Wire Transfer Procedure for Indian Freelancers

[i_am_smita]

Hi Upwork Friends,

I am looking to connect with Indian freelancers who get their payments through wire transfer. I am struggling to find out the following information-

1. Should we give the Swift code of the correspondent bank related to our local bank? For example, my local bank is ICICI, and their USD correspondent bank is Bank of America. So, do I need to provide the Swift code of Bank of America?

2. What is the Memo code or detail that I need to mention on Upwork? FYI - It's a mandate for Indian Banks.

3. Are you getting the FIRC (Foreign inward Remittance Certificate) from your local bank/branch to show this payment as a remittance towards 'Export of Service'?

4. Any other information I must know as an Indian freelancer working for American clients.

Thanks,

Smita

[ashrafkhan81]

1 - Although I have never used Wire Transfer as a payment method, all that you've listed will be required. 

2 - You have to mention the "Purpose Code" in the memo, if you do not mention the purpose code the bank will call and ask you about the purpose code when the funds arrive.

3 - You will get a FIRC certificate if you wire transfer and the bank is required to issue the same. 

[i_am_smita]

I appreciate the response, Ashraf. Thank you for the insights.

I have a follow-up question here. Have you tried getting paid via Paypal for inward remittance? If you can help me with some information, it'll be extremely helpful. Thanks, Ashraf!

[sh_jyoti]

Hi Smita,

I am paid by "direct to local bank transfer." My bank is also ICICI. I don't remeber providing any paper.

Paypal is closing down in India, avoid that payments route, Also, they cut  ahefty commision.

Try registering for direct to local bank option.

Good luck

[ashrafkhan81 · Accepted solution]

AS far as I know, PayPal is only shutting down domestic transactions that are payments within India, global or international transactions will not be affected. 

Yes, PayPal is expensive! 

[i_am_smita]

Thanks, Ashraf for clearing the air around Paypal. Is it more expensive than a Wire Transfer? I hope you don't mind me asking that follow-up question. I really need help at this time. 🙂

[ashrafkhan81]

It depends on the value of the funds to be transferred. Upwork charges a flat USD 30, while PayPal charges 4.4% of the transaction value. 

If the TXN value is less than or equal to USD 650, PayPal is cheaper, for anything beyond USD 650 Wire Transfer is cheaper. 

Please note that Upwork charges an additional $2 per transaction for PayPal withdrawal. 

[i_am_smita]

Hi Jyoti! Thanks for responding. 

I have been getting my payments through 'direct to local bank transfer' since 2019. The issue is for 'direct to local bank transfer' the Bank won't issue FIRC. Right now, I am exploring options that can give me FIRC. 

About Paypal, most likely they are discontinuing the domestic transfers, but whether they are shutting down in India, is something to be found out. Thanks for the insight Jyoti.

[ashrafkhan81]

As an independent consultant I have used PayPal a lot, not via Upwork though, they have a high fee of 4%+ and they don't give a very competitive exchange rate either...to top that all they keep limiting account transactions very often and won't lift the restriction unless you keep providing verification 2-3 times a year. But they do provide FIRC. 

FIRC is also offered by Payooner, but Upwork does not support Payoneer payments for India. You have to take a long route by opening a USD account with Payoneer add that account details to Upwork and get the funds transferred to Payronner Via ACH.

[i_am_smita]

Wow! That's great information, Ashraf.

[nis_123]

Hi Ashraf, 

Thanks for the information. The payoneer route which you suggested , Have you used this feature ? Is it trusted one ? Don't mind ,I'm new with this. 

[ashrafkhan81]

It is definitely trusted. I have used Payoneer for about 2 years on another platform. It is just that Upwork does not support Payoneer as a withdrawal method directly! 

So we have to use it indirectly, the way I explained it. But I might now start using Payoneer to get the benefits of FIRC! 

[nis_123]

Hi Ankit, 

I'm new to upwork. Did you get any solution about to get FIRC certificate from upwork for local payment transfer method ? For future payments also , how can we get this certificate ? Is this certificate required in case of individual freelancers without GST number ?

[nis_123]

Hi Gourav , 

What is the issue are you facing with GST department for LFT payments for 2015-16 . Just thought to ask , I just started working on upwork and any advice you would like give that i need to take care of. 

[joydeep85]

Payoneer charges are very confusing . They anyway take 1% to withdraw via ACH on their virtual bank account and then 2% of charges + conversion fee ( this is a bit convoluted ) . What is the conversion fee ? Lets say I transfer 1000 USD To my payoneer and then to my HDFC local bank account . How will that work ?