What is Payoneer and how does it work? Payoneer is a well-known company that offers a payment system widely used by various large and small businesses in the world. While there are currently numerous payment services available, Payoneer has become one of the leaders thanks to its selection of features and global reach.
In this article, you can find out more about this payment platform, different Payoneer fees, its capabilities, what a Payoneer account is, and whether you need one for your purposes.
What is Payoneer?
Payoneer is a money transfer platform that can be used to receive and send payments worldwide. A Payoneer user can order a physical card and also transfer money to their local bank account.
Getting Started with Payoneer
What is Payoneer and how do you use it? Payoneer works similarly to any other online payment system, and so requires a personal or business account to work. So, now let’s discuss how you can create your Payoneer account. There are only a few steps involved.
Provide main information
Once you decide to register on the Payoneer platform, you have to choose whether you are creating an account for a company or an individual. Next, you should write your details in the provided online form (name, email address, date of birth). You should take into account that the email address you decide to use will be set as your username in the system. In some cases, especially for business owners, Payoneer may ask you to give additional verification documents.
Enter contact information
You have to enter your relevant contact details, whether you are registering as an individual or a company. It is possible to enter either a mobile phone number or landline number. In the case of a company, it is also necessary to add the address of incorporation.
Provide security details
In this step, you should come up with a strong password you will use each time to enter the system. You also need to choose a security question that will come up if you forget your password.
Fill out banking details
As the final step, before you can start using Payoneer for purchases online, you should enter your banking details. You should keep in mind that additional documents will be required if the name you entered during registration doesn’t coincide with the bank account holder’s name.
Understanding Payoneer Features
Many people ask questions about Payoneer: what is it, and how does it work? Our guide wouldn’t be complete without the prominent features you should know about.
Global Payment Solutions
How does Payoneer work for online payments? One of the significant advantages of Payoneer is the opportunity to easily send and receive payments worldwide. This payment system offers global payment services and allows clients to accept payments in different currencies. At the moment, Payoneer supports plenty of widely used currencies, such as EUR, USD, GBP, AUD, JPY, CNH, and CAD. All other currencies, when received, will be converted to USD.
Currency Conversion and Exchange Rates
The payment system offers a service of currency conversion and exchange. So, how does Payoneer payments work when exchanging currencies, and what fees for conversion do you pay? Payoneer relies on market exchange rates in the process of converting different currencies. If you decide to convert funds using Payoneer, the platform charges a fee of 0.5%. The advantage is that there are no hidden fees and a fixed rate, so you see the exact sum in a new currency right away.
Payment Request and Invoicing
With Payoneer, you get access to customization features for invoices, so you can create the most suitable options for different clients. This is achieved thanks to the system’s integration with the Free Invoice Builder, so invoices look professional, and it’s easy to create recurring invoices.
Mass Payouts
How does paying with Payoneer work on a larger scale? For this purpose, Payoneer allows clients to create Mass Payouts accounts. With the help of this feature, marketplaces and companies can send funds in more than 150 currencies to over 200 countries. According to Payoneer, this solution is suitable for companies that pay out at least $30,000 per month to their recipients worldwide.
Payoneer Fees and Security
An article with the title “Payoneer: How Does It Work?” cannot be complete without talking about fees. Payoneer charges the following:
- 0% fee to accept payments from Payoneer users.
- 3% fee is applied to credit card transactions regardless of the chosen currency.
- 1% fee is charged for ACH bank debit transactions.
- 2% (0% to Payoneer users) fee is applied when you send payments using your Payoneer account.
- $1.50 is paid to transfer funds from your Payoneer account to a bank account.
- In the case of marketplaces (Upwork, Airbnb, etc.), exact fees vary depending on a particular platform.
What is a Payoneer payment fee for account use? At the moment, Payoneer doesn’t charge a monthly fee. There is only a fee of $29.95 if a client hasn’t been using an account for 12 months. Active users of Payoneer don’t have to pay this fee.
Payoneer also doesn’t disappoint in terms of security features. The payment system functions under an e-money license in the European Union and has corresponding licenses in different states in the USA. Payoneer is dealt with in the same way as any other bank. This payout system has a positive reputation and provides plenty of security features, including two-step verification, RSA adaptive authentication, and others.
Conclusion
We hope that after reading our guide, you no longer have to wonder — how does a Payoneer account work? Payoneer offers a range of benefits to clients, particularly those who accept and send payments internationally. Compared to regular bank transfers, you will pay a small transfer fee and thus may save a significant sum. Payoneer has great security features, no annual fee for active users, and is highly convenient to use.
FAQ
What fee does Payoneer charge?
There are no monthly fees with Payoneer and no payments for sending money to and from Payoneer balances. As for ACH bank credit payment, the fee is 1%, and for a credit card payment — 3%.
Is it safe to have money on Payoneer?
Payoneer is a well-regulated platform that has all the necessary licenses in the countries where it operates. In this way, Payoneer works like any other regular bank. In addition to being monitored by governmental institutions, Payoneer also ensures cybersecurity with the help of RSA adaptive authentication and other features.
How much does Payoneer charge for credit card transactions compared to PayPal?
In the case of sending payments from a credit card to a PayPal account, you should expect to pay a 2.9% fee and a fixed fee of $0.30. As for Payoneer, there is only a 3% fee.
Does Payoneer have an affiliate program?
Yes. Payoneer currently allows users to receive affiliate payments by sharing unique registration links on their sites, blogs, social media, etc. Individuals are paid for every customer that signs up using their links.
