Mastering International Payments: Payoneer for Freelancers

As a freelancer, managing your earnings and payments can be a real headache. But let’s talk about Payoneer. It’s a name that pops up frequently and seems to be the go-to solution for many, but is it really worth it? Here’s my take on how to navigate the platform, the fees you'll encounter, and some alternatives that might fit you better.

Payoneer Fees: What to Expect

Diving straight into it, let’s break down how the Payoneer payment system works. Spoiler alert: it’s not as simple as it looks.

Transaction Fees

First off, transaction fees are a thing. If your client pays using a credit card, you’re going to be hit with a 3% fee. If they use ACH bank debit payments (and you’re in the US), it’s a 1% fee. And if that’s not enough, if you’re getting payments from places like Fiverr or Upwork, they usually have their own fees too. So yeah, keep that in mind.

Withdrawal Fees

Withdrawing your hard-earned cash to a local bank account? That’ll cost you. Payoneer slaps on a 2% margin on the exchange rate plus whatever currency conversion fees apply. For instance, if you’re cashing out USD to INR, you might feel an additional 3% forex markup. Ouch.

Currency Conversion Fees

Oh, and lest we forget, Payoneer has its own exchange rates. Typically, they’re 2-2.5% above the mid-market rate. So, this is definitely something to think about when you’re receiving payment in Payoneer.

Inactivity Fees

And don’t sit on your hands too long. If your account is inactive for over 12 months, Payoneer will charge you an inactivity fee of $29.95 USD. So get out there and earn!

How to Get Paid with Payoneer

How does Payoneer how to get paid actually work? Let’s break it down.

Setting Up Your Payoneer Account

To even get started, you’ll need to set up an account. Here’s how:

• Download the Payoneer app or head to their website to create an account.
• Fill in your personal and business details, along with ID and proof of address.
• Wait for about three days for verification.

Sending Payments

When you want to pay via Payoneer, it’s pretty simple:

• Log into your Payoneer account.
• Click on “Pay” and then “Make a Payment”.
• Enter the recipient’s details, either their email or bank account.
• Choose the currency and amount.
• Confirm. They usually get it within two hours.

Requesting Payments

If you need to receive payments, you can send payment requests:

• Create a payment request in the “Get Paid” tab.
• Attach an invoice.
• Send it off. They’ll get an email with instructions.

Alternatives to Payoneer for Indian Freelancers

What if Payoneer isn’t your jam? Well, there are alternatives worth checking out:

• Grey: This one gives you virtual US, UK, and EU bank accounts. Lower fees, faster transactions.

• Razorpay MoneySaver Export Account: Specifically for Indian freelancers. Cuts international bank transfer costs in half.

• Wise (formerly TransferWise): They’re known for being upfront about fees, and the exchange rates are better than banks.

• Instarem: They’ve got competitive FX rates and low fees.

Summary: Choosing Your Payment Method

Navigating the world of international payments can be complicated, but knowing what to expect from Payoneer and considering alternatives can save you a few bucks. At the end of the day, it’s all about maximizing your income while keeping costs down.