Aditi, a graphic designer in Bengaluru, recently wrapped up a $1,000 project for a client in Toronto. She celebrated the payment notification, only to find that after exchange fees and some charges she didn’t expect, just under ₹80,000 landed in her bank account. That’s about ₹4,000 lost, vanished into the cracks of foreign exchange (FX) fees.

This might sound all too familiar if you’re freelancing in India and working with international clients. You’re earning in dollars, euros, or pounds, but once your payment arrives, the final figure often falls short of what you expected. Welcome to the world of FX losses.

The good news? You don’t have to accept these losses as “part of the game.” In this article, I’ll explain why they happen and how you can protect your hard-earned money with smarter tools and better timing.

Why do Indian freelancers lose money to FX fees?

When international clients pay you in USD, EUR, or GBP, that money has to be converted into Indian Rupees (INR) before it reaches your local account. While that sounds straightforward, in reality, there can be a few holdups:

• Poor exchange rates: Many banks and platforms add a markup (often 2–4%) on top of the mid-market rate. That means you get less rupees per dollar than you should.
• Service fees: Platforms like PayPal or Payoneer often charge flat transaction fees and take a slice during currency conversion.
• Double conversions: You might get hit twice if you’re paid in one currency and your account supports another before reaching INR.
• Delays: By the time the funds arrive, exchange rates might’ve dipped, costing you more.

These small losses stack up quickly, especially if you get paid regularly or in large amounts.

Also read: Here’s how to receive British pounds in India

How Indian freelancers typically receive international payments

Let’s localise this a bit. Here’s how many freelancers in India currently get paid and the trade-offs:

1. PayPal

It’s one of the most convenient and widely accepted. The only downside is that it’s expensive. In addition to a per-transaction fee, you’ll lose out during currency conversion. PayPal’s INR rates can be significantly lower than the real-time exchange rate.

2. Payoneer

This is another popular choice, especially on platforms like Fiverr and Upwork. It offers slightly better rates than PayPal, but still charges a withdrawal fee and a currency conversion margin.

3. Bank wire transfers (SWIFT)

Used by clients with larger payouts. While reliable, they’re often slow (2–5 days), and your bank may charge a fee, plus poor exchange rates.

4. Crypto payments

Gaining traction among tech freelancers. However, crypto volatility, tax implications, and conversion to INR can be tricky.

All these methods have one thing in common: you’re not fully in control of your earnings. But that can change.

Also read: Best way to receive euros in India

Smart ways to reduce or avoid FX losses in India

So what’s the alternative? These strategies can help you keep more of your international income:

Invoice in INR (when possible)

Some international clients are open to paying in your local currency. This shifts the currency risk onto them and saves you from dealing with conversion rates.

Use a platform with transparent conversion rates

Always check the exchange rate your platform offers compared to the live market rate. Even a 1% improvement can save you thousands of rupees a year.

Time your conversions

Exchange rates fluctuate daily. If your platform lets you hold your funds in USD or EUR, you can wait for a favourable day to convert.

Avoid double conversions

If your client pays in USD, don’t accept it on a platform that converts it to EUR and then to INR. Always receive and convert directly where possible.

Add an FX buffer to your rates

If you can’t control how you’re paid, consider quoting slightly higher rates to offset expected losses.

Also read: Earn from TikTok in India without a UK bank account

Why more Indian freelancers are switching to Grey

This is where Grey makes a real difference for freelancers in India. Grey gives you foreign accounts in USD, EUR, and GBP. There is no need for a U.S. address or foreign business registration.

Here’s why it’s a smarter way to receive international payments:

• Hold your earnings in USD, EUR, or GBP without automatic conversion.
• Convert only when it’s convenient for you.
• Low, transparent fees with no hidden margins or surprise charges.
• Instant withdrawal to your Indian bank account at competitive rates.

For someone juggling multiple international clients, Grey simplifies your financial setup and gives you complete visibility on every rupee.

How to create a Grey account in India

Getting your own foreign account with Grey is easy. Here’s how:

Sign up on Grey or download the app

Click on “Create my free account”. Then, you’ll need to fill in some details such as country of residence and email.

Verify your identity

Here’s what you’ll need to provide:

• Government-issued ID: A valid passport or national ID card is required. Make sure it’s clear and up-to-date.
• Proof of address: A recent utility bill or bank statement will verify your location. Grey uses this document to confirm your residency.

Once uploaded, Grey will review your documents. This process will typically take a few business days. Clear and accurate documentation speeds up approval.

Request your virtual USD, GBP, or EUR account

Once approved, you can request your account number and details.

Receive payments

Now, you can share your account details with your international clients. When you receive a payment, you can hold it or withdraw it to your INR bank account.

Grey gives you the structure, control, and transparency you need to grow your freelance career without FX stress.

Also read: Best summer destinations in India for international travellers

Your skills deserve full value

You’ve worked hard to grow your skills and build an international client base. Don’t let currency conversion quietly chip away at your earnings. As India grows as a global freelance hub, adopt global tools that work for you.

Create your Grey account today or download the app to enjoy inclusive global banking designed to carry your dreams across borders.

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