Doing business globally has never been easier, until it’s time to get paid.

If you're an exporter, freelancer, or SaaS founder in India, you probably know the struggle. You finish a project or ship a product overseas… and then begins the long wait. Between delays, surprise deductions, poor exchange rates, and a ton of paperwork, getting your money from international clients can feel like a second job.

That’s where virtual bank accounts come in,&nbsp; and they’re changing the game.

Think of them as local bank accounts in the countries you do business in, without needing to actually open one abroad. You get paid like a local, skip the heavy banking charges, and see your money land in your Indian account faster and in full.

Let’s make international payments one less thing to worry about.

A virtual bank account is like a digital address for your international payments. It’s not a physical account you walk into, instead, it’s a unique account number (usually 18 digits) linked to your real Indian bank account.

When your overseas client pays you through this virtual account, the money is instantly routed to your actual bank account, without you needing to open a bank account in that country.

Now, here's the key difference:
Virtual accounts don’t hold money; they just receive and forward it. Think of them as smart couriers that collect funds and drop them directly into your home bank, minus the usual chaos of SWIFT delays or form-filling marathons.

So why are exporters and freelancers making the switch?

You don’t have to share your actual bank account details with clients. That’s one less exposure point.&nbsp;

Working with clients across the US, UK, EU, and beyond? You can set up a virtual account for each region. That means payments in different currencies, all tagged to the right client, making reconciliation smooth and stress-free.

At their core, virtual bank accounts are like “mirrors” of real bank accounts. They don’t actually hold funds, but act as smart collection tools designed to receive money, identify where it came from, and route it to your primary bank account.

Let’s break that down with a simple example:

Say you're an Indian freelancer working with clients in the US, UK, and Singapore. Instead of asking them to make an international wire transfer to your Indian bank account (which can take days and involve hefty fees), you generate a virtual account in each client’s region.

So when your US client sends you $1,000 to your US virtual account, they’re doing a local transfer, just like they would to a US-based vendor. That money is received by your virtual USD account, converted into INR, and credited to your Indian bank account, all behind the scenes.

Virtual accounts are especially helpful when working with multiple clients or marketplaces, letting you track payments separately without opening and maintaining multiple physical bank accounts abroad.

They’re not magic, just smart infrastructure layered on top of traditional banking rails.

Why Virtual Bank Accounts Work Better for Global Payments

Whether you're a freelancer, exporter, or SaaS business dealing with overseas clients, virtual bank accounts offer a smoother, faster, and more cost-effective way to get paid. Here’s how:

With traditional bank transfers, your international payments can take anywhere from 3 to 7 days to land in your account, especially if they go through SWIFT. That’s a lot of waiting, and for a business, delays hurt.

Virtual bank accounts cut this down drastically. Platforms like Skydo settle your payments within 24 hours of receipt, helping you maintain liquidity and plan cash flow more confidently.

Traditional methods come with hidden costs:&nbsp; SWIFT charges, poor exchange rates, and service fees that chip away at what you actually receive.

With virtual accounts, you bypass SWIFT entirely. Plus, platforms like Skydo offer live exchange rates with zero markup, so you get the full value of your earnings, not just what’s left after deductions.

Your virtual account is linked to your real bank account, but it doesn’t expose it. That means when you share your virtual account details with clients, your primary bank info stays private.

These accounts also come with features like:

Even if someone gets access to your virtual account number, they can’t use it to touch your funds.

How to Open a Virtual Bank Account in India (Without Any Red Tape)

Setting up a virtual bank account might sound complex, but in reality, it’s much easier than opening a traditional foreign bank account.

Look for an RBI-authorised cross-border payments platform like Skydo that offers virtual account services tailored for Indian exporters, SaaS businesses, and freelancers.

Submit your business details, PAN, GSTIN (if applicable), and bank account information. Platforms like Skydo allow you to complete the entire KYC process online, no branch visits or paperwork required.

Once verified, you'll receive virtual account numbers in key regions like the US, UK, EU, Singapore, Australia, and more. These accounts come with local details like IBANs or routing numbers, making it easy for your clients to pay you like a local.

Share these account details with your clients. When they pay you, the funds are automatically routed to your linked Indian account. With Skydo's virtual bank account, you usually receive your payments within 24 hours, with live exchange rates and no hidden markups.

Virtual bank accounts aren’t just for big businesses or finance pros — they’re built for anyone who earns across borders. Here’s how different types of users benefit:

If you're a freelancer working with international clients on platforms like Upwork, Fiverr, or through direct gigs, a virtual bank account makes it easy to get paid like a local. Instead of high PayPal fees or long wait times, you can receive payments faster, with better exchange rates, and even get FIRA for tax compliance.

Example: A designer in Jaipur can now receive USD from a US client into a virtual US account and get INR in their bank within 24-48 hours, without worrying about SWIFT delays or high forex markup.

For small and medium exporters, especially from Tier 2 and Tier 3 cities, virtual accounts simplify what used to be a paperwork-heavy process. You get global virtual collection accounts (like a US routing number or a UK IBAN), and your clients can pay like they’re making a local transfer.

It’s faster, cheaper, and you get the compliance documents like FIRA automatically.

SaaS companies billing international customers often struggle with reconciling multi-currency payments or managing multiple accounts. Virtual accounts let you:

It’s ideal for businesses scaling globally without opening foreign bank accounts or paying unnecessary overhead.

Virtual Bank Accounts by Skydo: Built for Indian Freelancers &amp; Exporters

Skydo makes it easy for Indian businesses and freelancers to receive international payments without the usual headaches of high fees, hidden markups, or long settlement times.

You get virtual accounts in key markets like the US, UK, Europe, Australia, and Singapore all set up in minutes, fully compliant with RBI norms.

Live exchange rates: You get paid at the actual mid-market rate (yes, the one on Google) with zero markup.

$29 for payments between $2,001–$10,000

No hidden fees: No SWIFT charges, no surprise deductions.

Instant FIRA: GST-compliant FIRA is auto-generated after each transaction, no chasing banks, no manual forms.

Get paid on time: Send clean, professional invoices and set up reminders with just a few clicks.

Thousands of Indian freelancers and MSMEs already use Skydo to manage their global payments.
You can get started <a href="https://www.skydo.com">for free in 5 minutes</a> — no paperwork, no waiting.

Leveraging Virtual Bank Account to maximise international payments

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&nbsp;If you’re an Indian business owner, freelancer, or exporter dealing with international clients, chances are you’ve considered using PayPal to receive payments. 

PayPal’s global reach and ease of use have made it a popular choice worldwide. But how well does PayPal work in India, and is it the best option for you in 2025? In this comprehensive guide, we’ll answer key questions like “Does PayPal work in India?”, “What are PayPal’s fees in India?”, and “What are the alternatives to PayPal in India?”. 

We’ll also delve into PayPal’s safety, pros &amp; cons, and latest updates, all in a conversational, reader-friendly tone. Let’s dive in!

PayPal is very much available in India for cross-border transactions. It enables Indian businesses and freelancers to accept payments from abroad in over 100 currencies with just an email address. 

You can integrate PayPal into websites for card payments, send payment links or invoices, and even offer subscription billing to clients. PayPal also provides monthly digital FIRA (Foreign Inward Remittance Advice) statements to Indian users as proof of incoming foreign payments&nbsp;– a useful feature for exporters and compliance.

Yes, PayPal works in India, but with important limitations. PayPal does not support domestic INR payments within India. 

This means you cannot use PayPal to send or receive money in INR between Indian accounts. PayPal India is focused exclusively on international transactions. Further, many features like PayPal credit and BNPL aren't available in India

Unlike some countries where PayPal balance can be held, in India any money received into your PayPal must be automatically withdrawn to your linked Indian bank account, typically on a daily basis. 

You’ll need to link and verify an Indian bank account (for business accounts) to withdraw funds, which usually take 1–5 business days to reflect in your bank.&nbsp;&nbsp;There is no withdrawal fee for standard bank transfers in INR (PayPal converts and transfers the amount to your bank without extra charge for the transfer itself), though currency conversion fees will apply.

To use PayPal in India, you must complete KYC verification. For individuals, this means linking and verifying a PAN (Permanent Account Number) and a card; for businesses, providing business PAN/GST and linking a bank account is required. 

PayPal complies with RBI guidelines, so features like a stored wallet balance are not offered to Indian users – all transactions are settled to the bank directly. On the plus side, PayPal’s service comes with documentation support: it offers monthly digital FIRA (Foreign Inward Remittance Advice) certificates to help Indian exporters document their earnings<a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment#:~:text=PayPal%20has%20long%20been%20a,crucial%20for%20many%20Indian%20users" target="_blank">skydo.com</a>.

Is PayPal safe to use in India? Generally, yes – PayPal is known for robust security measures. It uses end-to-end encryption, secure vaults for financial info, and 24/7 fraud monitoring to protect your funds. PayPal also offers Buyer Protection for customers and Seller Protection for merchants on eligible transactions, adding an extra layer of trust. These programs can reimburse you if, for example, an item doesn’t arrive or if there’s an unauthorised transaction.

Despite its strong security reputation, no platform is 100% immune to issues. In early 2025, there was an isolated incident in Singapore where some users saw unauthorised transfers initiated by hackers.&nbsp;PayPal clarified and addressed the issue, and it does not appear to reflect any systemic security flaw for Indian users. Overall, PayPal’s security track record in India remains solid, and it’s considered a trustworthy platform for online payments.

Bottom Line: PayPal in India is a credible and convenient option for international payments, but it’s strictly for cross-border use. You can’t use it like a local wallet or UPI – no domestic transfers, no local peer-to-peer payments. If you’re a freelancer or business, you’ll need a PayPal business account to receive overseas funds, and all earnings will be converted to INR and moved to your bank. Keep in mind these limitations as we explore the costs and alternatives in the sections below.

PayPal Fees and Charges in India – What Does It Cost?

One of the most important considerations is the cost of using PayPal in India. Unfortunately, convenience comes at a price.&nbsp; Receiving international payments through PayPal India involves three types of fees:

To summarise, if you receive an international payment via PayPal India, you’ll typically pay: 4.4% + a fixed fee + ~4% in currency conversion markup. In formula form, PayPal fees = 4.4% + fixed fee + ~4% currency conversion fee.&nbsp; This adds up quickly

Let’s illustrate the impact with a real scenario:

Scenario: You invoice a client $5,000 USD for a project, and they pay you via PayPal:

Transaction fee (4.4%): $5,000 × 4.4% = $220 in service fees

Fixed fee (USD): $0.30 (for USD transactions)

Remaining after PayPal fees (before conversion): $5,000 – $220.30 = $4,779.70.

Currency conversion: PayPal will convert $4,779.70 to INR at ~4% below the market rate. If the actual rate is ₹86 per $1, PayPal’s rate might be ~₹82.5.

So you’d get roughly ₹4,779.70 × 82.5 = ₹3,94,270 (approximately).

In this example, PayPal effectively took over 8% of the payment in combined fees. This aligns with what many users experience – PayPal’s fees can eat into your earnings substantially. For smaller payments, the percentage impact is the same, although the fixed fee is negligible; for larger payments, those few percentage points translate to a big rupee difference.

💡 Tip: Always factor in PayPal’s fees when setting your prices or invoices for international clients. You may decide to slightly increase your rates or add a line-item surcharge for PayPal payments to offset the ~8% loss, or negotiate with your client to split the fees. Some freelancers explicitly state “+X% if paying via PayPal” to cover these charges.

In India, PayPal’s fees are subject to 18% GST (Goods &amp; Services Tax), but this tax is charged on the fees itself, not on your whole amount. PayPal provides a consolidated GST invoice each month for the fees it has collected, which you may use to claim input credit or refunds if applicable to your business

PayPal in India: Pros, Cons, and User Experiences

To make an informed decision, it’s important to weigh the advantages and disadvantages of PayPal for Indian users. Below is a balanced look at where PayPal shines and where it falls short, along with some insights from real users:

User Feedback Summary (based on reviews from G2 and Reddit)

Across review platforms like <a href="https://www.g2.com/products/paypal/reviews">G2</a>, PayPal consistently scores 4/5 or higher for its ease of use, global reach, and platform reliability. Many users appreciate how seamlessly they can receive international payments and highlight that clients trust PayPal for its security and brand familiarity.

That said, several reviewers do raise concerns around costs—particularly related to transaction fees and currency conversion. As one user noted on G2:

“Customers love to pay through PayPal because it’s secure and easy... but the fees are a bit high... especially currency exchange fees.”
(<a href="https://www.g2.com/products/paypal/reviews">Source</a>)

“When I received money, the exchange rate they provided was ₹82 when the actual rate was ₹86 – it makes a lot of difference for big amounts.”
(<a href="https://www.g2.com/products/paypal/reviews">Source</a>)

On community forums like <a href="https://www.reddit.com/r/freelance/comments/v2xuco/which_is_better_for_receiving_international/">Reddit</a>, you’ll find more informal user commentary, with some Indian freelancers saying PayPal’s fees feel steep for regular use or preferring alternatives like Wise or U.S.-based setups. Phrases like “PayPal is too expensive for India” and “I only use it if the client insists” appear frequently.
(<a href="https://www.reddit.com/r/IndiaInvestments/comments/11t8t0e/paypal_india_is_useless_with_heavy_fees_any/">Reddit example</a>)

⚠️ Note: These insights are sourced from independent user reviews on platforms like G2 and Reddit. They reflect individual experiences, not the opinion or endorsement of Skydo.

Given PayPal’s charges and limitations, many Indian freelancers, businesses, and exporters are exploring alternative platforms to receive international payments. The good news is that today there are several reliable options that can often save you money (and sometimes headaches). Here we’ll outline a few of the top PayPal alternatives for users in India, and how they compare:

1. Skydo – Low-Cost Solution Built for Indian Businesses

Skydo is an India-based fintech platform specifically designed for cross-border payments. It’s a popular emerging alternative because of its dramatically lower fees and India-friendly features. Skydo charges a flat fee instead of a percentage – for instance, $19 for payments up to $2,000, $29 for payments up to $10,000, and 0.3% for amounts beyond $10k. There are no fixed per-transaction fees and no forex markup on the exchange rate. This means you get the real mid-market rate (zero margin) for USD/INR or other currency conversions, and you only pay that flat fee. In practice, Skydo often ends up being ~5-8 times cheaper than PayPal for the same transfer amount. For example, on a $5,000 payment, instead of paying around $415 with PayPal, with Skydo you’d pay around $29 in fees and get the full exchange rate – saving you over ₹30k in that single transaction.

Other benefits of Skydo include: instant virtual bank accounts in major currencies (so your US/EU clients can pay into a local account that routes to you), auto-generated FIRA for every transaction (no need to request it),&nbsp;&nbsp;and an India-based support team for customer service. The platform is focused on receiving payments (inbound), not for sending, so it’s tailored to freelancers and exporters getting paid from abroad.&nbsp;&nbsp;Do note, Skydo currently doesn’t support credit card payments from clients – it’s more for bank transfers and online payments – so if your clients insist on paying by card or you have very small ticket invoices, it might not be as optimal. But for most business transactions, the cost savings are significant. In short, Skydo offers a fast, secure, and far more cost-effective alternative to PayPal for Indian users who want to keep more of their earnings.

2. Wise Business (formerly TransferWise) – Transparent Mid-Market Rates

Wise is globally known for its ultra-transparent approach to international money transfers. Wise offers multi-currency accounts where you can receive money in different currencies (USD, EUR, GBP, etc.) and then convert to INR at the real exchange rate with no markup. &nbsp;Instead of taking a cut on the rate, Wise charges an upfront transfer fee, which is usually around 1.6-1.8% depending on currency corridors and amount. For example, receiving $1000 via Wise and converting to INR might cost you ~$16.65 in fees plus an additional $2.50 for FIRA total (versus ~$80+ with PayPal). Wise is highly praised for giving the best exchange rates – essentially the same rate you see on Google. The platform is very user-friendly and is a great choice if you want to withdraw money to your Indian bank with minimal loss.

Few considerations: Currently, Wise Business only supports freelancers and sole proprietorships in India. Private limited and other business types currently cannot use Wise Business to receive payments. Also, you can only request up to $10,000 per invoice with Wise Business.&nbsp; &nbsp;If you value saving on fees and getting a fair rate, Wise is one of the best alternatives to PayPal. It’s especially good for smaller payments or very frequent transfers, where PayPal’s fixed fees and % really add up.

3. Payoneer – Widely Used for Freelancers &amp; Marketplaces

Payoneer is another established player that many Indian freelancers use, especially those working with global marketplaces like Upwork, Fiverr, Airbnb, Amazon, etc. Payoneer provides you with receiving accounts in multiple currencies (much like Wise and Skydo), so clients can pay to a local account.&nbsp; Payoneer’s fee structure: if your client pays you via Payoneer (for example, via a Payoneer invoice or if you withdraw earnings from a marketplace), the fee is usually between 0% to 3% of the amount (0% if the client pays from their Payoneer balance or certain methods, up to 3% if via credit card)&nbsp; Then, converting to INR and withdrawing to your bank costs up to 3% in currency conversion fee. So effectively ~2-6% total cost.&nbsp;

Payoneer has the advantage of being accepted on many platforms – for example, if you freelance on Upwork, you can withdraw funds to Payoneer and then to your bank. It also offers a prepaid MasterCard (though I’m not sure if that’s available to Indian users currently) and the ability to make payments to others in the Payoneer network. Payoneer's fee structure, though less than PayPal can be pricey, especially if you don’t use the account frequently. For example, there’s an annual inactivity fee (around $29.95) if your account remains dormant for 12 months, which can catch occasional users off guard. Additionally, some services—like currency conversions or card usage—may have their own associated charges. That said, Payoneer remains a well-established and trusted alternative to PayPal, particularly for users looking for a global wallet experience with a stronger business focus and more competitive transaction fees.

4. Stripe – Payment Gateway for Businesses (Selective in India)

Stripe is a leading global payment infrastructure company – if you’ve ever paid by card on popular websites, Stripe might have been working behind the scenes. For Indian businesses, Stripe can be considered an alternative to PayPal if you need to accept international credit card payments directly. Stripe allows you to charge customers’ cards in their currency and deposit INR to your Indian bank. Stripe’s fees for international cards in India are around 4.3% + ₹7 per transaction, plus a 2% currency conversion charge. This totals roughly 6.3% fee, which is a bit lower than PayPal’s effective 8% but still significant. Stripe currently, however, has some limitations in India: it operates on an invite-only basis (you have to request access) and doesn’t support all business types. Also, Stripe does not provide FIRA documentation for your transfers, since it routes through local bank processes. So if compliance paperwork is important, that’s a gap. Stripe is best suited for more tech-savvy businesses that need a fully customizable checkout and are okay with integrating API

There are other ways to receive money from abroad. Xoom is actually a PayPal-owned service for remittances, but it’s geared towards individuals sending money (say, someone in the US sending to family in India). It’s not meant for business payments and often can’t be used for commercial transactions. Wire transfers (SWIFT) directly to your bank are an old-school method; they’re secure but can be slow (3-5 days) and expensive (the sender and receiver’s banks each take fees, plus poor exchange rates). Typically, a $50 wire fee + bad rate can mean you lose $100 on a $1000 transfer – not great.

Choosing the Right One: When evaluating a PayPal alternative, consider factors like fees, exchange rate markup, speed of transfer, ease of setup, support quality, and whether they provide FIRA or GST invoices (if you need those). For example, if the lowest cost is paramount, Wise or Skydo’s zero-markup solutions will shine. If your clients insist on card payments, you might lean towards PayPal or Stripe (Skydo doesn't support client card payments in the same way). If you work via marketplaces, Payoneer might integrate better. Some users even use a combination: e.g., use PayPal for certain clients who prefer it and Wise for others, or initially accept PayPal, then suggest an alternative for future payments once trust is built.

Ultimately, many businesses start with PayPal for its sheer convenience and then transition to a cheaper alternative as they grow. With options like Skydo now offering India-centric features (low fees, compliance docs, local support), switching has become easier and more beneficial. The next section gives you some general tips on what to consider when making this choice.

Key Factors to Consider (How to Choose the Right Platform)

Whether you stick with PayPal or opt for an alternative, here are some essential factors you should consider when choosing an international payment platform for your needs:

Considering these factors will help you align the payment platform with your business needs. You might prioritise cost above all, or maybe ease-of-client-use is non-negotiable for you – it depends on your situation. Sometimes, using multiple methods is the way to go: for example, use PayPal or credit card options for customers where convenience is key, but use a low-cost method like Wise/Skydo for larger payments or repeat clients to save money.

PayPal is globally trusted and convenient—but for Indian freelancers, businesses, and exporters, it often comes at a cost. Between transaction fees, forex markups, and limited flexibility, the earnings you lose can add up fast.

That’s why many are switching to platforms like Skydo—built specifically for Indian exporters. With live exchange rates, no forex markup, and transparent flat fees, Skydo helps you keep more of what you earn. Plus, you get instant virtual accounts, auto-generated FIRA, and India-based support—everything PayPal doesn’t offer in one place.

If you’re serious about scaling your international payments, Skydo isn’t just an alternative—it’s an upgrade.

Try it once. You’ll wonder why you didn’t switch sooner.

PayPal in India: Charges, Review and Alternatives

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<a href="https://blogs.worldbank.org/en/peoplemove/in-2024--remittance-flows-to-low--and-middle-income-countries-ar">As per&nbsp;the World Bank</a>, India received a record $129.1 billion in remittances in 2024, with over $32 billion coming from the US alone. From freelancers and SaaS companies to families receiving support, more Indians than ever are getting paid from the US. Knowing how to receive that money quickly, affordably, and compliantly is now essential.

To receive money from the US in India, you can use a bank wire transfer, payment gateways (like PayPal), dedicated remittance platforms (like Western Union), or modern virtual account services (like Skydo). The sender in the US initiates the transfer via one of these channels, and you (the recipient in India) will get the funds in your bank account or as a cash pickup. The best option depends on fees, speed, and convenience. In this blog, we will deep dive into each of these methods, understand their settlement timelines, fees, and compliance guidelines so that we can help you find the method that works best for you.&nbsp;

How Long Does It Take to Receive Funds from the US to India?

Unlike instant domestic payments, international transfers can take anywhere from 1 to 7 business days to reflect in your account, depending on the method of transfer. For example, <a href="https://www.skydo.com/blog/wire-transfer-from-usa-to-india">wire transfers from USA</a> to India can take upto 5 business days. This is because&nbsp;the <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT network&nbsp;</a>involves multiple intermediary banks, and delays can occur due to bank holidays, incorrect details, or currency conversions. In the case of PayPal,&nbsp; payments may appear quickly in your PayPal account, but it can take up to 5 business days to show in your bank account.

Virtual accounts process payments from the US faster than traditional methods. For instance, Skydo settles payments within just 24-48 hours.

In most cases, virtual accounts can be the fastest way to receive USD in India directly in your bank account.&nbsp;

Are there any limits on how much one can receive from the US?

There’s no official cap on how much money you can receive from the US to India. However, banks and payment platforms may request additional documents or verification for large transfers to comply with regulatory checks.

Some platforms also set their own limits,&nbsp; for instance, <a href="https://wise.com/in/business/receive-money?no_follow=true">Wise allows up to $10,000 per invoice.</a>

Skydo lets you receive payments from the US (or any country) without any fixed threshold, making it easier for businesses handling high-value transfers.

Can I Receive USD in an Indian Bank Account?

When a foreign client sends you a USD payment, most Indian banks will automatically convert the USD into INR before crediting it to your account. You’ll see the final INR amount along with a conversion rate and applicable charges on your bank statement.

This is because regular Indian savings or current accounts are not permitted to hold foreign currency balances. RBI rules require foreign currency to be converted into INR when it reaches India,&nbsp; unless you're using a special-purpose account like an<a href="https://www.skydo.com/blog/eefc_account_overview_full_form_meaning_eligibility_benefits"> EEFC (Exchange Earners’ Foreign Currency) account</a>, which is typically meant for exporters and subject to conditions.

A Better Option for Freelancers &amp; Businesses:
Platforms like Skydo let you receive payments in USD through a virtual US account, so your clients can pay you like it’s a local transfer (e.g., via ACH).&nbsp;

The funds are then converted at live exchange rates and credited to your Indian bank account in INR, often with lower fees and faster settlement than traditional bank wires.

So while you can’t hold USD in a regular Indian account, you can absolutely receive international payments in India quickly, transparently, and fully compliant.

What Are the Fees for Receiving Money from USA to India?

For receiving money from USA to India, especially for payments it is important to be mindful of fees and charges that are levied on the same as they can significantly eat into your earnings.&nbsp;Here are some common fees to watch out for:

SWIFT transfers&nbsp;from the US via banks will invite SWIFT fees, which may range from&nbsp;₹500 to ₹1,000 per transaction. The most important thing to look out for, however, is forex markup.&nbsp; Banks often provide less favourable exchange rates compared to the market rate. For instance, if the real rate is 1 USD = ₹84, banks might offer ₹82, leaving you with less money per transaction.&nbsp;

<a href="https://www.skydo.com/blog/paypal-transaction-fees-india">PayPal charges </a>a 4.4% transaction fee and an additional 4% for currency conversion, meaning you'll pay close to 8.5% in fees when receiving payments from the US to India.

Razorpay charges a platform fee of 3% per international transaction, plus applicable taxes.

Payments from the US via virtual accounts do not incur any SWIFT fees; however, each platform applies its own charges.

How to Avoid Hidden Fees When Receiving Money from the USA?

Receiving payments from the USA to India can quickly turn into an expensive affair if you're not careful. Hidden fees, sneaky forex markups, and inflated charges can eat into your earnings without you even realizing it.

Here’s the secret: choose a platform that’s upfront about its pricing and offers <a href="https://www.skydo.com/blog/forex-markup-fee-explained">live forex rates with zero markup</a>. Why should you settle for anything less than the rate you see on Google?

Take Skydo, for example. We don’t play games with your money. With Skydo, you get:

Do I Have to Pay Tax on Payments Received from the US?

If you're receiving payments from the US,&nbsp; whether for freelance work, exports, or services, here’s what you need to know:

What Documents are Needed to Receive Payments from USA in India?

When receiving payments from the US, ensure you have the <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#what-are-the-documents-required-for-inward-remittance-in-india">following documents</a> and meet these compliance requirements:

How to Receive Money from the USA to India in 4 Steps?

Here's a quick breakdown of how to receive money from USA to India

Step 1:&nbsp;Choose the transfer method that works best for you. Choose the transfer method that works best for you. For business payments, a compliant option that provides FIRA, like banks or virtual accounts from platforms like Skydo, is ideal. For personal transfers, online remittance services offer a simpler and more convenient way to receive money.&nbsp;

Step 2:&nbsp;Provide your bank details or platform information to the sender

Once you've chosen a transfer method, share your bank or platform details with the sender. If you're using Skydo, provide your local USD virtual account number. For SWIFT transfers, share your bank account details and SWIFT code. Always double-check the details before sending—any errors could cause delays or even cancel the transaction.

The time it takes to receive money from the US depends on the transfer method. SWIFT and PayPal transfers can take up to 5 business days to reflect in your bank account, while virtual bank accounts typically process payments faster. For example, Skydo settles payments from the US within 24-48 hours.&nbsp;

Step 4:&nbsp; Confirm receipt and obtain FIRA

If you are receiving a payment from the US, you need to obtain <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA </a>which will serve as proof of the said payment. If you are receiving your payment via banks, you will have to request a FIRA and banks generally charge anywhere between INR 200 and INR 500 to issue each FIRA. Paypal offers monthly eFIRA while platforms like Skydo provide free and instant FIRA for every transaction.&nbsp;

Choosing the Best Way to Receive Money from the USA to India

There’s no one-size-fits-all answer to the question of how to receive payments from the USA to India. The best method depends on what matters most to you—whether it’s faster transfers, lower fees, better exchange rates, or simplified compliance. Let’s take a closer look at your options to help you make an informed choice.

Banks are the go-to option for many when it comes to receiving money from USA to India. However, they come with their own set of pros and cons:&nbsp; Transfers via the SWIFT network can take anywhere from 2 to 7 business days. This can often be delayed by intermediary banks, incorrect details, or currency conversion issues. Banks charge SWIFT fees (₹500–₹1,000 per transaction) and impose forex markups. For instance, if the market rate is 1 USD = ₹84, you might only get ₹82, losing ₹10,000 on a $5,000 payment. They also charge additional fees, like ₹250 for a FIRA or ₹500 for tracking a payment. While banks are reliable and secure, obtaining compliance documents like FIRA can be a hassle, often requiring follow-ups and additional charges. If you prioritise security and have time to spare, banks may be a reasonable option.

Banks are also a preferable choice for big businesses handling high volumes of cross-border payments, as they often offer competitive exchange rates and personalized services that smaller clients might not receive.&nbsp;

PayPal and other Payment Gateways:&nbsp;Convenient But Pricey

PayPal is popular for its global reach and ease of use, especially for freelancers and small businesses. Beyond PayPal, there are other payment gateways as well that are opted by freelancers to receive payments from the US.

If your payment amount is small, say under USD 1000, and your clients prefer using a credit card, this could be a suitable option for you.

Payments may reflect quickly in your PayPal account however, it can take upto<a href="https://www.paypal.com/in/cshelp/article/how-do-i-transfer-funds-to-my-bank-account-help394"> 5 business days to reflect in your bank account</a>.<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal’s fees</a> add up quickly.

They charge a 4.4% transaction fee, a fixed fee based on currency, and a 4% forex markup. For example, if the market rate is ₹84 per USD, PayPal’s rate would be ₹80.64, resulting in significant losses on larger payments. &nbsp;PayPal provides a monthly digital FIRA, covering all transactions from the previous month. However, it’s only available by the 15th of the following month, which may not work for those needing immediate documentation. PayPal is ideal for freelancers and businesses looking for a globally renowned platform to receive international payments with plug-and-play ease. However, it might not be the best option if you’re looking to maximise your earnings due to its high fees.

Online remittance platforms like Western Union and Wise P2P provide an option to receive money from the USA to India. While they work well for personal transfers, they may not be ideal for business payments as they don’t issue FIRAs, which are essential for compliance.

Virtual International Bank Accounts: A Modern Solution

Platforms like Skydo, Wise, and Payoneer, offer virtual bank accounts in countries like the US, allowing clients to send payments as local transfers. 

This eliminates the complexities and costs of traditional international transactions. Payments are typically settled within 0–2 business days. For example, Wise transfers funds within 48 hours, while Skydo and Payoneer process payments within 24 hours. 

While international virtual bank accounts don’t encompass SWIFT fees, platforms levy their respective fee.

<a href="https://www.skydo.com/blog/payoneer-fees-india-guide">Payoneer charges</a> a 1% fee if you receive USD payments via virtual accounts. Further, there’s a 3% forex markup on withdrawals, a 3.2%+ $0.49 fee on credit card payments, and 1% for ACH transfers if your US clients pay you via ACH.&nbsp;&nbsp;

<a href="https://www.skydo.com/blog/wise-transfer-charges-in-india">Wise charges</a> a 1.6–1.8% Wise fee but uses the mid-market exchange rate with no hidden markups.

Skydo offers a simple pricing model: USD 19 for payments under $2,000 and USD 29 for payments between USD 2,001 and USD 10,000, 0.3% for payments above $10,000 with live exchange rates and no markups.&nbsp;

These platforms provide FIRA for regulatory purposes, with Skydo and Payoneer offering it instantly and free of charge, while Wise charges a fee for the same.&nbsp;

Which Platform Should You Use to Receive Payments from the US?

Here's a quick snapshot of the different ways to accept payments from the US

For personal remittances, and P2P /remittance platforms may be a convenient way to receive money from the US.&nbsp;

Here's a quick comparison chart to help you decide the best way to accept payments from the US in India based on your needs:

Which platform offers the lowest fees for USD transfers to India?

Many Indian freelancers and businesses lose money while receiving USD payments due to hidden charges like:

Traditional banks and platforms often advertise low fees but make up the difference by offering poor exchange rates or applying hidden charges.

For anyone receiving international payments in India, Skydo is one of the most cost-effective platforms, helping you retain more of your USD payments, with faster settlement and full visibility.

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How to receive money from USA to India? 

If you're an Indian SaaS startup, D2C brand, freelancer, or agency getting paid from abroad, chances are you've considered Stripe.

It’s one of the biggest global names in online payments.

But here’s what most people don’t know:

💡 Stripe is <a href="https://support.stripe.com/questions/stripe-accounts-are-invite-only-in-india">not fully available in India.
</a>

💡 It charges over 6% per transaction.&nbsp;

 💡 It does not issue FIRA, which you need to stay compliant.

Technically, yes, but it’s invite-only.
Stripe India is not open for direct sign-ups like in other countries. You have to request access and wait for approval.

Even after that, Indian accounts come with limitations:

<a href="https://www.skydo.com/blog/stripe-fees-india">Stripe India follows this pricing:</a>

🧾 Example:
If your US client pays $10,000, you’ll lose ~$630 (around ₹52,000) to Stripe’s fees.

❌ No. Stripe does not issue FIRA or eBRC certificates, which are mandatory for Indian businesses receiving foreign payments.

Instead, they give you a generic payment advice, and you’re expected to:

This process takes 7–15 days and delays your ability to claim GST refunds, tax credits, or show compliant export earnings.

Why Stripe Isn’t Ideal for Indian Exporters &amp; Freelancers?

Stripe was built for a global audience, but it’s not tailored for India’s regulatory or financial ecosystem.

Stripe is a powerful platform with deep developer tools, global reach, and excellent UX,&nbsp; but it’s not a perfect fit for everyone in India. Here’s who might benefit from Stripe despite its limitations:

Growing Global

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