Payoneer is an online payment platform where people from over 200 countries can send and receive payments. The platform can be used to send, receive money and make online payments. After you have signed up for a Payoneer account, you can use it directly from your computer or via their smartphone app.
Payoneer offers an easy to access virtual bank account since you only need an email address and password. Once you have signed in, you can check your account balance and transact money or other similar activities that you can undertake with a normal physical bank account. It is an alternative to other online payment platforms that work like a virtual bank account such as the much cheaper TransferWise borderless account.
Benefits of Payoneer Account
- You can transfer money from one bank account to another through wire transfer to over 100 countries.
- You can do online shopping and also make online payments.
- You can withdraw money from many ATMs all over the world. You only need to provide your PIN, then enter the amount and you get the money.
- You can reduce the waiting time to receive the money in less than 2 hours down from 2-3 days by paying an additional $2.
Bonus Points for Payoneer
If your friend shares with you a link to join Payoneer and you sign up, the company will pay both of you $25. You will need to sign up and earn $1000, which can be a onetime payment or cumulative payments that add up to $1000.
It is never free to receive or send money using Payoneer. Some of the charges include annual fees, MasterCard fees and ATM charges. The following are transaction fees for each service.
Payoneer does not have monthly charges, since it charges yearly. The amount is compulsory. Therefore, you are required to pay $29.95 for account maintenance every year.
Withdrawal Fees via ATM
You can withdraw cash from any part the world in different currencies using Payoneer. However, the service attracts huge charges. The minimum charge for ATM cash withdrawals is $3.15 using the same currency. However, making cash withdrawals using different currencies can be quite expensive due to conversion and exchange fees besides the ATM charges. The fees are dependent on the currency.
You can purchase goods online from the stores that accept MasterCard using the Payoneer. The minimum amount of money you can withdraw with Payoneer MasterCard is $50. You can consider using Payoneer in instances where you need to withdraw money from online accounts.
The card that you are given immediately after opening a Payoneer account expires after three years. Once it has expired, you will need to pay $12.95 to order a new one. Even in instances where you have lost a card, replacement charges are the same.
Payoneer Exchange Rate
With Payoneer, you can withdraw money from your account or bank account. The currency conversion rate is usually 2% above the mid-market rate. You can cut on the cost by allowing the total amount to accumulate to $100,000, which you can withdraw at a 1% margin. The transaction takes 3 to 4 days to get the cash in your local bank account.
Payoneer Transfer to Bank Account
You can withdraw cash from your Payoneer account to your local bank. This option is cheaper compared to withdrawing using a card. You need to link your bank account to Payoneer account to withdraw. The withdrawal charges via the local bank range between $5.95 and $9.95, where you can withdraw up to $10,000 for every transaction. You will receive the amount in your local currency while the minimum withdrawal for every transaction is $50.
How to Transfer Money from Payoneer to Bank Account
You will need to add your bank details to your Payoneer account so that you can withdraw money. Follow these simple steps.
- Log in to your Payoneer account
- Locate the
WithdrawMenu and select the option
To Bank Account
- Confirm your security details
- Add the details of your bank account. You will then receive a notification email when the bank details you provided have been approved.
- Select the amount and the currency in which you wish to withdraw the money. Then click send. You will receive a confirmation email on the transfer.
Payoneer Business Account
For people wishing to transact business with their customers and suppliers, the Payoneer Business account is an excellent option. You will be in a position to pay your suppliers by wire transfer while your customers can also pay you.
Requirements for Opening a Payoneer Business Account
The US has put in place strict measures on the establishment of accounts for non-residents as a way of preventing money laundering and other criminal activities. Besides, each state has its regulations that govern how accounts are established and used. Therefore, you must meet the following general requirements.
- You must open the business account in person. You will need to visit the bank in the US to open an account for identity purposes. You will also need to provide the following documents proof of home address, official photo passport size and bank statements from your home country bank.
You must be registered in the US. You must register the business in either o the 50 where you will be doing business. The documents needed depend on whether you are registering a sole proprietorship, corporation or an LLC.
Provide a physical US business address. You will need to provide a physical address and not necessarily a post office box. It does not necessarily mean that you will need to have a factory or an office in the US but an address near the bank where you are opening a bank account.
You must also have a US tax identification number. The bank will require Employer Identification Number, which is necessary for reporting to the federal tax authority; the Internal Revenue Service (IRS). You will also need to provide the W-8Ben form that is mandatory for non-residents for the IRS. It is filled by non-residents who do not have social security numbers.
Consider using Payoneer in case you have an online business. You can also use it when making online payments or purchase all over the world. It has a simple interface to use. It is a good tool to use and an alternative to TransferWise borderless account.
Vincent is a Kenyan writer with an interest in finance, business, technology and health niche. He holds a Bachelors degree in Applied Statistics with computing from the University of Eldoret.