How to Receive Money from USA to India (Fast & Safely)
India is the top receiver of money sent abroad. In 2024, India received around $129 billion in remittances and about 27.7% (roughly $32 billion) of that came from the United States. From freelance earnings and export payments to families getting support from relatives, more Indians than ever depend on income from the US. Knowing how to receive that money quickly, affordably, and compliantly is now essential.
To receive money from the USA in India, you have several options:
- Traditional bank wire transfer
- Online payment gateways (like PayPal)
- Dedicated remittance services (like Western Union or Remitly), or
- Modern virtual account platforms (like Skydo or Wise).
The sender in the US will initiate the transfer through one of these channels, and you (the recipient in India) get the funds either in your Indian bank account or as a cash pickup. The best method for you depends on fees, speed, and convenience.
In this guide, we’ll dive into each method – comparing their transfer times, costs, and compliance steps – so you can choose the best way to receive money from the US to India.
How Long Does It Take to Receive Funds from the US to India?
International transfers aren’t instant like domestic ones. Depending on the method, it can take anywhere from a few minutes to a week for money from the US to reach you in India:
- Bank Wire Transfers (SWIFT): Typically 2 to 5 business days, but can take up to 7 days in some cases. Delays happen due to multiple intermediary banks in the SWIFT network, bank holidays, or errors in details. Each intermediary can slow things down.
- PayPal or Stripe: Payments show up in your online account quickly, but withdrawing to your bank can add a few days. For example, PayPal transfers may take 3–5 business days to reflect in your Indian bank account.
- Western Union/MoneyGram: If the sender uses a cash transfer service, you might get cash within minutes at an agent location. These are among the fastest for personal remittances, though you’ll need to pick up cash or have it delivered to your bank.
- Virtual Account Platforms: Modern fintech platforms can be very quick. For instance, Skydo typically settles payments within 24–48 hours of the client sending money from the US. In many cases, using a virtual US account is one of the fastest ways to receive USD in India directly to your bank.
In summary, virtual account services and reputable online remittance apps tend to be the fastest, often under 48 hours, whereas traditional bank wires or PayPal withdrawals can take 3–7 days. However, note that most remittance apps are mainly for personal transfers, and not business payments, hence you don't get documents like FURA and using personal remittance platforms for receiving business payments can compliance issues later on.
Are there any limits on how much one can receive from the US?
There’s no official upper cap on inward remittances to India – you can receive as much as your sender is willing to send. However, very large transfers may trigger extra compliance checks. Banks or platforms might request additional documentation or verification for high-value transfers to comply with RBI and anti-fraud regulations.
Some platforms also impose their own per-transfer limits. For example, Wise Business allows up to $10,000 per transfer/invoice. Remittance services like Remitly or Xoom may have daily or monthly caps (often in the tens of thousands of dollars). Always check if your chosen service has any sending or receiving limits.
Can I Receive USD in an Indian Bank Account?
Yes, but not as USD – it will be converted to INR. When a foreign client sends you a payment in US dollars, a regular Indian bank will automatically convert USD to Indian rupees before crediting your account. You’ll see the INR amount on your statement, along with the conversion rate and any fees.
This is because under RBI rules, Indian savings or current accounts can’t hold foreign currency. Any USD coming in is converted to INR immediately, unless you have a special foreign currency account. One example of such an account is an EEFC (Exchange Earners’ Foreign Currency) account, which lets exporters hold a certain portion of earnings in foreign currency. But EEFC accounts have conditions and are not common for freelancers or small businesses.
A Better Option for Freelancers & Businesses:
Platforms like Skydo provide you a virtual US bank account to receive USD. Your US clients can pay locally (ACH or domestic transfer) to this account, as if they were paying a US-based vendor. The funds are then converted at actual market exchange rates and credited to your Indian account in INR, usually with lower fees and faster settlement than a traditional SWIFT wire. This way, you effectively receive USD and convert at the best rate, without the hassle of opening an EEFC account.
So, while you can’t keep dollars in a normal Indian bank account, you absolutely can receive international payments in India quickly, transparently, and fully compliantly by using the right platform.
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. Here are some common fees to watch out for:
Banks
If your client sends money via a bank SWIFT transfer, there will typically be a fixed wire transfer fee charged by the sending and/or intermediary banks. This can range from roughly $15-$30, and while your client can themselves bear the charges, it is more often than not
But the biggest cost with banks is often the foreign exchange rate markup. Banks usually do not give you the mid-market exchange rate; they add a markup. For example, if the real market rate is 1 USD = ₹84, a bank might credit you at 1 USD = ₹82, keeping the ₹2 difference per dollar as their profit. That’s a ~2.4% hidden fee – meaning on a $5,000 payment, you’d lose around ₹10,000 just on the exchange rate. Plus, banks may levy other small charges (like an inward remittance fee or handling charge).
Always check the exchange rate your bank applies – a small difference from the market rate can significantly reduce the INR amount you get.
PayPal and Payment Gateway:
PayPal is convenient, but it is one of the most expensive ways to receive international payments in India. PayPal’s fee structure for international payments into India includes:
- Transaction fee: 4.4% of the amount (for commercial payments)
- Currency conversion fee (forex markup): ~4% added on top of the base exchange rate.
- Fixed fee: A small fixed amount per transaction (depends on currency, e.g. $0.30).
Other payment gateways have significant fees too
- Stripe: Typically 4.3% transaction fee + 2% forex markup, totalling a fee of 6.3%. Also note that Stripe in India is currently invite-only for receiving payments.
- Payoneer (if used as a gateway): If US clients pay you via credit card through Payoneer, there’s ~3.2% card fee + a small fixed fee ~1% ACH fee, and Payoneer’s currency conversion can have ~3%+ markup (more details below).
Bottom line: Payment gateways are very easy to use and widely accepted by US payers, but plan for 3–8% of the payment to go in fees. If maximising earnings is your priority, you might consider alternatives for large amounts.
Online Remittance Services (Western Union, Remitly, Wise, etc.)
Services like Western Union, MoneyGram, Xoom are popular for personal remittances – e.g. a family member sending you money from the US. They often offer lower fees than banks and competitive exchange rates, especially for smaller transfers. For example, Remitly might charge a flat ~$3.99 fee for a standard USD-to-INR transfer and sometimes offer promotional exchange rates for first-time users.
However, be aware of a few things:
- Exchange rates: These services may still add a markup to the exchange rate (though usually less than banks). Always compare the rate they offer with the real rate on Google.
- Transfer fees: Some have flat fees (e.g. Western Union might charge around $5–$10 for certain transfers, sometimes even $0 fee for higher amounts, but then a poorer rate). Wise’s personal transfers show you upfront fees (~1–2%) and give the mid-market rate.
- Receiving method: Western Union and MoneyGram allow cash pickups in minutes (the sender pays for it), which is great if you or the recipient doesn’t have a bank account. Remitly and Xoom can deposit into your bank account, sometimes within hours.
- Business use: The drawback is that these services are typically designed for personal money transfers. They do not provide business payment documentation like a FIRA (Foreign Inward Remittance Advice) for each transaction. So if you’re a freelancer or business needing to show proof of export income, these might not meet all compliance needs.
In short, online remittance apps can save fees for personal transfers and are quick, but for business payments, you might need a more formal solution.
Virtual International Accounts
A newer option is using virtual international bank accounts provided by fintech platforms (such as Skydo, Wise Business, Payoneer). These give you local bank details in the US (and other countries) to collect payments.
Key advantages:
- No SWIFT fees: If your US client pays into your virtual US account via ACH or domestic transfer, there are no intermediary bank charges.
- Mid-market exchange rate: Platforms like Wise use the real exchange rate with no markup. Skydo also offers live forex rates with zero markup, essentially the same rate you’d see on Google.
- Transparent fees: Each platform has its own fee structure: Wise (Business): ~1.6–1.8% fee to receive USD into your Wise USD account. When you convert to INR, Wise uses mid-market rate (no markup) but may charge a small additional fee for certain services (e.g. getting a digital FIRA). Payoneer: Charges can range ~4–7% in total. For example, Payoneer may take a 1% fee on receiving USD into your virtual account. plus about 2–3% currency conversion fee when withdrawing to INR, and different fees if your client pays by card (~3%+). It’s convenient, but the various fees can add up. Skydo: Uses a flat-fee model – $19 for payments up to $2,000, $29 for $2,001–$10,000, and 0.3% for any amount above $10k, There’s no percentage cut for typical invoice sizes, which can save a lot on large transfers. And as mentioned, the exchange rate is at 0% markup (true mid-market rate).
Even with a platform fee, these services often cost you less overall than the combination of wire fees + exchange markup at traditional banks. For instance, paying ~1.5% to Wise or a $29 flat fee to Skydo will usually beat a bank wire that might effectively cost 3–5% in lost exchange rate and fees.
Note: Virtual account providers usually give you FIRA or proof of payment documents for each transfer, which is crucial for businesses. Skydo and Payoneer provide FIRA instantly and for free for every incoming payment, while Wise offers a digital FIRC (Foreign Inward Remittance Certificate) for a small fee. This makes them suitable for freelancers, IT exporters, and service companies who need compliance paperwork.
How to Avoid Hidden Fees When Receiving Money from the USA?
Receiving payments from the USA can quickly become expensive if you overlook hidden charges. Here are some tips to avoid common fees and traps:
- Use Transparent Platforms: The simplest way is to choose a platform that’s upfront about pricing and uses live exchange rates with zero markup. Don’t settle for a mysterious “bank rate” that’s lower than the market rate. You deserve the rate you see on Google.
- Compare the Effective Rate: Whatever method you use, calculate how much INR you actually get per USD after all fees. Sometimes, a provider with “no transfer fee” might give a poor rate. It might be better to pay a small fixed fee and get a great rate.
- Watch Out for Intermediary Deductions: In bank wires, sometimes intermediate banks take a cut. Using local ACH routes (like a virtual US account) avoids those middlemen.
For example, Skydo’s platform was built to eliminate these hidden costs. With Skydo, you get:
- Live Forex Rates (No Markup): The exchange rate you see is the real one – no padding added.
- Flat Fees: Whether you receive $1,000 or $10,000, the fee is fixed (or a low % above $10k). A bigger payment shouldn’t mean a bigger percentage fee, and Skydo ensures that with simple flat pricing.
- No SWIFT Surprises: Clients send to a U.S. account, so you avoid SWIFT charges and intermediary cuts entirely.
By choosing a cost-effective and transparent service, you keep more of your hard-earned money.
Do I Have to Pay Tax on Payments Received from the US?
When you receive money from abroad, taxation depends on the nature of the payment:
- Export Services (Freelance or Business Income): Payments from U.S. clients for services (software development, consulting, etc.) are considered export income. The good news: GST does NOT apply if you’re exporting services and getting paid in foreign currency – such exports are treated as zero-rated under Indian GST law. You don’t charge GST to the US client. However, you do have to pay income tax on the earnings in India. Foreign income is added to your total income and taxed at your applicable income tax slab rate (if you are an Indian tax resident). There’s no special exemption; it’s similar to earning that money in India, tax-wise.
- Salary from a U.S. Company: If you’re an Indian resident directly employed by a U.S. company and getting your salary in India, that salary is taxable in India like any other salary. (If tax was withheld in the US, you may get credit under the India-US tax treaty, so you’re not double-taxed.)
- Personal Gifts/Family Remittances: Money sent as a personal gift or support from family abroad is generally not taxable for the receiver in India, up to a point. If you receive a gift from a close relative (as defined by Indian tax law: spouse, parents, siblings, etc.), it’s entirely tax-free. If it’s from a non-relative (e.g. a friend), amounts up to ₹50,000 in a financial year are also tax-free. But if non-relative gifts exceed ₹50,000 in a year, the entire amount becomes taxable as “income from other sources” for the receiver. (For example, ₹1,00,000 sent by a friend would add ₹1,00,000 to your taxable income in India.) Essentially, ₹50,000 is the annual tax-free gift limit from any one non-relative.
- Double Taxation Avoidance: If you’re providing services to a U.S. client or company, they might ask you to fill out a W-8BEN or W-8BEN-E form. These IRS forms certify that you are a foreign person (not subject to U.S. taxes on the income) and claim any treaty benefits. Submitting Form W-8BEN (for individuals) or W-8BEN-E (for businesses) helps ensure the U.S. payer doesn’t withhold U.S. taxes on your payment (or withholds at a reduced rate) under the India–US tax treaty. It’s important to avoid getting taxed in the US on income that will also be taxed in India. (Skydo provides guidance and even a detailed [W-8BEN guide] to help payers fill this out so you don’t face double taxation.)
In summary, business and freelance income from the US is taxable in India (just like local income), but there’s no GST on exports. Personal transfers (gifts) aren’t taxed unless they’re large and from non-family sources. When in doubt, consult a tax professional – especially if amounts are large. And always fill out your W-8BEN for U.S. clients to protect yourself from unwarranted U.S. tax withholding.
What Documents are Needed to Receive Payments from the USA in India?
Receiving international payments involves a bit more paperwork than domestic transfers. Here are the key documents and details you should have in place:
- Identification Proof: A government-issued ID to prove your identity (and residency/citizenship if required). Usually, a PAN card and an AADHAAR card (or passport) are standard. Banks will require your PAN for any foreign remittance credits for tax recording.
- Indian Bank Account Details: You must provide the sender with your bank account number, the IFSC code of your branch, and the bank’s name and branch address. For SWIFT transfers, you’ll also give the SWIFT/BIC code of your bank. Double-check all account details you share – any error can cause delays or returned funds.
- Purpose Code: Every inward remittance to India for services or exports needs a Purpose Code. This is an alphanumeric code that indicates the reason for the payment (as required by RBI). For example, a software consulting service export might use purpose code P0802. The purpose code is usually mentioned in the transfer or on the invoice you send to your client, and it gets reported in the foreign remittance advice. Using the correct purpose code is mandatory to ensure your payment isn’t held up for compliance reasons. (Your bank can provide you a list of purpose codes; Skydo’s platform auto-tags your transfers with the right code based on what you specify.)
- FIRA (Foreign Inward Remittance Advice): This is a document that proves you’ve received funds from abroad in India. It typically states the amount, currency, sender, purpose, and exchange rate applied. Freelancers, service exporters, and businesses need the FIRA for their accounting and potentially for tax or export incentive purposes. Banks can issue a FIRA upon request for each transaction (often charging a fee of ₹200–₹500 each time. PayPal provides a monthly combined FIRC/FIRA (called an eFIRA or Bank Advice) covering all transactions of the previous month, available by mid-next month. Platforms like Skydo issue a FIRA instantly (and free) for every transaction, downloadable from your dashboard. Always obtain and save the FIRA if you’re exporting services – it’s proof that foreign currency came in, which backs up GST and tax exemptions.
- BRC (Bank Realisation Certificate): A BRC is needed mostly for the export of goods or certain software exports (especially under the SOFTEX scheme). It’s issued by banks as proof that payment for an export shipment was received in India. Nowadays, for services, FIRAs often suffice, and many service exporters (except those registered under STPI/Softex) don’t require a BRC If you’re a freelance developer or service provider not dealing with physical goods, you likely won’t need BRC. If you do need it (say, an IT company with Softex filings), your bank will issue it once you show the export documentation and the inward remittance is received.
- W-8BEN / W-8BEN-E Form: As mentioned in the tax section, if you’re an Indian resident (individual or business) getting paid by a U.S. entity, Form W-8BEN (individual) or W-8BEN-E (company) is crucial. This isn’t something you submit within India, but rather a form you fill out and give to your U.S. client/payer. It contains your name, address, country of residence, and tax identification (PAN), and claims treaty benefits, so the payer knows not to cut any U.S. taxes. Having this in place ensures you receive the full amount (the U.S. payer might otherwise hold back 30% for IRS). Skydo and many payment platforms will remind you about this for U.S. payers.
In practice, setting up to receive a US payment means: have a PAN-linked bank account, know your IFSC+ SWIFT code, determine the correct purpose code, and be ready to request or download the FIRA after you receive the money. If you use a platform like Skydo or PayPal, the platform often helps by auto-generating the FIRA and capturing purpose codes. Still, it’s good to be aware of these requirements so your payment goes through smoothly and you have all the necessary proofs for your records.
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: Choose the transfer method that works best for you.
Decide the best way for the money to be sent based on your needs. For business payments or freelance invoices, a method that provides proper documentation (FIRA) and is fully compliant – like a bank wire or a virtual account service (Skydo, Wise Business, etc.) – is ideal. If it’s a personal transfer (say, family maintenance), an online remittance service or Western Union might be more convenient and just as effective. Consider factors like fee, speed, and ease for your client. For example, a U.S. company might prefer a bank ACH transfer or an international payment platform over having to go physically to a money transfer agent.
Step 2: Provide your bank details or platform information to the sender
Once you’ve chosen the transfer method, give the sender the necessary payment instructions:
- If you’re using Skydo or Payoneer (virtual account), provide your local USA account number and routing number (and any other details the platform specifies) to your client. It will look like a regular U.S. bank account, which is easy for a U.S. payer to use.
- If you opted for a SWIFT bank transfer, share your bank’s SWIFT/BIC code, your account number, the account name (exact name as in bank), and the bank address. Also, communicate the purpose of remittance (e.g. services export) so they or their bank can note it.
- For PayPal, just the email associated with your PayPal account is needed to send you money.
- For Western Union/MoneyGram, you might just need to give your name (as on ID) and city to the sender, then you’ll receive a transfer code to pick up cash.
Always double-check these details before the sender initiates the payment. A typo in the account or a wrong digit in the IFSC/SWIFT can cause lengthy delays or rejections.
Step 3: Wait for the Transfer
Now, the onus is on the banking and payment systems. The time it takes to receive money from the US will depend on the method you chose (as discussed earlier):
- Bank SWIFT transfer: usually 2–5 business days. If it’s been over a week, you might start investigating.
- PayPal or Card payment: PayPal balance updates quickly (within minutes or hours), but moving to your bank takes a few days.
- Wise/Remitly/Xoom: often within 0–2 days. You typically get notifications when the money is en route.
- Skydo/Virtual account: typically, within 24–48 hours, the money is in your Indian bank Account.
- Western Union: If the sender did a cash transfer, it might be almost immediate for pickup.
Most platforms will give you a tracking ability or at least a status update. For example, Skydo’s dashboard lets you track your payments in real time. If a SWIFT transfer is taking time, you can ask the sender for an MT103 receipt (a SWIFT payment confirmation message). An MT103 document shows the transaction reference and the route the money took, which helps trace any delays. (Banks can provide MT103 copies on request, though it might take a few days and a fee; with modern SWIFT gpi tracking, it’s easier to trace where the funds are in real time.)
Step 4: Confirm receipt and obtain FIRA
Step 4: Confirm receipt and obtain necessary documents. Once the money hits your account (hooray!), make sure the amount is correct and check the exchange rate/fees that were applied, if visible. You should then:
- Download or request the FIRA/FIRC from your bank or platform. As mentioned, banks won’t send this automatically – you often have to fill a form or make a request and pay a fee for each FIRA. Payment gateways like PayPal generate a monthly FIRC. Skydo provides a ready FIRA instantly for each payment in your account portal. This document is important for your records, especially during tax filing or any export performance calculations.
- If applicable, note the purpose code and foreign inward remittance number in your records or invoice. This helps in bookkeeping and future reference.
- Confirm with the sender that you received the funds. It’s good practice to drop your client a thank-you note confirming you got the payment, or mark the invoice as paid, etc.
- If something’s off (e.g., you received significantly less than expected), investigate: some fee might have been deducted, or the sender may have sent a different amount. Resolve any discrepancies by contacting your bank or platform support.
That’s it! By following these steps, you ensure you’ve done everything by the book and that your payment is safely in your hands (or account). Now the only thing left is to use your hard-earned money!
Choosing the Best Way to Receive Money from the USA to India
When it comes to deciding which method to use, there isn’t a one-size-fits-all answer. The best option depends on what matters most to you:
- Do you need the fastest possible transfer?
- Are low fees and good exchange rates your top priority (to maximize what you get in INR)?
- Is having all compliance documentation (for business purposes) a must?
- Or do you simply value convenience and ease for you and your client?
Let’s break down the pros and cons of each main route, so you can make an informed choice.
Banks: The Traditional Route:
Using your regular bank is a tried-and-true method for receiving international payments. Every Indian bank – whether it’s SBI, HDFC, ICICI, Axis, or others – can receive SWIFT transfers from the US. This option is familiar and highly secure. However, consider the trade-offs:
- Speed: Slow to moderate. A SWIFT transfer via banks typically takes 2–5 business days to credit your account. Delays aren’t uncommon, especially if multiple intermediary banks are involved or if any information is slightly incorrect. You might find yourself anxiously checking your account for a week.
- Cost and Exchange Rates: As discussed, banks will charge a wire fee (either to the sender or deducted from you) and apply a forex markup to convert USD to INR. On a large payment, this can quietly cost you 2–3% of the amount due to the lower exchange rates. They might also levy ancillary charges: e.g. ₹250 for providing a FIRA, ₹500 for investigating a missing payment (via an MT103 trace), etc. These costs are not always transparent up front.
- Compliance & Documentation: Banks are fully compliant with RBI rules by default, and you can get all the needed paperwork (FIRA, BRC if needed). The catch is, you often have to chase the bank for those documents. It may require physically visiting the branch or raising requests, and paying fees per document. There’s a bit of old-school bureaucracy involved.
- Convenience: Receiving directly in your bank is convenient in that you don’t have to sign up anywhere. But initiating a SWIFT transfer might be a bit of a hassle for your sender (they’ll need your bank details and might have to fill out a form at their bank). For you, dealing with any issues means interacting with bank customer service, which can be time-consuming. If something goes wrong, resolving it can require several follow-ups.
- Use Case: Banks make sense for large businesses or high-value transactions, where perhaps you negotiate better forex rates with your bank. Big exporters sometimes get preferential rates or fee waivers from their relationship banks. Also, some conservative clients (or government clients) may insist on transferring directly to a bank account.
In short, Banks are reliable and safe, but you often sacrifice speed and money (in fees/forex) for that comfort. If you value security above all and don’t mind the costs and waiting, banks are fine. Just be ready to prod them for paperwork and watch out for hidden charges.
PayPal and other Payment Gateways: Convenient But Pricey
PayPal is one of the most popular ways to receive international payments, especially for freelancers, developers, and small exporters dealing with US clients. Many American clients are familiar with PayPal and like the buyer protection it offers. Other payment gateways include Stripe (for credit card payments, if you have access), Razorpay (an Indian gateway that allows international cards), and so on.
Why people use PayPal: It’s extremely easy. All the sender needs is your PayPal email, and they can pay with a few clicks (using their card, bank, or PayPal balance). The money shows up in your PayPal account almost instantly once sent. There’s also a sense of security in using a known platform.
Things to note:
- High Fees: As detailed earlier, PayPal charges a 4.4% transaction fee plus a small fixed fee. For example, for a $500 payment, Transaction fees could be around $20. Stripe also charges a 4.3% transaction fee, meaning the fees on a $500 payment would be roughly the same.
- Withdrawal Delays: Even though your PayPal account is credited quickly, transferring the money from PayPal to your Indian bank can take 3–5 business days. It’s not immediate, because PayPal processes batched withdrawals.
- Exchange Rates: On top of the transaction fee, PayPal and other gateways usually also levy a forex markup or conversion fee. PayPal, for example, adds a 4% forex markup, and Stripe levies a 2% markup.
- FIRA/Compliance: PayPal does provide a monthly Foreign Inward Remittance Certificate (FIRC) covering all transfers. But this is only available by around the 15th of the next month, which might be too late if you immediately need proof of a particular payment. It’s also aggregated, which is slightly inconvenient if you need a separate document per transaction. Stripe doesn't offer FIRA; instead, it offers a payment advice, which you need to take to the bank to get your FIRA
- Limits: PayPal has some internal limits (e.g., $10,000 per transaction for business accounts receiving, and a cap on how much can be received in a year unless you provide additional info). Stripe, on the other hand, has become invite-only in India and is not currently open to all Indian businesses
Use Case: PayPal is ideal for small transactions and client convenience. If you’re doing a $200 job, losing a bit in fees might be acceptable for the ease. It’s also good when your clients insist on paying by PayPal only, since they are familiar with it.
Summary: PayPal and similar gateways make getting paid as simple as sharing an email link, which is fantastic for quick jobs or first-time clients. Just go in with eyes open about the fees. If you start scaling up (receiving large amounts), you’ll definitely want to switch to cheaper methods to avoid leaving a lot of money on the table.
Online Remittance Platforms
There are numerous online remittance services tailored for sending money internationally, often used by individuals sending money to family. Examples include Western Union, MoneyGram, Remitly, Ria Money Transfer, Xoom (by PayPal), and so on. While these are usually discussed from the sender’s perspective, it’s good to know how they affect you as a recipient:
- Speed: Many of these services are extremely fast. Western Union and MoneyGram can make funds available in minutes for pickup in India. Remitly has an “Express” option (for a higher fee) that delivers money to Indian bank accounts within minutes or hours, or a cheaper option that takes 3–5 days. Wise (for personal transfers) often deposits within a day or two. So speed is a big plus, especially in emergencies.
- Receiving Options: With Western Union/MoneyGram, you can often get cash in hand by going to a local agent (like certain banks or post offices). This is useful if the receiver doesn’t have a bank account or needs physical cash. Most others (Remitly, Xoom) deposit directly to your bank account or even digital wallets or UPI. For instance, Xoom can deposit to certain bank accounts in hours, and some services even allow UPI ID transfers now.
- Cost: These services charge the sender a fee, but often the exchange rate is competitive compared to banks. For example, Remitly might charge ~$4 for sending, or even waive fees above a certain amount, and give a rate only slightly below market. Western Union might have a low fee like $1–2 on large transfers, but then give a rate that’s a rupee or two less than market (that’s how they earn). Typically, for personal use, the total cost of ~2-4% of the amount is common.
- Documentation: Since the platforms are mostly meant for personal transfers, they donot offer compliance documents like FIRA.
Use Case: If a relative in the USA is sending you money for your birthday, by all means have them use a remittance app – you’ll likely get a good rate and quick service. But if a client is paying you for a project, it’s better to opt for a more business-oriented channel where you have a paper trail.
Virtual International Bank Accounts: A Modern Solution for Businesses
This method bears repeating because it’s relatively new and extremely beneficial for certain users. Virtual international accounts (offered by companies like Skydo, Wise Business, Payoneer) allow you to have banking details in foreign countries without actually opening a bank account abroad. For receiving money from the US, you’d use the U.S. account details provided.
How it works: Suppose you sign up for Skydo or Wise. They’ll give you something like: Bank name (in the US), Routing number, Account number, and even a bank address. You give these to your US client. When the client sends an ACH or domestic wire, it lands in the platform’s pooled account but is tagged to you, and then the platform converts and forwards INR to your Indian account, or keeps it in the wallet as you prefer.
Advantages:
- Super Fast: Since the incoming leg is just a local US transfer, it often clears the same day or next. Skydo, for example, often credits INR to you within 24 hours of the client’s payment. Wise too takes 1–2 days. This is much faster than an actual SWIFT international transfer.
- Low Cost & Mid-Market Rates: Platforms like Wise and Skydo use mid-market exchange rates (the fairest rate). Wise takes a transparent cut (as a fee ~1.5%). Skydo charges a flat fee as described. There are no intermediary bank fees, no SWIFT fees.
- Full Compliance: You get FIRA/FIRC documents seamlessly. For example, the moment a Skydo transfer is completed, you can download the FIRA for that transaction. It contains the required RBI purpose code and all details, just like a bank’s FIRA would. This means no difference compliance-wise between this and a direct bank transfer – except you didn’t have to individually request anything or pay extra for the certificate.
- Convenience: It’s all online. You have a dashboard to track payments. Some platforms even give real-time status (Skydo has a payment tracking feature so you can see if the US client’s payment has reached the US account, if it’s being converted, etc., similar to tracking a package). It takes the mystery out of waiting for funds.
Any cons?
The main consideration is that both you and your client might need to be comfortable using a newer platform. There’s a bit of education if they haven’t paid into a virtual account before (though for them, it’s as simple as paying into a new bank account). Also, these platforms typically require you to complete KYC (Know Your Customer) on sign-up – providing your PAN, business details, etc. – since they are handling foreign exchange and must comply with regulations. This is usually a one-time process.
Plus, check for the fees and exchange rate offered by the said platform. Remember, any forex markup can significantly eat into your income.
Use Case: Virtual accounts shine for freelancers, consultants, service exporters, and SMBs who receive frequent payments from abroad. They let you avoid the SWIFT fees and poor rates of banks, and avoid the high fees of PayPal. Essentially, it maximises what arrives in your pocket along with seamless compliance and ease.
To put it simply, this is the modern way to receive money internationally: it’s fast, fairly priced, and hassle-free once you set it up.
Which Platform Should You Use to Receive Payments from the US?
We’ve discussed many options. Here’s a quick recap for different scenarios:
- Banks (SWIFT transfer): Best for large companies or very high-value transactions that require maximum security. It’s reliable and goes directly into your bank. But it takes 3–7 business days, and you lose some money to SWIFT fees and exchange spread. Good if you have a relationship with the bank to minimise those costs, otherwise not the cheapest.
- PayPal (or Stripe): Best for convenience and small amounts, or Stripe for those needing special integrations. It’s widely accepted by clients, and setup is instantaneous. However, fees are very high (up to ~8%) and actual settlement to your bank can still be slow (a few days). Ideal for occasional freelance jobs or selling digital goods to US customers, where buyer trust and ease are more important
- Dedicated Remittance Services (Western Union / Remitly / etc.): Best for personal remittances (family maintenance, gifts). They can also work for one-off business payments if time is of the essence, but generally not suitable for ongoing business receipts due to a lack of documentation. They are fast and okay on rates, but your accountant might frown if you have no FIRA to show for that credit in your account.
- Virtual Account Platforms (Skydo, Wise Business, Payoneer): Best for freelancers, small-to-medium businesses, and export service providers. They hit the sweet spot: 24–48 hour settlement, no hidden fees, often the lowest overall cost, and they handle compliance (giving you the documents you need). They are essentially built for this very purpose. Among these, each has its niche: Payoneer is commonly used in certain freelance marketplaces, Wise is known for ease and personal use crossover, and Skydo is specialised for Indian export businesses with features like flat fees and instant FIRA.
For most readers of this blog (Indian freelancers, agencies, service exporters), the likely winners are either virtual account services or PayPal, depending on your priorities. If you want to maximise earnings and get money fast, a virtual account service like Skydo or Wise will serve you best. If you prioritise client convenience for small jobs, you might still use PayPal occasionally.
One more thing: Don’t be afraid to offer multiple options to your client. A lot of US folks generally prefer to pay by credit card. That's why Skydo now lets you accept credit card payments from your US clients, along with virtual account support. All you need to do is create and send a simple payment link to your client, and they can choose to pay by credit card or net banking, and you get your payment at live forex rates and free FIRA. So you can share the option of paying via virtual account, as well as via card, and your client can pick which is more preferable for them.
To help you decide, here’s a comparison of key factors across the main methods:
| Banks | Payment Gateway | Virtual Account | |
| Settlement time | 2–7 business days | 1-5 business days | 24-48 hours |
| Fees | SWIFT fee ₹500–₹1,000 + 2–4% hidden forex markup (bank’s rate) + other charges | Paypal fee: 4.4% fee+fixed fee+ 4% currency conversion feeStripe: 4.3%+2% currency conversion | Low, transparent fees. No SWIFT charges. Skydo: $19 or $29 flat (upto $10k), 0.3% for >$10k mid-market FX rate (0% markup). Wise: ~1.6% fee, mid-market rate |
| Compliance | Fully compliant, but you must request FIRA from bank (often ₹200–₹500 charge each time) | Monthly FIRA by PayPal, FIRA not offered by Stripe | FIRA provided for each transaction automatically Wise charges a small fee for FIRA Skydo/Payoneer provide free. |
| Usability | Process can be cumbersome; sender fills bank forms, and you deal with bank for any issues. May require follow-ups for paperwork. | Very user-friendly; just share an email or payment link. Payer can use cards easily. Interface is simple. | Modern online platforms with dashboards; real-time tracking of payments; one-time setup of account. Very convenient once set up. |
| Suited for | Large enterprises, high-value corporate transactions, or those prioritizing traditional banking security. Also if you have negotiated forex rates (e.g. exporters with bank’s treasury). | Small online businesses, one-time freelance projects, situations where client insists on card payments or a familiar platform. Good for sub-$500 payments or e-commerce. | Freelancers, consultants, and SMBs who frequently get paid from overseas and want to maximize speed and net amount. Ideal for $500+ invoices, repeat clients. Also great for startups/IT services exporting globally. |
(The above table summarises typical scenarios; individual experiences may vary based on the exact bank or service used.)
Which platform offers the lowest fees for USD transfers to India?
Every provider markets itself as “low fee” or “best rate,” so it can be confusing to identify the truly cheapest way. The reality is that many Indian freelancers and businesses lose money unknowingly when receiving USD payments due to a few culprits:
- SWIFT and intermediary bank deductions: You might be expecting $1,000, but only ₹81,000 shows up when it should be ₹84,000 – because $15 disappeared in transit fees and a ₹2/$ markup.
- Forex markup by banks/gateways: This is the silent killer – a difference of even 2-3 rupees less per dollar means 2–4% of your money is gone.
- Inward remittance service charges: Some banks charge, say, ₹200 on each foreign credit beyond the exchange loss. Payment processors have their percentage fees.
When someone advertises “0% fee” or “cheap transfer,” ensure they aren’t making up for it in the exchange rate. For instance, a service could say “No transfer fee!” but then give you ₹80 per $ when the market is ₹84 – effectively charging ~5% through the rate.
Currently, the cheapest way to receive money from the USA to India is to use a platform that gives you the real exchange rate and charges only a small, transparent fee. In practice, this means virtual account services like Skydo or Wise Business, as well as certain specialised remittance fintechs, will beat banks and PayPal on cost. These services avoid the SWIFT network and its fees altogether, and they don’t pad the exchange rate.
To answer directly: Skydo is one of the most cost-effective platforms for receiving USD payments in India. It offers:
- Local USD receiving accounts – so no SWIFT or intermediary charges at all
- Credit Card Support: With Skydo's instalinks, you can also send a payment link to your US client, and they can pay you via credit card or net banking
- Mid-market exchange rate with zero markup – you get the same rate you see on Google or XE.com, capturing the full value, even for credit card payments
- Easy Compliance: Free instant FIRA for every transaction
Many Skydo users find they retain ~2–4% more of their earnings compared to using their bank or PayPal. Over the course of a year, that could be tens of thousands of rupees (or more) saved for an individual freelancer, and lakhs for a small business.
In summary, if low fees are your primary goal, avoid traditional banks and high-fee wallets, and opt for a modern transfer service where everything is transparent. It’ll put more money in your pocket from each US payment.
What is the cheapest way to receive money from USA to India?
Using virtual account platforms like Skydo or Wise is the fastest. They let US clients pay locally via ACH, and funds reach your Indian account within 24–48 hours, without SWIFT delays.
Do I need a SWIFT code to receive money from the USA?
Are there tax implications for receiving money from the USA?
Can I track my money transfer from the USA to India?
Can I receive USD in my Indian bank account?
Is PayPal a good option for US to India transfers?
Best Platform to Receive USD Payments in India?
How can Indian developers get paid from US clients?
Do I need a W-8BEN form to receive payments from the US?
