A current account is a bank account built for regular, high-volume transactions. Unlike a savings account, it offers significantly higher transaction caps rather than strict monthly volume limits. While savings accounts also offer tools like NEFT, RTGS, IMPS transfers, and cheque books, a current account provides them with much larger daily operational thresholds and customized commercial cash handling limits, alongside a dedicated business overdraft facility to cover short-term gaps.

Businesses use it to keep money moving without a bank stepping in to ask questions. For freelancers, the current account gives you a proper financial identity. Instead of a client sending money to a random name, they're paying a business entity. That one shift makes you look less like someone doing occasional gig work and more like someone running a business, which matters when you're negotiating rates or applying for a business loan down the line.

If you're still deciding between the two, our detailed breakdown of a<a href="https://www.skydo.com/blog/current-vs-savings-account"> current account vs a savings account</a> walks through it feature by feature.

Savings Account vs Current Account: Key Differences for Freelancers

A savings account and a current account aren't just two versions of the same thing with different names. They're built for different jobs. One is meant to hold your personal money. The other is meant to move money, often without a bank pausing to double-check what's going on.

For a freelancer, that difference shows up the moment <a href="https://www.skydo.com/blog/how-do-you-receive-a-foreign-remittance-in-a-savings-account">client payments</a> start looking less like occasional deposits and more like a pattern.

There's no rule that says every freelancer must open a current account. If your invoices are small and infrequent, a savings account can hold up fine for now. But the moment your income starts looking like a business instead of a side gig, a current account stops being optional in practice, even if it's still optional on paper.

If your monthly inflow is genuinely small and you haven't hit the GST threshold, you can likely wait. But the longer large or frequent business payments sit in a personal account, the higher the risk of a frozen account or a tax filing issue later.

Risks of Freelancers Using a Savings Account to Receive International Payments?

A savings account can technically receive money from a foreign client. What it can't do is make that process smooth. The moment international payments become a regular part of your freelance income, the gap between "technically works" and "actually works well" starts to cost you time, money, or both.

Knowing how to<a href="https://www.skydo.com/blog/best-way-transfer-money-internationally"> receive international payments as a freelancer in India</a> without losing a chunk of it to hidden fees is really the deciding factor for most people weighing a current account against a savings account.

You can open a current account in India online in a few steps: pick a bank that fits your needs, start the application on its website or app, submit your KYC and business proof documents, complete video KYC, and fund the account with an initial deposit. It no longer means taking a half-day off to sit at a branch. The process generally comes down to three things: proving who you are, proving what you do, and putting in an initial deposit.

Steps to open a current account online

Banks that offer current accounts for freelancers

A handful of banks have leaned into digital-first, freelancer-friendly account opening.

Documents required to open a current account

Once the account is set up domestically, the next question is usually how to actually get paid by clients outside India without losing money to the transfer itself. That's where a tool built specifically for<a href="https://www.skydo.com/blog/virtual-accounts-vs-local-banks"> receiving international payments</a> earns its place alongside the account.

What are the Issues Freelancers Face When Using Current Accounts to Receive International Payments?

Freelancers using current accounts to receive international payments face high currency conversion fees, slow processing through intermediary banks, delayed compliance documents, and no option to hold money in foreign currency. A current account solves the domestic side of freelancing, but not the international one, and together these issues can quietly eat 5 to 8 percent of what you actually earn. Here's how each one plays out:

This is usually when freelancers start looking for a<a href="https://www.skydo.com/blog/best-international-payment-platforms-for-freelancers-india"> payment gateway</a> built specifically to receive international money, or a way to<a href="https://www.skydo.com/blog/virtual-usd-accounts-pros-cons"> hold foreign currency</a> instead of converting it the moment it lands.

How Does Skydo Help Freelancers Receive International Payments?

Everything covered so far solves the domestic half of the problem. The moment your client is overseas, a current account alone doesn't stop the forex markup, the SWIFT delay, or the FIRC that takes two weeks to land in your inbox. That's the specific gap Skydo is built to close.

If you're still weighing which bank account is best for freelancers handling both domestic and international clients, the honest answer is that it doesn't have to be one or the other.<a href="https://www.skydo.com/"> </a>

<a href="https://www.skydo.com/">Skydo</a> works alongside your current account, not to replace it, but to pick up exactly where the international payment problems start.

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A remittance receipt is a document issued by the payee after a payment has been successfully received. It serves as confirmation that the funds have been transferred or received, making it an important record for international transactions.

For Indian exporters, agencies, consultants, and freelancers, this receipt is a record of all payments made from outside the country. This becomes very important in international and B2B transactions where it completes the payment cycle for easy reconciliation.

A typical remittance receipt will include things like:

A lot of people mix up a remittance receipt with remittance advice, but they're not the same thing.

The remittance advice is something sent by the payer before sending the payment. The remittance receipt, on the other hand, can only be generated once the amount has already been paid. Even if your client sends you the remittance advice, there may be delays in payments due to a lack of funds, bank procedures, and wrong account numbers. The receipt, verified with the bank statement, confirms that money has been received.

<a></a>What is the Importance of a Remittance Receipt?

A remittance receipt matters because it confirms that funds have actually been received, letting the payer match payments to invoices and keep clean accounting records, and letting the payee reconcile accounts, track unpaid invoices, and maintain documentation for GST and income tax filing. It is not just another paper in your files. It helps both parties keep track of their payments and prevents misunderstandings.

After making an international payment, the payer needs confirmation that the funds have reached the recipient.

A remittance receipt provides that confirmation and helps the finance team:

Instead of following up through emails, the payer has a document confirming that the transaction has been completed.

<a></a>For the Payee (Indian Exporters and Freelancers)

For Indian businesses and freelancers, a remittance receipt plays an even bigger role.

It is a popular misconception among many freelancers that having remittance advice from the client is enough to confirm payment.

Related read:<a href="https://www.skydo.com/blog/inward-remittance-in-india"> Inward Remittance in India</a>

<a></a>What Information Does a Remittance Receipt Contain?

A remittance receipt contains the sender's and recipient's details, the transaction date, the amount received, the exchange rate, transaction fees, invoice numbers, the payment method, a transaction reference number, and a description of the goods or services. The format may vary from one bank or payment provider to another, but the same core set of information appears on all of them.

For Indian exporters, the <a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance">purpose code</a> is another important field because it helps classify the inward remittance correctly.

A well-prepared remittance receipt is easy to understand because the information is organised into clear sections.

This covers the document title, receipt number, and the date the receipt was issued.

Information about the recipient is provided in this section and includes business name, address, and account Information.

The final section includes all the information related to the payment, such as:

If there is one payment for several invoices, then all the invoices must be mentioned separately. This makes it easier for both parties to reconcile their records later.

It is essential to label the sender's bank, transaction reference number, purpose code, exchange rate, INR equivalent, Foreign Inward Remittance Certificate (FIRC) number, and invoice numbers.

<a></a>Remittance Receipt vs Remittance Advice: Key Differences

The key difference is timing and direction: a remittance advice is sent by the payer before or during payment to notify the recipient that funds are on the way, while a remittance receipt is issued after the payment lands to confirm the funds were actually credited. Advice signals intent; the receipt is the proof. Since both documents play a role in payment processing but arrive at different points, it is vital to tell them apart.

Another key consideration is not confusing a remittance receipt with an FIRC. The remittance receipt simply indicates that the transaction was indeed carried out and the payment has been accepted, while an FIRC document is issued by an authorised dealer or bank. Both documents serve different purposes and may be required at different stages.

If you deal with international payments on a regular basis, dealing with all the paperwork manually can be cumbersome. With <a href="https://www.skydo.com/">Skydo</a>, you will receive an automatic remittance advice document containing all the important transaction information.

<a></a>How to Create a Remittance Receipt in India?

Making a remittance receipt will be easy if you have all the payment information. For instance, if you are a freelancer, exporter, or business receiving payments from overseas, you should have an organised receipt for record-keeping purposes.

A complete remittance receipt should include:

After getting all these details, you are now ready to create the receipt using an accounting software, a remittance receipt template, or the receipt produced by your payment provider.

Before issuing the receipt, double-check that:

If your payment provider automatically generates a remittance receipt, always verify the purpose code before using it for compliance.

Related read:<a href="https://www.skydo.com/blog/how-do-you-receive-a-foreign-remittance-in-a-savings-account"> How Do You Receive a Foreign Remittance in a Savings Account</a>

<a></a>Errors in Generating Remittance Receipts and How to Fix Them

The most common remittance receipt errors are an incorrect invoice number, an incorrect payment amount, missing currency details, unexplained deductions, an incorrect payment date, duplicate receipts, and incorrect recipient details. Each is fixed by cross-checking the receipt against the original transaction before issuing it. Here's what to watch for and how to avoid each one.

Receiving international payments should be simple, not paperwork-heavy.

Skydo helps Indian exporters, freelancers, agencies, and businesses receive overseas payments while reducing the effort involved in managing payment documents.

With <a href="https://www.skydo.com/">Skydo</a>, you get:

Instead of manually creating documents for every payment, you can focus on running your business while Skydo takes care of the paperwork.

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AD code registration is the process of registering the 14-digit Authorised Dealer Code, provided by an RBI-authorised bank, on the ICEGATE portal so that Indian Customs can associate your bank account with your IEC for export dealings. <a href="https://www.skydo.com/blog/ad-code">Authorised dealer code</a> refers to a 14-digit number generated by an RBI authorised bank for use by businesses with a current account for doing international business.

AD code registration is necessary since Indian Customs would not process a Shipping Bill unless a registered AD Code is associated with the exporter’s IEC on ICEGATE. Apart from this basic need for registration, the registration serves several purposes:

In short, the AD code registration for export activity is not just formal paperwork, but it serves as the bridge between your goods, the customs clearance process, and the payment of your money.

What Documents are Needed for AD Code Registration?

The list of AD code registration documents consists of the AD Code Letter by the bank, IEC certificate, GST registration, PAN, a cancelled cheque and, depending on the type of entity, DSC, Board resolution and Address Proof.

The following table lists the documents along with the reason for rejection.

You can obtain an AD Code by submitting a formal request along with the required documents to the RBI-authorised dealer bank where your business holds a current account. AD Code is the mandatory first step for registering with ICEGATE to undertake export of goods and complete customs formalities.

Note: To get to know the detailed steps on how to obtain an AD Code, <a href="https://www.skydo.com/blog/ad-code#how-to-get-an-ad-code-from-your-bank">read here.</a>

An AD Code bank account is registered on ICEGATE in six steps: open the Bank Account tab, select Foreign Remittance Account, click Add New Bank Account, fill in your bank and AD Code details with a proof document, verify, and submit. This registration covers both the bank accounts used to collect your export incentives and the declaration of banks used for making foreign remittances.

Step 1: Open the Bank Account tab Once you are logged in to ICEGATE, click on the tab labelled Bank Account. This is where all your registered account details sit, and where you add or modify them.

Step 2: Select Foreign Remittance Account (Authorized Dealer Code) From the options available, choose Foreign Remittance Account (Authorized Dealer Code). This section holds the declaration of the banks you use for making foreign remittances, as distinct from the accounts used purely for receiving export incentives.

Step 3: Click Add New Bank Account On the Foreign Remittance Account screen, click the Add New Bank Account button to open the entry form for a new account.

Step 4: Fill in your bank and AD Code details Enter the full set of details the form asks for: Bank Name, Branch Name, AD Code, Bank Account Number, Custom Location, Doc Type, and IRN. You will also need to upload a proof document supporting the account you are registering, so keep that file ready before you begin.

Step 5: Click Verify Once every field is filled in, click the Verify button. This is where the system checks the details you have entered against its records, so any typo in the AD Code or account number will surface at this stage rather than later.

Step 6: Confirm the AD Code and submit Based on the details you entered, the system will auto-populate the AD Code under IRN. Check that it matches what your bank issued you, then click the Submit button to complete the registration.

How Does Skydo Help Receive International Payments?

If you are an Indian freelancer or exporter navigating international banking to receive payments from overseas clients, setting up the right channels is only one part of the process. Ensuring that your foreign currency payments reach you quickly, cost-effectively, and with the right compliance documentation is equally important.

<a href="https://www.skydo.com/">Skydo</a> is a cross-border payment platform that helps Indian businesses and freelancers <a href="https://www.skydo.com/receive-international-payments-in-india">receive international payments </a>without the typical friction of traditional banking.

For freelancers and exporters who want to avoid hidden bank fees and FX markups, Skydo's flat-fee structure helps you retain more of your international earnings.

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What Is an International Payment Gateway?

An international payment gateway is a technology platform that enables secure authorisation, processing, and settlement of <a href="https://www.skydo.com/blog/what-are-cross-border-payments-and-how-skydo-can-help-you-receive-them">cross-border payments</a> between buyers and sellers located in different countries.

It links the merchant, the customer’s bank, card networks, and local payment methods. It also performs currency exchange while helping manage compliance and fraud control to make the processing of international business transactions smooth and safe.

As soon as an Indian business receives payment in a foreign currency, that amount will be converted to Indian rupees (INR) and will be deposited in the business bank account located in India.

So, if a customer from the United Kingdom pays an agency located in Mumbai with British pounds (GBP), the international payment gateway will route the payment paths through international banking networks and will convert the money into INR and then transfer the sum to the agency's Indian bank account.

Why Do Indian Businesses Need an International Payment Gateway?

Indian businesses that are into exporting services or goods (freelancers, agencies, SaaS companies, exporters, etc.) need an international payment gateway, a cross-border payment platform or an Authorised Dealer (AD) bank to <a href="https://www.skydo.com/receive-international-payments-in-india">get paid in foreign currency </a>while adhering to the relevant regulatory requirements. Here is why Indian businesses use an international payment gateway:

Which Are the Top International Payment Gateways in India?

Most of the international payment gateway comparisons are made for businesses that sell globally. However, Indian businesses getting paid from overseas have different priorities such as settlement time, FX charges, and compliance documentation.

The comparison below is based on the most relevant factors for Indian businesses, freelancers and exporters receiving payments from overseas clients.

Note: Pricing, foreign exchange markups, and product availability may change over time. Confirm current pricing and FX charges directly with each provider before you commit.

Before <a href="https://www.skydo.com/blog/best-international-payment-platforms-for-freelancers-india">choosing a payment solution</a>, freelancers should look for settlement timelines, documentation support, foreign exchange charges and bank transfer costs. These factors will provide you with a complete picture of the real cost of getting paid internationally.

Looking for a simpler way to receive international payments? Discover how <a href="https://www.skydo.com/">Skydo</a> offers transparent pricing, faster settlements, and compliance-friendly documentation for Indian businesses.

<a></a>What Are the Key Features to Look For in an International Payment Gateway?

When choosing an international payment gateway, look for multi-currency support, fraud prevention and security, regulatory compliance, analytics and reporting, and a localised checkout experience. Here is a closer look at each:

How to Choose the Right International Payment Gateway?

The best international payment gateway for your business depends on your business model, transaction volume, and the countries you receive payments from. When selecting a provider, consider cost, compliance, settlement timelines, currency support, security standards, and integration capabilities.

How to Set Up an International Payment Gateway: A Step-by-Step Guide

To set up an international payment gateway, businesses need to choose a provider, complete verification requirements, configure payment settings, and ensure compliance with Indian regulations. The process is usually done in the following order.

How Is Skydo an Effective Alternative to International Payment Gateways?

Skydo is designed for Indian exporters, freelancers, agencies, and Amazon sellers that need to collect payments from overseas clients in INR. Skydo is not an international payment gateway, rather a<a href="https://www.skydo.com/blog/top-5-cross-border-payment-companies-in-india"> cross-border payment platform</a>. It makes international payments easier, with transparent pricing, FIRA support, local collection accounts and compliance support.

Freelancers in India comparing various <a href="https://www.skydo.com/blog/freelance-payment-methods-india">payment methods</a> can identify if a cross-border payment platform is a better fit for their business than a traditional payment gateway. Some of its features are:

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Export factoring is a financial arrangement where an exporter sells their unpaid invoices to a third-party financial institution called a factor. This arrangement allows the exporter to receive immediate cash at a discount. Because the exporter sells the invoice at a discount, the factor earns a profit when the buyer eventually pays the full amount.

Most times, the factor provides an advance of 80% to 90% of the invoice value within one to two working days. The factor releases the remaining 10% to 20%‌ after the buyer pays, deducting their interest and service fees.

For many Indian businesses, factoring is an alternative to traditional bank loans. Because it is the sale of an asset, it does not require fixed collateral like property or equipment. The security for the factor is the creditworthiness of the foreign buyer and the validity of the invoice itself.

Exporters who operate on payment cycles of 60 to 180 days find this particularly useful. It ensures they have the funds to pay for raw materials, labor, and shipping for their next set of orders without being blocked by unpaid invoices.

The main types of export factoring are recourse factoring, non-recourse factoring, discount (advance) factoring, collection factoring, the two-factor system (cross-border factoring), and domestic factoring. Which one applies depends on two things: who carries the credit risk and how the operational workflow is managed. Here's a closer look at each:

The process of export factoring begins even before you ship the goods. The factor must first approve your buyer's credit limit. Once that’s done, you sign an agreement with the factor, and the rest of the process follows in a sequence.

Besides your financial history; factors also check the buyer's credit profile. If a buyer has a history of late payments or weak financials, the factor may reject invoices related to that specific client, even if your business is performing well.

The documentation required for each submission includes <a href="https://www.skydo.com/blog/what-is-export-invoice">export invoice</a>, the bill of lading or airway bill, a packing list, and proof of delivery. In some cases, the factor may also require buyer credit insurance documents.

What Are the Benefits of Export Factoring?

The benefits of export factoring are immediate access to working capital, no collateral requirement, built-in credit protection through non-recourse arrangements, the flexibility to offer competitive payment terms, and outsourced collections. Here's how each one helps:

The main risks of export factoring are its high cost, the possibility of invoice rejection, chargebacks under recourse arrangements, loss of control over how buyers are chased for collection, and strict eligibility requirements. Weigh these before deciding if factoring is the right option for your business:

How Much Does Export Factoring Actually Cost in India?

Export factoring cost in India is split into two main parts: the discount fee and the service fee.

The discount fee is the interest charged on the money advanced to you. It ranges from 1% to 3% per month; annually, that’s 10% to 24%, which is higher than a standard business loan. This rate depends on the buyer's country risk and the length of the credit period.

The service fee (or management fee) covers the cost of credit checks, ledger handling, and collection services. This fee is between 0.5% and 1.5% of the total invoice value. If you choose non-recourse factoring, this fee will be on the higher end because it includes the cost of credit protection.

<a></a>The government policy provides relief to ‌Indian MSMEs. Registered MSMEs may be eligible for a 2.75% interest subvention on export factoring costs through specific trade schemes. Worked Cost Example of Export Factoring in India

On a $5,000 invoice with a 60-day payment term, the factoring costs might look like this:

In this scenario, the exporter receives $4,000 immediately and $750 later (the $1,000 reserve minus the $250 fee). Over 12 such invoices in a year, the total cost would be approximately $3,000.

Export Factoring vs Forfaiting: Key Differences

New exporters often get confused between factoring and forfaiting. First, they sound similar, and second, they are involved in selling receivables. But they serve different purposes.

Export factoring is for short-term trade cycles, typically up to 180 days. There is an ongoing relationship where the factor manages multiple invoices on a revolving basis. Factoring is best for standard goods and services.

Forfaiting is used for medium-to-long-term receivables, ranging from 1 to 7 years. It involves a single, large transaction for capital goods or major projects. Unlike factoring, forfaiting is always non-recourse, meaning the forfaiter takes all the risk backed by a bank guarantee or a promissory note.

You can understand it this way: Factoring is a service package that includes collections and credit assessment, and forfaiting is a financing instrument where the forfaiter buys the debt and has no further involvement in your business operations or collection services.

You can read more about the difference between <a href="https://www.skydo.com/blog/factoring-vs-forfaiting-difference">factoring and forfaiting</a> here.

How Can Skydo Help Indian Exporters Collect Payments?

Export factoring solves the working capital liquidity issue for many exporters. But for service exporters and small businesses, the issue is mostly with the cost and complexity of receiving international payments in India. Most of their clients pay between 15 to 30 days, and they’re more interested in getting the money quickly and cheaply instead of invoice financing.

If you’re one of those businesses, Skydo could be the right payment partner. Skydo is an RBI-authorized cross-border payment aggregator. You can receive international payments in free virtual accounts in six major currencies: USD, EUR, SGD, AUD, CAD, and GBP. You can get started in less than 15 minutes; there are no subscription fees because you only pay as you receive payments.

Here is the flat-fee based pricing of Skydo:

We can do the math by going back to the $5000 payment example. Export factoring costs $250 for each payment. If you receive the same payment with Skydo, you only pay $29; saving $221 on each payment.

Skydo also provides free FIRA on every payment, so that you don’t have to follow up with your bank and can easily stay compliant with the RBI norms.

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An ACH routing number is a nine-digit numeric code assigned to a US financial institution for processing electronic transactions. ACH stands for Automated Clearing House; it is a US-based network that moves money electronically between banks and financial institutions for direct deposits, bill payments, and fund transfers.

Think of it as the PIN code of a bank. Just as a PIN code tells the postal system which area to deliver a letter to, an ACH routing number tells the ACH network exactly which bank to send money to. Once the bank is identified, the account number identifies the individual account within that bank.

The American Bankers Association (ABA) assigns and maintains these numbers. That’s why you might hear your clients say ACH routing numbers as <a href="https://www.skydo.com/blog/aba-number-explain">ABA routing numbers</a>. While they are not wrong, ABA routing numbers are mostly used for paper cheques, and ACH routing numbers are used for electronic transfers. Because you will receive international payments online, you will need an ACH routing number and the bank account number.

What Is the Importance of an ACH Routing Number?

The importance of an ACH routing number is that it ensures electronic payments reach the right financial institution without manual intervention, enabling accurate fund routing, direct deposits, recurring payments, reduced errors and fraud, and fast, low-cost transfers. That's the top-level view of why it matters; here are the practical scenarios where it makes a difference:

For businesses, like your clients, the ACH routing number provides direct operational advantages. Payroll runs on time, vendor payments don't get stuck in manual queues, and every transaction is traceable through the ACH network's records.

ACH routing numbers are used for payroll direct deposits, loan and mortgage repayments, utility bill payments, tax payments and refunds, charitable donations, personal and business transfers, B2B payments, eCommerce checkouts, and mobile payment apps. Here's how individuals and companies use them across each of these:

Payroll direct deposits: Companies transfer salaries into employee bank accounts via ACH. They only need the employee's bank ACH routing number and their bank account number.

Loan and mortgage repayments: Borrowers set up auto-debit instructions so lenders pull monthly payments directly from their accounts.

Utility bill payments: Consumers set an ACH and electricity, gas, water, and internet providers collect monthly fees automatically.

Tax payments and refunds: The IRS uses ACH to disburse federal tax refunds and accepts ACH-based payments for tax dues.

Charitable donations: Nonprofits and fundraising platforms process contributions from donors through ACH, which reduces card processing fees.

Personal and business fund transfers: ACH is also used to move money between checking and savings accounts, or between a personal and a business account.

B2B payments: Organizations pay suppliers, contractors, and vendors through ACH, which is a faster and‌ lower-cost alternative to issuing paper checks.

eCommerce checkouts: Online merchants offer ACH as a payment method, especially for high-value purchases to save on card fees.

Mobile payment apps: Platforms like Venmo use ACH to move money between users and linked bank accounts.

What Does an ACH Routing Number Look Like?

An ACH routing number has nine digits; it’s completely numeric, there are no letters or special characters.

For example, Bank of America's ACH routing number for electronic payments in certain states is 021000322. Their wire transfer routing number is entirely different 026009593.

A single bank can have multiple ABA routing numbers, each assigned to a specific transaction. The ACH routing number depends on the state where the account was first opened and not where the business or individual is located. It also varies according to the region, account, and transaction type within the same bank. The sender must always confirm the ACH routing number before any transfer.

Each digit in an ACH routing number has a meaning:

Digits 1–2 (02): The first two digits identify the Federal Reserve Bank district where the institution is located. There are twelve Federal Reserve districts in the US; ACH-specific routing numbers often begin with digits in the 61–72 range.

Digits 3–4 (10): These two digits specify the Federal Reserve Bank branch or processing centre within that district.

Digits 5–8 (0008): These digits are the institution's unique identifier within its Federal Reserve district; this distinguishes one bank from another.

Digit 9 (9): The last digit is the check digit, calculated using a mathematical algorithm applied to the first eight digits. Its purpose is to verify that the routing number is valid and that no digits were entered incorrectly.

<a href="https://routingnumber.aba.com/Search1.aspx">Check an ACH routing number here</a>

You could confuse between an ACH routing number and a bank account number. Here are some tactics to help you identify which one is which:

Routing number (9 digits): Identifies the financial institution

Account number (8–12 digits, varies by bank): Identifies the individual account held at that institution

Both ‌numbers appear at the bottom of the paper check. The routing number is always the first nine digits on the bottom left, followed by the account number, and then the check number.

You can find an ACH routing number at the bottom of a paper check, in an online banking portal, in a mobile banking app, on bank statements, on the bank's official website, through the ABA routing number lookup tool, in the Federal Reserve's Fedwire directory, or by phone. When your US-based client makes an ACH payment, they need to know where to look, and you can guide them so the money reaches your virtual USD account correctly. Here's a closer look at each:

Always confirm with your client or their bank that they are using the ACH-specific routing number. Using the wire routing number by mistake can cause the transfer to fail or incur higher fees.

ACH Routing Number, ABA Number, SWIFT Code &amp; IFSC Code

You might get confused between the ACH Routing Number, ABA Number, S<a href="https://www.skydo.com/blog/is-ifsc-and-swift-code-same">WIFT Code &amp; IFSC Code</a> when you’re dealing with a US client. Mixing them up can cause failed transfers, delays, or unexpected deductions.

An ACH routing number and an ABA routing number are both nine-digit numeric codes, but they are not always the same. The ABA routing number is the broader category, created for paper check processing. The ACH routing number is a specific type of ABA number used for electronic transactions. Some banks use the same nine-digit number for both; always ask your client which number applies to electronic ACH transfers specifically.

A <a href="https://www.skydo.com/blog/international-wire-transfer-all-you-need-to-know">wire</a> routing number ‌is used for real-time, high-value wire transfers between banks. For example, a bank might use one number for ACH direct deposits and a different number for domestic wire instructions. The payment may still go through if your client uses a wire routing number instead of an ACH routing number, but it will trigger a different and costlier processing path.

<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT</a> codes are used for international transfers only. They have no role to play in domestic US ACH transactions. In the same way, ACH routing numbers cannot be used for a payment to a bank outside the US.

IFSC codes are the Indian equivalent of ACH routing numbers. It is assigned by the Reserve Bank of India, and made of an 11-character alphanumeric code identifying every Indian bank branch participating in NEFT, RTGS, and IMPS. It is entirely domestic and has no function in cross-border payments.

<a></a>How Do ACH Routing Numbers Work in Cross-Border Payments? An Example

In a cross-border payment, the ACH routing number tells your client's US bank which account to send funds to, routing the payment to your virtual USD account, from where the platform converts it to INR and settles it in your Indian bank account with a FIRC/FIRA issued as proof. Here's how it plays out with a real number.

Say a US client owes you $5,000 for a completed project:

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