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: 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 USA in India?
When receiving payments from the US, ensure you have the following documents and meet these compliance requirements:
- Identification proof: Any government-issued document that proves you’re a citizen of the country falls in this category. So your Passport, Aadhar Card and Voter ID will qualify.
- Bank account details: Your bank name, account number, branch location, and IFSC code are the three most important information you must share with the remitter to receive foreign inward remittance
- Purpose Code: A purpose code is an alphanumeric code that identifies the reason for each international transaction. For example, if you're a tech service provider receiving payment from your US clients for providing software consultancy, you should use code P0802. Note that quoting the correct purpose code on your invoice is mandatory to avoid delays or rejections.
- FIRA (Foreign Inward Remittance Advice): This document proves you’ve received funds from abroad. It’s essential for freelancers, service providers, and exporters for tax filings and compliance.
- BRC (Bank Realization Certificate): If you’re exporting goods or software that come under SOFTEX, you may need a BRC to validate that payments align with exports. However, freelancers and general service providers including many software exporters outside this category typically don’t require it.
- Form W8BEN and W8BEN E: Form W8 BEN and Form W8 BEN-E are crucial for Indian residents and businesses earning income from U.S. clients. These IRS forms ensure you don’t pay more tax than necessary by letting you claim reduced withholding rates under U.S. tax treaties. Here’s a detailed guide on how to fill Form W8BEN and W8BEN E as an Indian individual or business.
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
- Banks: Best for large businesses; offers personalised service but takes 3–7 business days and includes SWIFT fees.
- PayPal: Convenient for freelancers; widely accepted by US clients, but high fees and settlement in up to 5 business days.
- Virtual Accounts (Skydo, Wise, Payoneer): Great for SMEs and freelancers; faster settlements in 24–48 hours with no SWIFT fees.
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:
| Banks | Payment Gateway | Virtual Account | |
| Settlement time | Upto 7 business days | 1-5 business days | 24-48 hours |
| Fees | SWIFT fee+ forex markup+ ancillary fee | Paypal fee: 4.4% fee+fixed fee+ 4% currency conversion feeRazorpay Fee: 3% | No SWIFT fee. Skydo charges $19 (<$2,000), $29 ($2,001–$10,000), 0.3% (>$10,000). |
| Compliance | 100% compliant but have to separately request and pay for FIRA | FIRA provided | Digital FIRA provided |
| Usability | Can be time consuming and Frequently requires followups | Easy to use, User friendly interface | New age platforms providing seamless User experience |
| Suited for | Big businesses with large payment volume | Online businesses, ecommerce, freelancers | small to medium businesses and freelancers |
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:
- SWIFT and intermediary bank deductions
- Forex markup (typically 2–4%)
- Inward remittance fees
Traditional banks and platforms often advertise low fees but make up the difference by offering poor exchange rates or applying hidden charges.
Skydo stands out by offering:
- Local USD accounts to avoid SWIFT/intermediary fees
- Live mid-market exchange rate with no markup
- Flat, transparent fee, no hidden deductions
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.
What is the cheapest way to receive money from USA to India?
The cheapest way to receive money from the USA to India is through platforms that offer mid-market exchange rates with low, transparent fees, such virtual accounts like Skydo and Wise. These services avoid SWIFT charges and forex markups applied by banks, helping you save up to 2–4% per transfer compared to traditional methods.
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?
