Indian recruitment agencies and executive search firms billing international clients have a specific payment profile: large per-placement fees, retained search upfront payments, contingency model receivables, and enterprise B2B wire payment as the standard. This guide covers the optimal payment infrastructure.
Recruitment Agency Billing Models
Contingency search: No upfront fee. Agency earns a percentage (15-25% of annual salary) only when candidate is placed and starts. Single large invoice after placement.
Retained search: Upfront retainer (one-third fee) paid before search begins. Second installment at shortlist. Final payment on placement. Three invoices per engagement.
Temporary/contract staffing: Monthly billing for contractor days/hours. Ongoing relationship. Predictable recurring wire receipts.
Payroll outsourcing: Monthly recurring billing. Employer of Record services.
Payment Infrastructure for Indian Recruitment Agencies
Large Placement Fees (Wire Primary)
A $15,000 placement fee (15% of $100K salary) is a B2B enterprise payment. International clients pay by wire, not card.
Skydo for fees above $10K (0.3%):
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$15,000 placement fee: $45 (0.3%)
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$50,000 retained search: $150 (0.3%)
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Auto-FIRA, 24-48 hour settlement Playto Pay** for smaller invoices and retainer installments:**
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Mid-size retainer installments ($3,000-$10,000): 1% flat VBA
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Occasional card-paying SMB clients: 4% flat
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FIRA auto per transaction
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Daily INR direct
Recurring Contract Staffing Billing
For temp/contract staffing with monthly invoicing to the same international client:
- Monthly wire receipts: consistent, predictable amount
- Playto Pay VBA or Skydo for each monthly invoice
- Auto-FIRA per invoice payment
- Consider Playto Pay auto-billing (if client agrees to card mandate) to eliminate monthly invoice-send-and-chase
Invoice Timing and Payment Terms
Contingency placement: Invoice on start date + guarantee period. NET-30 is industry standard. Some clients NET-60.
Retained search: Invoice each tranche at the agreed milestone:
- Tranche 1 (engagement start): NET-7 or due on receipt
- Tranche 2 (shortlist delivery): NET-14
- Tranche 3 (placement): NET-30 from start date or NET-0 from invoice Guarantee period: Most recruitment contracts include a 30-90 day replacement guarantee. No refund/replacement triggers if candidate leaves during guarantee. Document guarantee terms clearly to defend against post-placement chargebacks.
Protecting Against Disputes
Recruitment chargebacks are rare but disputes happen:
"Candidate didn't work out": If outside the guarantee period, your contract protects you. Document guarantee period end date clearly in contract.
"We didn't authorize this fee": Your signed agreement is evidence. Always get engagement letters signed before starting search.
"The placement wasn't as described": Job spec agreed in writing before search begins. Candidate profile shared and approved before presentation.
Wire payment protection: Wire disputes (vs card) are significantly rarer. B2B wire payments from enterprise clients rarely generate chargebacks. Another reason to prefer wire over card for large placement fees.
FIRA for Recruitment Agencies
Each international placement fee = one FIRA. For an agency doing 5-10 placements/month with international clients: 5-10 FIRAs/month.
Playto Pay and Skydo auto-generate per transaction. Clean audit trail matching: signed engagement letter → candidate offer letter (proof of placement) → FIRA → bank credit.
Cost at $200,000 Annual Billing to International Clients
| Platform | Annual Fee | FIRA |
|---|---|---|
| Skydo (0.3%) | $600 | Auto |
| Playto Pay VBA (1%) | $2,000 | Auto |
| Razorpay International (~1.5% + markup) | ~$3,000-4,000 | Dashboard |
| Traditional SWIFT to Indian bank | ~$5,000+ | Manual |
Skydo saves an established recruitment agency $1,400/year vs Playto Pay and $4,400+/year vs SWIFT at $200K billing.
FAQ
What payment gateway is best for Indian recruitment agencies with international clients? Skydo for large placement fees above $10K (0.3%). Playto Pay for retainer installments and smaller invoices (1% VBA, 4% cards), with FIRA auto and daily INR direct.
How do Indian recruitment agencies collect placement fees from international clients? Wire to VBA (Skydo or Playto Pay). Provide VBA bank details on invoice. International clients wire to VBA; you receive INR in Indian bank within 24-48 hours.
What payment terms are standard for international recruitment? Contingency: NET-30 from start date. Retained search: each tranche NET-7 to NET-30 per contract. Contract staffing: monthly NET-30.
Do Indian recruitment agencies need FIRA for each placement fee? Yes. Each international placement fee payment is a foreign inward remittance requiring FIRA documentation. Skydo and Playto Pay auto-generate.