The most common questions Indian businesses ask about receiving international payments — answered honestly.
Basics
Q: Is it legal for Indian businesses to receive foreign payments?
Yes. Receiving foreign currency for legitimate services is legal and actively encouraged under FEMA (Foreign Exchange Management Act). It qualifies as a current account transaction. All you need: receive through RBI-authorized channels (licensed PG or bank), maintain FIRA documentation, and comply with GST export of services rules.
Q: Do I need a special license to receive international payments as an Indian business?
No special license needed. You need GST registration if your aggregate annual turnover (including international receipts) exceeds ₹20 lakh (₹10 lakh in special category states). The payment platform you use (Playto Pay, Razorpay, Skydo, etc.) holds the PA/PA-CB license from RBI — you benefit from their authorization.
Q: Is there a limit on how much international payment I can receive?
No annual or per-transaction limit on inward foreign currency remittances for services revenue. You can receive any amount for legitimate services.
Platform Specific
Q: Can I use Stripe in India?
Stripe India is invite-only for most Indian businesses. Workaround: incorporate a Delaware LLC via Stripe Atlas ($500-$2,000 setup + $1,000-$3,000/year compliance). Alternatively, Playto Pay provides comparable international card acceptance (4% flat, zero forex markup) without offshore entity requirements.
Q: Can Indian businesses use PayPal?
Yes. PayPal works but at 7.4-8.4% effective all-in rate (4.4% receive + 3-4% forex markup). PayPal received RBI in-principle PA-CB approval in May 2025, but account hold risk at higher volumes remains documented. Best used as last resort for clients who insist on PayPal.
Q: Does Playto Pay work for Indian businesses?
Yes. Playto Pay is built specifically for Indian businesses. 4% flat on international cards, 1% flat on VBA wires, 0% on UPI for Indian customers. FIRA auto-generated per transaction. Daily INR direct to Indian bank. Indian KYB onboarding in 24-72 hours. No offshore entity required.
Q: What is Skydo and is it safe?
Skydo is an India-built flat-fee wire receipt platform. $19 flat (under $2K), $29 flat ($2K-$10K), 0.3% above $10K. Zero forex markup. Auto-FIRA. RBI-authorized infrastructure. 24-48 hour settlement. Safe and legitimate for large B2B wire receipts.
Q: Can I use Wise as my primary payment platform?
Wise works for wire receipts and multi-currency holding but has key limitations: no international card acceptance, no UPI, manual FIRC at $2.50 per request. Works well as complement to Playto Pay, not as a standalone primary platform for most Indian businesses.
FIRA and Compliance
Q: What is FIRA and why do I need it?
FIRA (Foreign Inward Remittance Advice) is the bank document confirming foreign currency receipt through RBI-authorized channels. Required for: Indian GST export of services (zero-rated) filing, income tax return foreign income documentation, and audit readiness. Playto Pay and Skydo auto-generate India-format FIRA per transaction.
Q: Which platforms auto-generate FIRA?
Playto Pay and Skydo auto-generate India-format FIRA in dashboard per transaction. Razorpay International and Cashfree International generate FIRA in dashboard. Wise requires manual FIRC request at $2.50 each. PayPal FIRC process is separate from dashboard auto-generation post-May 2025. Traditional SWIFT to Indian bank requires manual bank request.
Q: Do I need GST to receive international payments?
GST registration is mandatory if your aggregate annual turnover (domestic + international) exceeds ₹20 lakh (₹10 lakh in special category states). International receipts count toward the threshold even though they're zero-rated. Below threshold, voluntary registration may be advisable.
Q: Do I add GST to invoices for international clients?
No. Export of services to non-Indian clients is zero-rated (IGST @ 0%). Don't add GST to international invoices. Write "Export of Services – IGST @ 0% (LUT filed for FY [year])" on the invoice.
Q: What is LUT and do I need to file it?
LUT (Letter of Undertaking) is an annual filing with the GST department (Form GST RFD-11) that allows zero-rated export of services treatment without paying IGST upfront. File via GST portal every April. Free to file. Essential for any GST-registered Indian business with international revenue.
Costs and Fees
Q: What is the cheapest way to receive international payments in India?
For large B2B wires ($10K+): Skydo at 0.3%. For mixed card + wire: Playto Pay at 4% cards / 1% VBA, both with zero forex markup. For UPI from Indian customers: 0% on any Indian PG.
Q: What is forex markup and how much does it cost?
Forex markup is the spread above mid-market exchange rate applied when converting foreign currency to INR. PayPal: 3-4%. Razorpay/Cashfree: 1-2%. Playto Pay: 0% (mid-market rate). On $5,000 monthly, a 3% markup costs $150/month = $1,800/year in hidden fees.
Q: What is the difference between processing fee and all-in rate?
Processing fee is the stated percentage. All-in rate = processing fee + forex markup + fixed per-transaction fees. Razorpay's 3% stated rate + 1-2% forex = 4-5% all-in. Playto Pay's 4% stated rate + 0% forex = 4% all-in.
Q: Is there a monthly fee for Playto Pay?
No. Playto Pay charges ₹0 monthly. Revenue comes from transaction processing fees only (4% cards, 1% VBA, 10% BNPL).
Technical Setup
Q: What is a VBA and how does it work?
A Virtual Business Account (VBA) gives your international client local bank details (US routing number, UK sort code, EU IBAN, UAE IBAN) to send a domestic transfer. To them, it's a cheap local payment. To you, it arrives in your Indian bank in INR at 1% flat with FIRA auto-generated.
Q: How long does it take to receive international payments into my Indian bank?
Playto Pay: daily (next business day). Skydo: 24-48 hours. Razorpay: T+1 to T+2. Wise: 2-4 days after manual conversion. PayPal: 3-5 days after withdrawal. Traditional SWIFT: 3-7 days.
Q: Can I accept recurring monthly payments from international clients?
Yes. Playto Pay supports card-on-file recurring billing at 4% flat per charge. Client authorizes once; platform auto-charges monthly. FIRA auto-generated per charge.
Q: What payment methods can international clients use to pay Indian businesses?
Via Playto Pay: Visa, Mastercard, Amex, Apple Pay, Google Pay (all 4% flat), plus bank wire via VBA (1% flat), plus BNPL/Klarna/Afterpay (10% flat). All settle to INR in Indian bank daily.
Account and Risk
Q: Do international payment platforms hold money from Indian businesses?
Daily-settling platforms like Playto Pay don't accumulate balances — no funds to hold. PayPal has documented account hold history for Indian users at $5K+ monthly. Rolling reserve (5-10% of revenue held 90-180 days as risk buffer) applies at some platforms for higher-volume merchants.
Q: Can Indian businesses have their payment accounts suspended?
Yes, if chargeback rate exceeds Visa/Mastercard thresholds (above 1%), if fraud patterns are detected, or if KYC/KYB documents are outdated. Maintain clean chargeback rate (below 0.5%), keep KYB documents current, and respond promptly to platform compliance requests.
Q: Is it safe to use smaller Indian cross-border payment platforms?
Look for RBI PA/PA-CB authorization. Playto Pay operates through RBI-authorized partner banks and licensed cross-border infrastructure. Skydo is RBI-authorized. Razorpay and Cashfree hold direct RBI PA and PA-CB licenses. Avoid platforms that can't demonstrate RBI regulatory compliance.