When sending US dollars (USD) to India, choosing the right transfer method is crucial. With India being a major hub for USD remittances, a faster USD inflow is important, whether for business, investment, or personal needs.

In this article, we’ll compare ACH and SWIFT, explain why one may be better than the other for sending money to India, and provide the steps to send money using Grey.

Also read: How to transfer USD from your Indian bank account to a US business partner

What is ACH?

ACH (Automated Clearing House) is an electronic bank-to-bank transfer method used mainly within the U.S. It's popular for things like payroll, direct deposits, and bill payments. It’s processed in batches, meaning it usually takes a few business days to complete.

• Cost-effective
• Great for recurring payments
• lower for international use

What is SWIFT?

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network used by banks and financial institutions to transmit information and instructions for international money transfers securely. Unlike ACH, which is primarily domestic, SWIFT facilitates cross-border payments between countries.

• Ideal for international transactions
• Secure and widely accepted worldwide
• Typically, higher fees and longer processing times than domestic methods

SWIFT is a better option for sending USD to India for the following reasons:

Why ACH doesn't work for sending money to India

1. ACH is domestic only: ACH (Automated Clearing House) is designed for transfers within the United States. It cannot directly send money to banks outside the U.S., including India.
2. No support for foreign banks: ACH transactions require both the sender and receiver banks to be ACH-participating U.S. banks. Indian banks are not part of the ACH network.
3. No currency conversion: ACH only handles U.S. dollars domestically, it does not support currency exchange or convert USD to INR for international beneficiaries.

Why use SWIFT  for USD transfers to India

1. Cross-border capability: ACH is a domestic system (mainly U.S.-based), while SWIFT is designed for international transfers like USD to INR or USD to USD in an Indian bank.
2. Currency flexibility: SWIFT supports sending USD directly to Indian banks that can receive foreign currency. ACH does not.
3. Bank compatibility: Indian banks are part of the SWIFT network and can receive international wire transfers securely and reliably.
4. Global reach: SWIFT enables transactions between any two banks in the world that are members of the network.

Also read: The fastest and easiest ways to send USD from India to the US.

Steps to send USD to India using Grey

Step 1: Sign up

Create an account at Grey or log in if you already have one.

Step 2: Choose USD as your currency

Select USD as your sending currency and choose either Wire Transfer or SWIFT Transfer based on your preference.

Step 3: Enter recipient details

Provide the recipient’s full name, bank details, and SWIFT/BIC code. Double-check to avoid any errors.

Step 4: Confirm and pay

Review the transaction details and confirm your payment. Fund the transfer directly from your U.S. bank account.

When it comes to sending USD to India, the best option depends on your specific needs. If you require speed, global reach, and traceability, SWIFT  transfers are the preferred choice. They enable secure and direct international payments ideal for one-time or high-value transactions.

Sign up on Grey today and start sending USD to India.

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