Key takeaways
- ACH is domestic to the US, so Indian freelancers need a US receiving account via a platform, then settle to INR, this is usually the cheapest route for small to mid sized invoices.
- SWIFT wires come straight to your Indian bank, they are faster and final, but include sender, intermediary, and receiving bank fees, plus FX markup.
- FX markup is the biggest hidden cost, a 1% to 2.5% worse rate than mid market can cost you more than all visible fees combined.
- Under $5,000, ACH almost always wins on net INR received, above $10,000, compare carefully, sometimes a negotiated SWIFT rate can be competitive.
- Automated e-FIRA saves days of follow ups, platforms like Karbon Business issue e-FIRA within 24 hours.
- Choose rails based on client capability, invoice size, urgency, trust, and who bears fees, not just the headline bank charge.
ACH vs SWIFT, what Indian freelancers actually use
ACH is a low cost US domestic transfer network. Indian banks cannot receive ACH directly, so you use a US receiving account in your name through a platform, then convert and settle to INR. For clear explainer pieces, see SWIFT vs ACH vs Infinity, ACH vs wire transfer India, and ACH vs Fedwire vs SWIFT.
SWIFT is the global messaging standard for international bank wires. Your client’s bank sends through correspondent banks to your Indian bank, fees and FX are applied on the way, but settlement is final once credited.
India reality: In practice, your US client either sends ACH to your US receiving account, or a SWIFT wire directly to India. The rail you choose determines cost, speed, and paperwork.
Example, a developer in Bangalore getting paid by a US startup: ACH typically costs the client $0 to $5, you see INR in 3 to 5 business days. A SWIFT wire can cost the client $25 to $45, plus intermediary deductions and Indian bank receiving charges, you may still get it faster, often in 1 to 3 days, but you net less INR on small invoices.
For a broad comparison, you can also skim ACH vs SWIFT.
Fee anatomy and hidden costs
Here is the full cost stack that actually hits your payout.
RailSender feeIntermediary feesReceiving feeFX markupPlatform feeComplianceACH$0 to $5$0$0 to nominalVaries by platform, biggest lever$0 to lowSome auto e-FIRASWIFT$20 to $50+$10 to $30+ each₹500 to ₹1,500 + GSTAbout 0.75% to 2.5%+N/AManual FIRA common
The sender fee is what your client’s bank charges. ACH is minimal, SWIFT is notably higher.
Intermediary fees are the silent deductions on SWIFT, you never see them itemized, you just receive less. ACH has none.
Receiving fees apply at your Indian bank for SWIFT credits, usually a few hundred rupees plus GST. ACH via platforms usually avoids this.
FX markup is the stealth cost. If you get a rate 1.5% worse than mid market, that is bigger than all fixed fees on many invoices. Always compare against the live mid market rate you see publicly.
Platform fee is what ACH platforms charge. For instance, transparent models like a flat 1% with mid market FX are easy to audit. Headline low fees with hidden FX markup are not.
Compliance matters. Auto e-FIRA within 24 hours saves real time and reduces tax season stress.
Key insight: The real enemy is poor FX and intermediary deductions, not just the obvious “wire fee.”
For deeper dives, see how to receive international payments in India, ACH vs Fedwire vs SWIFT, and SWIFT vs ACH vs Infinity.
Speed, reliability, and risk
ACH, speed and risk
Speed: 2 to 3 business days to the US receiving account, plus 1 to 2 days to convert and settle INR, total 3 to 5 business days.
Risk: ACH can be reversed in certain cases, so prefer this for trusted, repeat clients, or smaller tickets.
Tracking: Platforms usually show real time milestones, you always know where funds are in the pipeline.
SWIFT, speed and risk
Speed: 1 to 3 business days if there are no compliance holds, major corridors are often quick.
Risk: Final on credit, reversals are rare and complex, better for large or first time invoices where certainty matters.
Tracking: SWIFT provides a unique reference number you can use to trace progress across banks.
Balance speed, cost, and trust. For many retainers, ACH is perfect, for urgent, high value projects, SWIFT can be worth the premium. See ACH vs wire transfer India and SWIFT vs ACH vs Infinity.
Worked examples
Scenario 1, $500 invoice
ACH: Client pays $0 to $3, you convert near mid market and pay a transparent platform fee, net roughly ₹40,500 to ₹41,000+ depending on the day’s rate and fee.
SWIFT: Client pays $25 to $45, intermediaries can shave $10 to $30, Indian receiving fee plus FX markup applies, net roughly ₹36,000 to ₹37,500.
Verdict: ACH wins clearly for small invoices.
Scenario 2, $2,000 invoice
ACH: With a flat 1% and mid market FX, net roughly ₹1.64 lakh to ₹1.65 lakh.
SWIFT: After all deductions and a typical FX, net roughly ₹1.57 lakh to ₹1.585 lakh.
Verdict: ACH usually wins unless you have exceptional bank FX and subsidized wire fees.
Scenario 3, $10,000 invoice
ACH: Mid market FX and 1% fee, net roughly ₹8.2 lakh plus or minus the day’s rate.
SWIFT: With negotiated FX and known fees, net roughly ₹8.1 to ₹8.15 lakh.
Verdict: Both viable, compare live FX and fixed fees, also weigh finality and speed.
Further reading, ACH vs Fedwire vs SWIFT, ACH vs wire transfer India, and SWIFT vs ACH vs Infinity.
Decision framework
- Client capability: Can they send ACH to a US account, or only international wire, choose accordingly.
- Invoice size: Under $5k, ACH is usually cheapest, $5k to $10k, compare, above $10k both can work if FX is fair.
- Urgency: Need funds tomorrow, pick SWIFT, can wait a few days, pick ACH.
- Chargeback risk: New clients or large one off projects, pick SWIFT finality, trusted clients or retainers, ACH is fine.
- Who pays fees: If clients refuse wire fees, offer ACH details on the invoice.
- Admin burden: Prefer auto e-FIRA and simple reconciliation over manual FIRA chases.
Rule of thumb: ACH via a US receiving account, with mid market FX and a clear platform fee, is the cheapest way for most Indian freelancers to receive USD.
Quick primers, ACH vs wire transfer India, SWIFT vs ACH vs Infinity.
Compliance and paperwork
FIRA or e-FIRA is mandatory for export remittances, you need it for taxes and compliance. Traditional banks often take 7 to 15 days and may charge a fee, platforms can auto issue within 24 hours.
Why it matters: At scale, automated e-FIRA saves dozens of follow ups, reduces errors, and keeps your CA happy.
More background, SWIFT vs ACH vs Infinity.
How to execute the low cost ACH route
Open a USD receiving account in your name. Sign up with a platform that provides local US details for ACH, for example Karbon Business, Wise Business, Payoneer, or Skydo, complete KYC, and get your US account and routing numbers.
Share local ACH details with your client on the invoice, they pay you like any US vendor, low friction for them, predictable costs for you.
Track, convert, settle. Funds reach the US account in 2 to 3 business days, you convert at a transparent rate, settle INR to your Indian bank, and receive your e-FIRA automatically.
Optional: Hold USD for a limited time if your platform allows, to optimize FX timing for better INR conversion.
References, ACH vs wire transfer India and SWIFT vs ACH vs Infinity.
Platforms for receiving international payments
- Karbon Business: USD, GBP, EUR, CAD receiving with local details, INR settlement in 24 to 48 hours, auto e-FIRA, flat 1% platform fee, no FX markup, ability to hold currency for a limited period, India first support.
- Wise Business: Multi currency accounts with local bank details, transparent FX, good for holding and paying in multiple currencies.
- Payoneer: Widely accepted on marketplaces, USD, EUR, GBP receiving, check total cost including FX markup.
- Skydo: USD receiving via ACH and SWIFT, India focused compliance and speed.
- RazorpayX International: Virtual accounts and compliance automation, more business account oriented.
When comparing, audit FX transparency, platform fee, settlement speed, e-FIRA automation, currency holding flexibility, and quality of support.
Comparison table
CriteriaACH, via US receiving accountSWIFT, direct bank wireSend fee$0 to $5$20 to $50+Intermediary$0$10 to $30+ eachReceive fee$0 to nominal$10 to $30+ in India, plus GSTFX markupPlatform dependent, aim for mid marketAbout 0.75% to 2.5%+Speed3 to 5 business days total1 to 3 business days typicalRiskPossible reversalsFinal on creditPaperworkAuto e-FIRA on some platformsManual FIRA, often slowBest forSmall to mid invoices, trusted clientsUrgent, high value, or no ACH option
Source guides, SWIFT vs ACH vs Infinity, ACH vs Fedwire vs SWIFT, and ACH vs wire transfer India.
Conclusion
For most Indian freelancers, ACH via a US receiving account with mid market FX and a low, transparent platform fee is the cheapest way to receive USD in India for sub $5k invoices. SWIFT is best when you need finality and speed, or when the client cannot send ACH. The largest leaks are FX markup and intermediary deductions, not the visible “wire fee.” Audit your last payout, compare to mid market minus transparent fees, if the gap is over 2%, you are leaving money on the table.
Deep dives, SWIFT vs ACH vs Infinity, ACH vs wire transfer India, and ACH vs Fedwire vs SWIFT.
FAQ
Is an ACH transfer to India freelancer possible directly to my Indian bank?
No, Indian banks are not on the US ACH network. You can still use ACH by opening a US receiving account in your name through platforms such as Karbon Business, Wise, Payoneer, or Skydo, your client pays that US account via ACH, you convert and settle INR to your Indian bank, and you receive e-FIRA automatically on good platforms.
Between ACH and SWIFT in India, what usually gives me the highest net INR on a $1,000 invoice?
ACH usually wins. Your client pays $0 to $5, there are no intermediary deductions, and if your platform uses mid market FX with a clear fee, you keep more. A SWIFT wire can lose $60 to $100 to sender, intermediary, and receiving fees, plus FX markup, which often exceeds a transparent 1% platform fee from providers like Karbon Business.
How do I ask a US client to pay me via ACH in a professional way?
Add your US ACH details on the invoice, along with a short note: “Preferred payment method: ACH to our US bank details for lower fees and faster processing.” If they use QuickBooks or bill pay, they can save your US account and routing numbers. Platforms like Karbon Business provide these details instantly after KYC.
My client is in the UK or EU, can they still pay me via ACH?
ACH is US only. UK clients typically use FPS or CHAPS, EU clients use SEPA. Many platforms offer local GBP and EUR receiving details too. For example, Karbon Business provides GBP and EUR local details, you then convert to INR with e-FIRA, avoiding SWIFT for small to mid invoices.
What exactly are intermediary bank charges in SWIFT and how do I avoid them?
Intermediary banks route the wire between your client’s bank and your Indian bank, they may deduct $10 to $30 each from the principal. You cannot control which intermediaries get used. To avoid these silent deductions on small invoices, prefer ACH via a US receiving account, or ask your client to select “charges to sender” and use a known correspondent route, though even then deductions can occur.
Can I negotiate FX rates with my Indian bank for large SWIFT wires, say above $10,000?
Yes, relationship managers can often shave the FX margin on larger wires. Always ask for the exact conversion rate before credit, compare it to the live mid market rate, and compute the percentage markup. If you cannot get near mid market, consider ACH via a platform that offers transparent FX and a flat fee, for instance Karbon Business.
Do I need e-FIRA for every international payment, even if I get paid via ACH through a platform?
Yes, every export remittance needs FIRA or e-FIRA for taxes and compliance. Good platforms auto issue e-FIRA within 24 hours of INR settlement and email the PDF to you, which is far easier than chasing your bank manually.
Is ACH safe for large invoices, what about reversals and chargebacks?
ACH can be reversed in specific cases, for example insufficient funds or certain disputes. For new clients or large one time projects, many freelancers prefer SWIFT wires since they are final once credited. For trusted clients on retainers, ACH is usually safe, predictable, and cheaper, especially through platforms like Karbon Business that provide clear tracking.
How long does it take to receive money via ACH compared to SWIFT in India?
ACH typically takes 3 to 5 business days end to end, client to US account in 2 to 3 days, then 1 to 2 days to convert and settle INR. SWIFT often arrives in 1 to 3 business days, sometimes the same day on premium wires, but you may lose more to fees and FX. Choose based on urgency and total cost.
What is the cheapest way to receive USD in India for $500 to $2,000 invoices?
ACH via a US receiving account with mid market FX and a transparent platform fee is usually cheapest. With a flat 1% and no FX markup, platforms like Karbon Business typically beat SWIFT by several percentage points after you factor in intermediary deductions and Indian receiving charges.
Can I hold USD for a while and convert later to INR if the rupee strengthens?
Some platforms allow you to hold USD for a limited time before conversion, which can help optimize FX. This is useful if you expect the rupee to strengthen in the near term. Providers such as Karbon Business offer holding windows, but use this feature prudently since FX can move either way.
Do I need a business entity to use a US receiving account, or can I use it as an individual freelancer?
Most India focused platforms onboard individuals and sole proprietors. You can open a US receiving account in your personal name after KYC with PAN and address proofs. For example, Karbon Business supports Indian freelancers, issues US account details, and provides auto e-FIRA on settlement.
