Trusted by 2 million customers worldwide, Stripe is a payment processing and payment gateway platform with additional services like invoicing, billing, and subscription management. But is Stripe the most affordable for Indian businesses and freelancers to receive international payments? In this blog, we will delve into Stripe fees and discover if there's a more affordable alternative for businesses <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">to receive international payments in India</a>.&nbsp;

Stripe India offers a robust cross-border payment solution, allowing businesses to accept payments in over 135 currencies. Its customizable UI components, including masking, styling, and error handling, help businesses create a seamless branded checkout experience. Stripe supports both one-time and recurring payments through instant payment links or direct website integration.

Note that, in India, Stripe functions on an<a href="https://support.stripe.com/questions/stripe-accounts-are-invite-only-in-india"> invite-only basis</a>. Meaning you cannot sign up from the Stripe website directly, you must request an invite to create a Stripe account. You get access only when Stripe approves this invite but there is no clear timeline on how long it will take to approve an invitation. The Stripe support page also mentions that they can only assist a limited number of companies focused on international expansion.

Besides the invite-only model, Stripe users in India can only use a credit or a debit card to accept international payments. This might be a drawback for your business if your client prefers a different payment method.

If the invite-only model and a single payment option work for you, we suggest exploring the next section closely as we analyze the different Stripe fee categories.

With Stripe you can accept payments in 135+ currencies through Visa and Master Card; American Express only supports USD. While you have more flexibility to accept payments through international cards, the overall fee structure is on the steeper side.

Processing Fees: Stripe charges<a href="https://support.stripe.com/questions/additional-pricing-information-for-indian-cross-border-sellers"> 4.3% as processing fees</a> on every successful transaction.

Currency Conversion Fee: An additional<a href="https://support.stripe.com/questions/additional-pricing-information-for-indian-cross-border-sellers"> 2% fee</a> is charged for currency conversion.

Additional fees: Stripe may also charge an additional chargeback fee of <a href="https://stripe.com/in/pricing">Rs. 1000 in the event of a lost dispute</a>. A dispute occurs when your client challenges a charge with their bank or credit card provider. The payment is immediately reversed and Stripe debits the amount from your account and the dispute fee.&nbsp;

No FIRA: Stripe does not offer a<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide"> FIRA</a> after you receive an international payment. A<a href="https://support.stripe.com/questions/firc-payment-advice-for-international-transactions-in-india"> payment advice</a> is emailed to your account so that you can present it to your bank and get the FIRA after paying a fee.

Stripe Fees For Receiving International Payments In India

In this section, we will use an example to understand how much you can expect to lose to fees if you were to get a payment via Stripe.&nbsp;

Imagine you received a payment of USD 10,000 from a client in the United States. Here’s the calculation for the amount you will receive in your account:

At first, a Stripe processing fee of 4.3% will be deducted from this amount, which is USD 430. The balance amount now is USD 9,570.

An additional 2% will be charged on the USD to INR exchange rate. Assuming the exchange rate is Rs. 85 for 1 USD, the effective exchange rate will become Rs. 83.3 , post the 2% currency conversion fee

We will multiply the balance amount by the reduced exchange rate to calculate the final amount. Final amount = 9570 X 83.3 =&nbsp; Rs. 797,181

So how much money did you lose as fees? To know that we will compare the full value $10,000 with the final amount we calculated in the last step. Full value = 10000 X 85 = 850,000

Final amount = Rs. 797,181. Amount lost as Stripe’s fees = Rs. 52,819 ($621)

In addition to Stripe’s fees, you must spend a bit extra to obtain the FIRA from the bank. Every bank has a different fee structure, usually starting at Rs. 200 for each FIRA. For example,<a href="https://www.hdfcbank.com/personal/pay/money-transfer/remittance/fees-and-charges"> HDFC Bank charges Rs. 200</a> for issuing an FIRA.&nbsp;

If we add the FIRA fees, the total is Rs. 53,019

To summarize, to receive a payment of $10,000, you will lose Rs. 53,000 as Stripe + FIRA fees.

Skydo: An Affordable And Seamless Stripe Alternative To Receive International Payments

Despite its popularity and global trust, Stripe’s invite-only model and high fee structure might not be the best option for most Indian businesses. Skydo is a practical alternative to Stripe and offers a quick, secure, and cost-effective solution to all Indian businesses.

Skydo offers international virtual accounts linked to your bank account. These virtual accounts act as digital delivery agents — accepting payments from international clients and delivering them to your bank account. Virtual accounts provide immense flexibility to manage your international payments in different currencies. You can create separate virtual accounts for customers in key regions like the US, the UK, Australia, and Singapore to keep track of payments efficiently.&nbsp;

Skydo has a simple fee structure with no hidden charges. For accepting payments under $2000, the charges are $19, for payments between $2001-$10,000 the charges are $29, and for payments more than $10,000 it’s 0.3% of the amount. There are no additional currency conversion fees and currency is converted at the live exchange rate.&nbsp;

This makes Skydo a more affordable alternative to Stripe. How? Let’s go back to our previous example.

For receiving a payment of $10,000, Stripe fees cost you Rs. 53,019 ($624)

For receiving the same amount through Skydo it will cost you $29 which is Rs. 2465 — assuming an exchange rate of 1 USD = INR 85.&nbsp;

The difference is: INR 53,019 - INR 2465 = INR 50,554. This amount is your saving from using Skydo.

Beyond affordable fees, here's why you should choose Skydo your trusted international payments platform:

Free and Instant FIRA: Skydo offers free and instant FIRA for every transaction

Local Customer Support: Our India-based customer team is always ready to help businesses navigate through any onboarding or payment-related query.

User-friendly Interface: Skydo's UI is designed for easy usability and navigation

Fully Compliant: Skydo is one of India's first homegrown platforms to receive&nbsp; In-Principle Authorization (IPA)&nbsp;from the Reserve Bank of India (RBI) to operate as a&nbsp;Payment Aggregator - Cross-Border Exports (PA-CB-E), ensure that all your payments are 100% secure and compliant.&nbsp;

Switch to Skydo today to experience the difference. 

Want to explore more Stripe alternatives? Check out our <a href="https://www.skydo.com/blog/stripe-alternatives-for-international-payments-in-india">Top 5 Stripe alternatives blog</a>. If you’re curious how Stripe fares against PayPal only, then head over to our <a href="https://www.skydo.com/blog/stripe-vs-paypal-international-payments-2025">Stripe vs PayPal</a> deep-dive analysis.

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You finally landed that international client, but now comes the payment headache. A client paying you $5,000 from abroad means wrestling with high fees, poor exchange rates, and paperwork, turning your well-earned payment into a frustrating experience.

EximPe offers payment solutions for international transactions. Their service aims to simplify cross-border payments for freelancers and small businesses who regularly work with overseas clients.

Let's explore what EximPe offers, how it works, and whether it might be the payment solution you've been looking for.

Having the proper payment setup makes all the difference when dealing with international clients in different time zones.&nbsp;

EximPe FX platform offers several key features that might solve your cross-border payment headaches:

Global collection accounts to receive local payments in 30+ currencies

Virtual international accounts let clients pay using local methods like ACH (USA), SEPA (Europe), or Faster Payments (UK). These payments are then collected, converted, and deposited directly into the user’s Indian bank account.&nbsp;

Global trading accounts and financing options for businesses&nbsp;

Beyond just <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receiving payments,</a> EximPe provides accounts designed specifically for businesses that trade internationally. These accounts come with financing options to help with cash flow when you're waiting for payments or need to purchase inventory before getting paid. A small import business (for example, a textile business or advisory services), for instance, could use EximPe's financing to pay suppliers upfront while waiting for customer payments.

Instant Digital FIRA (Foreign Inward Remittance Advice)&nbsp;

You often need documentation for tax and regulatory purposes when you receive international payments from the USA, Europe, or any other country outside of India. EximPe provides instant<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide"> digital FIRA</a>, eliminating the typical waiting period of several days that banks require. For example, If you receive a $5,000 payment from your UK-based client via Eximpe, you'll get your FIRA immediately instead of waiting up to a week as with traditional banks.

Forex conversion without markup&nbsp;

Banks and payment processors often include hidden fees in their exchange rates. EximPe states they provide mid-market rates <a href="https://www.skydo.com/blog/forex-markup-fee-explained">without additional markup</a>, which could lead to some savings on currency conversion compared to traditional banking options. This might reduce costs when receiving international payments.

Understanding what you'll pay when receiving international payments can make or break your profit margins. EximPe offers two different pricing structures to fit various business needs:

Transaction fee model: If you prefer paying per transaction, EximPe charges 0.75% platform fee&nbsp; plus a bank collection fee as follows:

Local Collections: A fee of 0.59 is charged in the transaction currency.

USD ACH Transfers (Fedwire): A fee of $7.67 is applied.

SWIFT Account Transfers: A fee of 7.67 is applied in the transaction currency

Monthly pricing option: Their newer flat-fee model starts at ₹999 per month for receiving up to $2,000. Higher tiers accommodate larger monthly volumes, with plans at ₹1,800 (up to $5,000), ₹2,250 (up to $10,000), and ₹4,500 (up to $25,000). With this option, a freelancer receiving fifteen $100 payments would pay the same ₹999 as someone receiving a single $1,500 payment.

Live forex rate: EximPe provides real-time exchange rates without markup, meaning you get the actual market rate when converting currencies. For instance, converting $10,000 to INR might save ₹15,000-20,000 compared to typical bank rates that include hidden markups.

The monthly pricing option might be particularly appealing if you receive multiple smaller payments each month, while the transaction model could work better for occasional, larger transactions.&nbsp;

Skdyo: A seamless Eximpe Alternative for receiving international payments&nbsp;

If you're looking beyond EximPe for international payment solutions, Skydo offers another option worth considering.

Here's why Skydo should be your trusted international payments partner:

<a href="https://www.skydo.com/">Get started now!</a>

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PayPal has played a significant role in revolutionising global payments, particularly for freelancers and small businesses. It enabled millions of Indian professionals to accept payments from clients abroad with just an email address. Today, it still remains a widely used option and does support documentation like FIRA.

That said, many users are now exploring alternatives that offer lower fees, faster settlements, and more control,&nbsp; especially when dealing with larger volumes or regular business payments.

In this blog, we’ll break down the best PayPal alternatives for Indian freelancers, exporters, and business owners. Whether you need faster withdrawals, GST-compliant fee invoices, or better forex rates, we’ve compared platforms like Skydo, Wise, Payoneer, and more to help you make the right call.

PayPal has long been a go-to platform for freelancers and small businesses in India. It offers a familiar, easy-to-use interface and supports important compliance documentation like <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA (Foreign Inward Remittance Advice),</a> which is crucial for many Indian users.

However, as business needs evolve, some users have started seeking alternatives that offer more flexibility, especially around fees, exchange rates, and settlement timelines.

Here are a few common reasons Indian users look beyond PayPal:

Because of these factors, many Indian freelancers and business owners are exploring modern alternatives that provide live forex rates, faster settlements, and more streamlined compliance,&nbsp; especially platforms built specifically for Indian exporters.

When choosing a platform to receive international payments, Indian freelancers and businesses typically evaluate five key factors:

Together, these criteria help assess which platform offers the best value, reliability, and compliance support, not just lower fees.

Top 5 Alternatives to PayPal for Indian Freelancers and Exporters

1. Skydo – A Top PayPal Alternative for Indian Freelancers &amp; Exporters

Skydo is a modern cross-border payment solution purpose-built for Indian service exporters. Whether you're a freelancer, agency, or SMB, Skydo helps you receive international payments faster, at live forex rates, and with complete compliance without the hidden costs often associated with traditional platforms.

PayPal is a globally recognised platform and works well for many use cases, especially e-commerce and micro-payments. But for Indian professionals focused on high-value client transfers, Skydo offers lower forex costs, faster INR settlements, and built-in compliance, making it a strong alternative if you're looking to reduce fees and simplify documentation.

2. Payoneer – A Trusted PayPal Alternative for Indian Freelancers &amp; Exporters

Description:<a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">
Payoneer is one of the most widely used global payment platforms</a> after PayPal. It’s especially popular among Indian freelancers and exporters who need to receive international payments from clients or global marketplaces like Amazon, Upwork, and Fiverr. With support for multiple currencies and direct marketplace integrations, it offers features that are similar to PayPal but with more flexibility for B2B use cases.

Why Use Payoneer Instead of PayPal:
If you’re an Indian freelancer or business receiving payments from marketplaces or clients abroad, Payoneer is a strong alternative to PayPal. It supports INR withdrawals, provides local account details for smoother collections, and enables easier compliance with FIRA. However, you’ll want to review its fee breakdown closely, especially if you receive payments in smaller ticket sizes.

3. Wise Business (formerly TransferWise) – A Transparent PayPal Alternative for Freelancers

Description:
<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise </a>has carved a niche for itself as a global money transfer service known for transparency and ease of use. For Indian freelancers and sole proprietors, Wise Business offers a modern alternative to PayPal, especially if you prioritise real exchange rates and a clean user experience.&nbsp;

Why Use Wise Instead of PayPal:
If you're a freelancer or small business owner looking for a simpler, more cost-effective way to receive international payments, Wise is a strong PayPal alternative. Its biggest draw is the lack of FX markup, but it’s best suited for individuals or very small teams, not growing companies with complex needs.

4. Stripe – A Robust PayPal Alternative for Global Businesses

Description:
<a href="https://www.skydo.com/blog/stripe-india-charges-review-alternatives">Stripe</a> is one of the most feature-rich payment platforms globally, supporting over 135 currencies and offering businesses a powerful backend to manage payments, subscriptions, invoicing, and more. While it's best known for enabling seamless checkouts and developer-friendly APIs, Stripe also doubles as a PayPal alternative for businesses seeking more control over their global transactions.

Why Use Stripe Instead of PayPal: Stripe is great for SaaS businesses and startups needing flexible, developer-friendly payment tools. But in India, it’s invite-only and doesn’t provide FIRA, which can make compliance tricky for freelancers and exporters. Ideal if you need customisation and can manage the extra setup.

5. PingPong – A PayPal Alternative for E-Commerce Sellers &amp; Freelancers

Description:
PingPong is a cross-border payments platform built for Indian e-commerce exporters and freelancers. It’s especially useful for those selling on global marketplaces like Amazon, eBay, or Wish, and for businesses that need to manage VAT/GST compliance when selling in the EU or UK.

Why Use PingPong Instead of PayPal:
PingPong is a strong PayPal alternative for Indian e-commerce sellers looking for marketplace integrations and tax support. While PayPal offers global familiarity, PingPong stands out with its India-focused compliance support and potential savings on FIRA and VAT services. However, businesses should scrutinise FX costs before choosing it.

Other Notable PayPal Alternatives for Indian Users

While Skydo, Wise, Payoneer, Stripe, and PingPong are some of the most prominent PayPal alternatives, there are a few other platforms you might consider depending on your use case.

Indian Platforms with Cross-Border Capabilities

If you're looking for local platforms that support international transactions, especially for businesses based in India, these are worth a mention

If you're looking for local platforms that support international transactions, especially for businesses based in India, these are worth a mention:

Some international players also get mentioned frequently when people search for PayPal alternatives:

Bottom line: If you're an Indian business, freelancer, or exporter receiving international payments, platforms like Skydo offer more relevant features, such as FIRA generation, INR settlement, and localised support, compared to many global platforms not tailored for India’s compliance landscape.

Choosing the right payment partner for your business is crucial. Issues like the lack of FIRA, forex markups, and currency conversion fees can make international transactions costly and inconvenient.

When selecting your international payment provider, consider the following factors:

Pricing: International transactions can be expensive, and there's no standard pricing model. Look for a provider with competitive rates so you can keep more of your hard-earned money.

User Experience: Managing global payments should be straightforward. Opt for an easy-to-use platform and reliable customer support to ensure smooth transactions.

Compliance: Cross-border payments are closely monitored to detect any suspicious activity. Select a trusted payment platform that meets regulatory requirements and simplifies compliance for you.

At Skydo, we offer a fast, secure, and less-expensive solution for you to receive international payments. Switch to Skydo today and enjoy the best in global payment solutions for your business

Top PayPal India alternatives for international payments

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Case in point: India’s US exports reached<a href="https://www.ibef.org/indian-exports/india-us-trade"> $77.5 billion</a> in 2023- 2024, increasing cross-border transfers from the US to India. As wire transfers continue to be the primary means of making these transactions, understanding how they work is crucial for Indian business owners.&nbsp;&nbsp;

In this blog, we have covered the ABC of wire transfers from the USA to India including fees, timelines, and documents to help you get started. At the end, we will explore a smarter alternative to wire transfers that can improve efficiency and reduce business costs.&nbsp;

But before we begin, this blog will cover business payments in detail and only touch up on personal payments.

Wire Transfer from USA to India: Understanding the Basics

Wire transfer is a method of making international payments electronically from one country to another.&nbsp; Most wire transfers are done via <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT</a>, a secure messaging network connecting a vast network of banks and financial institutions worldwide.

The wire transfer process is quite simple. Consider, that you have a US-based client and they are paying you via a wire transfer. Here's what the process will look like:&nbsp;&nbsp;

Wire transfer from the USA to India has long been the go-to way to transfer funds between these two countries thanks to their credibility and trustworthiness. However, wire transfer from USA to India also involves a lot of complexities including steep fees, longer settlement times and more which we will discuss in the upcoming sections.&nbsp;

What Is Wire Transfer Time from USA to India

A wire transfer from the USA to India typically takes 5-7 business days to settle. However, it can get extended due to bank holidays and if there are more intermediary banks participating in the transaction.

Further, if there are any errors in the details that you have shared with your client, like an incorrect bank account number or incorrect SWIFT code, then your payment can get further delayed or even cancelled.&nbsp;

Therefore, we strongly advise business owners and freelancers to&nbsp;double-check their information before sharing their account details with their clients.&nbsp;

When you receive a wire transfer from the US, charges are applied under different categories. These charges are often passed on to you as the receiver for business transfers or payments. Therefore, knowing about these charges will tell how feasible this payment option is for you.

SWIFT Fee: This is charged by the sender’s bank based on the amount and destination. While sending money from the US to India, the fee mostly ranges between $15-$50, which is approximately around Rs.1,200 to Rs. 4,200&nbsp;

Forex Markup: Banks usually make money here by offering a lower exchange rate during currency conversion. This markup is like a margin for covering the cost of foreign currency conversion and can substantially reduce the amount. For example, if the live exchange rate for 1 USD is Rs. 86, the bank will use the applicable exchange rate of Rs. 84. For a payment of $10,000 you will receive Rs. 840,000 (84*10,000) instead of Rs. 860,000 (86*10,000).

Intermediary Bank Fees: Intermediary banks facilitate wire transfers if there is no direct relationship between the sending and receiving bank. In return, they charge a fee depending on the complexity of transactions and services involved. If more intermediary banks participate, the total fees add up, resulting in higher deductions.

Exchange Rate Fluctuations: The constant changes in exchange rate can also result in a loss. For example, when your client initiated the wire transfer, the exchange rate was Rs. 86, but by the time you received it, the rate dropped to Rs. 85. For a $10,000 transfer, that is a straightaway loss of Rs. 10,000

Receiving Bank Fee: Your bank receiving the amount might also charge an inward remittance fee depending on the amount and other factors. For example, <a href="https://www.idbibank.in/pdf/soc/RevisedTradeFinanceScheduleofCharges2019.pdf">IDBI Bank charges Rs. 100 flat</a> for foreign currency inward remittances.&nbsp;&nbsp;

FIRA Charges:<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide"> Foreign Inward Remittance Advice (FIRA)</a> is an essential document for a business owner or freelancer receiving international payment. It’s proof that you have received a foreign income in India. Banks issue FIRA, but not by default. You must request the bank for an FIRA and pay an upfront charge which differs from one bank to another. For example, HDFC bank issues<a href="https://www.hdfcbank.com/personal/pay/money-transfer/remittance/fees-and-charges"> Rs.200 for a single FIRA</a>. This means you must spend Rs. 200 to get the FIRA every time you receive a wire transfer.

What Documents Are Needed for Wire Transfer from USA to India?

Having the right documents is a key to receiving wire transfers without hiccups and on time. Here is the list of documents for sending and receiving wire transfers from the US to India:

Note: Indian businesses and freelancers receiving money from the US must also fill out <a href="https://www.skydo.com/blog/filing-w-8ben-and-w-8ben-e-a-guide-for-indian-freelancers-and-businesses">Form W8BEN and W8BEN E</a>. Filling these forms and sharing them with your client before the transfer ensures they apply the correct US withholding tax rate as per US treaties.&nbsp;&nbsp;

Skydo: A Smart Alternative Wire Transfer from USA to India

Skydo, a new-age payments platform, offers a smarter alternative way of receiving money from the US via virtual international accounts. Virtual international accounts are digital international accounts linked to your physical bank account in India. It is almost like having a local bank account in your client's country, which in this case would be the US. Each virtual account has a unique 18-digit number that you can share with your US-based clients to receive payments.&nbsp;

Here are the three reasons why virtual accounts are a smarter alternative to wire transfers:

Virtual accounts are much faster for settling international transactions than wire transfers. Platforms like Skydo transfer the money to the client’s bank account in 24-48 hours. This means you receive the payment 1-2 days earlier, providing more liquidity.

As virtual accounts do not use the SWIFT network, no SWIFT fee is levied on the transaction. In addition, most platforms offer a more competitive exchange rate than banks. This ensures you get a better value during conversion. With Skydo, there is no additional charge for receiving money and getting an FIRA. In fact, the FIRA is provided instantly in your dashboard after you receive a payment from the US.&nbsp;

Transparency is also a cause of concern with wire transfers as it’s difficult to know how much fees will be deducted in each transfer. On the other hand, virtual platforms are more transparent in pricing. For example, Skydo charges USD 19 for receiving payments up to $2,000, USD 29 for payments from $2,001 to $10,000, and 0.3% of the amount if it’s more than $10,000, all at live forex rate without any markup.&nbsp; Beyond this, you don’t have to pay anything extra.

&nbsp;Skydo offers an India-based support team to assist you with onboarding and resolve your queries in case you get stuck.&nbsp;

But why must your US-based client agree to pay you through a virtual account?

The answer is convenience and trust. You have to share your US virtual bank account number with your client, and your client will be paying you in that account, making it a local transfer instead of an international one. Your client will feel like working with someone from their own country.&nbsp;

The other aspect is trust. In cross-border business transfers, there is always an element of risk from threats like data breaches and identity thefts. But platforms like Skydo go the extra mile to ensure data security. Personal information is stored in a tightly controlled virtual safe, transmission data is encrypted end-to-end, and suspicious activities are monitored continuously. This benefits you in strengthening your relationship with them and expanding your business faster.&nbsp;

Is virtual account the right medium for receiving payment from the US? Sign up for a free demo with<a href="https://www.skydo.com/"> Skydo</a>.

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Wire Transfer from USA to India

Ever wondered why the foreign payments you receive are less than expected? The culprit is likely a forex markup fee – a hidden foreign transaction fee charged on currency conversions. 

These small percentage fees (usually 1% to 3.5% in Indiabankbazaar.com) can quietly eat into your international earnings. For businesses and freelancers receiving money from abroad, understanding and avoiding foreign exchange markup fees is crucial to protect your income.

<a href="https://economictimes.indiatimes.com/nri/invest/indians-break-records-with-31-7-billion-overseas-spending-in-fy24-international-travel-biggest-expense/articleshow/110323776.cms">As per Economic Times:</a> In FY 2024-25, India received a record US $135.5 billion in foreign remittances, while outward spending by residents touched around US $31.7 billion in FY 2023-24. This means more Indians than ever are dealing in foreign currency. That makes it more important than ever to spot these hidden charges and find ways to eliminate them.

This article will explain what a forex markup fee is, where it’s charged, and how to avoid it. We’ll also compare typical providers and show how avoiding these fees can save you a fortune. (Spoiler: Simply switching to a zero-markup platform could increase your foreign income by 3% or more overnight.)

A forex markup fee, also known as a foreign transaction fee or foreign currency markup fee, is an additional charge that banks, credit card providers, and payment processors tack onto the exchange rate when converting currency. Instead of giving you the true mid-market exchange rate (the one you see on Google), they offer a slightly worse rate and keep the difference as their fee.

In simple terms, it’s a hidden currency conversion fee. For example, if the real market rate is 1 USD = ₹83, a bank might apply a 3% markup and actually convert your dollars at ₹80.51 per $1. That difference of ₹2.49 per dollar (3% of 83) is the forex markup fee in action.

Example:&nbsp; You’re a freelancer who earned $10,000 from a U.S. client. Live rate says $1 = ₹83, so you expect ₹830,000. If your bank quietly applies a 3% foreign exchange markup fee, the effective exchange rate becomes ₹80.51 per $1 (3% lower than ₹83). 
- Your $10,000 converts to only ₹805,100 instead of ₹830,000. You lost ₹24,900 on this single transaction due to the hidden markup.

These seemingly small percentages have a significant impact on large payments. A professional receiving $5,000 monthly would lose ~₹12,450 each month at a 3% markup – that’s nearly ₹150,000 in a year gone to the bank’s profit. A business receiving $100,000 quarterly would see about ₹10 lakh per year siphoned away in markup fees if a ~3% margin is applied.&nbsp;

Why don’t I see this fee on my statement? Because it’s hidden in the exchange rate, the bank isn’t charging you a separate “fee” line item; instead, they gave you a poorer rate. This lack of transparency is exactly what makes forex markups insidious. Many people only discover the loss when they compare the rate they got to the mid-market rate for that day.

In essence, a forex markup fee means you’re not getting the full value of your hard-earned foreign payment. It’s money left on the table – or rather, handed to the bank.

Forex markup fees often go unnoticed because providers seldom advertise them openly. Your invoice might say you received $10,000, and your bank account shows the rupee amount – which you might assume was just the going rate. In reality, a cut was taken.

To verify this yourself, check the official advice from your bank for each international payment. In India, banks issue &nbsp;<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">Foreign Inward Remittance Advice (FIRA)</a> for wire transfers, which shows the exchange rate applied. Always compare that rate to the real-time mid-market rate (you can find mid-market rates on Google or XE). The difference is the hidden markup.&nbsp;&nbsp;For instance, if your FIRA shows “1 USD = ₹80.00” but the market rate was ₹81.50, then ~₹1.50 is the markup fee per dollar (~1.8%).

Many new businesses and freelancers only realise they’ve been paying these fees after doing this comparison , often after losing substantial sums on multiple transactions. Indian banks typically apply a markup of 1.5% to 3.5% on foreign currency conversions, which can dramatically reduce your net earnings.

(It’s important to note this is separate from any explicit wire transfer fee. Even if a bank says “$10 wire fee”, they could still be taking 2-3% in the conversion rate.)

Bottom line: Always check the exchange rate you were given vs. the true rate. That hidden gap is money that could have been yours.

Where is the Forex Markup Fee Levied?&nbsp;

Forex markup fees appear in a variety of scenarios whenever currency conversion is involved. Knowing where these fees lurk helps you anticipate and avoid potential losses. The main places you’ll encounter forex markups include:

Some platforms are more upfront about this than others. PayPal, for example, explicitly mentions its currency conversion charges. Others, like Wise, show you the mid-market rate and their fee separately (Wise typically has no markup, just a transparent fee). Knowing where these fees occur allows you to make informed choices – whether that’s picking a better payment method or negotiating terms with clients (e.g., billing in INR vs USD, or choosing which side covers fees).

Pro Tip: If you’re receiving international payments regularly, consider opening a USD/EUR receiving account with platforms like Skydo that offer live forex rate without any markup.

Forex Markup Fee: Skydo Vs Other Platforms

When choosing how to receive international payments, it’s critical to compare the exchange rates and fees of each option. A provider’s forex markup can make a huge difference in how much money actually lands in your account. Here’s a quick comparison:

(Rates and fees are illustrative; actual figures may vary. “Lose per $1” means how much value is lost versus the mid-market rate.)

As the table shows, Skydo and Wise offer zero markup, meaning you get the real exchange rate. Banks and platforms like PayPal apply significantly higher markups, reducing the INR amount you receive. 

For a large payment, the difference is stark. Receiving $7,000: Skydo (0% markup) would net you full conversion (₹7,000×rate), whereas a bank at 1.2% markup might give ~₹5,98,869 – you’d lose around ₹7k; PayPal at ~8.7% total fees might give only ₹&nbsp;5,53,272&nbsp;(a huge loss).

If saving money on international payments matters to you (and it should!), opting for a platform with live exchange rates and no markup is the way to go. 3-4% may not sound like much, but it can be the difference between turning a profit or not on an international deal, or the equivalent of an extra month’s salary over a year.

Up next, let’s discuss concrete steps you can take to minimise or eliminate forex markup fees on your incoming payments.

Thankfully, forex markup fees are not a fixed cost of doing business – they can be avoided or at least minimised. Here are strategies to ensure you keep more of your hard-earned money instead of giving it away in hidden conversion charges:

By taking these steps, you can save literally lakhs of rupees every year that would otherwise be lost to markup fees. It requires a bit of vigilance and possibly switching to better services, but the payoff is huge. Remember, every percentage point saved on forex conversion is a direct addition to your profit margin.

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Forex markup fee

With cross-border business on the rise, especially among Indian exporters, freelancers, and SaaS companies, finding the right platform to receive international payments isn’t just helpful, it’s critical. Wise (formerly TransferWise) has earned a reputation for offering low-cost, transparent international transfers. But it's not the only option available.

Whether you're looking for better pricing, faster settlement, or RBI-compliant documentation, there are several strong alternatives to Wise today. Platforms like Skydo, designed specifically for Indian businesses, now offer mid-market exchange rates, no hidden fees, and instant FIRA, making them leading alternatives to Wise for international payments.

In this guide, we’ll break down Wise Business's core features and compare the top 5 Wise alternatives for receiving global payments, so you can choose the one that fits your business best.

Why is Wise Business popular for international business payments?


<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise (formerly TransferWise) </a>is a go-to for many businesses because of its simplicity, speed, and cost transparency. It offers:

Why might Indian businesses look for an alternative to Wise Business?

Despite Wise’s advantages, there are scenarios where businesses seek alternatives to Wise for cross-border payments:

What should Indian businesses consider when choosing a Wise alternative?

Choosing the right international payment platform comes down to your specific business needs. Key factors to compare include:

&nbsp;Below, we outline some of the best alternatives to Wise, highlighting how each can help Indian exporters, SaaS firms, freelancers, and other SMBs receive money from abroad.

PayPal: A Wise alternative with global client familiarity

Skydo: An alternative to Wise built for&nbsp; Indian exporters

Payoneer: A Suitable Wise alternative for e-commerce businesses

Stripe: A solid Wise alternative for SaaS businesses and online payment integration

PingPong: Another ecommerce friendly alternative to Wise

Here's a table quickly comparing Wise with its alternatives:

Indian Fintech Platforms:&nbsp; Homegrown, low-cost options for cross-border payments

Growing Global

Understanding Global Payments blogs