A guide for Indians getting paid by clients abroad

Receiving payments from international clients has long been a problem for Indian freelancers, digital nomads, and businesses. Despite the sporadic increase in international transactions, the traditional banking system still offers poor exchange rates, slow payment processing, and is subject to local restrictions.

For Indians working with international clients, the primary concerns are minimising fees, ensuring a competitive exchange rate, and enjoying swift transactions while maintaining compliance with Indian financial regulations. The best approach is to use platforms that offer transparent fees and streamline finances to provide the right documentation required by Indian tax authorities.

This article provides a guide for Indians experiencing pain from clients abroad, while ensuring legal compliance and adherence to tax regulations.

Also read: How to open US, UK, and Euro bank accounts in India

Choosing a cross-border payment option in India

There are various options for Indians receiving payments from clients abroad, with each having its pros and cons. Choosing a payment option should mean selecting the platform that best aligns with your preferences. Consider:

• Payment speed
• Transaction cost
• Exchange rates
• Accessibility
• Security
• Your transaction volume
• Currency support
• Customer support

Here are some of the options available, described by these factors:

1. Bank-to-bank payment

This is the traditional banking method where our client sends payment directly from their bank account to yours via the SWIFT network. It is an excellent option for large-volume, non-urgent, infrequent payments that require documentation and security.

Pros:

• Globally recognised and widely accepted
• Ideal for large one-time payments
• Secure and trackable through your bank

Cons:

• High international transfer and conversion fees
• Slow processing time (2–5 business days)
• Poor exchange rates compared to fintech platforms
• Some banks require complex documentation for foreign receipts

2. Grey (Recommended)

Grey provides a seamless way for Indians to receive, hold, and convert international payments in multiple currencies (USD, GBP, EUR, and USDC) directly from clients. Grey supports INR conversions at competitive rates and offers a virtual USD debit card for seamless online transactions. It is a reliable cross-border payment option for freelancers and business owners who want a simple, compliant, and cost-effective way to manage multiple foreign currencies in India.

Pros:

• Instant virtual foreign accounts
• Real exchange rates and low conversion fees
• Responsive customer support
• Robust security
• Integrates seamlessly with freelancing platforms (like Fiverr and Upwork) and online marketplaces (like Amazon and Etsy)
• Automatically provides proper documentation for tax and compliance.

Cons:

• Relatively newer compared to PayPal

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3. Payoneer

Payoneer offers virtual accounts in USD, GBP, and EUR, making it ideal for freelancers, consultants, and eCommerce sellers. Funds received can be withdrawn directly to your Indian bank account in INR, and provide businesses with a Foreign Inward Remittance Certificate (FIRC) digitally.

Pros:

• Works well with Upwork, Fiverr, and other global freelance platforms
• Supports multiple currencies
• Easy withdrawal to local Indian bank accounts
• Relatively fast transfers (1–3 days)

Cons:

• Relatively high fees on withdrawals and conversions
• Limited customer support in some regions

4. Wise

Wise is a fintech platform regulated by the RBI that allows users to open multi-currency accounts and receive payments from global clients at the mid-market exchange rate without hidden fees.

Pros:

• Transparent and low-cost transfers
• True exchange rate without bank markups
• Local account details in USD, GBP, and EUR
• Easy-to-use interface and fast transfers

Cons:

• Not all currencies are supported for direct receiving
• Clients need to use Wise or bank transfers to send money

5. PayPal

PayPal remains one of the most popular methods for freelancers and small businesses receiving small to medium-sized payments from abroad. It is widely available and most clients find it reliable and convenient. PayPal also integrates well with freelancing platforms.

Pros:

• Easy to use and widely accepted globally
• Quick transfer processing
• Integrates with most freelancing platforms

Cons:

• High transaction and conversion fees (up to 4.4% + fixed fee)
• Unfavourable exchange rates
• Funds must be automatically withdrawn to an Indian bank account (as per RBI regulations)

Staying compliant with regulations while managing international payments

When receiving foreign payments, it’s crucial to comply with RBI and FEMA rules. Here’s how to stay on the right side of the law:

• Use only regulated or RBI-approved platforms.
• Keep records of invoices and client contracts for tax filing.
• If you are an exporter, you might be required to obtain an FIRC (Foreign Inward Remittance Certificate) for large transfers, as it serves as proof of legitimate foreign income.

Also read: How freelancers in India are taxed on foreign payments

Managing international transactions with Grey

Getting paid by clients abroad doesn’t have to be stressful. With the right tools and awareness of financial regulations, Indian freelancers and businesses can manage cross-border payments smoothly, legally, and profitably.

Fintech platforms like Grey make it easy to receive, hold, and convert foreign currencies without the delays and high costs of traditional banks. This puts you in complete control of your international payments.

Get started on Grey today for seamless international transactions from India.

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