Payoneer is an American money transfer and digital payments company, but does it stack up against the competition?
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Regardless of what you do online, you may have heard of Payoneer before. Today it is one of the most popular payment methods for first of all freelancers, after for bloggers, affiliate marketers and Amazon sellers.
But what is Payoneer, is it the best one or is Payoneer account free? You can find all the answers to all of your questions and more in this in-depth and comprehensive review of Payoneer.
Payoneer is a New York-based company founded back in 2005 by Yuval Tal, who was the CEO at the time and also a leading investor. The service specializes in online payment transfers and is very popular with Amazon affiliates.
Payoneer has garnered serious attention from leading investment companies around the world and has raised over $ 245 million from companies such as Ping An, a leading Chinese insurance company with 200,000 employees worldwide and generating over Annual revenue is $ 60 billion.
With these investments, the company has become a leader in cross-border payments, with more than 10 offices worldwide and 1,100 employees. It transfers billions of dollars overseas annually and serves over 5 million registered customers.
Now let’s quickly overview the company, its main activity in the financial industry and of course its pros and cons.
Basically, Payoneer creates multiple virtual bank accounts so you can receive payments from other countries, even if you don’t have a local account. In most cases, with a standard Payoneer bank account, you can receive transfers in US dollars, Euros and British pounds.
The reason this service has grown so quickly is because some companies, like Amazon US, freelance companies such as UpWork and Fiverr choose to pay their users directly to their bank accounts.
Since not all branches are located in the United States, before Payoneer came along, they had to wait for a check for several months.
Any company can deposit funds into your Payoneer account, and you can also receive funds from other individual accounts.
Payoneer has also established itself as a provider of online money transfer services for businesses and freelancers.
Payoneer is one suitable solution for businesses making payments to contractors and suppliers, receiving payments from customers, or wanting to convert currencies.
Freelancers can receive payments directly to their Payoneer accounts from marketplaces and networks such as Airbnb, Upwork, Cdiscount, Fiverr, CJ Affiliate, Wish, Getty Images, HomeAway, Rakuten, Lazada, and Tradedoubler AB.
With Payoneer, you are guaranteed low transfer fees, pay in minutes, and the flexibility to access cash from ATMs or local bank accounts.
Globally, Payoneer serves over 200 countries in over 150 currencies, more than some other money transfer companies. The minimum withdrawal amount is $ 20 and the withdrawal fee is $ 3. This means that for withdrawals up to $ 1000, that $ 3 will be negligible.
When you withdraw funds from an ATM using your Payoneer card, you will not be able to see the balance on the screen. This creates a lot of guesswork when accessing funds in currencies other than USD, EUR or GBP.
- Wide presence in 200 countries
- Custom invoices and lets you request payment from individual clients
- Customer strong support
- Free payments between Payoneer accounts
- Alternative to a corporate overseas
- Quick withdrawals from any ATMs at any time of the day
- Multi-lingual support, the website supports eight languages
- There are several different types of fees
- High card transaction fees
- The safety is under doubt
- Payment service limitations
How does Payoneer work?
To get start using Payoneer you have to create your account, sign in your card and start receiving funds and making payments.
First of all, creating a Payoneer account is completely free and super easy. All you need to do to establish everything is to verify your identity and give Payoneer your banking information. This is required if you want to transfer funds to your bank account.
After creating your Payoneer account, you will receive a prepaid card at home. Even though it is not a credit card, it works the same way as a card: you can use it to purchase flights, make payments online, or at any store.
Payoneer offers innovative solutions for both private and corporate clients who need to receive payments from abroad. They work through the creation of collection accounts abroad for each client.
Any payment made to an offshore account is converted into local currency as determined by the Payoneer customer and can then be transferred to their bank account or alternatively withdrawn through any ATM with a Payoneer MasterCard.
Online merchants can receive their funds directly into a bank account opened for them abroad. Payoneer Global PS currencies to receive local bank transfers are: Canadian PS, Australian PS, USD, EUR, GBP, JPYEN and CNH.
The Payoneer mobile app is also available and it has improved significantly over the years and also plans to self-develop. You can use the same service to process eCheck and a variety of other payments.
There are two ways to receive funds through Payoneer:
- When you use Payoneer to receive payment from customers by sending them a payment request, Payoneer will send them an email with payment details and payment options. You will receive funds in your Payoneer account within a few days, depending on the payment method you use.
- In order to receive payment from marketplaces and companies by wire transfer, Payoneer provides receiving accounts that operate as local. This way you can receive local bank transfers in your local currency. Payments to your recipient account are transferred directly to your Payoneer account.
Other Payoneer customers may make business-related payments to you using one of the many methods available to them, depending on their eligibility.
If you provide services through marketplaces like Upwork or Fiverr or Airbnb, you can simply select Payoneer as your payment method and get paid.
Usually, when you start working on UpWork, it automatically sends you a Payoneer card so you could use your earned money.
For sure, you can also make payments through Payoneer.
When you use Payoneer to pay to another Payoneer account, you don’t have to pay any commission and the balance is transferred from your account to theirs within minutes.
You can also use Payoneer to make payments to those who do not use Payoneer. You need to add their bank account details and pay from your Payoneer account directly to their bank account.
Also another great thing for people who not live in US and their local bank cards are not accepted by some popular shops while making any purchases, Payoneer cards will always help you to do that.
Payoneer charges its customers a commission when different businesses receive payments to their Payoneer accounts. After that, cash withdrawals from local ATMs will also be paid. Below you can find all the information about Payoneer fees, exchange rates, and other costs you may incur when using Payoneer services.
Payoneer’s fee structure consists of several components depending on the type of transaction you are making. Fees are divided into the following categories:
- Receiving payment
It’s free if other Payoneer customers pay you in USD, EUR, GBP and JPY.
Another way to receive payment is through Payoneer Receiving Accounts. Normally, Payoneer gives you the right to own local bank accounts denominated in euros, pounds sterling, Japanese yen, Australian dollars, Canadian dollars, and Mexican pesos.
If someone pays you through the receiving account in these currencies, you will not be charged any fees. However, if they pay you through your receiving USD account, you will be charged a 0-1% fee.
Payoneer has a billing service where you can request payment directly from your customers. The commission for this service is 3% if you pay by credit card and 1% if you pay via eCheck.
Fees for getting money from marketplaces and networks like Upwork, Fiverr, Airbnb, and CJ Affiliate vary from platform to platform. You need to self-verify what they charge. Upwork and Fiverr charge Payoneer a $ 2.50 download fee for withdrawals.
- Withdrawing funds
Most withdrawals to a local bank account do not incur any fees. But once you make a withdrawal in a country such as Russia and you have a Payoneer USD account, you will have to pay 3% of the withdrawing amount.
If you withdraw funds to a bank account denominated in USD, EUR or GBP, you will pay USD 1.50, EUR 1.50, or GBP 1.50, respectively. However, for this to happen, the bank account must be in the same country where these currencies are classified as local currencies.
If you withdraw from an ATM using your Payoneer MasterCard, you are charged $ 3 per transaction. If you cancel the transaction, you will be charged $ 1.
Concerning the exchange rate, for bank withdrawals Payoneer charges 2% higher than the market average. Usually the provider does not show the mid-market rate and 2% breakdown by transfer, but the rate they give you includes a 2% margin.
There are also other fees about what we’ll talk now. Depending on the bank and country from which you access your money, you may be charged landing fees, handling fees, or even intermediary fees.
In addition, Payoneer does not say how much you will be charged when you request your account balance from an ATM machine.
Compared to other banks, Payoneer offers much better rates and the time it takes to withdraw funds to the bank is also shorter. It takes a maximum of one business day for funds to be credited to your account.
Types of transfers offered by Payoneer
Payoneer allows bank transfers and ATM withdrawals via Payoneer MasterCard. To withdraw funds to your local bank, you must first add the bank as a payment method.
Payoneer usually indicates that it takes up to 3 business days for the added payment method to be verified, but it usually takes about 30 minutes for approval.
You must have a Payoneer MasterCard to withdraw from an ATM. You can still use your account without a card. Ordering the card is free, delivery may take about 3 weeks.
Payments to your Payoneer account from marketplaces like Upwork are instant. When a customer pays you through Payoneer, the payment can be reviewed for up to 5 days. However, in most cases, verification takes a few hours and the payment goes to your Payoneer account.
Payoneer may ask the customer for additional information to process the payment. If he does not act on his part, receiving payment may be delayed. You can also request payment through the support center or by contacting your customer directly.
When sending money through Payoneer, you can use the following payment methods to pay for the transfer:
- Credit card – 3%
- Debit card – 3%
- eCheck – 1%
- Local bank transfer – 1%
Payoneer Security and Reliability
The founders of Payoneer Yuval Tal and Ben Yaniv Chechik, contributed $ 2 million in seed funding. To date, the company has raised over $ 265 million from various investors.
The company has grown rapidly with over 1,200 employees in 17 regional offices in the US, UK, Latin America and Asia. According to a recent estimate, the company is valued at $ 1 billion.
Payoneer is a legitimate, fully regulated US company registered as the US Money Service Business (MSB).
They have also been in operation since 2005 and are PCI Level 1 data security certified, which means they need to maintain a high standard of security across their network and systems.
In addition to electronic security, they have implemented procedures to ensure the physical security and integrity of all data.
They update their protocols regularly to prevent data loss through theft, fire, or accidents. All access points are protected by virus detection systems and firewalls to prevent tampering and hacking.
Their IT systems undergo a mandatory comprehensive annual PCI audit.
Every transaction is protected by sophisticated hacking protection and firewalls to prevent fraud, phishing encounters, identity theft and other types of attacks.
They send email notifications of all business transactions and account changes. Any unusual transaction will also be reported immediately by email. This will help you keep track of your account completely.
Reasons to become a Payoneer client
Payoneer is one of the preferred payment and money transfer providers for businesses and freelance professionals.
- You can get paid to your account in local currency such as USD, GBP and EUR
- You will be able to pay VAT
- Also pay suppliers
- And pay your contractors or freelancers
For personal needs
- You can move your earnings to your home country through a local bank withdrawal
- Receive payment from online stores and networks
- And of course shop online
Payoneer Capital Advance can help you manage your working capital when selling on Wallmart and Amazon. The loan is provided to you based on your store sales data. Repayment occurs gradually until the loan is fully repaid.
Payoneer vs. PayPal
When it comes to online payment systems, there are only a few iconic services like PayPal and Payoneer. These are the two most popular payment services in the world that have been around for over ten years. And of course usually put these two in comparison, so now we’ll do the same.
PayPal and Payoneer have shown exponential growth in recent years. Both offer their services in over 200 countries. In this part, we will compare both of these payment systems so that you have all the information to choose the service that best suits your needs.
Payoneer, as you already know, is an online payment system focused on non-personal business transactions. It’s better suited for businesses, professionals, freelancers, and product / service marketplaces. Payoneer charges a flat rate 2% above the market average for converting money.
PayPal, on the other hand, makes sense if you are making transactions in the same country, for personal transactions like shopping online or sending money to your friends and family.
Using PayPal for international transactions is not a good idea as it can be very expensive. PayPal charges high transfer fees, which are hidden in currency conversion fees associated with international transactions.
Payoneer is focused on businesses, online shopping, freelancers, and international transactions. It allows its customers to send and receive payments from businesses and marketplaces in many different countries.
Payoneer is clearly different from other payment service providers. Their currency exchange services depend on the status of your Payoneer account as well as your recipient.
Payoneer’s services are also designed to facilitate commercial transactions. They offer services such as direct currency conversion and payment solutions that enable businesses to pay both employees and freelancers.
PayPal is very different in this regard. If you are in the US, you can choose from a variety of PayPal business solutions. PayPal simplifies everything from sending invoices and emails to integrating payments into your website.
With your Payoneer MasterCard, you can make purchases in any currency if it does not match the specified card currency. The conversion is based on the MasterCard conversion rate. In addition, Payoneer charges a 3.5% currency conversion fee on the transaction.
PayPal has a MasterCard money card that is linked to your PayPal balance. In addition, it also has a prepaid MasterCard, with which you can transfer money to that card from your PayPal balance.
PayPal also offers two credit cards, but there is a lot of confusion about the entire commission structure. Finding a commission on the PayPal website is difficult. It is likely that even when you find it, you will not be completely satisfied with the results.
PayPal’s transparency, or rather the lack of it in terms of card fees, indicates that it is clearly more expensive than its peers.
Payoneer exchanges currencies in the middle price range and charges a commission of 0.5%. When withdrawing funds to the bank in local or other currencies, a commission is charged 2% higher than the average market rate. This commission is for currency conversion and transfer of funds to a bank account.
PayPal’s rates vary as they depend on the rate they receive from the bank, not the mid-range as is the case with Payoneer. Since bank rates are opaque and generally low, this is not good for currency exchange.
Additionally, PayPal charges 2.5% on top of the rate provided by the bank. This makes it extremely expensive for the client and extremely beneficial for both PayPal and the bank.
It is definitely worth to note that in spite of a little higher fee Payoneer offers solutions that simply cannot be achieved in any other way.
Online merchants receiving large payments from overseas have several similar alternatives, but when it comes to private clients (freelancers), none of the Forex companies we reviewed on this site offer this kind of solution.
According to tons of reviews from Payoneer loyal users, Payoneer provides the perfect solution for people receiving salaries from abroad, as well as for businesses that are paid by overseas customers.
Also it gives a lot of chances to join US life, make purchases that cannot be supported by their local bank cards.
Payoneer is super supportive and careful to its clients, which was approved in the latest updates when there was a problem with card manufacturer and all the money in the bank was frozen, so Payoneer planed super fast steps to save all the money and its great reputation.
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