International Payments in India: A Guide to Accept Them

International payments in India require businesses to manage multiple currencies, payment methods, and documentation requirements. Indian exporters and service providers accepting payments from US, UK, European, and global clients face three common challenges: high cross-currency conversion costs, limited payment method options, and inefficient payment processing.

This guide explains how Indian businesses can accept international payments through multi-currency accounts and integrated global payment gateways. You’ll learn about payment method options (cards, ACH, wire transfers, stablecoins, and network transfers), strategic currency management, and documentation requirements.

The solution involves holding foreign currency accounts (USD and EUR) and offering clients flexible international payment options through multi-currency invoicing. This approach may reduce conversion costs, accelerate payment receipt, and provide operational flexibility for businesses managing international transactions.

Why Payment Method Flexibility Matters for International Payments

Indian businesses accepting international payments face significant operational friction. Without access to USD or EUR business accounts, companies receive foreign payments into INR accounts through forced immediate conversion.

Cross-currency conversion costs accumulate quickly

Traditional banking channels charge 2-3% on currency conversions. For a business receiving US$100,000 annually, this represents US$2,000-US$3,000 in conversion fees. When that same business needs to pay foreign suppliers in USD, they convert again, creating double conversion costs totaling 4-6%.

Limited payment options slow cash flow

When businesses can only accept international wire transfers, clients wait 3-5 business days for settlement. Technology service providers billing monthly retainers often experience payment delays because clients prefer card or ACH options. Export manufacturers shipping to multiple countries need to accommodate different payment preferences across markets.

Consider this scenario: An Indian textile manufacturer exports fabric to US buyers for US$30,000 monthly. They also import raw materials from US suppliers for US$15,000 monthly. With only an INR account, they convert incoming USD to INR (losing 2-3%), then convert INR back to USD for supplier payments (losing another 2-3%). The double conversion on US$15,000 monthly costs approximately US$1,800-US$2,700 annually.

Payment efficiency directly impacts working capital

Technology service providers offering monthly retainers need predictable payment cycles. When clients can pay via their preferred method (card, ACH, or wire), collections may accelerate, and administrative overhead decreases.

Understanding Payment Methods for International Payments

Different payment methods serve different transaction patterns. Understanding these options helps businesses match payment rails to their specific needs.

• Credit and debit cards work well for transactions between US$100 and US$25,000. Settlement occurs within 1-2 business days. Cost efficiency rates as medium due to processing fees. Cards are suited for low to medium transaction volumes and provide convenience for buyers making regular payments. Technology service providers billing monthly retainers between US$5,000 and US$20,000 often find that card acceptance accelerates collections.
• ACH transfers handle transactions from US$1,000 to US$100,000. Settlement takes 1-3 business days with high cost efficiency. ACH suits high-volume payment scenarios and works particularly well when both parties maintain USD business accounts. Export manufacturers receiving multiple monthly payments from US buyers benefit from ACH’s lower costs compared to international wire transfers.
• Wire transfers accommodate transactions of US$50,000 and above. Settlement requires 1-5 business days, depending on correspondent banking relationships. Cost efficiency is high for large transactions despite fixed fees. Wire transfers are suitable for low to medium-volume scenarios where the transaction size justifies the cost structure.
• Stablecoin payments accept any transaction amount. Settlement occurs within minutes with very high cost efficiency. Stablecoins suit any transaction frequency and provide 24/7 availability. Businesses dealing with global clients across multiple time zones can receive international payments in India and anywhere outside traditional banking hours.
• In-network transfers between accounts on the same platform process any amount instantly. These transfers achieve the highest cost efficiency (typically free) and suit high-frequency payment scenarios. When both buyer and seller use the same financial platform, settlement happens immediately without intermediary banks or currency conversion friction.

Payment method flexibility becomes strategic when integrated into a single invoicing system. Rather than forcing clients into one payment rail, businesses offering multiple options may reduce payment friction and accelerate collections.

Multi-Currency Business Accounts for International Payments in India

Multi-currency business accounts allow Indian businesses to receive, hold, and manage foreign currencies without forced conversion to INR. This capability addresses the double conversion problem and provides strategic flexibility in currency management.

USD and EUR Business Accounts Enable Direct Foreign Currency Receipt

When an Indian textile exporter, for example, invoices a European buyer in EUR, the payment settles directly into the EUR account.

The business owner decides when to convert to INR based on exchange rate conditions and operational needs. If that same exporter purchases cotton from US suppliers, they can pay directly in USD without conversion cycles.

Currency Holding Strategies Depend on Payment Obligations

Businesses with regular foreign currency expenses benefit from holding foreign currency balances.

A technology service provider receiving US$15,000 monthly from American clients might hold US$8,000 in USD to pay for US-based software subscriptions, server hosting, and contractor payments. The remaining US$7,000 converts to INR for local operational expenses.

Avoiding Double Conversion Preserves Margins

Return to the textile manufacturer example: receiving US$30,000 monthly and needing to pay US$15,000 to US suppliers.

With multi-currency accounts, the US$15,000 remains in USD and is used to pay suppliers directly. Only the net US$15,000 converts to INR. Double conversion on US$15,000 monthly costs approximately US$150-225 monthly (at 2-3% per conversion).

Over 12 months, this represents US$1,800-US$2,700 in saved conversion costs.

Conversion Timing Provides Tactical Advantages

Exchange rates fluctuate daily. When USD-INR rates favor conversion, businesses can convert larger balances. When rates are unfavorable, they can delay conversion if operational cash flow permits. This flexibility transforms currency management from an automatic cost to a strategic decision.

Multi-currency accounts also simplify compliance. Each currency account maintains separate transaction records, making foreign exchange reporting more transparent for accounting and regulatory purposes.

How Integrated Payment Gateways Work for International Payments

Multi-currency business accounts combined with integrated payment gateways create streamlined experiences for Indian businesses and their international clients. This integration addresses payment acceptance friction by offering multiple payment methods through a single system.

Multi-currency invoicing starts the payment process

When an Indian business creates an invoice, it can select the client’s currency and include payment methods, like cards, ACH, wire transfer, stablecoin, or in-network transfer.

The client receives the invoice showing the amount of US$12,000, converted to the buyer’s currency preference, which in this example is USD.

Clients select their preferred payment method

The buyer is a US client choosing ACH to initiate payment through their US bank account.

Settlement occurs within 1-3 business days. Another client might prefer paying by card for convenience, accepting the slightly higher processing fee in exchange for immediate completion. European clients might pay in EUR, which the system handles automatically.

Automatic conversion occurs when needed

If the Indian business wants to receive funds in USD, the money will be deposited into their USD business account if they have a multi-currency account holding USD.

If their client were in a different situation, an Indian client paying in INR, but the Indian seller wants to receive the amount in their USD business account, using Bancoli’s multi-currency invoicing tool, they can provide their USD business account details, and the incoming funds will automatically convert to USD at FX interbank rates.

Settlement timelines vary by payment method

ACH transfers (when both parties have USD accounts) settle in 1-3 days. Cards settle in 1-2 days. Wire transfers take 1-5 days, depending on correspondent banking. Stablecoins settle within minutes. In-network transfers complete instantly when both parties use the platform.

For a technology service provider managing 8-12 monthly retainer clients across North America, this system eliminates administrative complexity. Instead of tracking different payment methods manually, all payments flow into the appropriate currency account automatically.

Business owners monitor incoming payments through unified dashboards that show the settlement status for all outstanding invoices.

Step-by-Step Guide to Receiving International Payments in India

This step-by-step guide explains the process for receiving international payments in India from clients anywhere in the world.

Step 1: Gather Essential Information

To receive an international payment, you must provide your clients with specific details about your banking information. Here’s what you’ll need:

• Your Name/Business Name: Ensure the name matches the one associated with your bank account to avoid any discrepancies that could delay the payment.
• Bank Account Number: Your standard Indian bank account number where the funds will be deposited.
• IBAN (International Bank Account Number): Particularly necessary for transactions from Europe, the IBAN facilitates international funds transfer. Your bank can provide this number if you’re dealing with European clients.
• SWIFT Code (or BIC Code): This code uniquely identifies your bank internationally, enabling clients from any country to send you money. Your bank will supply you with the SWIFT or BIC code upon request.
• Intermediary Bank Information: Some wire transfers might require details of an intermediary bank. This is more common in complex transaction paths. Your bank can advise whether this is necessary and provide the details.

💡Tip: Banking details or regulations can change. Periodically verify your information to ensure it’s current and promptly communicate any updates to your clients.

Step 2: Communicate Clearly with Your Clients

Once you have gathered all the necessary information, the next step is communicating these details to your clients.

• Precision is key: Ensure the information is presented clearly and accurately. Any error, no matter how minor, can lead to significant delays.
• Security measures: Use secure methods to prevent data breaches or fraud when sharing sensitive banking information.
• Know the timelines: International wire transfers can take anywhere from a few days to a couple of weeks. Understanding and communicating these timelines can help manage expectations on both ends.

Step 3: Monitor Your Account and Consult with Your Bank for Any Discrepancies

• Stay vigilant: After initiating the payment process, monitor your account for incoming funds. Depending on your bank’s protocols, you might need to confirm the receipt of payment or complete additional steps.
• Immediate action: If there are any issues or delays in receiving the payment, contact your bank immediately. They can help trace the payment and resolve any issues.

💡Tip: Maintain detailed records of the transactions, including invoices, payment confirmations, and correspondence with your clients. This is crucial for accounting purposes and resolving any future discrepancies.

Real Business Examples: Textiles and Technology Services

Two scenarios demonstrate how multi-currency accounts and flexible payment options address real operational challenges for Indian businesses.

Textiles Manufacturing: Global Export Operations

An Indian textile manufacturer exports to buyers in the US, UK, and EU markets. Monthly export revenue averages US$25,000 from US buyers (paid in USD) and €15,000 from European buyers (paid in EUR). The manufacturer also imports specialized dyes from US suppliers for US$12,000 monthly and German machinery parts for €5,000 monthly.

• Previous situation: With only INR business accounts, all incoming payments converted immediately to INR. When paying US and German suppliers, the company converted INR back to USD and EUR. This created double conversion on US$12,000 monthly and €5,000 monthly, costing approximately US$1,800-US$2,500 annually in avoidable conversion fees.
• Current situation: The manufacturer maintains USD and EUR accounts. US buyers pay US$25,000 monthly via wire transfer or ACH (when buyers have USD accounts). Of this, US$12,000 pays US suppliers directly in USD. The remaining US$13,000 converts to INR based on favorable exchange rates. European buyers pay €15,000 monthly, of which €5,000 is paid directly to the German supplier. Only net amounts convert to INR, eliminating double conversion costs entirely.

Technology Services: North American Retainer Clients

An Indian technology service provider offers ongoing development services to 10 clients across the United States, Canada, and Mexico. Monthly retainers range from US$8,000 to US$18,000 per client. Total monthly revenue reaches approximately US$120,000.

• Previous situation: With only INR accounts and international wire transfer acceptance, several clients experienced friction. Wire transfers required 3-5 business days for settlement, and some clients preferred card payments for accounting convenience. The service provider lost two prospective clients who required ACH payment options for vendor management systems.
• Current situation: The provider offers multi-currency invoicing through integrated payment gateway systems. Clients select their preferred payment method: 6 clients pay via ACH (faster and lower cost), 3 clients pay via credit card (immediate processing), and 1 client pays via wire transfer.
  All payments settle into the USD account within 1-3 business days. The provider converts US$80,000 monthly to INR for local operations and holds US$40,000 for software subscriptions, cloud infrastructure costs, and US-based contractor payments. Payment flexibility also helped secure 3 additional clients who specifically required ACH or card payment options.

Documentation Requirements for International Payments in India

Indian businesses accepting international payments need specific documentation for regulatory compliance and banking purposes. Requirements depend on business structure and transaction type.

• Permanent Account Number (PAN) serves as the primary tax identification for all financial transactions in India. Both individuals and businesses require a PAN for international payment processing. Ensure PAN details are accurate and readily accessible when setting up payment systems.
• Importer Exporter Code (IEC) applies to businesses engaged in physical goods import or export. The Directorate General of Foreign Trade (DGFT) issues an IEC. Service exporters may not require an IEC depending on specific circumstances. IEC simplifies customs clearance and financial transactions related to trade activities.
• Foreign Inward Remittance Certificate (FIRC) or Foreign Inward Remittance Advice (FIRA) documents each international payment received. Banks issue FIRC/FIRA as proof of foreign exchange transactions. These certificates support accounting records and regulatory reporting. FIRC documentation proves legitimacy and the source of foreign income for audits and financial assessments.

Indian businesses should consult with tax advisors or chartered accountants familiar with FEMA (Foreign Exchange Management Act) regulations to ensure compliance with current requirements.

Documentation needs may vary based on business structure, transaction size, and payment purpose. Professional guidance helps navigate India’s framework for international payments.

Cost Structure and Foreign Exchange Strategy

Understanding cost components helps businesses optimize international payment acceptance and currency conversion decisions.

Foreign Exchange Conversion Costs Vary by Provider

Traditional banks often charge 2-3% above interbank rates for USD-INR or EUR-INR conversions. Specialized B2B banking solutions like Bancoli offer rates closer to interbank with transparent fee structures.

Businesses should compare actual conversion rates (including all fees) across providers when evaluating costs.

Holding Foreign Currency Balances Provides Strategic Flexibility

Businesses with regular USD or EUR payment obligations benefit from holding foreign currency rather than converting immediately. This avoids double conversion costs and allows strategic conversion timing.

When USD-INR rates move favorably, businesses can convert larger balances. During unfavorable rate periods, they can delay conversion if operational cash flow permits.

Payment Method Costs Differ Significantly

Card processing typically costs 2.5-3.5% plus fixed fees per transaction. ACH transfers (when both parties have USD accounts) cost significantly less, often under 1% or flat fees. International wire transfers charge US$25-US$50 per transaction regardless of amount. Stablecoin transfers may cost less than 1%. In-network transfers between accounts on the same platform typically process free or at minimal cost.

Transparent Pricing Enables Accurate Cost Planning

Businesses should review pricing structures for current rates on currency conversion, payment processing, and transfer fees. Cost optimization often involves matching payment methods to transaction characteristics, using ACH for regular moderate-size payments, wire transfers for large one-time transactions, and cards for smaller frequent payments where buyer convenience matters most.

Volume Pricing and Operational Patterns matter

Businesses processing US$100,000+ monthly may access better rates than those processing US$10,000 monthly. Regular payment patterns (monthly retainers) often achieve better cost efficiency than irregular one-time transactions. Currency conversion strategies should align with actual cash flow needs rather than automatic conversion rules.

Conclusion

International payments in India become more efficient when businesses access multi-currency accounts and flexible payment acceptance options. The combination addresses three core challenges: reducing cross-currency conversion costs through strategic currency holding, accelerating payment receipt through multiple payment method options, and improving operational efficiency through automated multi-currency invoicing.

Indian export manufacturers and technology service providers benefit from holding USD and EUR balances to avoid double conversion costs when paying foreign suppliers. Payment method flexibility, offering cards, ACH, wire transfers, stablecoins, and network transfers, removes friction for international clients and accelerates collections.

Solutions that provide both multi-currency holding capability and integrated global payment gateway functionality enable businesses to receive international payments in USD or EUR, choose conversion timing strategically, and offer clients their preferred payment methods through unified invoicing systems.

Understanding documentation requirements (PAN, IEC, FIRC/FIRA) and maintaining compliance with FEMA regulations ensures smooth international payment processing. Businesses should review current pricing and conversion rates to optimize costs based on their specific transaction patterns and currency exposure.

Frequently Asked Questions

How do Indian businesses accept international payments efficiently?

Indian businesses accept international payments efficiently by combining multi-currency business accounts (USD and EUR) with integrated payment gateways offering multiple payment methods. This allows clients to pay via cards, ACH, wire transfers, stablecoins, or network transfers. Multi-currency invoicing enables clients to pay in their preferred currency while the business receives funds in their desired currency account. This eliminates forced conversion and reduces transaction friction.

What payment methods work best for receiving international payments in India?

Payment method selection depends on transaction size and frequency. Cards work well for US$100-US$25,000 transactions settling in 1-2 days. ACH suits US$1,000-US$100,000 transactions with 1-3 day settlement when both parties have USD accounts. Wire transfers handle US$50,000+ transactions settling in 1-5 days. Stablecoins process any amount within minutes. In-network transfers between accounts on the same platform settle instantly at lowest cost. Offering multiple options reduces payment friction for clients.

How long does it take to receive international payments in India?

Settlement timing depends on payment method. Card payments settle in 1-2 business days. ACH transfers settle in 1-3 business days when both parties have USD accounts. International wire transfers take 1-5 business days depending on correspondent banking relationships. Stablecoin payments settle within minutes. Bancoli-to-Bancoli transfers complete instantly when both parties use the platform. Traditional cross-border wire transfers through correspondent banks may take 3-7 business days.

Can Indian businesses hold USD without converting to INR?

Yes. Multi-currency business accounts allow Indian businesses to receive, hold, and transact in USD and EUR without forced conversion to INR. Businesses can maintain foreign currency balances to pay international suppliers, manage conversion timing strategically, and avoid double conversion costs. Conversion to INR happens only when the business owner initiates it, typically when funds are needed for local operational expenses or when exchange rates are favorable.

What are the costs of accepting international payments in India?

Costs include payment processing fees and currency conversion charges. Card processing typically costs 2.5-3.5% plus fixed fees. ACH transfers cost less than 1% or flat fees when both parties have USD accounts. International wire transfers charge US$25-US$50 per transaction. Stablecoins may cost under 1%. Currency conversion costs vary by provider. Traditional banks charge 2-3% above interbank rates, while specialized providers may offer rates closer to interbank. Review current pricing at bancoli.com/pricing.

How does multi-currency invoicing work for Indian businesses?

Multi-currency invoicing allows businesses to create invoices displaying amounts in the client’s preferred currency while receiving settlement in their desired currency account. The system automatically handles currency conversion when needed. For example, an Indian business with a USD account invoices a client in INR. When the client pays in INR, the system converts the payment to USD automatically at transparent interbank rates and deposits it into the USD account. The business owner doesn’t handle conversion manually.

Do Indian exporters need special documentation for international payments?

Indian businesses need a Permanent Account Number (PAN) for tax identification in all international transactions. Businesses exporting physical goods require an Importer Exporter Code (IEC) from DGFT. Foreign Inward Remittance Certificate (FIRC) or Foreign Inward Remittance Advice (FIRA) documents each international payment received. Service exporters may have different requirements than goods exporters. Businesses should consult tax advisors familiar with FEMA regulations to ensure compliance based on their specific situation.

What’s the difference between a payment gateway and a multi-currency account?

Payment gateways process payments by connecting buyers and sellers through various payment methods (cards, ACH, etc.). Multi-currency accounts hold and manage multiple currencies (USD, EUR, etc.) without forced conversion. The combination provides optimal functionality: payment gateways offer clients flexible payment options, while multi-currency accounts provide businesses with currency management flexibility. Bancoli’s Global Business Account integrates both a payment gateway for acceptance and multi-currency accounts for holding and managing received funds.