Considering the way modern businesses operates, there are so many more alternatives to Payoneer.
However, some of the methods used by companies for international money transfer can act as a barrier between businesses.
Sending large sums of money can cost both the sender and recipient in fees, leading to friction between companies and their international clients and freelancers. Some transfers can take days – if not weeks – to be processed, leaving companies and/or freelancers stressed as they await crucial payments.
And some transfers require trips to the bank to fill out forms or to collect payments, meaning that banking hours and time zone differences make paying someone way harder than it should be.
One popular way businesses send money overseas both quickly and securely is by using Payoneer.
Here’s our review of Payoneer and what its costs are to send money internationally.
What Is Payoneer?
Payoneer is a financial services company that provides online money transfer services. Headquartered in New York City, Payoneer specializes in facilitating cross-border payments. The company’s services are used by many major players in the eCommerce world, including Amazon and Airbnb.
So, if it’s good enough for these huge global businesses, does this mean it’s good enough for your company?
Probably not, because we think you can do better.
If you’re considering Payoneer as a cheaper alternative to traditional methods of sending money overseas, you should probably look elsewhere. While the company doesn’t charge a monthly fee or lock you into a long-term contract, you’ll still have to pay a $29.95 annual fee on the Payoneer MasterCard debit card that comes with your account.
There are also numerous other costs, including account inactivity fees. Payoneer charges on a monthly basis if you don’t use your account at all during that month.
While payments to other Payoneer accounts are free, it’s worth noting that payments made via credit card incur a flat 3.0% processing fee.
To withdraw funds to your local bank account from your Payoneer account, you’ll pay a flat $1.50 each time – and that’s in addition to currency conversion costs.
Payoneer’s basic fees also assume that there is no currency conversion involved in transactions. If you need to convert withdrawn funds to your local currency, you’ll pay up to 2% above the mid-market rate for the conversion.
Depending upon the amount and payment receiving method you select, you may be paying upto 5% or more, for receiving money through Payoneer.
Why Not Use Wire Transfer?
There are several reasons to avoid wiring money overseas.
The first is that banks charge unfair fees that could end up costing you upto $80, sometimes even more!
The second reason, similar to what is mentioned above, is hidden fees. Banks charge a high Foreign Exchange rate when converting currencies.
A third reason to avoid sending money overseas via wire transfer is the amount of time it takes.
Typically wire transfers take up to 5 business days to process. Sometimes, especially when it comes to international money transfers, they can take longer. We’ve ever seen a few cases where they have taken weeks.
One final reason is that wire transfers can be time consuming and borderline stressful.
They may require a trip to the bank for you to physically filling out forms, especially for large payments.
You’ll also have to gather an array of information. You will need bank names, account numbers, SWIFT codes and/or routing numbers and of course the names of the account owners.
Online transfers are much faster and more hassle-free than wire transfers – but can be expensive too if you opt to use the wrong platform.
Here’s a look at some of the alternatives to Payoneer.
Alternatives to Payoneer for International Money Transfers
PayPal
PayPal is another popular payment service provider that has been in use since 1998. It serves as a platform that allows individuals and businesses to make and receive payments. It also allows sellers to integrate PayPal to their website for payments and invoicing.
PayPal’s charges can be a per transaction fee or a slab based fee structure, in addition to a fixed fee.
The cumulative charges can end up being extremely high especially if you have a heavy volume of transactions.
The platform offers a strong level of security, but it usually takes a couple of days for the money to show up in your account.
While it is reliable and popular, PayPal may not be your best option to send money overseas.
Transferwise
It is not uncommon to see large global money transfer companies charging their fees as a percentage of the money you are sending – This is how Transferwise operates.
According to their website: “eventually, the percentage fee + flat transaction fee structure will be in place for every currency we offer.
“But until then, some transfers still have a higher percentage fee or a minimum fee instead of the flat transaction fee.”
Transferwise also buries their Foreign Exchange rates cost into their fees. With Transferwise, there is a fee to convert between currencies – you can take a look at these fees here.
The mid-market rates or bank rates that they are reported to offer conveniently omits to say that their foreign exchange margins are just built into the fees which increase as your transferred amount increases.
While their service does allow you to send money to every corner of the globe, Transferwise may not be your cheapest option to send large amounts.
Western Union
With Western Union, the most significant advantage is their vast agent network situated across 200 countries.
These act as cash pick up points for the recipients.
However, the bank transfer option charges quite a hefty fee for its service.
The transfer duration varies from country to country, but can take up to six business days. If time is not on your side, and you opt for the faster credit/debit card option, service charges really rocket up.
Western Union are a highly reliable and secure option, but they also may not be the best option available.
What Is The Best Way To Send Money Overseas?
The best way to send an international money transfer is to use REMITR.
Our service is the fastest, cheapest and most convenient way both to send money overseas.
REMITR users pay a flat fee of just $5 per transfer when paying the recipient in their local currency, and can send money to over 150 countries worldwide.
Payments will be completed in 1 business day, and in some cases, instantly.
And the good news keeps coming – it’s time to say goodbye to high Foreign Exchange rates.
As mentioned above, unfair FX rates are being charged on international payments by banks and most other providers.
With REMITR, you get access to the best live FX rates, 24/7.
Time is money – save them both by getting in touch with REMITR today.
