How to Receive Money from USA to India (Fast & Safely)

As per the World Bank, 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. 

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, wire transfers from USA to India can take upto 5 business days. This is because the SWIFT network involves multiple intermediary banks, and delays can occur due to bank holidays, incorrect details, or currency conversions.

In the case of PayPal,  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. 

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,  for instance, Wise allows up to $10,000 per invoice.

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

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

SWIFT transfers from the US via banks will invite SWIFT fees, which may range from ₹500 to ₹1,000 per transaction. The most important thing to look out for, however, is forex markup. 

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. 

PayPal and Payment Gateway:

PayPal charges 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.

Virtual International Accounts

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 live forex rates with zero markup. 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:

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,  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 following documents 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: 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. 

Step 2: 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.

Step 3: Wait for the Transfer

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. 

Step 4:  Confirm receipt and obtain FIRA

If you are receiving a payment from the US, you need to obtain FIRA 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. 

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: The Traditional Route:

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: 

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. 

PayPal and other Payment Gateways: 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 5 business days to reflect in your bank account.PayPal’s fees 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.

 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.

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

Online Remittance Platforms

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.

Payoneer charges 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.  

Wise charges 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. 

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. 

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. 

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:

Receive Payments From the USA to India Effortlessly with Skydo

For freelancers and businesses working with US clients, navigating international payments can often feel like a hassle. That’s where Skydo steps in, making the process simple, cost-effective, and seamless. Setting up an international virtual account with Skydo takes just five minutes, giving you access to markets like the US, Europe, Singapore, and Australia without the complexities of traditional banking.

Skydo eliminates hidden fees and currency markups by offering live Forex rates, ensuring you get the best value for your hard-earned money. Compliance is a breeze too—you’ll receive instant FIRA downloads after every transaction, keeping you aligned with RBI regulations without any extra effort. Furthermore, in January 2025, Skydo received in-principle authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator-Cross Border (PA-CB) entity ensuring the highest level of compliance and security.

And to make things even better, you’ll have a dedicated representative ready to assist whenever you need support.

If you’re tired of high fees, slow settlements, and complicated processes, Skydo is the smarter choice for receiving international payments. Focus on growing your business while Skydo handles the rest!