Payoneer Fees: A Guide to Pricing and Charges
Payoneer is one of the most widely used payment systems in the world, and considering how widespread and successful its closest competitors are, that’s quite an achievement. The service allows you to receive and send money even across national borders, which is one of Payoneer's stand-out features. Numerous freelancers rely on this payment solution, as it allows them to work with clients from other parts of the globe.
In previous articles, we have already discussed what Payoneer is and how to use it. Today, let’s take a look at Payoneer’s annual fee, ATM withdrawal fee, currency conversion fee, and others. One of the first things you should do before you start using any payment service is to learn about its fees and commissions, and Pioneer is no exception.
In this article, we will discuss the most common Payoneer fees and charges so you can avoid any unpleasant surprises later down the line.
Payoneer Fees and Commissions: Complex Things in Simple Words
So, what fees does Payoneer charge? Naturally, it's the first thing that worries most users considering this payment system. Payoneer is not a free service, but you do not have to pay an annual fee to use it if you receive enough transactions. However, other fees are not so easily avoidable.
For example, there are payment processing fees, charged for operations like credit card transactions, wire transfers, or internal transfers. There are also Payoneer credit card fees, as well as fees for currency conversion and ATM withdrawal. Here’s what they look like:
Description | Commission amount |
|---|---|
Annual account fee | Absent if you receive $2000 or more in payments this year. Otherwise, it’s $29.95 |
Currency conversion fee | 0.5% (3.5% if you use Payoneer MasterCard) |
Transactions between Payoneer users | Up to $4 for USD/EUR/GBP payments if the recipient is from the same country as you 1% or $4 minimum if the recipient is from a different country |
Top up with a credit card | 3.99% |
Withdrawing money from an international account | $1.50 in local currencies. Up to 3% of the amount for others |
Withdrawing money from an ATM | $3.15 |
The fee amount also depends on other factors, such as the debit or credit card you are making a transaction with, the currency you use, and whether it's a personal payment or a business transaction. When transferring money to a particular state, a commission may be charged according to the regulations of that state.
Fees for Service Use
Users can either open a virtual account or order a physical card from Payoneer. There is no fee for registering and using an account. However, it is worth noting that there are usage fees for inactive users (applied after 12 months if you did not receive at least $2000 in payments in the previous year).
Payoneer Transaction Fees
The service allows you to send money directly to users' accounts and has some other options, like credit card payments. Payoneer transfer fees depend on the type of transaction you use. For instance, you can transfer money between different Payoneer accounts at a flat rate of $4 if the payment is in USD, EUR, or GBP and the recipient is from the same country as you. Sending money to a recipient from a different country will cost you 1% of the transaction amount, with a minimum rate of $4. If you use a credit or debit card to send money to Payoneer, the service will charge you 3.99% or 1% of the transaction amount, respectively.
Payoneer also allows recurring and batch payments. In such a case, you will be charged 1% of the transaction and can send money to up to 200 bank accounts.
One more thing to mention is that the Payoneer payment system has direct integration with Wish, Fiverr, Upwork, and a number of other networks and marketplaces. You can check how much these platforms charge per transaction on their websites.
Currency Conversion Fees
Payoneer has multi-currency support. While this is a great feature to have, it also means that you may be levied an additional fee if you send money in a currency other than your native one. There are two options: If you use a Payoneer MasterCard to make such a payment, you will be charged an additional 3.5%; if you make a transaction between two Payoneer accounts, you will only have to pay 0.5%.
Receiving and Withdrawing Payments
Whatever the source of the transaction, you can receive payments on your Payoneer without paying any fees. Even if it was made in a currency other than your native one, all the charges are on the sender. However, if you want to withdraw money, that's a whole different story.
Payoneer withdrawal fees vary depending on the chosen currency. If the accounts are in dollars, euros, and pounds sterling, you’ll have to pay a fee of 1.50 dollars/euros/pounds sterling. For withdrawals above 50,000 USD/EUR/GBP, you’ll be charged 0.5% instead. If your Payoneer account and your bank account are in non-local currencies, then up to 3% of the transaction amount can be levied.
Payoneer Annual Fee: What You Need to Know
Another essential fee we need to discuss is the annual one, as people commonly forget about it when using their Payoneer accounts.
When you register your account for the first time, you won’t be charged a registration or annual fee. What is more, you won’t be charged any sort of regular fee for the first 12 months of having your account.
Once the 12-month period is over, you may be charged an annual fee if you have been an inactive user. All transactions in your account will be reviewed, and if you have received less than $2,000 (or the equivalent of this sum in another currency), you will be charged $29.95. According to Payoneer, users who exceed $2,000 in transactions are subject to a special waiver and don’t have to pay the fee.
Another question to discuss is how you pay this annual fee. Usually, the fee is charged automatically from your Payoneer balance. If you have less than $29.95 in your account when the fee is due, all the remaining balance will be used to pay it off, but you will have a debt in your account. You won't be able to use Payoneer services until you repay it.
If you are confused about annual or another service fee, you can sign in to your Payoneer account and go to the “Pricing and Fees” section under “Fees”, where you can view all the charges that apply to your account. It’s important to do this from time to time, as Payoneer may occasionally change its fee structure.
Conclusion
Payoneer is a convenient transaction system with surprisingly low fees compared to its competitors. You can use your account without paying for monthly maintenance and only pay a small fee for deposits, conversions, and withdrawals. Fast transactions and cooperation with many freelance platforms and online stores make this payment system very versatile and popular.
FAQ
What types of fees does Payoneer charge?
While Payoneer fees are lower than average, you’ll still be charged for making deposits, paying bills, and withdrawing funds. Additional currency conversion fees may apply.
How are Payoneer transaction fees calculated?
You can send money to other users for a fee of up to $4 as long as you both use a Payoneer account and no currency exchange is involved. Payoneer card fees, on the other hand, are 1% if you use a debit card and 3.99% if you use a credit card.
How can I optimize Payoneer fees and minimize costs?
It is best to make transactions using your Payoneer account or, at least, using your debit card to minimize the fees. Also, try to minimize transactions that require currency conversion.
What are the Payoneer fees for receiving money from another Payoneer customer?
The great thing about Payoneer is that you are not charged anything when you receive money from another person, regardless of the payment method they use.
What are the fees for sending funds to another Payoneer account holder?
While you don’t have to pay any fees when you receive money from another Payoneer user, you will have to pay a flat fee of up to $4 when sending funds to a different Payoneer account.
How much does Payoneer charge for credit card payments through the payment request option?
You can send payment requests directly to your clients. The fee for this type of credit card transaction is up to 3.99%. As it’s possible to receive payments internationally using this method, you should be aware that an additional fixed fee of $0.49 may be charged in some countries.
How much is the Payoneer annual fee?
It depends on how you use your account. If you receive more than $2,000 in payments during 12 months, you won’t be charged a fee at all. However, users who can’t reach this number are charged $29.95 per year.
