What Are the Top International Payment Risks?

Now, let’s understand the most common payment risks and how you can minimise them:

1. FX rate volatility

Exchange rates fluctuate daily or even multiple times in a day. Even if there is a minor shift in the FX rate between the payment sending and receiving time, you risk losing thousands of rupees. 

For example, if you're expecting $1,000 and the INR weakens overnight, the final converted amount may be less than what you would’ve counted earlier. 

While you cannot control these fluctuations, here are a few ways to tackle the currency volatility risk.

How to avoid it:

• Decide your payment amount in INR and ask the client to pay the equivalent in their currency. So, even if the exchange rates change, you’ll get a fixed amount in INR.

• Open multi-currency accounts to hold foreign currency payments. Once the conversion rate gets better, you can transfer the money to your local bank account.

• Monitor exchange rates daily and use Infinity’s Currency Converter to avoid receiving large payments during known periods of volatility.

2. Payment delays

International payments can take anywhere from 2–5 business days. However, time zone differences and bank holidays can cause further delays.

How to avoid it:

• Set clear expectations with clients about payment timelines.

• Receive payments from platforms like Infinity that offer fewer intermediaries and convert payments within 24 hours.  

• Avoid sending international invoices right before weekends or global holidays. 

3. High transaction and conversion fees

Many banks and payment platforms charge multiple fees, such as sending fees, receiving fees, currency conversion fees, and a markup on the exchange rate. Sometimes, banks or platforms might not disclose these fees upfront, but deduct them at the time of currency conversion.

How to avoid it:

• Try platforms with transparent fee structures and no hidden charges.

• Choose international payment solutions that convert currency at the mid-market exchange rate.

• Ask your client to combine multiple smaller payments into one transfer to reduce fees.

4. Compliance holds or rejections

Banks follow strict regulatory checks, including AML (Anti-Money Laundering) and FEMA. If your payment looks suspicious or doesn't match the declared purpose code, the bank can reject or delay it, even without notice.

How to avoid it:

• Clearly specify the purpose code in international invoices and transfer notes.

• Check that the name on your bank account is the same as on your international invoice and contract.

• Choose payment providers familiar with Indian regulations and documentation.

5. Fraud and scam risks

You might also face fraud or phishing attempts with international payments. Spammers send fake emails or notifications with spam tracking links. This can result in a breach of privacy and even financial losses.

How to avoid it:

• Review clients carefully before starting work. Check if the company is legit and has a LinkedIn presence.

• Share banking information through secure channels.

• Avoid upfront delivery without proper agreements or escrow protections.

6. Incorrect Bank or SWIFT details

Even if a single digit in your IFSC, IBAN, or SWIFT code is wrong, the bank might reject or hold your payment. In such cases, you've to follow up with the bank and request the client to send the payment again..

How to avoid it:

• Double-check your bank details using the SWIFT Code Finder.

• Provide your payment information in a clear, formatted PDF or invoice template.

• Avoid copy-paste errors and use platforms that autofill verified bank data.

7. No real-time tracking

You might know when the client sends the international payment, but not where it is in the process or when it will reach your account. 

If something goes wrong, there’s often little visibility into the issue without contacting multiple banks.

How to avoid it:

• Choose platforms like Infinity that offer real-time payment tracking or transaction status updates.

• Request proof of payment, such as SWIFT messages or transaction IDs.

• Stay in communication with both the client and your bank during longer delays.

How to Minimise International Payment Risks?

Most international payment risks happen due to outdated bank processes, unclear regulations, and a lack of customer support from payment platforms.

The best way to avoid such international payments risks is to receive foreign payments through Infinity. It is a cross-border payment platform for Indian exporters and freelancers. 

Infinity offers several features to help you avoid the risks mentioned above:

• Transparent fees and better exchange rates: Infinity charges a flat 0.5% transaction fee to receive international payments. Plus, the payments are converted at live FX rates. This results in better earnings as compared to banks or other payment platforms. 

• Faster payment settlement: Unlike traditional bank transfers that may take 2-5 days, Infinity works with global partners and processes your payment within 24 hours.

• Live payment tracking: Know exactly where your money is at each stage. Infinity provides real-time status updates.

• Free FIRC: Infinity understands local compliance needs like FEMA, TCS, and invoicing norms. It automatically generates free FIRC for each transaction. 

• Secure and verified transfers: All payments are routed through regulated banking partners with secure systems. Your data stays safe, and your money moves through trusted channels.

• Multi-currency support: Infinity allows you to receive international payments in 36 countries. So you can work with multiple international clients easily.

Receive Payments via Infinity

International clients bring opportunity, but the cross-border payment process can be extremely complex. Delays, hidden charges, compliance hurdles, and currency risks aren’t just frustrating; they can disrupt your workflow and finances if you’re not prepared.

However, most of these risks are avoidable. With the right knowledge and the right payment partner, you can take control of how and when you get paid.

Infinity simplifies the process by removing the guesswork. No confusing bank charges, no currency surprises, no endless waiting. Just faster, more transparent payments—built for modern freelancers, founders, and global teams.

Sign up with Infinity today!

FAQs

1. What is the biggest risk in international payments?

The most common risk is currency conversion loss due to volatile exchange rates or poor FX markups from banks. 

2. How long does an international payment usually take?

Traditional bank transfers can take 2-5 business days, depending on the intermediary banks involved in the transaction. Platforms like Infinity help reduce this by working with global partners.

3. How can I reduce international payment fees?

Use platforms like Infinity that offer transparent pricing and mid-market exchange rates. Avoid platforms or banks that add hidden markup on currency conversion or deduct intermediary fees without warning.