage, “merchant-of-record”-ish feel)

2Checkout positions itself for selling globally with 200+ countries coverage and 130+ display currencies.&nbsp;

Best for: sellers who want wide country coverage without heavy engineering.

4) Adyen (enterprise-grade, usually for scale)

Adyen is typically chosen by larger businesses that want one global stack. Adyen’s docs emphasise region-based settlement currency support and “like-for-like settlement” where available.

Best for: larger merchants who want enterprise routing, local methods, and optimisation.

Indian-friendly gateways with global reach (Own website, INR settlement)

If you’re an Indian seller, you’ll often want a gateway that:

Razorpay (international cards + broad currency acceptance)

Razorpay markets the ability to accept international payments in 130+ currencies.&nbsp;

Best for: sellers who want one gateway for India + international cards. You’ll still want to understand FX conversion and how settlement happens.

Cashfree (international cards + INR settlement + FIRC reporting pitch)

Cashfree’s <a href="https://www.skydo.com/blog/payment-gateway-for-international-payments-india">international payment gateway</a> page highlights acceptance in 140+ currencies and settlement in INR (T+2). &nbsp;Cashfree also markets “FIRC compliance” and monthly FIRC reports for international payments. <a href="https://www.cashfree.com/accept-international-payments/?utm_source=chatgpt.com" target="_blank">Cashfree</a>

Best for: sellers who want international cards + faster INR settlement.

PayU states it supports 130+ currencies for international payments.

Best for: merchants who want an India-first gateway with international reach.

If you’re an Amazon Global Seller: payment gateway ≠ your real problem

Amazon already collects money from the customer.

Your problem is: how Amazon pays you, what rate you get, and what paperwork you end up chasing.

Option 1: Amazon Currency Converter for Sellers (ACCS)

Amazon’s ACCS publishes volume-based pricing:

Growing Global

Understanding Global Payments blogs