How to receive money from a USA client in India

How do I receive money from a US client, step by step?

1. Choose a channel: a US receiving account (ACH or Fedwire), a SWIFT wire to your Indian bank, or PayPal for occasional card payers.
2. Complete KYC with your PAN, your Indian bank account and your business documents.
3. Share the details: the US account and routing number, or your bank’s SWIFT details.
4. Set the purpose code, such as P0807 for software you build and deliver from India — see purpose codes for freelancers.
5. Raise a USD export invoice, zero-rated under your LUT if you are GST-registered — see GST on export of services.
6. Send the client a W-8BEN if they ask for one — it is a US tax form, explained below.
7. File the EDF with your AD bank within 30 days of the invoice month-end — see the EDF guide.
8. Keep the remittance advice once INR reaches your bank, and make sure the invoice is realised within 9 months.

Which way of receiving money from the USA is best?

PayPal figures are from PayPal India’s fee page (last updated 28 March 2024, checked October 2026). Compare any quote by the rate it gives you against mid-market, not by the fee line alone.

What is the fastest, cheapest route for most people?

A US client paying by ACH into an account in your business’s name: no international wire, no intermediary deductions, and a payment that arrives matched to the invoice. Fedwire is the same-day option for larger or urgent payments. See can I receive ACH payments in India for ACH vs Fedwire vs SWIFT.

What should the invoice say?

• Your business name, address, GSTIN (if registered) and PAN.
• The client’s legal name and US address.
• A description of the work that matches your purpose code, the SAC, and the amount in USD.
• The export endorsement and LUT reference, if you are GST-registered.
• Payment instructions: account name, account number, routing number (ACH and wire, if different), and the invoice number as the reference.

Why does my US client want a W-8BEN?

US payers collect a form from foreign payees to document that they are not US persons. The IRS says a foreign person gives Form W-8BEN (individuals) to the withholding agent or payer when asked — it is not filed with the IRS. A company uses W-8BEN-E instead. Fill it in with your own legal name and Indian address, and ask your CA about the treaty section if you want to claim a reduced US withholding rate.

Business payment or family remittance?

Money from a US client for work you did is an export of services, received under a services purpose code, with an EDF and GST treatment to match. Money from a relative is a personal remittance under codes such as P1301 (family maintenance and savings) or P1302 (gifts). Never let a client payment arrive under a personal code: it will not match your invoice, your EDF or your GST return.

What goes wrong most often?

• The client reuses old bank details from a previous vendor setup — put the instructions on every invoice.
• A SWIFT wire is sent "SHA", and an intermediary deducts its charges — ask for "OUR".
• The purpose code on the payment does not match the invoice.
• A large milestone runs into the per-transaction limit (₹25 lakh for cross-border payment aggregators) — split the invoice by deliverable, or use a bank wire.
• The EDF for the month is forgotten because the client had not paid yet — software exports are due 30 days after the invoice month ends, paid or not.

On Payzoplus

Your business gets US account details in its own name for each customer, held through our RBI-authorised payment partner, so US clients pay by ACH or Fedwire and non-US clients by SWIFT. Your rate is shown beside mid-market before you convert, and rupees settle T+1 to your own bank. For each settlement you get the bank’s payment advice (the FIRA) exactly as it was issued, and our own remittance advice, which ties the payment to its invoice, remitter, purpose code and exchange rate. We do not issue e-BRCs: those are generated on the DGFT platform from the data banks report. See receiving accounts and how export collections work, or the complete guide to receiving international payments in India.