Payoneer is one of the more recent alternatives to PayPal, and is among the leading platforms for international money transfers. It offers fast and convenient ways to receive monies, particularly from international sources.
Here, we’ll take a detailed look at what Payoneer is, and how you can use it to receive payments.
What Is Payoneer?
Payoneer is an American financial services company that facilitates online money transfer, digital payments, and many other services. Specifically, it enables business to business payments, meaning only recognized businesses or freelancers can use it to receive payment.
With the platform, users can receive payment in three major currencies: USD, GBP, EUR. Once they’ve received funds, users can then withdraw to their local bank accounts, either in local or other currencies.
Any established company or client can choose to pay you as a business or a freelancer through Payoneer. They then inform you to sign up with Payoneer, if you haven’t done that already.
After signing up, your client or partner must email you, inviting you to accept it as one of the people you can receive payment from on the platform. This is done so that Payoneer can keep track of companies you are affiliated with.
Once you add the company as a payment source, you can receive payment from them going forwards. You will need to undergo verification for Payoneer to be sure you are a legit business owner or freelancer, and not just using the platform to receive funds.
Even if you receive payment, you may not have access to it until the verification process is completed. You will also need to add your bank account to which you can withdraw the received funds from Payoneer. You can add more than one bank account, depending on your needs.
How to Create a Payoneer Account
It is easy to create a Payoneer account, all it takes is an email and a password. The email must be functional because you will need to receive a verification email to confirm that you own the address. Follow these steps:
Visit Payoneer and click on Get Started in the top-right to register. Enter your email address and create a password.
After that, you can log in with your password and the registered email to access your account. You can always change your Payoneer email address after the registration, so no worries.
The next step is to verify your account in line with the requirements for all Payoneer users.
How to Get Verified on Payoneer
Getting verified is a major step towards receiving payment on Payoneer. Until this is completed, you can’t withdraw funds from the platform.
You will be asked to provide a government-issued identity document, such as a driver’s license, and a bank document from your local account to which you wish to withdraw funds. After, you’ll need to fill a questionnaire to provide information about your person and your business.
You may not need to provide these details until you receive payment and Payoneer requests them. However, it is best to get verified before you receive your first payment to avoid unnecessary delays in accessing your funds.
To commence your verification after you log into your account:
Head to the profile icon on the top-right and click on it. Select Settings from the dropdown, and then go to Verification Center under it. Provide a government-issued ID, usually a driver’s license. Payoneer will provide guidance for a clear photo. Fill the questionnaire with the required information about your business, what kind of clients you work with etc. , and submit. Your information will be reviewed and if it passes review, you will be granted access to the funds.
You may be able to access the funds for withdrawal and other purposes if some information, such as your ID, is approved, even if the others are not accepted yet.
How to Receive Payment With Payoneer
Now that you have your account all set up, it’s time to receive payment into your account. Depending on your client, you may need to provide an invoice you can generate on Payoneer to receive payment.
If your verification process went well, you will be able to receive payment from your client the same day they make the transfer. If they do not require an invoice, you don’t have to do anything, you will just get a notification when the funds arrive in your account.
What Security Does Payoneer Use?
Payoneer has licenses from many countries and is a recognized Money Services Business (MSB) by the Financial Crimes Enforcement Network (FinCEN). Users’ funds are securely kept in low risk financial institutions and always liquid.
You can also personally protect your account by activating two-factor authentication for your Payoneer account. You may not wish to use Payoneer indefinitely, in which case you can delete your Payoneer account anytime you are done with the platform to protect your information from hackers or other attacks.
Fees and Charges for Using Payoneer
Like any other online payment platform, you will have to pay some fees for Payoneer’s services. Payments from other Payoneer customers’ account is always free, while payments through credit card attract a 3% fee, and ACH bank debit attracts a 1% fee.
In addition, withdrawal fees still apply when withdrawing the received funds to your local bank account. For USD, a withdrawal of $500 or less attracts a minimum fee of $10 for withdrawing in a local currency.
Withdrawing in the local currency from a Payoneer account of the same currency, such as withdrawing USD from a USD account, only costs $1.50. The same applies for a EUR and GBP. Withdrawing in a non-local currency, such as USD from a EUR account, attracts a 2% fee.
Pros of Using Payoneer
Global service accessible in almost any country Allows customers outside the US to receive dollar payments Supports multiple languages Payment can be received almost instantly
Cons of Using Payoneer
Fees are quite high Verification takes many days to complete Contacting customer care can be a headache Verification process is cumbersome Not very easy to use
Is Payoneer Worth It?
Payoneer is worth using because it gives so many of its users access to cross-border payment where no other choice exists. If you are a freelancer or a business looking for a way to receive payments from your business partners or client, this is a reliable platform to use regardless of where you live.
However, other payment options, such as PayPal, exist, and these might have lower fees. There are several alternatives to it that you can check out for your online payment.
