Global payments
Posted on Feb 12, 2025
How to Receive International Payments in India
This is definitely more relevant now in light of growing Indian businesses and freelancers going worldwide. Whether it's an exporter, an IT service provider, or independent freelancer, cross-border transactions mean fast and secure international payments in relation to the growth of a business.
However, international payments come with challenges—compliance issues, high fees, and fluctuating exchange rates. The good news? Solutions like Infinity’s Multi-Currency Account can help businesses manage payments effortlessly while minimising costs.
Common Methods for Receiving International Payments
1. Bank Wire Transfers (SWIFT Transfers)
How It Works:
SWIFT transfers allow businesses to receive funds directly into their bank accounts from foreign clients. They are widely used for large transactions.
Pros: Safe, internationally accepted, best suited for high-value transactions
Cons: Expensive, takes three to five business days to clear
2. Online Payment Gateways
PayPal is the go-to payment gateway for most freelancers and small enterprises because it can offer quick and speedy transactions coupled with buyer protection.
Pros: Convenient, easily accepted
Cons: High charges, poor conversion rates
Wise formerly TransferWise
Wise provides transparent fees and real exchange rates, which makes it an excellent choice for businesses looking to save money.
Pros: Low fees, real exchange rates, faster processing
Cons: Limited availability in some countries
Payoneer offers virtual multi-currency accounts, which makes it suitable for freelancers and SMEs dealing with small to medium transactions.
Pros: Supports multiple currencies, competitive fees
Cons: Withdrawal fees apply
3. Payment Gateways for Businesses
For businesses selling products or services across borders, payment gateways provide a seamless way to accept payments.
These platforms connect to e-commerce stores and accept payments through international credit cards and in multiple currencies.
Pros: Fast integration, supports multiple payment options
Cons: Transaction fees apply
How to Set Up and Accept International Payments
1. Open a Multi-Currency Business Account
A multi-currency account can be used for the receipt of foreign currency collections and holding payments in foreign currency, thus eradicating or reducing conversion charges. Infinity makes this process relatively easy by helping businesses manage many currencies with absolute ease.
2. Compliances With Indian Regulations
IEC code is a registration number that one needs to procure for international trading. It's an essential thing for inward remittances as well.
Businesses must comply with the Foreign Exchange Management Act (FEMA) regulations to legally receive funds from abroad.
4. Obtain a Foreign Inward Remittance Certificate (FIRC)
FIRC acts as proof of receiving international payments, often required for tax and regulatory compliance.
5. Use Digital Invoicing Solutions
Generating digital invoices with built-in international payment options can streamline the process. Platforms like Infinity helps automate invoicing and payment tracking.
Key Takeaways on Receiving International Payments
1. Transaction Fees and Exchange Rates
Various service providers have differing transaction fees and currency conversion rates. A business can, therefore, identify and maximise its earnings.
2. Processing Time
SWIFT transactions take days; however, other platforms such as Wise or Infinity expedite the procedure. On occasion, businesses need to decide whether to prioritise speed against a higher cost for making it happen.
3. Security Arrangements
Processing through verified and safe channels prevents fraud and unauthorized access to funds.
Common Challenges and Solutions
1. Delayed Payments
The business can select platforms that offer faster processing time and comply with all regulatory requirements to avoid delay.
2. Compliance Issues
Keeping abreast of changing legal and tax rules is essential. Partnering with a platform that understands Indian and international compliance helps businesses stay ahead.
Success Stories of Indian Businesses
Direct2Florist: Automating 1,900 Payouts with Wise
A family-run e-commerce company, Direct2Florist, needed a faster, cost-effective way to pay its partner florists worldwide. Traditional methods meant high FX costs, delayed payments, and inefficiencies.
By integrating Wise’s API, Direct2Florist automated nearly 1,900 payments with a single click, reducing manual work and improving cash flow for florists. Using Wise’s multi-currency account, they also avoided inflated exchange rates.
This streamlined approach has enhanced transparency, speed, and efficiency—ensuring florists get paid on time, every time.
Conclusion
Receiving international payments does not necessarily have to be a pain in the neck. It will come through any form, from SWIFT, PayPal, Wise, or even Payoneer depending on business requirements, the amount of the transactions, and associated costs.
Multi-Currency Accounts with Infinity have become one hassle-free option that enables several different currencies while enabling smooth transaction procedures and the need for all these costs related to currency exchange - to allow businesses to easily reach across boundaries towards international business.
Don’t let payment barriers slow you down. Get started with Infinity today and scale your business worldwide!
FAQs
Q:How do I safely receive international payments?
A:Use safe channels like SWIFT, PayPal, or Wise to get the payment.
Q:Do I require an IEC for receiving international payments?
A:Yes, if your business deals in international trade, then you must have an IEC.
