Payment delays in India: Freelancers' Playbook to Get Paid

Key takeaways

Gather these details before you escalate any delay

Collecting the right data upfront halves your resolution time, and helps support teams act quickly.

• Payment basics: date and time the client sent funds, exact amount, and currency.
• Sender details: client name, bank or wallet, and any payer identifiers they can share.
• Tracking codes: PayPal Transaction ID, the SWIFT UETR code, MT103, or ACH Trace ID.
• Charges type: OUR, SHA, or BEN, remember SHA or BEN can create short credits and holds.
• Your bank details: exact account name as per bank records, account number or IBAN, SWIFT or BIC, IFSC, and the bank branch address.
• Purpose and paperwork: the RBI purpose code, invoice number, and ensure you can obtain e-FIRA quickly.
• Timing context: weekend cut offs, US or EU holidays, and Indian public holidays can add quiet delays.
• Compliance red flags: first time sender, sudden jump in amount, mismatched invoicing, or risky descriptors in the memo.
• India specific requirements: every inward remittance needs the right purpose code, and KYC with your bank or platform must be current.

Pro tip: Add a one line payment memo on your invoice like, “Payment for export of software development services, invoice 12345,” to preempt compliance queries.

For additional context, see these explainers on foreign payment flows, cross-border payment challenges, and how to fix declined international business payments.

Why international payments get delayed in India: the core reasons

Compliance screening slows transfers. AML, KYC, and FEMA checks are mandatory, any flag sends your payment to a manual review queue.

Intermediary banks add hops. SWIFT routes often include multiple correspondents, each with its own screening, which creates compounding waits.

Incorrect beneficiary details halt crediting. A single typo, an outdated SWIFT code, or a missing address field can send the transfer to a repair team.

Charges choice causes short credits. SHA and BEN deduct fees in transit, then some banks pause credit until you confirm acceptance of the lower amount, OUR avoids this.

Forex conversion timing matters. Thin liquidity or multi step conversions add time, especially across closed market hours.

Cut offs, holidays, and time zones create invisible buffers. Miss a batch window by minutes and you roll to the next business day, add public holidays and you lose more time.

India documentation gaps trigger holds. A wrong purpose code or missing e-FIRA can pause settlement until you submit proof.

Platform holds on wallets. For digital services or new users, PayPal style holds can last 21 days, pending proof of delivery.

Deeper dives: experts discuss why transfers delay, what a delayed bank transfer means, and how to address delayed international transactions.

PayPal payment delay India: why it happens and how to fix it

What causes PayPal payment delays

• New or low history accounts face automatic 21 day rolling holds, PayPal waits for delivery proof.
• Digital services are scrutinized, if a client marks it as goods, PayPal expects shipment tracking you cannot provide.
• Incomplete KYC like missing PAN or unverified bank account pushes payments into pending.
• Unusually large invoices compared to your history trigger enhanced manual review.

See a round up of safe ways to receive international payments in India if PayPal delays keep recurring.

How to fix PayPal delays fast

• Complete all KYC steps, verify PAN, confirm your Indian bank, and upload clear documents.
• Keep invoices, contracts, delivery screenshots, and client acceptance ready to upload instantly.
• Ask clients to select “paying for a service,” to avoid shipment tracking requirements.
• Keep project communication on PayPal where possible, so reviewers can see context.
• For repeat clients, move to local bank transfers via a virtual USD or EUR account offered by platforms like Karbon Business, which settle INR in 24 to 48 hours with fewer holds.

SWIFT payment delay India: how to trace and speed up bank transfers

Why SWIFT payments get delayed

• Multi bank chains, each adding compliance checks and cut off windows.
• Beneficiary errors, like name mismatches or wrong SWIFT, BIC, or IFSC codes.
• SHA charge type causing short credit and manual confirmation.
• Lack of visibility, until you trace with UETR or MT103.

Guides that help: transfer delay reasons, what to do when a transfer is delayed or rejected, and how to fix declined international payments.

How to resolve SWIFT delays

• Get the UETR and MT103 from your client, ask their bank to query the SWIFT network and identify the holding correspondent.
• Reconfirm every beneficiary field, legal name, account number or IBAN, SWIFT or BIC, IFSC, and branch address.
• Request OUR charges for future transfers, so you receive full value without shared fee confusion.
• Time invoices to avoid Friday evenings and global holidays for faster batch processing.
• For recurring payers, propose local rail collections to bypass correspondents entirely.

For alternatives and speed tips, check this overview of safer, faster inbound methods.

Local rail collections via virtual accounts: the fastest settlement path

Instead of an international wire, your client pays domestically into your virtual account, then INR settles to your Indian bank in one to two business days. Learn how to set up a virtual USD account here: get a US bank account online from India.

• Smoother compliance: the sender makes a local payment in their country, lowering cross border friction.
• No correspondent maze: fewer hops means fewer holds.
• Predictable costs: flat, transparent fees replace surprise deductions.
• Better documentation: auto e-FIRA generation means less paperwork chasing.

Karbon Business credits INR within 24 to 48 hours post claim, can auto generate e-FIRA within 24 hours, and lets you hold foreign currency up to 60 days if you prefer to time your conversion.

Choosing the right payment rail for your situation

• PayPal: good for small first time invoices, expect one to four days but watch for holds.
• SWIFT: suitable for large, recurring B2B payments, plan for one to five days and request OUR charges.
• Local rails: best for high value or repeat clients when speed and predictability matter, 24 to 48 hour settlement is common.

Example approach: under 500 dollars from a new client, use PayPal, above 2,000 dollars monthly from a repeat client, use a virtual USD account, five figure quarterly invoices to an agency, use SWIFT with precise details and OUR charges.

Step by step: what to do when your payment is stuck

If a PayPal payout is delayed

• Log in, complete KYC, and check for reserve notices.
• Upload proof of service, invoices, contracts, and acceptance screenshots, keep communications visible.
• Ask the client to confirm receipt on PayPal, then consider moving future payments to a virtual account to avoid holds.

If a SWIFT wire is delayed

• Get UETR and MT103, ask the sending bank to trace and identify the holding correspondent.
• Verify beneficiary fields and resubmit any missing data fast.
• Share your bank’s contact so correspondents can coordinate directly.
• Request OUR charges next time to avoid short credit reviews.

If a local rail settlement lags

• Check cut offs and holidays, claims after 5 PM or on weekends typically settle next business day.
• Ensure your platform KYC is complete.
• Open a support ticket with payment reference and invoice, response is usually quick.

Preventing payment delays before you send the next invoice

• Pick the right rail for the client and amount, PayPal for small first timers, local rails or SWIFT for larger or recurring work.
• Copy paste beneficiary details from your bank, do not rely on memory.
• Instruct senders to choose OUR charges on SWIFT.
• Use clear memos, avoid risky words like “loan” or “gift.”
• Schedule around global holidays and cut offs.
• Keep contracts, invoices, and delivery proof organized for quick upload.
• Capture the correct purpose code, and prefer platforms that auto generate e-FIRA.

Real examples: how freelancers fixed stuck payments

PayPal hold released in 48 hours: a designer uploaded final files, client acceptance, and kept chat proof ready, the client confirmed delivery inside PayPal, funds released in two days, next invoice moved to a virtual USD account and settled to INR in 36 hours.

SWIFT delay resolved with MT103: a consultant traced EUR 5,000 stuck at a Frankfurt correspondent due to an incomplete address, after submitting the missing line, funds arrived within 24 hours, future payments now come via SEPA to a virtual EUR account and settle in 48 hours with auto e-FIRA.

Weekend ACH to INR in under 60 hours: a writer’s client paid late Friday to a virtual USD account, she claimed Saturday, INR landed Monday afternoon, e-FIRA arrived soon after.

FAQ

Why is my US client’s PayPal payment still on hold in India, and how do I release it fast?

Holds happen due to new account risk, incomplete KYC, or missing delivery proof. Complete PayPal KYC, upload your invoice and finished work, ask the client to confirm receipt inside PayPal. For future payments, request a local transfer to your virtual USD account with a provider like Karbon Business, which typically settles INR in 24 to 48 hours and avoids PayPal style reserves.

What is a UETR number for SWIFT and how do I track my international payment to India?

The UETR is a unique end to end reference that lets banks trace your wire across the SWIFT network. Ask the sender for the UETR or MT103, then their bank can see exactly which correspondent is holding the funds. For a primer, read this guide to the SWIFT UETR code, and share the code with your Indian bank if they need to coordinate release.

How much time does a SWIFT transfer to India actually take, including weekends and bank holidays?

Typical settlement is one to five business days, but miss a cut off, add a Friday initiation in the sender’s time zone, or include a US or Indian holiday, and it easily stretches to a week. Reduce delays by invoicing for mid week payments, using OUR charges, and ensuring beneficiary details are error free.

Which RBI purpose code should a freelancer use, and what happens if it is wrong?

Most freelancers fall under export of services purpose codes. If the code is missing or incorrect, the bank may hold credit, ask for clarification, or even return the funds. Use this explainer on purpose code mismatches for India freelancers, and put the correct purpose on your invoice to avoid manual reviews.

What is e-FIRA for inward remittance, and can I get it automatically with Karbon Business?

e-FIRA is proof of foreign inward remittance used for compliance and tax filing. With providers like Karbon Business, e-FIRA is auto generated within roughly 24 hours after settlement, which means you do not chase branches for paperwork, and audits become simpler.

My client chose SHA charges and I received a short amount, will this cause a delay?

Yes, shared fees can lead to short credits, and some banks pause credit until you confirm acceptance. Ask your client to switch to OUR charges on the next transfer so you receive the full amount. If you need speed and predictability, consider local rail collections to a virtual account where fees are transparent and not deducted by correspondents.

Is ACH to a virtual USD account faster than an international wire for Indian freelancers?

In most cases, yes. A domestic ACH to your virtual USD account avoids multiple correspondent banks, then the platform converts and settles INR within 24 to 48 hours. Providers such as Karbon Business also auto generate e-FIRA, making it both faster and cleaner for compliance.

Can I move my long term clients off PayPal to reduce holds and fees, what is a practical path?

Yes. Share an invoice with virtual USD or EUR account details so clients pay domestically, this bypasses wallet holds, reduces fees, and speeds up settlement. Keep PayPal for small or first time invoices, then migrate repeat clients to local rails via a platform like Karbon Business.

What documents do banks or platforms ask when an inward remittance is on compliance hold?

Common asks include the invoice, contract or statement of work, proof of service delivery such as links or screenshots, and a clear business purpose. Keep these ready, named clearly, and respond within hours, not days, to reduce hold time.

My wire is delayed and the bank says beneficiary name mismatch, how do I fix it quickly?

Ask the sender’s bank to amend the transfer with your exact legal name as on your bank account, including middle names if present, and verify your SWIFT, IFSC, and branch address. Share a scanned bank statement header to avoid rework. For future payments, copy paste details directly from your bank profile to prevent typos.

How do I avoid SWIFT delays caused by correspondent banks and still keep costs reasonable?

Use OUR charges to prevent short credits, send during business hours mid week, and minimize hops by confirming the receiver bank’s correct correspondent relationship. If your client pays you regularly, switch to local rails through a virtual account, which removes correspondents from the chain and provides faster, cheaper settlement.

What is the safest, fastest way to receive international payments in India without getting stuck?

For new, small invoices use PayPal with complete KYC and delivery proof, for recurring or high value invoices use a virtual foreign currency account to collect via ACH or SEPA, then settle INR in 24 to 48 hours. See this guide on safe ways to receive international payments in India, and consider platforms like Karbon Business for predictable timelines and automatic e-FIRA.