How to pay a business in India from the US

Need to pay a business in India? Whether you’re utilizing vendors and contractors in India or purchasing products or services from an Indian company, paying them doesn’t have to be a stressful process.

We’ll walk you through what to consider when choosing a US-India transaction method, seven options for paying a business in India from the US, and our top pick.

What to consider when choosing a payment method

The good news is that there’s no shortage of options to pay a business in India from the US. Unfortunately, this plethora of payment options can make it challenging to choose the best one.

Thoroughly vet each payment option and consider its pros and cons before sending any money. The wrong choice could end up costing you avoidable fees or even delaying your payment altogether.

Here’s what to consider when paying a business in India from the US:

• Exchange rate: There is no single global foreign exchange (FX rate). Make sure your payment method is giving you the best exchange rate possible.

• Fees: No one wants to pay more than they have to. Nevertheless, many international payment methods include hidden fees for foreign transactions.

• Transaction speed: Some international payment methods can take up to five days to process, or charge more for quicker processing. The best methods will offer same-day transfers to anywhere in the world.

• Convenience: The best rate, fees, and speed don’t mean much if the transaction is a huge hassle. Consider whether you need to physically go to the bank, complete extensive paperwork, or obtain lengthy approvals before making any decisions.

7 options for paying a business in India from the US

1. Wire transfer (SWIFT)

Wire transfers via the SWIFT network are a traditional and secure way to send money abroad, including to India. Most major US banks offer this service, but the fees can add up.

Pros:

• Secure and widely accepted

• Works for high-value transfers

Cons:

• Can take 1–5 business days

2. ACH transfer

ACH transfers are typically used for domestic payments within the US. Some services, like PayPal or Venmo, may use ACH in the background for US-to-US payments, but ACH is not a direct option for sending money to India.

Better alternatives: Use international transfer services with global reach and compliance built in.

3. Money order

Money orders aren't recommended for international business payments. While the USPS offers international money orders, they are not widely accepted in India and can take weeks to process, if at all.

Pros: 

• Familiar process (for domestic use)

Cons:

• Low acceptance in India

• Slow, manual process

• Not ideal for business payments

4. WorldRemit

WorldRemit lets you send money to businesses with accounts at 14 major Indian banks. All you need is the recipient’s Indian Financial System Code (IFSC) and account number to send money from the WorldRemit website or app.

Pros:

• Mobile-friendly

• Most transfers can be completed within minutes

Cons:

• Additional margin added to the exchange rate

• Fixed transfer fee of $1.99

• Maximum transfer amount of 1,500,000 INR

5. XE Money Transfer

XE Money Transfer is a well-known name in foreign transfers. Its primary benefits include support for 139 currencies, including major and exotic ones, and affordable rates for large transfers.

Pros:

• Ideal for large transfers

• Dedicated business accounts

Cons:

• High fees for smaller transfers

• Additional margin on FX rate

• Third-party fees that XE can’t control

• Doesn’t work for sending cash

6. PayPal

One of the most popular payment solutions available today, PayPal Business accounts make it easy and simple to carry out US-India business transactions. All that you need is your recipient’s email address to process a transaction. However, PayPal is also known for having high international transaction fees.

Pros:

• Easy-to-process transactions

• Encryption for added security

Cons:

• International transaction fees typically range from 3.4% to 5%, including PayPal’s base fee, 1.5% cross-border surcharge, and 3% to 4% FX margin

• Instant withdrawals incur a 1.75% fee (capped at $25)

• Higher costs compared to dedicated B2B payment platforms

7. Airwallex

Airwallex offers a modern, cost-effective solution for international money transfers. For US businesses paying Indian suppliers or partners, Airwallex charges just a 0.6% FX fee above the interbank rate – with no additional fees for international transfers or withdrawals.

When you're ready to pay, you simply convert USD to INR at the time of transfer, locking in a competitive rate. Funds typically arrive in the recipient’s account within one business day or less, making cross-border payments fast, transparent, and hassle-free.

How to pay a business in India from the US with Airwallex

With Airwallex, all you need to do to pay a business in India from the US is:

1. Set up and verify your Airwallex Global Account.

2. Deposit USD into your Wallet using your online banking.

3. Set up a contact for the Indian business that you need to pay.

4. Convert your money into INR. Airwallex uses the real, mid-market exchange rate to get you the best deal possible.

5. Send your payment. It will be available in one business day or less.

You’ll need to have the following information on hand when setting up the contact for the business that you’re paying:

• SWIFT code: This is an 8- or 11-digit code used to identify the specific bank to which you’re sending money.

• Indian Financial System Code (IFSC): The Indian Financial System Code (IFSC) is India’s primary clearing system. The IFSC includes 11 digits and, like the SWIFT code, identifies the bank you’re sending money to.

• Bank name

• Bank account number: This is the nine- to 18-digit number associated with the receiver’s account.

• Account name for the receiver

• Reason for transfer: You must include the reason for your transfer, such as goods purchased or business expenses.

And that’s it! 

Ready to see for yourself why Airwallex is the best way to pay a business in India from the US? Watch a quick demo to learn more or set up your Foreign Currency Account to start making US-India business transactions today.

[Related article: What is the SWIFT payment network?]