A client in Berlin or Austin has approved your invoice and asks, "How do I pay you?" Your answer decides how much of the money reaches you, how fast, and whether you have the paperwork your CA and your bank will ask for later.
Checked on 15 October 2026. Rules and fees change; confirm with your CA or bank.
The options, compared
Fees below are as checked on 15 October 2026 on each provider's own pricing pages. They change, and some depend on currency, so check the provider's calculator before you send a client the details.
Option | What it costs you | Proof of payment | What you need to sign up | Good for |
|---|---|---|---|---|
Bank wire (SWIFT) to your Indian account | Your bank's conversion margin and inward charges, plus any fees banks on the way deduct | FIRA from your bank, sometimes on request and for a fee | An account you already have; tell the bank the purpose | Large one-off payments, clients who only do wires |
Wise Business | Mid-market rate plus a conversion fee that varies by currency; 18% GST on Wise's fees | e-FIRC for each transfer, listed as free on Wise's pricing page (an older help article says USD 2) | A sole trader or freelancer account needs your PAN, an INR bank account in your name and video KYC with Aadhaar; the sole proprietorship type also asks for a GSTIN or IEC | Regular clients in the US, UK, EU or Australia |
Skydo | USD 19 up to USD 2,000; USD 29 from USD 2,001 to 10,000; 0.3% above; 18% GST on the fee; no FX margin | FIRA for each payment, free | KYC as an Indian business or freelancer; check their current document list | Invoices of USD 1,000 and up |
Razorpay MoneySaver Export Account | 1% + GST on bank transfers, no FX markup; the page also lists a flat ₹1,000 fee on transfers below ₹1 lakh | Digital FIRC within a day of settlement | Razorpay account with KYC; check their current document list | Freelancers already on Razorpay |
Payoneer | Withdrawal to INR at 1–4%; USD 29.95 a year if you receive under USD 6,000 in 12 months | Digital FIRC/e-FIRA | Payoneer account with KYC | Marketplace payouts and clients who already use Payoneer |
PayPal | 4.40% + USD 0.30 per payment, plus 3% above PayPal's base rate when converted to rupees | Digital FIRA from your account reports | PayPal business account with purpose code set | Small one-off jobs, clients who insist |
Stripe is invite-only for new Indian accounts, so most freelancers cannot use it. If your client pays through Upwork, Deel or a similar platform, that platform's own withdrawal fees and payout partners apply instead.
To see the gap, take a USD 1,000 invoice. PayPal's transaction fee alone is USD 44.30, and the 3% conversion margin takes roughly another USD 29 of what is left, so about USD 73 goes before the money reaches your bank. Skydo's flat fee is USD 19, plus GST on the fee. A local-account service usually leaves you several thousand rupees better off on every invoice of that size.
Which to pick
FIRA, FIRC and why you keep them
A Foreign Inward Remittance Advice (FIRA) is the record of a payment arriving from abroad: who sent it, how much, in which currency, the exchange rate and the purpose code. Banks used to issue a Foreign Inward Remittance Certificate (FIRC) for this. For export receipts they largely moved to advices, and the platforms now issue digital FIRAs. Your CA will accept either.
You need it for three things:
- proving to the GST department that an export was paid for in foreign exchange, which is one of the conditions for charging 0%
- answering a bank or tax query about a large foreign credit
- matching payments to invoices when your CA prepares your return
After every foreign payment
0 of 5 done
Purpose codes
Every foreign payment into India is tagged with an RBI purpose code. It tells the bank the money is payment for services you exported, not a gift or a loan. The bank or platform asks you for it once at setup, or on each payment.
Your work | Code | RBI description |
|---|---|---|
Software, apps, websites | P0802 | Software implementation or consultancy |
Data entry and processing | P0803 | Database and data processing charges |
Consulting, strategy, PR | P1006 | Business and management consultancy and public relations |
Advertising, marketing, research | P1007 | Advertising, trade fair, market research and public opinion polling |
P0806 is sometimes given out as a consulting code. It is not: it covers other information services such as subscriptions. For design, writing or video work, ask your bank or platform which code it uses; the full list is on the RBI website and differs in places between published copies. Avoid codes for gifts or family maintenance, which can leave your income looking like something it is not.
What to tell your client
Agree the currency and who pays the fees before the first invoice, in writing.
Subject: Payment details for invoice RK/26-27/015 Hi Sarah, Invoice RK/26-27/015 for USD 2,000 is attached, due 14 November. You can pay by local US bank transfer (ACH or domestic wire) to: Account name: Riya Kapoor Bank: [from your Wise / Skydo / Razorpay dashboard] Routing number: [ ] Account number: [ ] If you prefer an international wire to my Indian bank, please select "OUR" for charges so that intermediary bank fees are not taken from the amount, and add the reference "RK/26-27/015, design services". Please let me know when it is sent. Thanks, Riya
Quote and invoice in the client's currency, not rupees. Build a small buffer for exchange rate movement into your rate rather than arguing about it later. If you send an international wire request, the "OUR" charge option means the sender pays all bank charges; "SHA" splits them and usually means a short payment. The payment terms playbook covers advances and due dates, which matter more with a client you cannot easily chase.
The RBI rules that started on 1 October 2026
RBI's new export regulations took effect on 1 October 2026 and apply to freelancers exporting services as much as to companies.
- The full invoice value should be received within nine months of the invoice date, or twelve months if you invoice in rupees. RBI cut this from the fifteen months first announced, shortly before the rules began.
- Service exporters are expected to file an export declaration (EDF) with their bank, within 30 days after the end of the month in which they invoiced. One declaration can cover all of a month's invoices. If your services are not software, the rules also let you file it on or before the date the payment arrives.
How GST and the LUT fit in
If you are not registered for GST, you charge no GST to foreign clients. But foreign income counts towards the ₹20 lakh registration threshold, so watch your yearly total. The GST registration playbook explains why.
If you are registered, your foreign work is a zero-rated export when the client is abroad, the work is not tied to a place in India, and you are paid in foreign exchange. File a Letter of Undertaking each financial year and your invoices go out at 0%, with the wording shown in the GST invoices playbook. The FIRA is your proof the payment condition was met. If a payment never arrives, the LUT obliges you to pay the IGST with interest, so chase overdue foreign invoices as firmly as Indian ones.
Foreign payments are taxable income in India like any other fees; the income tax playbook covers how. If a foreign client withholds tax in their country, keep their tax certificate and ask your CA about claiming credit for it. Keeping all of this in one account makes it easier, which is the subject of separating business finances.
If you only do one thing: open your last three foreign payments, find the FIRA for each, and check the purpose code is right.
Common questions
What is the best way to receive international payments in India as a freelancer?
For most freelancers billing a few hundred dollars or more each time, a service that gives you a local US, UK or EU account (Wise, Skydo, Razorpay or Payoneer) costs least and issues a FIRA automatically. A direct bank wire suits large single payments. PayPal is easiest for the client but costs the most, so keep it for small one-off jobs or clients who will use nothing else.
What is the difference between FIRC and FIRA?
Both prove money came into India from abroad. A FIRC was a certificate banks used to issue on request. For export payments, banks largely moved to issuing an advice, the FIRA (Foreign Inward Remittance Advice), which records the sender, amount, currency, exchange rate and purpose code. Wise, Skydo, Razorpay, Payoneer and PayPal now issue digital FIRAs. Either works as your evidence.
Which purpose code should a freelancer use?
Pick the code that describes your service. Common ones are P0802 for software implementation or consultancy, P0803 for data processing, P1006 for business and management consultancy and public relations, and P1007 for advertising and market research. P0806 is for other information services such as subscriptions, not consultancy. If nothing fits, ask your bank which code it uses for your type of work.
Do I pay GST on payments from foreign clients?
Not if the work qualifies as an export of services and you are paid in foreign currency. Below the GST threshold you are not registered and charge nothing. If you are registered, file a Letter of Undertaking each year and invoice at 0%. Foreign income still counts towards the ₹20 lakh GST threshold, and it is taxable income for income tax.
Can I receive foreign payments in a savings account?
Yes. Indian banks credit foreign remittances to savings accounts, and Wise, Skydo, Payoneer and PayPal all pay out to one. Some banks prefer business receipts to go into a current account once volumes grow. What matters more is that the bank records the right purpose code and gives you a FIRA for each payment.
How long can a foreign client take to pay me?
Under RBI's export rules in force from 1 October 2026, the full value of a services export should be received within nine months of the invoice date (twelve months if invoiced in rupees). That is the regulatory outer limit; your contract should ask for payment within 15 days. If a payment is stuck past the limit, tell your bank and your CA.
