If you’ve always had to open a foreign bank account to receive your payments from sites such as Upwork, AirBnB, and Fiverr, then you have not yet heard of Payoneer.
The Payoneer service is an excellent way to receive payments from sites such as Upwork, AirBnB, and Fiverr without opening a foreign bank account.
With the help of the payment platform Payoneer, businesses can send and receive money without a merchant account.
Merchants cannot charge clients directly with Payoneer. Instead, businesses use the site to seek payment and then wait for clients to send money.
Payoneer offers the resources and solutions you need to successfully handle your incoming and outgoing company payments.
Its array of services assures that you may build your business in Uganda and beyond, including several currency accounts with local account details in the US, Europe, and Asia, currency conversions, and multiple ways to utilize your earnings.
How does Payoneer work?
Now that you know that Payoneer is a platform that helps businesses to get their money, here’s how it works;
- Direct payment requests from businesses are sent to clients. Customers make payments online using a credit card or bank account.
- When money is received in the company’s Payoneer account, it is transferred to a bank account or used using a Payoneer debit card.
- Payments are immediately available in the business’s Payoneer account, but it may take two to five days for the money to show up in the business’s bank account after a withdrawal request. If the company has a Payoneer Mastercard, ATM withdrawals can be made right away.
- Payments made by businesses to other Payoneer account holders can be sent without cost using the “Make a Payment” feature. The other party can open a Payoneer account if they don’t already have one to receive money, or Payoneer can start a bank transfer. Please keep in mind that there’s a charge for this.
Charges for the Payoneer service
Payment Processing fees
- 3% for credit card transactions (all currencies).
- 1% for ACH bank debit transactions.
- 0% when receiving payments from other Payoneer users.
- 2% for up to 200 bank accounts when paying in batches.
- $1.50 is charged to transfer funds from Payoneer to your bank account; 2% to transfer from a non-local currency.
- 0% to 2% to send payments from your Payoneer account.
- If you use the Payoneer MasterCard, the exchange rate is 3.5% and between Payoneer accounts, it is 0.5%.
- There aren’t any monthly fees charged but there is a fee of $29.95 for every 12 months of inactivity.
Bank Transfers take around 2-5 days depending on location.
Direct registration for a free account is possible on the Payoneer website. You can access these additional features with an account.
Benefits of using Payoneer
- Payoneer is an affordable alternative to purchasing and installing a POS system or hiring a payment processor.
- If everyone has a Payoneer account, the costs associated with accepting foreign payments may be less than those associated with more traditional processes. You won’t need to pay to transfer money to your bank account or to move money between accounts that use different currencies.
Conclusion
The entire Payoneer platform was created with today’s cross-border seller in mind. Get payment from any of the top marketplaces in the globe, free VAT and supplier payments, and the ability to manage many stores from one location.
Get access to working cash to reinvest in your company and take out your profits at a reasonable rate in your home currency.
All you have to do is share your Payoneer local receiving account details with someone that isn’t in the same country as you and they’ll pay you in their local currency via bank transfer.
Then you can transfer the money to your account back home and do with your money as you wish.
