Payoneer is a payments and remittances company that has been around for many years.
Here’s some information about the Payoneer services:
Payoneer Prepaid Debit MasterCard Card
You can sign up for a Payoneer card, and receive your payments directly to that card. You pay a flat fee per payment received, and then the funds are loaded to your card within 2 business days.
You can also choose to pay an extra $3 to have it loaded within minutes. The card is held in USD, and you can use it to make purchases online, in stores, and at ATMs worldwide.
As a debit MasterCard card, all purchases in a non-USD currency are converted using MasterCard’s official exchange rates. A conversion charge of up to 3% also applies.
The Payoneer prepaid MasterCard works just like any other MasterCard. The card is accepted at all locations worldwide, wherever MasterCard is accepted electronically. You can use it at any point of sale location to make purchases, whether online or at retail locations. You can also use the Prepaid MasterCard at ATMs worldwide to withdraw cash. The Prepaid MasterCard may be used for online transactions wherever MasterCard is an accepted form of payment.
The fees for withdrawing at an ATM are $3.15+3% of the withdrawal amount for currency conversion.
Payoneer charges 1% of the payment amount when transferring to it.
Payoneer Global Bank Transfer Service
If you don’t want the prepaid card and instead want to get paid directly to your bank account, you can sign up for this service. It allows you to receive payments directly to your bank account in over 200 countries.
For more than 50 countries, Payoneer provides a local transfer solution. This means that funds are actually being paid to you from a local bank in your country, in your local currency.
This eliminates any international transfer, and the extra charges associated with them. For the remaining 150+ countries Payoneer offers SWIFT transfers.
You pay per payment, with costs starting as low as $2.99 per payment (depending on your country).
You will be able to choose the currency of payment, and if currency conversion is required, Payoneer uses the official market mid-rate (at the time of transfer), and a conversion charge of 2% for the six major currencies we use, which are Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Philippine Peso (PHP), Australian Dollar (AUD) and Romanian Leu (RON). For all other currencies, a charge of up to 3% applies.
The yearly fee of Payoneer is $29.95 per year.
Anytime money crosses borders or currencies, MasterCard and the issuing bank apply processing fees to the transaction. This is true of both POS (Point-of-Sale) and ATM transactions.
When the Payoneer card is used for non-USD transactions, a currency conversion fee takes place based on MasterCard’s exchange rate, which is adjusted regularly based on market conditions. The processing fee charged with the Payoneer card can be up to 3%. Please note that currency conversion fees are charged by all banks, and the fees charged with Payoneer cards are among the lowest in the market.
With all these options, you should also keep in mind that the two bank accounts can be set in different currencies. Be careful because with most banks, if you transfer an amount in one currency and the receiving account is set in another currency, that money will automatically be converted to the receiving account’s currency, thus incurring you a currency conversion fee and potentially an exchange rate which is not so good. To keep abreast of how the exchange rates are fluctuating, use Oanda, as I detailed in another post on this blog.
Paying Remote Workers
Working remotely is becoming more and more popular, with lots of European companies outsourcing part of their workloads to labor in the Philippines and other Asian countries where Payoneer is very popular.
The big question is how to pay these remote workers at the end of every month.
The current methods I know of are:
- Bank transfer
There are many other services but they mostly seem to cater for US companies rather than European ones. For example, Xoom does allow economical transfers of money, but the source bank account or debit/credit card should be in USD, else you will be hit by a conversion fee from EUR to USD, apart from the eventual fee to convert to Philippine Pesos.
So far, the most straightforward service remains PayPal. It is possible to have both a USD and a EUR balance within PayPal accounts, so this gives the best level of flexibility when paying remote workers in the Philippines.
On the other hand, Payoneer is a strong competitor, with the slight disadvantage that you will have to sign up for a Payoneer account and supply some company documents for them to verify the company before being able to put payments through.
Testing it out
To test things out, I sent a payment of around $1000 to the Philippines with both PayPal and Payoneer.
I used USD for the PayPal transfer and Euro for the Payoneer transfer, but the value was the same, I just calculated the Eur value using that day’s exchange rate.
After calculating all fees, conversion to currencies and receiver’s bank fees, Payoneer comes out the winner as long as you send in Euros.
Compared to PayPal, the receiver saved at least $35-45 after all is said and done with a Euro payment. If I had done it in USD the receiver would only save about $8-10.
Have you found any great services for transferring money from Europe to Filipino, Indian or other Asian remote workers? Let me know!
Ahmed Ali says
My name is Ahmed Ali, I have a UK account in Payoneer. They blocked my master card without any previous notice. I contacted them for this issue, they said its because they moved their account to the new bank. They told me that I can request a new one as long as I have certain amount of money in my account! I told them that they have to issue a new one automatically because it was their fault and its their responsibility to fix transparently.
The worst experience is as follows:
I received a money from Google Ads and I made a bank transfer to my business partner in Sweden, they immediately suspended this transaction and ask to verify my address that I couldn’t verify because I moved my business to another country. After some days, they blocked my account!
I opened a ticket for this issue and they told me to open a new account for the new business address/country and then I can ask them to move money from the blocked account to the new account. I followed their instructions and created a new account that kept blocked when trying to log in. Again, I contacted them for this issue and they asked me to send supporting documents for the new address verification. I’ve sent them everything they asked although, it remained blocked!. Two months later and account still blocked with no response to my tickets.
I can say that I have Payoneer has robbed my money and is totally a scam.
Payoneer, pay attention: I will file a complaint to the US authorities as soon as possible.
It’s the worst I have ever used. I got $40 in October and still can’t access my funds. They charged $3 for that transaction and when I try to access the remaining amount, it says insufficient funds. Apparently it needs to be a certain amount before I can withdraw. With PayPal whether it’s $5 I can withdraw my money. Same goes for Veem. Easy access to your money.
aremu idayat says
got an email today with the subject “Alert: You Can No Longer Get Paid via Payoneer” ,they close my account , frozen my funds and don’t even disclose the reason . they just. I will say its inhuman after providing all valid details and documents they ask me to provide. If you are closing my account , then why freeze my money which I explain is my source of livelihood I Signed up on payoneer few months ago,received payments for my E-commerceVirtual Assitance work,Issues started on On wednesday 28th October 2020, when i receive an email from one Elvin from the Risk department that i should provide kind of service, invoice, my customers etc which i provided promptly. i message severally to help expedite the case as i take to several customer service guys including the supervisor Bernie. Finally, on wednesday 18th November, i got a mail that they need more information to add my bank account but today Moday 23rd November 2020 i received email that i can no longer receive payments and my account is closed. Because I have confirmed funds in my Payoneer account, I tried several means to contact Payoneer on chats but fortunately I called them on phone as regards how to get my funds. The lady told me I can’t get my funds that its frozen. I ask till when will you released my funds, then told me for unspecified time.(Reference Number: 201123-014618) If receiving payments is violation then why you even allow opening accounts? I don’t recommend payoneer as they will randomly close your account without any explanation.
Your Customer ID: 37685883
Reference Number- 201123-014618
Reference Number: 201113-013109
Reference Number: 201109-023054
Reference Number: 201105-041287
Reference Number: 201028-009736
I just came across your post and I will like to leave my honest opinion. Payoneer is a great choice for making payments a couple of years ago but it is not a great choice when u have a small problem. Their customer care take 3 days to reply messages and that is if you are lucky. If you do not believe me go to their app on play store and check their review. Better still just call their customer care and see how u r treated. They never answer and I was left with the option of simply sending them emails that were often replied by their bots. Before you send or receive payment with payoneer please take a couple of second and read the feedback from their highly disappointed customers. If you want an alternative, I will suggest TransferWise.
Orna Koch says
Payoneer is the worst service provider I’ve ever experienced!!! I have been paid for online teaching since March 2020 and STILL don’t have a new card and is UNABLE to access my funds!!!
Orna Koch says
I stand by my previous comment that PAYONEER has shockingly bad service. It is almost November and I applied for a card in May. I STILL HAVEN’T RECEIVED THE CARD!