Negotiate client payment method: ACH Beats Cards for Indian Freelancers

Key takeaways

Why card and SWIFT payments are eating your income

When a US client pays a $5,000 invoice by card, the gateway takes around 2.9% plus a fixed fee, then international processing and FX markups pile on, so 3–5% disappears before you see a rupee. That is $150–$250, money you could keep with a better rail. SWIFT wires look cheaper but still hurt, the sender pays $20–$50, intermediaries may skim more, your bank charges conversion fees, and settlement can take three to seven business days with unpredictable deductions.

Local rails are different, they move money domestically, quickly, and cheaply. For a primer on how cross-border workflows piggyback on domestic rails, read International ACH and this complementary Global ACH explainer. The bottom line, less friction, faster settlement, and far more predictable amounts landing in your Indian account.

Meet your new best friend, local payment rails

ACH, Automated Clearing House, United States, the default way Americans pay salaries and vendors, usually free or a few dollars to send, settles in one to two business days.

SEPA, Single Euro Payments Area, Europe, low cost, often same or next business day across 36 countries when the payment is in euros.

FPS, Faster Payments Service, United Kingdom, near real-time pounds transfers between UK accounts, typically free to the sender.

EFT, Electronic Funds Transfer, Canada, domestic CAD transfers with low fees and quick settlement.

Give clients local account details in their currency and country, they pay you as if you were a domestic vendor. For step-by-step examples, see this practical guide to International ACH transfers.

The cost comparison that sells itself

• Card: ~2.9% plus fixed fee, plus international surcharges and FX markup, $175–$250 on a $5,000 invoice.
• SWIFT: $20–$50 sender fee, intermediary deductions, receiving bank charges, FX markups, slow and unpredictable.
• ACH, SEPA, FPS, EFT: $0–$5 to send in many cases, and with a transparent partner charging a flat 1% and zero FX markup, you pay $50 on $5,000, see this breakdown of ACH vs SWIFT fees in India.

Switching a single $5,000 invoice from card to local rails can save you $100–$200, scale that across monthly billing and you keep thousands more each year.

The playbook, how to ask clients to pay via ACH, SEPA, FPS, EFT

Step 1, set expectations early

Include a payment clause in proposals and contracts, Preferred payment method, ACH, SEPA, FPS, or EFT, local account details will be on the invoice, cards and wires available on request, with higher fees. Most clients will accept this immediately because it also saves them money.

Step 2, share local details on every invoice

US clients, routing number and account number. UK clients, sort code and account number. EU clients, IBAN. Canada, transit number, institution number, and account number. Label a section called Payment Instructions so AP teams do not hunt for it. For a refresher, here is a concise guide to International ACH transfer fields.

Step 3, explain the why in one paragraph

Use friendly language, emphasize savings and speed, and keep cards or SWIFT as fallbacks. Example, Paying via local rails avoids international fees, saves both sides money, and settles faster, cards or wires are available if needed, they usually cost 3–5% more.

Step 4, give AP a mini guide

Offer simple steps, log in, choose ACH or pay bills, not wire transfer, enter routing and account, add the invoice reference, schedule payment. If needed, attach a screenshot of the correct option in their banking portal. For broader background, share an International ACH overview.

Step 5, offer fallbacks and clarify cost

Cards are fine when necessary, but state the processing cost clearly, SWIFT wires work when AP policy requires them, but they are slower and more expensive. Transparency wins trust.

Step 6, confirm and close the loop

Confirm receipt quickly, send a receipt, and share compliance docs. Store the e-FIRA for each payment so GST and income tax filings stay smooth.

Ready-to-copy scripts and templates

New client intro, To keep costs low for both of us, I prefer local bank transfer, ACH in the US, SEPA in the EU, FPS in the UK, EFT in Canada, I will include local account details on the invoice.

Switch request, Moving to ACH, SEPA, FPS typically saves $100–$200 on a $5,000 invoice compared to cards or SWIFT, same security, faster settlement, I will share updated details on the next invoice.

Invoice note, Preferred payment method, ACH, SEPA, FPS, EFT, local account details below, other payment methods available on request, additional processing charges may apply.

Handling card-only AP, If your AP is card only, I can accept cards, they attract higher processing and FX costs, I can add that fee or offer a small discount if you can switch to ACH for future invoices.

How to share local details by country

• United States, ACH, routing number, account number, ensure it is the ACH routing code, not the wire code, here is a field-by-field guide to receiving USD payments in India.
• United Kingdom, FPS, sort code and account number, pounds only.
• European Union, SEPA, IBAN for euro payments across 36 countries.
• Canada, EFT, transit number, institution number, account number.
• Global fallback, SWIFT, SWIFT or BIC code and account number, use only when local rails are unavailable. For more context, read this Global ACH overview.

Label the preferred rail by region on your invoice, for example, US clients, pay in USD via ACH using the details below, add Invoice INV-456 plus your entity name in the reference.

Clear labels reduce errors and shorten AP setup time.

Tactics to avoid card fees today

• Default to local rails in proposals and invoices, do not bury them as optional.
• Share a one-page cost comparison, card ~3–5% versus ACH often $0–$5 to send, numbers persuade.
• Offer a 1–2% discount for switching, you still save compared to card costs.
• Help AP set up recurring payments for retainers, once saved, future payments are one click.
• Build payment instructions into onboarding, include local details and a short FAQ.

Platforms that make it easy

Modern providers let Indian freelancers create virtual local accounts, so clients pay you as a domestic vendor. Karbon Business offers local USD, GBP, EUR, and CAD details, uses mid market Xe.com rates with zero FX markup, charges a flat 1% platform fee, settles INR in 24–48 hours, and auto generates e-FIRA within 24 hours for RBI compliance. Explore Karbon Business and compare with alternatives like Wise Business and Payoneer if you need different geographies or features, note the trade offs in fees, FX, and settlement speed.

When to use SWIFT or cards

• Strict AP policies, some enterprises only allow SWIFT for cross border vendors, provide SWIFT details and explain the additional fees.
• Very small or urgent payments, cards can be convenient for sub $200 invoices, convenience may trump cost.
• Unsupported countries, if a client is outside US, UK, EU, or Canada, use SWIFT or a regional rail your provider supports.

Be transparent about costs, often that nudge alone gets clients to double check if ACH or SEPA is possible.

Common risks and how to avoid them

• Mismatched references, mandate Invoice Number plus your legal entity in the reference so reconciliation is painless.
• Client picks wire instead of ACH, share a short step guide or screenshot to help them choose ACH or pay bills, not wire.
• Wrong rail or currency, label per region, US, USD via ACH, EU, EUR via SEPA, UK, GBP via FPS.
• FX timing risk, if you hold currencies, consider partial conversions or convert immediately to lock the mid market rate.
• Compliance gaps, download the e-FIRA for each remittance and keep invoice to e-FIRA mapping clean.

Compliance and documentation

India requires RBI and FEMA compliance for foreign remittances. The key proof is the e-FIRA, it captures sender details, amount, currency, conversion rate, and purpose code. Learn the basics with this guide to RBI purpose codes for freelancers. Your CA will ask for e-FIRAs during GST and income tax filings, so archive them diligently. Platforms like Karbon Business generate and email e-FIRA automatically within 24 hours of settlement.

Mini checklist
Store invoices, download e-FIRA for every payment, map invoice to e-FIRA in a simple ledger, use consistent legal entity and GST details across paperwork, share organized records with your CA quarterly.

Quick action checklist

• Add ACH, SEPA, FPS, EFT preference to all proposals, contracts, and invoices.
• Set up virtual local accounts that provide USD, GBP, EUR, and CAD details.
• Update invoice templates with clearly labeled regional bank fields and reference format.
• Write a short paragraph explaining why local rails save fees and time, reuse it across emails and invoices.
• Prepare card and SWIFT fallbacks, but state their higher cost.
• Send a friendly switch message to your top three clients this week, then measure savings over the next quarter.

Take action this week

You now know how to ask clients to pay via local rails, how to present US, UK, EU, and Canada details cleanly, and how to back it with compliance. Pick two clients, update your invoice template, and send the switch note today. Every invoice that moves from cards or SWIFT to ACH, SEPA, FPS, or EFT is cash back in your pocket, faster settlement, and a more professional workflow. For deeper background, share an International ACH overview, a concise Global ACH explainer, and this how to on ACH transfers with stakeholders.

FAQ

How do I politely ask a US client to pay via ACH from India without sounding pushy?

Frame ACH as standard, efficient, and mutually beneficial, for example, “To keep costs low for both of us, I prefer ACH, I will include US routing and account details on the invoice, cards or wires are available if needed.” Share a quick comparison, card can cost 3–5%, ACH is often free to send. If they want help, offer a short step guide. Many Indian freelancers use Karbon Business to provide US ACH details, so setup for the client is straightforward.

Is ACH legal and compliant for Indian freelancers receiving international payments?

Yes, when you receive via a platform that is RBI and FEMA compliant. The core requirement is proper documentation, notably the e-FIRA for each inbound remittance, plus the correct purpose code. Providers like Karbon Business auto generate e-FIRA within 24 hours, which your CA can use for GST and income tax filings.

What details should I share on the invoice to get paid via ACH, SEPA, FPS, or EFT?

US, routing number and account number for ACH. UK, sort code and account number for FPS. EU, IBAN for SEPA. Canada, transit number, institution number, and account number for EFT. Label the section as Payment Instructions and specify the reference format, Invoice Number plus your legal entity. This reduces AP errors and speeds setup.

My client’s AP says they only do wires for international vendors, how do I convince them to try ACH or SEPA?

Explain that ACH and SEPA are domestic transfers for them, cheaper and faster than wires, with fewer failure points. Share a one page cost comparison and mention that platforms like Karbon Business give you local account details, so their process is identical to paying a domestic vendor. If policy is rigid, accept SWIFT but note the extra fees and slower settlement.

How quickly will I get INR after a client pays via ACH or SEPA?

Typical settlement to INR is 24–48 hours after funds arrive in your local currency account, provider dependent. This is significantly faster than SWIFT, which can take three to seven business days. Karbon Business targets 24–48 hour INR settlement with real time status on dashboard and WhatsApp.

Can I hold USD, EUR, or GBP for a while before converting to INR to manage FX?

Yes, if your provider supports currency holding. For example, Karbon Business lets you hold funds for up to 60 days, handy if you want to convert when rates improve. If you prefer certainty, convert immediately at mid market rates and eliminate FX timing risk.

What documents do I need for taxes when receiving international freelance payments?

You need the invoice, the e-FIRA for each remittance, and consistent mapping between them. The e-FIRA shows sender, currency, amount, conversion rate, and purpose code, your CA will use it for GST and income tax filings. Platforms that auto generate e-FIRA, like Karbon Business, reduce back and forth with banks.

How do I handle clients who insist on paying by credit card only?

Provide a card link if needed, but clearly state that card processing and FX costs are higher, often 3–5%. Offer options, you can add the fee to the invoice, split it, or offer a small discount if they switch to ACH or SEPA next time. Many clients switch once they see the savings.

What fees should I expect if I switch from SWIFT to ACH or SEPA using a platform?

Senders often pay $0–$5 domestically, you might pay a transparent platform fee, for example a flat 1% with zero FX markup at the mid market rate. Compare that to SWIFT, where the sender pays $20–$50, intermediaries deduct more, and the FX markup is opaque. Karbon Business advertises a flat 1% with mid market Xe.com rates and no setup or maintenance fees.

How do I reduce payment reconciliation headaches when multiple invoices are open?

Specify a strict reference format on invoices, Invoice Number plus your legal entity, and repeat it in your email. Ask AP to copy paste the reference. Use a provider dashboard that shows payer and memo fields, so you can match payments quickly. Karbon Business dashboards and notifications help here, along with the e-FIRA records.

Can I use ACH or SEPA to get paid from marketplaces or only direct clients?

Marketplaces have their own flows, many pay out via their internal systems. For direct clients, ACH, SEPA, FPS, and EFT are perfect. Some market platforms also let you add local USD or EUR details, which providers like Karbon Business can supply, check each marketplace’s payout settings to confirm.

What should I write in my first email asking an existing client to switch from card to ACH?

Keep it simple, “To save on fees and speed up settlements, I am moving to local bank transfers, ACH in the US, SEPA in Europe. For a $5,000 invoice, this typically saves $100–$200 versus cards or wires, I will include local bank details on the invoice, happy to guide your AP if needed.” Mention that you use a business platform such as Karbon Business for local account details and automatic compliance, which reassures finance teams.