Inward remittance means receiving money from abroad in your bank account in India. However, inward remittance, especially foreign payments aren't as straightforward as a domestic transfer due forex rate, RBI guidelines and international systems.&nbsp; In this blog, we’ll break understand what inward remittance is, what are the rules, charges, and timelines around it. So let us begin!&nbsp;&nbsp;

Inward remittance is simply money sent to your bank account in India from someone living abroad. It could be funds from an NRI family member helping with education or medical bills, or even a foreign employer or client paying your salary or invoices.

The money arrives in foreign currency and gets converted into Indian Rupees at the current exchange rate. Whether it’s personal support or business payments, understanding how inward remittance works makes it easier to manage and maximize what you receive.

What are the Rules and Guidelines for Receiving&nbsp; Inward Remittance in India?

Since inward remittance involves movement of money across national borders, it comes with its own set of rules and guidelines.&nbsp;In India, the RBI and <a href="https://enforcementdirectorate.gov.in/fema">FEMA</a> (Foreign Exchange Management Act) have set out <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">specific guidelines</a> for receiving inward remittances in India:&nbsp;

<a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">&nbsp;Only Authorised Dealer Category I&nbsp;</a>(AD Cat I) banks are allowed to receive foreign inward remittances in India.&nbsp; The AD Cat I banks are financial institutions that hold a license issued by the Reserve Bank of India (RBI) to buy and sell foreign currency for capital and current account transactions.

Each foreign inward remittance must contain a<a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance"> purpose code.</a>&nbsp;The code defines the purpose of inward remittances like education, investments, remuneration, travel, insurance and more.&nbsp;For example:

If your inward remittance is payment for selling goods/services abroad then it must be accompanied by an FIRA. <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA&nbsp;</a>is proof that you have received a <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">foreign payment </a>in India and is issued by the AD Category I banks.

Transfers related to lottery winnings, gambling, and other illegal activities are prohibited under FEMA guidelines.

For most foreign inward remittances, there’s no<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#do-you-have-to-pay-tax-on-remittance"> tax liability</a> in India. However, if the remittance is income from sources like investments, salary, or business, it will be taxed according to your applicable income tax slab rate.

We've briefly touched on the compliance requirements associated with inward remittance. You can find the <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">detailed explanation of the compliance requirements here</a>

What Documents Are Required for Receiving Inward Remittance in India?&nbsp;

While receiving your inward remittance, you may need to furnish the followig documents

You fall into this category if you’re an exporter, freelancer or someone who provides services to international clients. Here’s the document list:

You can find a detailed explanation of the<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#what-are-the-documents-required-for-inward-remittance-in-india"> documents required for inward remittance in India right here</a>

How Do You Receive Inward Remittance in India?

There are three primary means to receive foreign inward remittances in India:

Let’s explore each medium and the steps in collecting inward remittances in India.&nbsp;

Banks are one of the most popular ways of transferring money from overseas to India. To receive inward remittance you must share your Indian bank account details like account number, bank and branch name, and <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT code</a> with the sender. You can find the<a href="https://www.skydo.com/swift-code-finder"> SWIFT code of your bank right here.&nbsp;</a>

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal supports</a> over 100 currencies and has gained popularity in India as a medium to receive inward remittances. You can use the PayPal website or download their app to receive foreign remittances. Link your bank account to PayPal, so that you can withdraw money when you like.

I<a href="https://www.skydo.com/blog/virtual-account-numbers">nternational virtual accounts</a> are like digital gateways linked to your real bank account. They don’t store money themselves—when funds are credited, they’re transferred to your bank account. With platforms like Skydo, you can use virtual accounts to receive payments in different foreign currencies, making cross-border transactions simple and hassle-free.

The cost of processing inward remittances varies across banks and can include charges like SWIFT fees, forex markups, and additional service fees. For business payments, it’s crucial to understand these charges, as they are often borne by the recipient.

Here’s a breakdown of inward remittance charges at popular Indian banks:

Understanding these fees can help you plan your payments better and avoid unexpected deductions.

PayPal Charges for Receiving Inward Remittance

PayPal also comes with a hefty price tag for receiving foreign remittances in India especially when it comes to business payments. It charges a flat 4.4% transaction fee on every transaction. Additionally, you have to bear a fixed fee, which depends on the currency and a currency conversion fee of 4% on the current exchange rate. To get an in-depth explanation of each charge, check out our blog on<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives"> PayPal India Charges</a>.

International virtual accounts Charges for Receiving Inward Remittance

Virtual accounts do not charge SWIFT fees because it’s treated as a local transfer making it a more affordable option. Here’s a quick breakdown of how much Skydo charges for receiving international payments via virtual accounts:&nbsp;

With Skydo, for payments up to USD 2,000, you pay $19. For payments between 2,000 to 10,000, you pay $29 and for payments above USD 10,000 only 0.3% fee is levied. So for a USD 5000 inward remittance, you can expect to receive INR 5,424 more compared to banks and INR 32, 862 more compared to PayPal.

Is There Tax on Inward Remittance in India?

Are you supposed to<a href="https://www.skydo.com/blog/decoding-gst-on-foreign-exchange"> pay taxes on inward remittances</a>? According to the income tax rules for international remittances, it depends on the purpose of the remittance. We have covered three different scenarios to give you a snappy overview:

Find out <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">how to receive foreign payments in India.</a>&nbsp;

How Much Inward Remittance is allowed in India?

According to the framework set by RBI for<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> Online Payment Gateway Service Providers</a> (OPGSP), there are no limitations on personal transfers.&nbsp; However, <a href="https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx?Id=1692#:~:text=There%20is%20no%20limit%20on,lakh%20for%20trade%20related%20transactions.">as per RBI</a>, there is a cap of INR 15.00 lakh for trade-related transactions.

Receive Business Inward Remittance Seamlessly with Skydo

For an exporter or a freelancer, paying hefty charges for inward remittances is a huge loss to their earnings. They deserve a platform that offers transparent pricing and advanced features for invoicing.<a href="https://www.skydo.com/"> Skydo</a> fits the requirements perfectly and is a trusted partner for business owners looking to scale their revenue from international clients.

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Foreign Remittance in India

SWIFT money transfer is the most popular way to send and receive money across borders.&nbsp; The Society for Worldwide Interbank Financial Telecommunications (SWIFT), a member-owned cooperative, ensures secure and reliable transactions worldwide. It is important to understand that SWIFT is not a bank that holds money. Rather it is a messaging network that facilitates the movement of funds across borders.&nbsp;

 In this blog, we’ll understand how SWIFT operates and its significance in global payments, as well as explore faster and more cost-effective alternatives.

What is SWIFT Money Transfer and How Does it Work?

Back in 1973, 239 banks came together to create SWIFT—a secure messaging network that helps banks communicate and process international transactions smoothly.

It is like a global banking language that ensures money transfers happen safely and efficiently across borders. Today, most countries rely on SWIFT for secure cross-border payments.

In simple terms, when you hear "SWIFT money transfer," it’s just another way of saying an international wire transfer that happens through the SWIFT network.

Let’s break it down with an easy example!

Say you're an exporter in Bangalore with an Axis Bank account, and a US client wants to pay you via SWIFT. They’ll need your account number and branch-specific SWIFT code.&nbsp;

The client’s bank, Bank of America, sends a secure SWIFT message to Axis Bank, instructing them to process the payment. Once received, Axis Bank credits the amount to your account

A SWIFT code is a unique 8- or 11-character alphanumeric identifier assigned to banks and financial institutions and it is a very important aspect of SWIFT money transfer. It contains essential information about the institution’s country, location, and branch.

Here is the breakdown of two SWIFT codes for a better understanding:&nbsp;

SBININBB101: This unique code refers to the State Bank of India’s Mumbai office. "SBIN" is the bank code, "IN" stands for India, "BB" indicates Mumbai, and "101" denotes the branch in a specific locality.&nbsp;&nbsp;

DEUTDEFF500: This SWIFT code belongs to Deutsche Bank's Frankfurt branch in Germany. "DEUT" represents the bank, "DE" is for Germany, "FF" signifies Frankfurt, and "500" indicates the specific branch at Bad Homburg, a town in the Frankfurt region.&nbsp;&nbsp;

&nbsp;SWIFT money transfers are widely regarded as safe. The SWIFT network is trusted globally for secure international financial transactions. Here's why:

Strong Encryption: SWIFT uses encryption to protect your transaction details, making sure that only the intended bank can see the information.

Tight Access Control: Not just anyone can use the SWIFT network—only verified banks and financial institutions have access, minimizing the risk of unauthorized transfers.

Global Trust: SWIFT adheres to international regulations, which helps ensure that your transfer is handled according to the highest standards.

Fraud Monitoring: The system constantly monitors for unusual activity to help prevent fraud before it happens.

While the SWIFT network is highly secure, it's crucial to double-check the details you provide to avoid errors or delays.

Step-by-Step Process of Making a SWIFT Money Transfer

Making a SWIFT transfer is similar to a local bank transfer but requires some extra details. Here’s how to do it:

Contact your bank or log in to your online banking portal to start a SWIFT transaction. You’ll need to provide the recipient’s name, bank name, address, unique SWIFT code, currency, and the transfer amount.

Your bank will verify the details and check if you have sufficient funds.

Once everything is verified, the bank will debit the amount from your account and provide a confirmation message or reference number.

The funds are then sent via SWIFT to the recipient’s bank. After verification, the recipient's bank will credit the amount to their account.

What Are the Charges for a SWIFT Money Transfer?

Broadly, <a href="https://www.skydo.com/blog/why-was-a-certain-amount-deducted-from-my-swift-payment">SWIFT charges</a> can be broken down under the following heads:

It's important to clarify that SWIFT&nbsp; fees vary by bank. Each institution sets its own charges for outward transfers. Here are some popular Indian banks and their SWIFT charges:

<a href="https://www.icicibank.com/personal-banking/accounts/outward-remittance/wire-transfer?no_follow=true">Source</a>

<a href="https://www.hdfcbank.com/personal/pay/money-transfer/remitnow/fees-and-chargesno_follow=true">Source</a>

PNB’s SWIFT money transfer fee stands at INR 500 + GST. However, it is worth mentioning that additional commissions ranging from INR 500-1000 may also be levied depending on the amount that is being sent abroad.&nbsp;

Yes Bank’s charges for SWIFT money transfers depend on the type of savings account you have. The following table shows the different types of YES savings accounts and their corresponding SWIFT charges:

How Long Does a SWIFT Money Transfer Take?&nbsp;

While <a href="https://www.swift.com/news-events/press-releases/swifts-cross-border-payments-processing-speed-surpasses-g20-target" target="_blank">SWIFT claims</a> that 89% of international transactions are processed within an hour, that doesn't tell the full story. The clock only starts when the sender’s bank sends the payment to the SWIFT network and stops when the receiver’s bank acknowledges it. After that, your bank will contact you for ‘disposal instructions.’ This may require you to submit documents, fill out forms, or deal with forex rate fluctuations. As a result, the entire process can take up to 5 business days or more, with additional delays caused by factors like:

Therefore, it is always a good idea to double-check relevant information to receive your SWIFT payments in a timely manner.

SWIFT vs. Other Money Transfer Methods: Which is Better?

While the SWIFT payment system is the go-to for cross-border money transfers, its high costs and longer processing times have prompted businesses to seek alternatives. One viable solution is i<a href="https://www.skydo.com/blog/virtual-account-numbers">nternational virtual bank accounts.</a> Platforms like Skydo offer businesses free virtual accounts in major regions, including the US, UK, Europe, Canada, Australia, and Singapore. These virtual accounts operate like local bank accounts, allowing businesses to receive payments via local transfers instead of incurring SWIFT fees.

For instance, if your client is in the US, they can make a local transfer to your US-based virtual account, avoiding SWIFT fees and delays. Skydo consolidates these payments and transfers the funds to India at live forex rates, ensuring exporters receive the full amount without losses from unfavourable exchange rates. The converted funds are deposited directly into your local Indian bank account within 48 hours, providing a fast, cost-effective, and transparent alternative to SWIFT.

In conclusion, while SWIFT money transfers remain a popular choice for international transactions, alternative solutions like virtual bank accounts offer speed and cost savings. Consider switching to Skydo for a seamless payment experience.

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SWIFT Money Transfer Guide 

ACH is one of the most popular electronic payment methods in the US. In 2023, it processed an astonishing <a href="https://www.nacha.org/news/ach-network-records-strong-growth-2023-same-day-ach-surpasses-3-billion-payments-inception">31.5 billion</a> electronic transactions. While ACH is popular for domestic payments, it can also be used for international transfers. If you’re an Indian exporter or a freelancer with US-based clients, you can receive payments from them via ACH.

But what is ACH exactly and is it cheaper than wire transfer to receive payments? Join us as we answer that and a lot more in this detailed blog post

ACH's full form is Automated Clearing House. It's also called Automated Clearing House Network because it can process a comprehensive list of electronic financial transactions like bill payments and ACH direct deposits in the US. The<a href="https://www.nacha.org/"> National Automated Clearing House Association (NACHA)</a> based out of Reston, Virginia is the governing body of ACH and oversees the electronic fund transfer system.

ACH payments have a wide purpose beyond bank-to-bank transfers. Let's look at a few of the types of ACH payments in this section:

With the ACH network, you can pay bills online and automate recurring expenses like utility bills, rent, and subscriptions. This way your bills get paid on time without worrying about when is the next bill due for payment. For example, you can authorize the electric utility company to deduct the bill amount each month from your bank account.

<a href="https://www.skydo.com/blog/everything-about-ach-payments">ACH payments</a> and payroll processing work great together. It's a huge relief for businesses because employees get their salaries credited to their bank accounts on time. For example, a company running its payroll every two weeks can directly deposit the due amount to the employee's account on payday.

The IRS uses ACH to credit tax refunds to the taxpayer's bank account directly. It's a quicker and more secure alternative to processing tax refunds using paper checks. In the same way, you can also use ACH to pay taxes electronically and stay compliant with the tax laws.

Loan repayments are another popular example of ACH payments. You can set up automatic withdrawals for loan repayment instalments so that the mortgage lender gets paid on time and you avoid late payment penalty charges.

Deposits Into An Individual Retirement Account (IRA)

If you're planning to contribute to your Individual Retirement Account (IRA) consistently, then ACH transactions are a great choice. Using this option, you can contribute funds from your account to your IRA account and build the corpus over time.

Using ACH for daily business transactions like paying vendors or receiving money from customers is also common. For example, if a business gets a $2,000 invoice from their vendor, they can authorize an ACH transfer so that the funds are settled quickly. There is no need to manage checks or cash to make the payment.

There are two broad types of ACH transfers: ACH direct deposit and ACH direct payments.

In this type of ACH transfer, the funds are electronically deposited into the recipient's bank account. This is most commonly used by a business and government entity to transfer money into consumer's accounts.

Here's a list of the most popular ways of using ACH Direct Deposits:

Paychecks: Businesses use direct deposit to process payroll payments of employees. Salary is credited to their employees' bank accounts according to the payday

Employer-Reimbursed Expenses: Apart from salary, businesses also use direct deposit to reimburse their employees if they have incurred expenses for work-related activities

Government Benefits: Government benefits like disability payments or unemployment compensation are directly credited using this transfer method

Tax Refunds: If a taxpayer is liable for tax refund, they have the option to receive the amount directly to their checking or savings account using ACH direct deposit

Annuity Payments: Annuity payments are made to investors at a set interval consistently. You can ask the insurance or the asset management company to use ACH to transfer the annuity to your account directly

Interest Payments: Similar to insurance companies, banks also make interest payments using the ACH direct deposit route.

Individuals, businesses or other entities use ACH Direct Payments to make payments from their bank account directly. This is a popular technique for making bill payments and loan repayments.

Here's the expanded list of the most popular ways of using ACH Direct Payments:

Bill Payments: With the user having the freedom to set automatic payment instructions, ACH direct payment is the most popular way to manage recurring expenses like utility or credit card bills

Vendor Payments: Businesses use ACH to pay their vendors and suppliers. The money is directly cut from their account and credited to the receiving bank account without manual work

Charitable Donations: Many charitable organizations give donors an option to set ACH direct payments to make money transfers consistently.

Online Purchases: If an online retailer accepts ACH direct payment, then you can complete the transaction by paying the money directly from your bank account.

There are two ways to make payments using ACH: one-time payments and ACH mandates. Let's understand each of them individually:

One-time payments are single transactions initiated when you receive the notification for bill payment. For example, when you receive a credit card statement, you decide how much to pay and then authorize the amount to be deducted from your bank account.

ACH mandate is useful when the billing amount is fixed and recurring. As you know how much amount will be auto-debited from your bank account, you can enter into a recurring payment arrangement with the billing company. In this payment arrangement, you authorize the company in advance to deduct the amount from your bank on a specific date. This is useful for paying regular expenses like car loans, mortgages or subscription services.

What Are The Charges For ACH Payments and Transfers?

Typically, you don't have to pay any charges for ACH payments and transfers. However, some service providers can charge fees for initial set-up. If you're receiving money in India through ACH bank debit, platforms like<a href="https://www.payoneer.com/en-in/about/pricing/"> Payoneer</a> can charge a 1% fee on the amount. Other payment platforms like Skydo, allow you to receive money in India through ACH bank debit without any additional cost.

ACH return charges are levied when the funds return to the originator's account for reasons like not having enough balance, incorrect account information or non-existent accounts. The charges for debit returns differ from one bank to another but typically range between $2 to $5. However, a bank may charge even more in case of repeated returns.

What Are The Advantages Of ACH Transfers?

ACH transfers come with a long list of advantages, but here are the top three that you must know:

Using ACH direct deposits and direct payments are mostly free for individuals. Even for businesses, ACH is a cost-effective technique for managing payments and receiving money from others. According to the NACHA, ACH costs businesses between<a href="https://www.nacha.org/news/ach-costs-are-fraction-check-costs-businesses-afp-survey-shows"> $0.26 to $0.50</a> which is a lot less than issuing checks which costs between $2.01 to $4.

In ACH transfers there are no physical transfers of money or checks involved, so there is less risk for theft or loss. Besides there are ample security measures implemented like following strong encryption to protect sensitive information. There are other protocols like Multi-Factor Authentication (MFA) which adds an extra layer of security to protect your data from unauthorized access from bad actors.

Traditional ACH transfers take one or two business days to process. Banks and other financial institutions have also started offering the<a href="https://www.nacha.org/same-day-ach"> Same Day ACH</a> for making bill payments or receiving money up to $1 million on the same day. The swiftness of the ACH infrastructure is mostly beneficial for businesses as they can make urgent payments or have better control over managing funds.

What Are The Disadvantages Of ACH Transfers?

ACH transfers also come with a list of disadvantages, here are the top three:

Banks and other financial institutions usually impose transaction limits on ACH transfers. These limits can vary as daily, weekly or monthly depending on the institution. If your ACH transfers hit that limit, you are not allowed to make further transactions within the specific time frame

Penalty for frequent transfers and breach of limit

In addition to transaction limits, the bank or financial institution may impose other thresholds. If a user, breaches these limits frequently, the bank might charge penalties or even stop the account from making further ACH transactions. This could be a matter of hindrance for companies that have to make many frequent online payments.

It Can Be Slow Due to Bank Processing Time and Batch Payments

ACH payments are mostly processed in a batch. It means several ACH transactions are batched together in a particular time frame and settled individually. If you are initiating an ACH transfer after the cut-off time, it might be settled on the next business day.

Here's a quick comparison of ACH and Wire transfer:

Receive Payments From The US In India With Skydo

Working with US clients? International payments don’t have to be a hassle. Skydo makes it simple, cost-effective, and seamless. Set up a virtual account in just 5 minutes and start receiving payments from the US, Europe, Singapore, and Australia—no complex banking required.

With live Forex rates and no hidden fees, Skydo ensures you get the most value for your money. Plus, compliance is effortless with instant FIRA downloads after every transaction, keeping you RBI-compliant without the headache. Need help? Your dedicated representative is just a call away.

Say goodbye to high fees, delays, and red tape. With Skydo, you can focus on growing your business while we take care of the payments!

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SEPA (Single Euro Payments Area) is a standardized format that lets companies, individuals, and government entities pay and receive Euro payments across 40&nbsp; European countries.

If you’re an Indian freelancer, an exporter or a SaaS company with European clients, knowing about SEPA transfers will help you understand how the system works. Providing it as a payment option could help you land more clients in these countries.&nbsp;

We suggest reading this guide till the end to understand SEPA transfer, its benefits, timeline, and how you can receive payment in India using this system.

SEPA (Single Euro Payments Area) is a payment system that makes euro transfers between participating European countries as simple, fast, and affordable as domestic transfers. Think of it as Europe's version of India's NEFT/RTGS systems, but operating across national borders. SEPA was launched in 2008 by the <a href="https://www.europeanpaymentscouncil.eu/">European Payments Council</a> as part of broader financial integration efforts within the EU.&nbsp;

SEPA currently includes 40 countries, according to the recent <a href="https://www.europeanpaymentscouncil.eu/sites/default/files/kb/file/2025-03/EPC409-09%20EPC%20List%20of%20SEPA%20Scheme%20Countries%20v6.0.pdf">European Payment Council (EPC) Geographical Scope Report</a>:

Before SEPA, sending money between European countries involved high fees, slow processing, and different formats. SEPA harmonized these systems, enabling European businesses and individuals to use only one bank account and a standardized payment format

A SEPA transfer is a euro bank transfer between accounts in any SEPA-participating countries. This standardization means every transaction follows identical technical specifications, messaging formats, and processing rules regardless of the countries involved.&nbsp;

For example, a SEPA transfer from France to Germany or Spain to Finland follows the same transaction structure and consistent information requirements, such as IBAN and BIC codes.

A SEPA transfer may appear similar to a domestic transfer, however, there are a few differences:

This method is useful for making one-time payments and can be done using the <a href="https://www.skydo.com/blog/iban-number-meaning-full-form#what-is-iban-number-india">IBAN Number</a>. In certain scenarios, you might have to use a BIC too.

Introduced in 2017, SEPA Instant Credit Transfer offers near-immediate settlement. Once a payment is initiated using this method, the funds arrive in the recipient's account within 10 seconds, even on a weekend or a public holiday. The current transaction limit for this method is €100,000.&nbsp;

In SEPA direct debit, the recipient initiates the collection rather than the payer pushing funds. But before the collection happens, the payer must provide a formal mandate, a signed authorization document containing details including the payer's IBAN, creditor identifier, and whether it's a one-time or recurring collection. Each mandate has a Unique Mandate Reference (UMR)

4. SEPA Direct Debit Business-to-Business&nbsp;

The business-to-business variant caters specifically to business transactions. Both the payer and the recipient must be non-consumer entities. This payment method is ideal for regular supplier payments, service contracts between businesses, and other commercial arrangements

Here is a step-by-step process of how a SEPA transfer takes place:

To ensure a successful SEPA transfer, the following details are mandatory:

SEPA Transfer Time: How Long Does a SEPA Transfer Take?

Here’s a table explaining the SEPA transfer timeline:

Different factors like bank cut-off times, weekdays and holidays, and the recipient’s bank’s processing are a few factors that might affect the transfer time, leading to delays.

Within the eurozone, SEPA transfers are typically free or cost just €0–€1, thanks to EU regulations that require cross-border euro transfers to be priced the same as domestic ones. So, sending money from a German bank to a French bank usually costs the same as sending it within Germany, fast, simple, and almost free.

If you're in India, though, the story changes. Since India isn't part of the SEPA network, receiving a SEPA transfer here is treated like any international wire transfer. Indian banks apply SWIFT fees, usually between ₹1,200 and ₹4,200, and also add a forex markup when converting euros to rupees. On top of that, you might face intermediary bank charges, inward remittance fees, and FIRA issuance costs. Together, these deductions can significantly eat into the amount you actually receive.

How Do You Receive SEPA Payments in India?

For Indian exporters, freelancers, and entrepreneurs working with European clients, receiving SEPA payments can be a challenge. Indian banks do not provide SEPA accounts directly.&nbsp;

Skydo solves this problem. It provides you with a virtual European IBAN account. This means you can receive SEPA payments without the hassles of international transfers. Your Europe-based clients pay you like paying any other local business, while you enjoy faster settlement and lower fees.

Why Skydo Is the Best Way to Receive SEPA Payments

If you're working with European clients, Skydo offers a seamless alternative to traditional international transfers, without the hidden costs and operational headaches.

With Skydo, you not only save on fees but also streamline the entire process of receiving international payments, letting you focus more on growing your business and less on chasing your money.

<a href="https://www.skydo.com">Create an account</a> in Skydo for free and start receiving SEPA payments.

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Indian exports have shown remarkable resilience, achieving an impressive<a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/indian-exports-up-in-115-nations-out-of-238-destinations-in-2023-24/articleshow/109978944.cms?from=mdr#:~:text=Despite%20global%20economic%20uncertainties%2C%20India's,services)%20reached%20USD%20778.2%20billion."> USD 778 billion in 2023 </a>despite global economic uncertainties. However, as exports grow, one critical challenge continues to hold exporters back—cross-border payments.

Managing B2B cross-border payments in India can be complex, with high fees, delayed settlements, and compliance hurdles making life harder for exporters. But it doesn’t have to be this way.

In this blog, we’ll explore what cross-border payments are, the key challenges exporters face, and how Skydo is simplifying cross-border payments in India, helping businesses save time, money, and stress.

Cross-border payments are transactions where the payer and the recipient are located in different countries. For example, if an Indian exporter receives a payment from a French client or you purchase an item from an international seller, these are considered cross-border payments.

Cross-border payments can be broadly classified into two categories:

These occur when a business in one country makes a payment to a business or service provider in another country. For instance, if you’re an Indian freelancer receiving payment from a US client for graphic design services, that’s a B2B cross border payment.

These refer to B2C transactions, where an individual consumer buys a product or service from an overseas seller. For example, purchasing electronics or apparel from an international e-commerce store falls under this category.

Despite the growing exchange of goods and services globally, cross border payments remain riddled with challenges. Long delays, high costs, and regulatory complexities often make these transactions frustrating and inefficient. In the following sections, we’ll dive into the key challenges exporters face and how they can be addressed.

What Are the Challenges of Cross Border Payments in India?

While domestic payments in India are now as simple as a quick UPI scan, cross border payments tell a completely different story. For exporters and freelancers, these transactions come with significant hurdles that can complicate cash flow and eat into earnings. Let’s dive into the main challenges:

Together, these challenges make cross-border payments a time-consuming and costly process for many exporters and freelancers in India. Addressing these issues is essential for smoother and more cost-effective global transactions.

How Skydo is Simplifying Cross Border Payments for Indian Exporters and Freelancers&nbsp;

Skydo is tackling the challenges of cross border payments head-on with its innovative virtual international accounts. These accounts provide exporters and freelancers with virtual bank accounts in key markets like the US, UK, and Australia. Clients in these countries can send payments as local transfers, eliminating the high costs and delays of traditional international transfers. Skydo consolidates these local payments and transfers them directly to the recipient’s personal bank account in India.

Here’s how Skydo addresses the key challenges of cross-border payments:

Skydo is designed to make cross border payments faster, cheaper, and stress-free for Indian exporters and freelancers. With no hidden fees, quick settlements, and a focus on compliance, Skydo is the smarter choice for managing your international transactions seamlessly.

Cross Border payments and how to receive them with Skydo

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Karbon Business (formerly Karbon Card) hit the market in 2019, aiming to simplify B2B payments for Indian businesses and freelancers. They’ve since expanded into international payments too. But what exactly does Karbon bring to the table? In this blog, we’ll break down their features, pricing, and how they stack up against alternatives. Let’s dive in!

What does Karbon Business (Formerly Karbon Card) do?

Karbon Business initially started as a corporate card platform, hence the name Karbon Cards. However, since then they have expanded into other b2b offerings including facilitating international business payments for companies and freelancers. It offers both inward and outward remittance services. Let's take a quick look at Karbon Card’s offerings, compliance and pricing:&nbsp;

Karbon Business lets freelancers and businesses receive international payments directly into their Indian bank accounts within 24-48 hours. They’ve partnered with big names like IDFC Bank, Visa, and JP Morgan Chase to streamline cross-border transactions.

It is important to note that currently, Karbon business <a href="https://www.karboncard.com/accept-international-payments-india">only supports payments in USD</a>&nbsp;via virtual bank accounts, and they plan to add 12 more currencies soon. However, businesses can still accept payments in 38+ currencies via card and payment options through Karbon Business.&nbsp;&nbsp;

With Karbon,&nbsp; businesses make international payments in over 30 currencies. Whether it’s paying employees, contractors, or vendors abroad, Karbon promises a competitive and compliant way to make cross-border payments.&nbsp;&nbsp;

Karbon Business provides corporate cards and payout services tailored for businesses. With Karbon Card, you get up to ₹15 Cr in free credit and unlimited employee cards. Their Karbon Payouts feature enables vendor payments on credit, 24/7 payouts, and more, offering flexibility for business transactions.

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