Key takeaways
- Use virtual USD, GBP, or EUR accounts to let clients pay you locally via ACH, SEPA, or FPS, then convert to INR quickly, platforms like the Wise freelancer payment methods guide and Payoneer receiving accounts explain the basics.
- Old school SWIFT wires work, but they are slower and costlier, see the Wise guide for freelancers for a comparison.
- Payment links and cards via Razorpay or Stripe are convenient for small invoices, expect higher fees.
- Set up KYC, GST if applicable, W‑8BEN for US clients, and keep your e‑FIRA or FIRC for every foreign remittance, this e‑FIRA and FIRC documents guide is a helpful primer.
- Always tag payments with the correct RBI purpose code, here is a practical purpose codes guide for freelancers in India.
- For regular international invoices, virtual accounts with ACH or SEPA are the sweet spot on speed, cost, and compliance, keep an eye on FX markups and platform fees.
- Consider a freelancer first platform like Karbon Business for fast ACH, SEPA, and FPS receiving, INR settlement in 24 to 48 hours, auto e‑FIRA, and clear pricing.
Understanding the main payment routes for Indian creatives
Local currency transfers to virtual USD, GBP, EUR accounts
This route is now the default for many designers. You share local details, your US client pays by ACH, your UK client pays by Faster Payments, your EU client pays by SEPA. Funds reach your virtual account fast, then you convert to INR. The Wise freelancer payment methods guide and Payoneer receiving accounts outline how it works.
Pros: local transfers for clients, fast settlement, transparent fees. Cons: you must set up accounts first, there is an FX conversion when moving to INR.
SWIFT wire transfers
Global, reliable, familiar to finance teams, yet often slow and fee heavy. Expect per transfer fees and bank FX markups. For small invoices, the cost bites. For larger retainers, it can still be fine. Compare with the Wise guide before choosing.
Global wallets like PayPal and Payoneer
Fast and easy, but you will usually pay more on FX and withdrawal. Payoneer is built for freelancers and agencies, see Payoneer receiving accounts. For a broad overview of gateway costs, see this India payment gateways comparison. The Wise freelancer guide also covers trade offs.
Marketplace payouts from Upwork, Fiverr, Freelancer
Escrow gives peace of mind, but platform commissions and payout delays add up. Many creators begin here, then shift direct clients to better rails. You can still withdraw to solutions like Payoneer, reference the Wise freelancer guide for tips.
Payment links and card payments via Razorpay and Stripe
For quick collection or card first clients, payment links shine. Review fees with this payment gateways guide, then set up with Razorpay or follow Stripe’s freelancer payment guide.
Setting up your accounts and compliance before you invoice
This is the quiet work that makes your payments smooth and stress free, clients notice when you are prepared.
KYC, bank account, and business registration
Have PAN, a masked Aadhaar, and an active Indian bank account. Most platforms will request recent bank statements and a proof of work link. Registering as a sole proprietor or LLP is optional, it can simplify invoicing and GST later. See the Wise guide for freelancers and this payment gateways overview for prerequisites.
Virtual business checking accounts
Open virtual USD, GBP, EUR, or CAD accounts once KYC is done. Clients pay domestically, you convert at your convenience, then settle INR to your bank. Learn the basics via Payoneer receiving accounts and the Wise freelancer guide.
The W‑8BEN for US clients
Most US companies will ask for W‑8BEN to avoid withholding. It takes minutes, keep a PDF ready to share with your first invoice.
GST registration and LUT
Export of services is zero rated. Register for GST if you cross the threshold, then file an LUT so you do not charge GST to foreign clients. The Wise guide offers a helpful overview.
Understanding e‑FIRA and FIRC
Your bank or platform issues an e‑FIRA or FIRC for every inward remittance, store them with invoices and contracts. Read this concise e‑FIRA and FIRC documents guide for what to expect.
How illustrator payments from USA to India actually work
Step one, invoice in USD with ACH details. Include your virtual USD routing and account number, attach W‑8BEN.
Step two, publisher initiates ACH. Share this explainer if needed, how to get paid from USA via ACH. They send a domestic transfer, usually free, processed in one to two business days.
Step three, funds arrive in your virtual USD account. You get a notification, funds remain in USD until you convert.
Step four, convert to INR. Convert at the live mid market rate, confirm fees before settlement.
Step five, INR hits your bank. Settlement completes in 24 to 48 hours, your e‑FIRA arrives shortly after. For comparisons and alternatives, see the Wise freelancer guide and Payoneer receiving accounts.
Backup plan: if a client insists on card, send a link via Stripe or Razorpay, expect higher fees for the convenience.
Choosing the right purpose code for creative services in India
Every inward remittance must carry an RBI purpose code, learn the framework in this purpose codes guide for freelancers and cross check with the Wise freelancer guide.
Why it matters: the code appears on your e‑FIRA, it must match your actual service.
Common codes for creatives:
- P0905, advertising and market research services
- P0802, architectural, engineering, and other technical services
- P1007, miscellaneous business, professional, and technical services
Avoid mistakes: do not pick software when you delivered design, do not default to other, match your invoice description to the code.
Practical invoice tips for creatives in India
- Include your business details, GSTIN if registered, client details, invoice number, date, currency, and clear scope of work.
- State rights and licenses, for example, full copyright transfer upon final payment.
- Add payment rails, ACH or SEPA details, or a payment link if you must collect by card.
- Set terms, due in 15 days, late fee after 30 days.
- Request advances for custom work, or use milestone billing.
- Consider adding a compliance note, export of services, purpose code P0905, LUT on file.
- Clarify FX, amount will convert to INR at live mid market rate on settlement day.
Pro tip: tie delivery of high resolution finals to receipt of the balance, this keeps timelines honest.
Comparing fees, exchange rates, and hedging decisions
Costs to watch: platform fee, FX markup versus mid market, sender fees on SWIFT, and any withdrawal charges.
Virtual accounts with ACH or SEPA usually win for recurring client work, low sender cost, fair FX, fast INR settlement. SWIFT can make sense for high value invoices where a flat fee is a small percentage.
Hedging: if your platform lets you hold USD, GBP, or EUR for a short period, you can time conversions, remember, the rate can move either way, be intentional.
Timeline of a clean payment, day by day
Day 1: send USD invoice with ACH details, client pays the same day.
Day 2: USD appears in your virtual account.
Day 3: you convert at the live rate, INR reaches your bank by evening, net of fees.
Day 4: e‑FIRA delivered, you file it with the invoice and contract.
Result: three to four days end to end, with full compliance documentation, faster and cheaper than a typical SWIFT wire.
Handling disputes, chargebacks, and scope creep
- Use a simple contract, deliverables, revisions, timelines, payment schedule, cancellation terms.
- Save proofs, approvals, delivery logs, this is your evidence if anything is challenged.
- For card payments, reduce chargeback risk with milestones, detailed invoices, and delivery receipts.
- Stop scope creep early, pause and re quote when the brief changes materially.
- Chase late payments with polite reminders, then enforce your late fee and pause work if necessary.
Mapping your workflow to payment solutions
- Karbon Business: virtual accounts in USD, GBP, EUR, CAD, local ACH, SEPA, FPS, INR settlement in 24 to 48 hours, zero FX markup on mid market rates, flat 1 percent fee, auto e‑FIRA in under a day, optional currency holding for up to 60 days, built for freelancers and small studios.
- Wise Business: multi currency accounts, trusted brand, clear fees, often higher FX than Karbon for INR.
- Payoneer: veteran option, marketplace friendly, solid receiving accounts, check conversion costs.
- PayPal: very fast, but expensive in FX and withdrawals, best for occasional small tickets.
- RazorpayX International: useful if you already use Razorpay domestically and want links or accounts.
- Stripe: excellent payment links and card experience, expect higher cross border fees.
Real world scenario with Karbon Business: a Pune brand designer invoices a Toronto startup for CAD 3,000, the client pays locally, funds land in CAD, designer converts at the live mid market rate with zero markup, pays a 1 percent platform fee, receives INR in 48 hours, and gets an auto e‑FIRA for records. Simple, compliant, predictable.
Quick checklist before you onboard your next foreign client
- Virtual account ready with your chosen platform.
- W‑8BEN template handy for US clients.
- GST registration and LUT filed if you are eligible.
- Invoice template finalized with scope, terms, and payment rails.
- Purpose code confirmed for the service you are exporting.
- Portfolio links prepared for KYC.
- Scope and milestones agreed in writing.
- Rights and deliverables clearly stated.
- Currency and payment method confirmed, ACH, SEPA, card link.
- Due dates and late fee policy included.
- Client has correct account details or link.
- Confirm funds received to your virtual account.
- Select the correct purpose code at claim or conversion.
- Convert and settle INR to your bank.
- Download and store e‑FIRA or FIRC with the invoice.
- Send a thank you and delivery confirmation.
FAQ
How can I receive international payments in India without paying heavy fees on every invoice?
Use virtual USD, GBP, or EUR accounts so clients pay you locally by ACH, SEPA, or FPS, then convert to INR at a live mid market rate. Platforms like Karbon Business let you do this with a flat fee and auto e‑FIRA, which usually beats wallet markups or SWIFT for routine invoices.
Which is better for US clients paying me by ACH, Karbon Business or Payoneer?
Both work. Karbon Business focuses on low FX cost, a flat fee, and fast INR settlement with auto e‑FIRA, Payoneer is widely accepted and integrates with marketplaces. If your priority is lowest total cost for recurring ACH invoices, many freelancers prefer Karbon Business, if you are tied to marketplace ecosystems, Payoneer can be convenient.
Do I need GST to invoice foreign clients as a freelancer in India?
If your turnover crosses the threshold, register for GST and file an LUT so you do not charge GST on exports. If you are below the threshold, you can still invoice foreign clients, voluntary GST registration can help with certain gateways and perception, but it is not mandatory for all freelancers.
What purpose code should I select for graphic design or illustration payments from abroad?
Common choices are P0905 for advertising and market research, or P1007 for miscellaneous professional services. Pick the code that matches your scope of work, keep it consistent with your invoice description, and store the e‑FIRA that shows the code for your records.
How long does an ACH payment from a US client take to reach my Indian bank account?
Typical flow is one to three business days for ACH to reach your virtual USD account, then 24 to 48 hours for INR settlement after conversion. In practice, many Karbon Business users see funds in INR in about three days end to end.
What documents do I need to smoothly receive foreign remittances as a freelancer?
Keep PAN, masked Aadhaar, Indian bank details, and a proof of work link for KYC. For US clients, share W‑8BEN. For every remittance, download the e‑FIRA or FIRC and file it with the matching invoice and contract. Platforms like Karbon Business auto generate e‑FIRA, which simplifies compliance.
Can I hold USD or EUR and convert later to manage the exchange rate?
Yes, many platforms let you hold currency for a limited period, often up to 60 days. This gives you timing flexibility if you expect a better INR rate. It is a risk decision, the rate can move against you too. Karbon Business supports short term currency holding so you can choose the right moment to convert.
Is PayPal fine for small projects, or should I always avoid it?
PayPal is fast and easy for small, one off projects, but you will usually pay more in FX and withdrawal costs. If you have regular clients, shifting them to ACH via a virtual USD account, for example Karbon Business or Payoneer, often saves you a meaningful percentage over a year.
How do I make an invoice that US or EU clients will pay without delays?
Use a clear invoice template, include your legal name, GSTIN if registered, client details, scope, rights, currency, and payment rails, for US clients include your virtual USD account and W‑8BEN. Add due dates, late fee policy, and mention export of services and your expected purpose code. Milestones or an advance reduce friction.
What is an e‑FIRA or FIRC, and why is it important for freelancers?
It is the bank issued proof of foreign inward remittance, showing the amount, currency, sender, date, and purpose code. You need it for tax filing, GST returns, and audits. With Karbon Business, e‑FIRA is generated automatically after settlement, so you can download and store it alongside the invoice quickly.
SWIFT wire versus ACH to a virtual account, which one should I suggest to my client?
For most invoices under a few thousand dollars, ask for ACH to your virtual USD account, it is cheaper for the client and quicker for you. Suggest SWIFT only for large value invoices where a flat wire fee is negligible, or if the client’s policy mandates wires.
Can I accept card payments from international clients and still stay compliant in India?
Yes, use payment links from Stripe or Razorpay that support international cards, make sure your invoice describes the export of services and you tag the inward remittance with the correct purpose code during settlement. Remember, card fees are higher, many freelancers keep links as a backup and prefer ACH or SEPA as the default.
