Receive EUR Payments with Ease
Get paid faster and at lower costs with a reliable multi-currency account. Simplify your international transactions today.
If you’re receiving EUR payments in India, you’re losing more than you should—and it’s not just because of the exchange rate. Hidden fees, double conversion, and slow processing times can affect profits.
For example, a €10,000 transfer via SWIFT can have €30-€50 in intermediary bank fees and another 2-3% in currency conversion loss. Over a year, these costs add up for businesses that make frequent international payments.
The thing is, most businesses don’t know better alternatives exist. Whether you export goods, freelance for European clients, or manage overseas investments, choosing the right EUR payment method can save you thousands in fees and get you faster transfers.
In this guide, we’ll break down the best ways to receive EUR payments in India—fees, processing times, and compliance requirements so you can keep more of what you earn.
Getting EUR payments in India is not just about choosing a method—it’s about knowing the hidden costs that different payment methods levy on you. Here’s what most businesses miss out:
Banks never give you the actual mid-market rate when converting EUR to INR. They apply a hidden forex markup—sometimes 2-3% above the actual rate.
Most businesses assume SWIFT payments have a fixed cost. However multiple banks in the transfer chain deduct fees and reduce the final amount received.
Platforms like Payoneer and Stripe offer smooth EUR payments but charge very high withdrawal fees when you transfer to an Indian bank.
If payments take days or weeks to settle, businesses face cash flow problems and have to rely on loans or credit.
So, what are the best ways to receive EUR payments in India?
When receiving EUR payments in India, businesses must consider fees, transaction speed, exchange rates, and compliance requirements. Below is a detailed breakdown of the best options.
How It Works:
Karbon’s multi-currency account provides Indian businesses with a local EUR account, you can receive payments via SEPA transfers without intermediary fees. Then convert to INR at competitive forex rates and settle into an Indian bank account.
Benefits:
Ideal For:
Cons:
How It Works:
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the default method for most international bank transfers. The sender initiates a transfer in EUR, which is routed through intermediary banks before reaching the recipient’s Indian bank account.
Key Benefits:
Hidden Costs & Cons:
Ideal For:
How It Works:
SEPA (Single Euro Payments Area) is a low-cost bank transfer system for EUR transactions within Europe. Indian banks don’t support SEPA directly, but businesses can use third-party providers (like Karbon’s multi-currency account) to receive SEPA transfers.
Key Benefits:
Cons:
Ideal For:
Online payment providers like Wise, Payoneer, Stripe, and PayPal allow Indian businesses to receive EUR payments from international clients with lower fees than banks and faster processing times.
✔ Provides a local EUR account number for receiving SEPA payments.
✔ Transparent exchange rates with a small conversion fee (~0.4%).
✔ Fast Transfers: Money arrives in 1–2 days after conversion to INR.
❌ No dedicated business solutions for high-value transactions.
✔ Provides an EU virtual bank account for receiving EUR payments.
✔ Funds can be withdrawn to an Indian bank at competitive forex rates.
✔ Works well for freelancers and small businesses.
❌ 3% fee on withdrawals, making it more expensive than Karbon or Wise.
✔ Ideal for businesses selling services or products to European clients.
✔ Integrates with e-commerce websites for automated payments.
✔ Supports recurring billing & invoices for international clients.
❌ Funds are settled in INR only, limiting forex flexibility.
✔ Widely accepted for small international transactions.
✔ Instant payments from European clients.
❌ High Fees: 3%–5% per transaction.
❌ Expensive Currency Conversion. Bad exchange rates.
Online payment gateways are best for:
Some businesses use forex trading platforms or brokerage accounts to receive and hold EUR payments before converting them to INR at market rates.
✔ Allows Indian businesses to hold EUR funds in a forex trading account.
✔ Lower conversion fees compared to banks.
✔ Supports transfers from European bank accounts via SEPA.
❌ Requires a business forex account and regulatory compliance.
✔ Some forex brokers in India offer multi-currency holding accounts.
✔ Lower forex markup than traditional banks.
❌ RBI regulations require clear documentation for large transactions.
Ideal For:
By selecting the right method, businesses can avoid unnecessary fees, speed up payments, and maximize earnings from European clients.
Receiving EUR payments in India requires compliance with RBI rules under FEMA. Here’s what you need to keep in mind:
Whenever you receive a EUR payment in India, the bank requires a purpose code to classify the transaction. This ensures the payment is recorded as per RBI guidelines. Using the wrong code can lead to delays or compliance issues.
Banks issue an FIRC as proof that a foreign payment has been received. This is needed for:
Many banks now issue e-FIRC instead of physical certificates. If your bank gives an Inward Remittance Advice (IRA), it serves the same purpose.
Most exported services like IT and consulting are zero-rated exports, meaning no GST is charged. But you need to maintain records to support your tax claims in case of an audit.
If you receive EUR payments as foreign direct investment (FDI), you need to report it through the FIRMS portal.
Not following RBI reporting rules can lead to:
By making sure all EUR payments are properly classified, reported, and documented, you can avoid unnecessary hassles and keep your international transactions smooth.
Reduces fees and currency conversion loses when receiving EUR payments in India is crucial for businesses that handle cross border transactions frequently. Here’s how to optimize costs and retain more value from each international payment:
Different payment methods have varying forex rates, fees, and transfer times. For large EUR transactions, business accounts like Karbon Multi-Currency Account or SWIFT transfers via low-fee banks offer better rates. For small payments, Wise or Payoneer can be more cost-effective.
Every conversion from EUR to INR has a markup fee. Instead of converting immediately, businesses can:
Banks and forex providers charge a hidden markup on exchange rates. Businesses that process large EUR transactions can negotiate:
By managing EUR payments to India smartly, businesses can reduce forex costs, avoid unnecessary markups, and get better pricing on international transactions.
Setting up a EUR payment solution in India ensures smooth cross-border transactions with minimal fees. In our example, we will use a Karbon multi-currency account as an EUR payment solution. Most other providers should have a similar process. A multi-currency account helps businesses receive EUR payments without converting to INR immediately, reducing forex losses. Here’s how:
Steps to get a Karbon Multi-Currency Account:
In order to receive EUR payments, Indian businesses also need to provide specific documents to comply with RBI and FEMA regulations. Here are some things you must include for effortless payments:
Purpose Code – Categorizes the type of transaction (e.g., IT services, consulting, exports).
Foreign Inward Remittance Certificate (FIRC) – Proof of foreign income for tax and compliance purposes.
Letter of Undertaking (LUT) – Required for GST exemptions on export services.
Business PAN & KYC Documents – Needed for account verification with banks and forex platforms.
By setting up the right EUR payment solution, businesses can simplify international transactions, reduce currency conversion losses and be fully compliant with RBI regulations.
Based on the content above here’s an SEO conclusion:
Getting EUR payments in India doesn’t have to mean high fees or hidden conversions. Choose the right payment method for your business to cut costs and improve cash flow.
For businesses with regular EU transactions, a multi-currency account like Karbon offers the most cost-effective solution with local EU bank details, SEPA transfer capability, and competitive forex rates. Traditional SWIFT transfers while familiar come with higher fees and longer processing times but are necessary for some transactions.
Remember whatever you choose you must comply with RBI regulations. Keep accurate documentation, use correct purpose codes, and get FIRCs to avoid penalties.
Karbon guides you through the process, sign up now to take a look at our dashboard and receive EUR payments online from India.
For transactions under €1,000, standard online payment gateways are enough. But once you’re receiving more than €2,000-€5,000 a month, a multi-currency account pays for itself with better exchange rates and lower fees, so it’s the more economical option.
Yes, many businesses have multiple payment channels - perhaps using Stripe for e-commerce payments, a multi-currency account for larger B2B transactions, and PayPal for small one-off transfers. This way you have flexibility for different client needs.
Most multi-currency accounts can be set up in 1-2 weeks including KYC verification and document processing. Digital-first providers may complete the process faster than traditional banks which can take 3-4 weeks.
Under current RBI regulations, there are no specific limits on legitimate business-related EUR receipts but transactions above certain thresholds may require additional documentation and reporting. Large transfers (above €10,000) often trigger due diligence.
If a payment comes without a proper purpose code, your Indian bank may hold the funds until you provide the necessary documents. This could be a declaration of the payment purpose, relevant invoices, and sometimes a letter explaining the business relationship.
While you can hold EUR in a multi-currency account, RBI regulations generally require the conversion to INR for most business transactions. But you can time these conversions to take advantage of better exchange rates.
No, a single multi-currency EUR account can receive payments from multiple European clients. But for accounting clarity, many businesses use unique reference numbers for each client to track payments in their internal systems.
Your European clients need to provide your IBAN/SWIFT, the payment purpose code and sometimes your GST number for larger business transactions. Give them a clear payment instruction template to avoid delays.
Freelancers receiving EUR payments need to declare this income in their tax returns. Service export is zero-rated for GST but income is taxable. Keep proper documentation including FIRCs to claim tax benefits.
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