Whether you want to accept global payments from clients or for products you’re selling online, Payoneer is a reliable way to do it. But what is Payoneer exactly?
As an online entrepreneur, I’ve tested out a number of third-party payment platforms. Since a lot of people ask about Payoneer, I decided to put this guide together.
I’ll be outlining their services, what I like and what I don’t like about the platform.
Let’s get into it.
What is Payoneer?
Payoneer is used as a cross-border payment solution. It helps businesses and professionals transact across currencies and countries – 200, in fact.
Payoneer has been around for nearly 5 years but in this short time, they’ve built up a sizeable customer base and have partnered with some leading brands, including Google, Fiverr, Getty, and Airbnb.
Here are a few others they’ve partnered with:
The brand aims to empower everyone and give them the option to transact – from one-man operations to larger businesses.
To give you an idea of what Payoneer is, some of the alternatives include platforms such as PayPal, Neteller, EntroPay, and TransferWise. In some instances, Payoneer is known to be more affordable than some of these alternatives – but it all depends on your specific requirements.
I’ve been asked before, is Payoneer actually safe? Well in my experience yes, I’ve been working with them for over two years and I haven’t had any issues.
If you still have some concerns, you can read my full review on whether Payoneer is safe here.
Payoneer – Pros and Cons
Ok, let’s look at some of the pros and cons of using this payment platform:
- Quickly and easily make and receive payments from anywhere in the world
- A wide selection of payment solutions to suit your needs
- Currency exchange fees are reasonable when compared to some other platforms
- The terms and conditions of service are quite strict and complex
- There are additional fees that can be charged these can start to add up
- The currency conversion feature can only be applied to funds received into your Payoneer account. This feature is also only intended for business transactions (I’ll talk more about how we use this shortly)
Payoneer Core Services
Here is what you can do as a Payoneer user.
This service will provide you with a global receiving account that will allow you to accept payments in multiple currencies. Whenever someone pays you in a foreign currency, it’s deposited into your Payoneer account. You can only sign up for global payment services as a business though.
Along with receiving payments, you will also be able to make payments to global customers at no charge (This is how we pay overseas suppliers).
Once you start receiving global currencies in your Payoneer account, you can convert the money to a currency of your choice – your local currency, for example.
Payoneer exchanges at the interbank rate and will charge you a 0.5% commission on the amount you’re converting. If you choose to withdraw funds to a bank that uses a different currency, you will be charged an additional 2%.
This service is only for business transactions and can only be used if there’s already money in your Payoneer receiving account.
These fees and charges will vary depending on your business and your volume of transactions. We use Payoneers currency conversion service to great effect, it saves us thousands every month.
In the video below I explain how we’ve used Payoneer to avoid paying Amazon’s high currency conversion fees when we sell products in a foreign marketplace.
Anyway, let’s get back to the article.
If you need to bill a client, you can do so in one click. Payoneer then sends them a payment request and the funds will appear directly in your receiving account. This service is also only available to businesses that want to bill for products and services.
This service is especially useful for freelancers and businesses that are looking to streamline the financial side of their business.
Supplier and Contractor Payments
As a Payoneer user, you can make payments into other Payoneer accounts at no cost. If your contractors and suppliers also have Payoneer accounts, this is an easy way to pay them without having to convert currencies or deal with bank accounts.
A lot of large companies use Payoneer, it’s popular for a reason.
If you’re like me and running your business through a platform such as Amazon or Airbnb, you can arrange for a mass payout to your Payoneer account at a frequency that suits you.
If you are planning to start an eCommerce business, here are the top platforms to consider.
Once you’re ready to withdraw your Payoneer funds, you can transfer them to the bank account of your choice. You can even withdraw the funds at an ATM or transfer them to a prepaid card. Payoneer has partnered with Mastercard, allowing users to easily link their account to a prepaid credit card. You will need a separate card for different currencies though.
Additional Payoneer Services
Payoneer also has some added extras that can come in handy as a business owner.
- Mobile app. There is a Payoneer app, but the functionality isn’t what it could be. Once installed on your Apple or Android device, you can check your balances, review and filter transactions, and access basic information.
- VAT payments. If you need to pay VAT to authorities in the EU and UK, you can do that with Payoneer.
- API. If you want to receive and send payments directly from your site, Payoneer has an API readily available. The API can even be used to streamline your finances and manage some accounting functions.
- Online reporting. Once you’re logged in, you will have access to detailed reports on your transactions should you ever need to access these records.
How to Use Payoneer – The Basics
If you will be using Payoneer to transact with a beneficiary, this is how you would use it.
- Both you and the beneficiary will need a Payoneer account to transact.
- Convert the payment amount at the standard exchange rate.
- Transfer the money to the beneficiary’s account.
- The beneficiary can then withdraw the money to their local bank account (fees will apply).
If you want to get paid, these are your options:
- If you will be billing a client directly, you will provide them with your receiving account information, which will be used to do a bank transfer. You also have the option to request a payment via Payoneer, which will reach your client in the form of an email.
- If you’re working with an affiliate platform, you will have the option to choose Payoneer as a payment option. You can receive mass payouts this way.
- Lastly, you can also receive payments from a Payoneer account into your Payoneer account.
So, how quickly do you receive your funds once you’ve started transacting?
If you’re transacting between Payoneer accounts, you will receive funds almost immediately. Using a non-Payoneer account? This could take longer.
If you’re planning to withdraw funds to your bank account, expect to wait 1 – 3 business days for the money to appear (In my experience we’ve usually received in on the same day). This is after you’ve received the confirmation email from Payoneer. US transfers usually only take 1 – 2 business days.
Payoneer Contracts – The Basics
If you want to use Payoneer, there’s no need to sign up for a long-term contract – you will be billed on a month-to-month basis.
If you ever want to close your account, you won’t need to worry about any termination fees either. However, just be sure to read through the process for closing your account.
The fact that Payoneer offers the option to use their services on a month-to-month basis is one reason why their offering is attractive to business owners.
You should be aware that you will need to pay an annual fee though. This won’t be refunded if you decide to terminate your account before the year is up.
Payoneer Customer Service & General Support
Support is one area you want a payment portal to excel.
Along with contacting Payoneer by phone or email, businesses can also take advantage of their live chat support option. This is only available in English, Spanish, and Russian though.
There is also the option of browsing through their knowledge base before having to contact someone at Payoneer. I’ve found their knowledge base to be very informative and I can almost always find the information I’m looking for there.
There have been a handful of negative reviews about poor customer service, but this is not something I’ve experienced personally.
Naturally, every Payoneer transaction is encrypted. However, you won’t find anything on their site about the specific security measures they have in place.
I haven’t experienced any issues with regards to Payoneer’s security but there does seem to be a few complaints online about unauthorized payments. With that being said, each user’s passwords and personal online security efforts also play a role in how securely you can make and receive payments.
Payoneer – Should You Use It?
Overall, Payoneer is a good platform if you only want to use it for business transactions. They also offer some convenient services for businesses who want to transact using one main platform. Some of their processes are a little more complex than they need to be but once you understand how everything works, sending and receiving payments is easy. Their fees can also add up quite quickly but this is the case with most platforms of this nature.
If you are still undecided I have an alternative for you, have a read of my Payoneer vs Transferwise guide, it covers the pros and cons between both options.
You will find a more detailed breakdown of their fees here – this should give you an idea of whether it meets your budgetary requirements.
If you decide that Payoneer would be a good fit for you, I’d encourage you to take advantage of a sign-up offer they have provided me with, simply use the link below.
*If you sign up through the above link I will make a commission, it’s how we keep the running free content on the blog and YouTube channel.
Want to consider some other business payment alternatives? Read my review on Stripe vs PayPal here.