If you work as a freelancer or have a business online, it is most likely that you are aware of Payoneer. It is an online payment service that enables you to send and receive money from different countries across the world. Unlike a few other similar services, Payoneer is intended primarily for business payments.
Payoneer does not only provide direct payment solutions but also offers currency conversions and business integrations. As a business payment system, the service targets professionals, businesses, and online markets as users. With over 4 million users, Payoneer is popular all over the world. Nevertheless, much like with any other online system, you are better off knowing all sides of the game.
Here we take a look at the most important points to know before using the services in question.
Page Contents
The Benefits
Employing Payoneer also comes with its own merits. The services offer a wide range of options without any currency or location barriers. In case you are an SMB owner or run an academic service where students can order an essay, Payoneer makes it easy to manage payments from all around the globe. Below are the most attractive aspects of the service that are particularly useful:
- Making and receiving payments via local bank transfers from companies across the world;
- Receiving funds from e-commerce platforms, online businesses and managing them;
- Withdrawing money directly to local banks;
- Currency exchange and the ability to have multiple currency accounts.
The offered solutions indeed sound very clear cut. However, customers are better off knowing the fine print before using the system.
The Security
For any payment system, the first concern that arises is the security. To avail the full benefits, customers are required to add their local bank account details. Payoneer makes it a point to verify each bank account and will request further details or documents if needed.
Once the bank account is verified, the users will receive a confirmation email. The process could take three business days or more. Payoneer is registered officially to ensure that all transfers are done legally.
The Payment Solutions
Payoneer has a fee model that varies depending on the solutions. If you are a customer and do the transaction from one Payoneer account to another, currently, there is no fee involved.
On the other hand, if you are using other systems such as bank transfer, these services would be charged. This, again, will vary based on the country and services.
Receiving Payments
There is a fee structure involved when it comes to receiving payments. Again, we’ve compiled the list of features Payoneer offers:
- Free using the “Make a Payment” option on a Payoneer account;
- 0% to 1% fee if receiving money to a local receiving account using Global Payment Service;
- 3% fee if accepting money directly through a bank card;
- 1% fee if through e-check in USD;
- If you are receiving funds from marketplaces, it would depend on the network, country, or e-commerce site itself. The respective marketplace website covers all the details.
Currency Exchange
Unlike many other payment service providers, Payoneer uses the mid-market rate for money exchange. This is also a key point in their advertisements, as this would significantly reduce fees for both the sender and receiver.
The mid-market rate lies between the buying and selling value of different currencies. As a thumb rule, exchanging currencies is subject to a 0.5% fee above this rate. When you are making conversions or withdrawals, it is best to check this fee first.
A crucial point to note here is that Payoneer provides conversions only for money inside their own account. You cannot do this with a bank card or account directly. This requires both the sender and receiver to have Payoneer accounts. These services are restricted to business uses and are not authorized for personal transfers.
Payoneer Card
Account owners can also apply and utilize the benefits of a Mastercard from Payoneer. You can add money to the card and use it like a regular debit bank card. However, there are also separate fees involved for cards. In addition to the annual charges, there might also be additional fees for usage and in case of a replacement.
Important Note
As Payoneer primarily works for mass payout options such as eCommerce websites, there are several conditions for individuals to receive payments through the service.
It is important to regard that the “request a payment” option is available for users from only specific countries listed on the website. If you are not from one of these states, users have to first receive a certain amount in total payments. Once this condition is fulfilled, the access to all the services is open.
This could turn out to be an inconvenience for individuals, especially freelancers, looking for receiving money directly through Payoneer.
It is in your best interest to be aware that there could be any new fees included in the service charges. These expenses could also vary depending on the company policies.
Always make sure to check how much you are charged and what to expect before you do any transactions.
Altogether, Payoneer looks like a viable option for those receiving regular payments on mass platforms. If you are an individual, it could be tricky to overcome the many hurdles of approvals to receive a direct payment.
