Payoneer has marked itself as one of the most reliable platforms for online payments around the globe. However, any business can make claims. The question is whether they can live up to their claims. ‘Is Payoneer Safe?’ is a common question among eCommerce store owners. When you rely on online sales to earn an income, you want to know that your payments will be handled safely and reliably.
There are a number of platforms that you can use to process your online payments but whether or not they can all be trusted is to be determined. Today, we want to review Payoneer by taking a closer look at who runs the platform, what it’s capable of and what you can expect to pay in terms of fees (another important factor for eCommerce business owners).
Is Payoneer Safe?
Payoneer has come a long way since its inception in 2005. It was established with a mere $2 million in funding from the founder and former CEO, Yuval Tal. In 2012, Payoneer received an e-money license from the European Commission. Thereafter, numerous renowned organizations opted to use Payoneer as their online payment provider.
Today, Payoneer is fully regulated and a legit company that is registered as a US Money Service Business (MSB).
Payoneer is known to be one of the safest platforms for sending and receiving eCommerce payments. The company has not only incorporated electronic protection but has also implemented strict procedures to ensure that the integrity of their data isn’t compromised. Their protocols are updated regularly in an attempt to prevent any data losses in the form of accidents, fire, and the biggest threat of them all, theft.
Payoneer has protected all its access points with robust virus detection and firewalls to ensure that no hackers ever get an opportunity to breach their systems and gain access to confidential data. Payoneer’s IT systems are also subjected to critical audits by the PCI every year for the same reasons.
Every transaction that is processed through Payoneer is safeguarded by trusted and reliable anti-hacking techniques to prevent fraud, identity theft, and phishing incidents.
Payoneer protects user data from the moment someone signs up for their services. Every new account owner is prompted to select a password as their first line of defense, which they can change at any point.
Pro Tip: Change your passwords frequently to enhance security and reduce the chances of a security breach.
The passwords are fully encrypted and are inaccessible to everyone, even Payoneer staff. Moreover, all data is encrypted as an additional security feature, making it unreadable.
Whenever a business transaction is processed, the user is notified via email to ensure no unauthorized transactions are processed.
Today, numerous renowned online marketplaces are using Payoneer for smooth global payments. Some of the most popular names on the list include Amazon, Etsy, TopHatter, Wish, and Rakuten. Payoneer isn’t limited to eCommerce businesses either. A lot of online marketplaces that offer a diverse range of services are also compatible with Payoneer, including Fiverr, Airbnb, Google, and Taboola.
If you are still unsure about the security of the platform you might want to read my article which answers the question; Is Payoneer Legit? Before I signed up I wanted more information, that’s for sure.
How Payoneer Works
Payoneer is known for its simple and easy-to-use interface as well as its user-friendly processes. Payoneer enables you to:
- Receive payments from companies based in the US, UK, Europe, and Japan
- Bill your clients
- Get paid by your freelancers, developers, or affiliates
- Receive funds from Payoneer users
The process flow varies based on the type of monetary transaction you’re undertaking. Let’s have a look at how each of the above-mentioned payment processes works.
Global Payment Services
Global Payment Services make it easier to receive payments from companies based in the US, UK, Europe, and Japan – all you need is a local bank account. Payoneer’s Global Payment Services work in the following way:
- Payoneer sets up a receiving account and shares the details with you
- These account details need to be shared with the international company that you want to receive the payment from
- The company uses this information to make a local bank transfer
- After the company has made a local bank transfer, the money is transferred to your Payoneer account
- You can now withdraw the money from your Payoneer account to your bank account in your local currency, with minimal charges
Payoneer’s Billing Service enables you to bill your clients and receive payments from them. You can send a payment request to customers who have purchased goods or services. The Billing Service works in the following way:
- Create a payment request once you’ve logged in to your Payoneer account
- The client will receive a payment request notification via email. This email contains a link to the application for online payments
- The client can submit the payment online or through their bank account
- Once the client makes the payment, you receive the money in your Payoneer account
- You can withdraw money from your Payoneer account in the same way you would using Global Payment Services
Mass Payout Company
Payoneer has partnered directly with a number of companies, including brands like Airbnb, Fiverr, and numerous stock photography and eCommerce marketplaces. To receive payment from a company that has listed Payoneer as a payment option, follow this procedure:
- Select Payoneer as the payment option
- Choose the option ‘Already Have a Payoneer Account’ or create a new account on the spot
- Follow the required steps to link your Payoneer account to your account on the relevant brand’s website or online platform
- When the company makes the payment, it will be paid directly to your Payoneer account
- The process of withdrawing money from your Payoneer account to your local bank account is the same as the earlier-mentioned services
Make a Payment
This Payoneer feature enables you to transfer funds to other Payoneer accounts. Both the sender and the receiver should have a Payoneer account to use this feature. The Make a Payment Service works as follows:
- The sender chooses the ‘Pay’ option in their Payoneer account, followed by ‘Make a Payment.’
- The sender enters the email address that is linked to your Payoneer account, along with the amount to be transferred
- You receive the payment directly to your Payoneer account
- You can transfer the money from your Payoneer account to your local bank account with minimal hassle and charges
It can take anywhere from 2 to 5 business days for the funds to reach your Payoneer account after you’ve requested the payment. Fund transfers within the US usually take 2 to 3 business days. Once you’ve received the funds in your Payoneer account, it only takes an hour or two for the money to be transferred to your local bank account after you’ve requested a withdrawal.
If at this point you are still asking yourself What is Payoneer? and how exactly does it work? Don’t worry I’ve been there! You might want to read a few more of my other articles.
How Much Does Payoneer Cost?
Payoneer services are available in more than 200 countries. While the transfer of funds is smooth and straightforward, it comes with a cost. Creating a Payoneer account is free, but Payoneer charges a fee for every transaction that is processed. Since Payoneer supports about 80 different currencies, the fees applied for each currency are also different. If the payer and receiver are using the same currency, the withdrawal fee is fixed:
- EUR: €1.50
- US: $1.50
- GBP: £1.50
If the payer and receiver are using different currencies, the conversion rate is based on mid-market rates.
Mid-market rates are the mid-point between the buy and sell rate of a currency. It is one of the most accurate and transparent exchange rates since it is directly linked to the actual supply and demand of a currency and is not hidden. You can easily find these rates on Yahoo, XE, and other independent websites. Apart from mid-market rates, Payoneer also charges an additional currency conversion fee.
There are many companies that set their own internal conversion rates. In these cases, the mid-market rate does not apply.
Other than the above-mentioned exchange rates, customers are charged a fee of 3% for credit card payments and 1% if the payment is in the form of an eCheck.
Payoneer Review: What Others Have to Say
When it comes to customer feedback and reviews, Payoneer ranks very high. Here are just a few of the ratings that Payoneer has received on some major websites:
- Better Business Bureau (BBB): A-
- Caoterra: 4.5/5 stars
- G2 Crowd: 4.5/ 5 stars
- Trustpilot: 5/5 stars
Payoneer has received a perfect rank of 5/5 stars on Trustpilot where more than 10,000 reviews have been submitted for this payment platform. Some of the most-praised areas include customer service, low fees, ease of use, and the platform’s ability to accept numerous currencies.
Let’s have a quick look at the pros and cons based on what users have to say.
Payoneer offers competitive exchange rates that are lower than many other alternatives. With a 1% fee for local bank transfers and eCheck payments and fixed rates for same-currency transactions, users find it very convenient and affordable. Unlike other payment options where users have to pay hefty fees and charges, Payoneer offers an extremely transparent fee structure, which users find easy to understand.
- Customer Service
Payoneer’s customer service is outstanding. Although it isn’t available 24 hours a day, the detailed support pages, community forums, ambassador program, and detailed blog make up for the lack of availability. A user who is in need of some assistance during out-of-office hours will easily find a wealth of information on the Payoneer site.
- Easy Sign-Up Process
The Payoneer sign-up process is simple, easy, quick, and above all, completely free! Currently, they have an offer where you can get $50 for signing up!
- Lacks Payment Features
Payoneer lacks payment features like the ability to work with POS systems, virtual terminals, or payment getaways. You might not need these services, but there are some platforms like Square that not only accept payments through bank transfer but are also equipped with additional features and more options.
- Payoneer Can Freeze Your Account
If Payoneer suspects fraud, it will freeze or terminate your Payoneer account.
Payoneer is an ideal option for any business or an independent freelancer who wants to safely accept payments online. With a free sign-up process, reasonable and transparent fee structure, and convenient fund transfer processes, Payoneer has made setting up a remote or online business a lot easier. It operates in more than 200 countries and supports more than 80 currencies, which makes it one of the most widely-used online payment platforms. As far as the question ‘Is Payoneer safe?’ is concerned, all your data and confidential information is encrypted and protected, which helps to eliminate security breaches.
Whether you want to receive payments from an international customer or transfer funds to a remote employee, Payoneer is a one-stop, trusted solution.
I’ve used Payoneer for nearly a year now and I haven’t been disappointed. We have a number of Payoneer bank accounts that allow us to receive different currencies from all over the world, this is very useful as we sell in a number of different amazon marketplaces.
If you are still undecided and you want another option, why not read my Payoneer vs Transferwise article? It covers the two payment giants in detail.
Let me know if you have any further questions, I’d be happy to see if I can help.