Supports a freelance website Payoneer MasterCard

Payoneer experience and test: can I trust them and how good are they?

advantages

  • Monthly account overview with no fees for early contract termination
  • Free payments from Payoneer to Payoneer accounts
  • Best suited for freelancers and international companies

disadvantage

  • No payment gateway or virtual terminal
  • Annual fee of $ 29.95
  • High fees for credit card transactions

Overview

Payoneer is a financial services company based in New York. Founded in 2005, the company specializes in simplifying online payments within the United States and internationally. Payoneer has more than four million users in over 200 countries worldwide and can process cross-border payments in more than 150 countries.

The company's services are used by numerous large companies in the eCommerce world such as Amazon, Google, Airbnb and Upwork. If your company sends or receives online payments - whether at home or abroad - Payoneer's services could be very helpful. Although companies like PayPal usually have a similar offer, Payoneer focuses more on international transactions and claims to offer cheaper fees overall than its competitors.

However, let's get something clear about one service from the start, the Payoneer Not offers: The company is neither a provider of merchant accounts, nor a payment service provider (PSP) such as Square or Stripe. Payoneer's core services make it easy to transfer funds from one party to another. Other than that, the company doesn't offer you much in terms of traditional merchant services. While it might be tempting to use Payoneer as a cheaper alternative to a full-fledged merchant account, in many cases it just won't work for this purpose. Yes, you can make and receive payments by credit card, but the fees for this type of transaction are much higher than what most merchant accounts would charge. In the absence of a payment gateway or virtual terminal, it is a poor choice for eCommerce companies with high transaction volumes. Payoneer works especially for freelancers and companies that work regularly with international clients. It is also useful if you make or receive a lot of B2B payments.

Even if your business could benefit from Payoneer's payment service, there are some serious drawbacks here. While the company doesn't charge any monthly fees and doesn't keep you trapped in a long-term contract, you still have to pay an annual fee of $ 29.95 for the MasterCard that comes with your account. There are also numerous hidden fees, such as a monthly fee for account inactivity. If you have your account Not use, large sums of money can quickly accumulate here. In addition, we have seen numerous complaints about poor customer service and poor data security, which raise the question of the general value and reliability of the Payoneer offer.

Despite these issues, Payonerr is a popular payment service that, given the right conditions, could well be of benefit to your business. We are evaluating the company for the time being 4 out of 5 starsas the advantages outweigh the disadvantages of service. Read on to learn more about the Payoneer service and how it can help your business.

products and services

As mentioned earlier, Payoneer is not a merchant account provider, so it doesn't offer the full range of merchant services that you would get from a traditional provider. For this reason, you will not be able to use a credit card terminal or POS systems with your Payoneer account. A payment gateway or virtual terminal is also not yet supported. Here is an overview of the functions offered:

  • Payoneer account: Every Payoneer customer receives an account that can be used to make and receive payments. Registration is completely free and you can do it online in a few minutes. Although this is not a merchant account, you can also make and receive payments by credit card. Payoneer uses an unspecified background service provider to process these transactions.
  • Payoneer prepaid MasterCard EC card: You will receive a MasterCard with your account, which you can use to make payments after you have transferred money to your Payoneer account. Even though it's not a credit card, you still pay an annual fee of $ 29.95 for it. This fee is quite high - especially if you only use your Payoneer account occasionally.
  • Mobile app: The company offers a free Payoneer App available for iOS and Android. The app allows you to check your account balance, view your transactions and withdraw funds. You can with it though no Make payments. For many users, the mobile app is no longer worthwhile due to this limited functionality, which is why it received mostly mixed reviews.
  • eCheck processing: All Payoneer accounts can use eChecks (ACH) to receive and make payments. Although there is no additional charge for this service, there is a processing fee per transaction.
  • Online reports: As you would probably expect, you can sign up online to get access to your Payoneer account. Here you can make payments and transfer the money received to your local bank account.
  • Security functions: All transactions are encrypted. However, Payoneer does not publish the methods that are used for this, nor any other details about the remaining security functions that the service uses. Unfortunately, there are numerous complaints online from users whose accounts have been hacked and used to make unauthorized payments.

Fees & costs

As for the cost of using the Payoneer service, the company is reasonably transparent as most of the fees are posted on the website's fees page. Be warned, however, that there are numerous complaints about additional, hidden fees that can only be found in the fine print of your contract. Here is an overview of the costs of the most frequently used types of transactions:

  • Are payments from one Payoneer account to another free. This is quite an advantage if your customers are also using Payoneer.
  • Payments by wire transfer from a local bank are subject to a fee of 0% possible - at least if they are made in US dollars. Transfers in Euros or British Pounds are free.
  • A 0% Fee charged in US dollars.
  • There is a processing fee for payments by credit card 3,0% at.

These basic fees assume that the transfer will not convert the currency. To transfer funds from your Payoneer account to your local bank account, there is a fixed fee of $ 1.50 each time (excluding currency conversion). If the transferred money also has to be converted into your local currency, then you pay for the conversion up to 2% above the average exchange rate on the market.

Most of the fees associated with traditional merchant accounts are not collected by the company. There is no setup fee and no monthly fee. However, you pay an annual fee of $ 29.95 for your Payoneer MasterCard debit card, which is refunded in some cases. Although not stated by the company, we have seen numerous reports of an account inactivity fee being charged monthly by Payoneer in the event that you do not use your account for the entire month. Although this fee does not appear to be very high, such a fee is still pure moneymaking. There are also other hidden fees. So read the contract carefully before opening an account. Also, don't forget that this includes extensive terms of use that are presented to you during the registration process and that many users will likely never read.

Contract length & premature termination fees

Payoneer bills the costs incurred monthly and it is not necessary for you to sign a long-term contract. There are also no fees for closing your account. Even so, you should carefully follow the account closure process outlined in your contract to ensure that your account is actually closed.

The company's flexibility in terms of monthly billing without a long-term contract is very beneficial and is in line with the practices of other payment service providers. However, we noticed that you still have to pay an annual fee. Although this is supposedly for your Payoneer EC card, it does not seem to be possible to open an account without requesting exactly this EC card. So basically, the annual fee is more like the same annual fee that most merchant account providers charge. Also, don't expect to be refunded this fee if your account is closed.

Transparency of sales & marketing

Payoneer primarily markets its services through its own website, and it looks pretty good. The website is easy to navigate and has links to a lot of information about how Payneer can help your business. Although much of the information presented is just marketing gossip, there are also some helpful disclosures, such as the fees for using Payoneer's payment services. However, this information is not exhaustive so you should also read the terms and conditions before opening an account. The website also contains a lot of information material such as FAQs and numerous how-to videos.

You can register for a Payoneer account directly on the company's website. While this is a common practice in the payments industry, be aware that it has advantages and disadvantages. Of course, signing up online is much faster and easier to verify an account and make or receive payments. Plus, that way, you don't have to mess with sellers or negotiate your terms and conditions. At the same time, the process is so quick that most people simply click from window to window and open their account without first carefully reading through the terms and conditions. However, this can lead to unpleasant surprises later, for example if you are charged the aforementioned account inactivity fee, which cannot be found on the website. We should also remind you that it can take up to a month to receive your Payoneer EC card in the mail. Until then, your options for using the account will be limited.

The company also has a very active presence on social media with accounts on Facebook, Twitter, LinkedIn and Google+. The main purpose of these accounts is to promote the posts on the Payoneer blog. The content is updated regularly and contains a lot of helpful information. Unfortunately, no customer reviews are displayed on the Facebook page. Payoneer also has a YouTube channel with dozens of testimonials, instructions and other videos.

Customer service & technical support

Payoneer has a very useful support center on its website that includes a detailed and comprehensive knowledge base and FAQs to answer common questions and help with problems. If you cannot find the answer to your question here, you have to log into your Payoneer account in order to get access to the live chat function. You can also contact Payoneer via email. However, customer service over the phone seems to be limited to reporting a lost or stolen debit card.

Customer service in live chat is in English, Spanish or Russian. If you don't speak any of these languages, we recommend email support, as several additional languages ​​are offered here. Unfortunately, we have also found numerous complaints that speak of poor customer service. You should therefore first check the knowledge base before testing the other support options.

Negative reviews & complaints

Payoneer has been accredited by the BBB since 2008 and currently has one Rating of A +. The company has received 73 complaints over the past three years, 33 of which have been received in the past twelve months. Payoneer responds to all BBB complaints. So far, however, only 30 of them have been clarified to the satisfaction of customers. The company's BBB profile also has twelve reviews, eleven of which are negative and one is neutral. There were no positive reviews.

We also found 20 complaints about Payoneer on Ripoff Report and even more on other consumer protection sites like Pissed Consumer. Most of these reports are complaints for companies using Payoneer as their payment service rather than Payoneer itself. While Payoneer is obviously not responsible for the fraudulent practices of merchants who use its services, we believe that the company is much more than that should work to weed out scammers and fraudulent companies. Right now, it's just too easy to create a Payoneer account without the credit check or other checks required for full-service merchant accounts. In addition to the complaints, we found the following common problems:

  • High fees. Although opening an account is completely free and many transactions can be made either for free or for a very small fee, Payoneer has many additional fees that are not disclosed on the company's website. This also includes the annual fee for the EC card and an account inactivity fee if the card is not used every month. We cannot stress enough the importance of carefully reading all of the terms and conditions before opening an account. As you can see, there are “hidden” fees that you should understand before you are caught off guard by your monthly statement.
  • Funds frozen / withheld and abandoned transactions. Like any payment service provider, Payoneer freezes the funds for the corresponding transaction if fraud is suspected. Some of these transactions are also canceled altogether. Also, if the payment processor sees a pattern of fraudulent activity, it is possible that your account will be closed without notice.
  • Stolen personal information that leads to fraud. We have found a staggering number of complaints alleging that the user account has been hacked and used to make fraudulent payments. Payoneer claims to use the latest encryption methods to secure user accounts. However, specific details are not given.
  • Bad customer service. There have also been numerous complaints about the quality of Payoneer's customer service. Most of these complaints seem to have centered on customer service over the phone. Instead of solving the problem, it is disappointing to see that Payoneer has decided to close this type of support and offer live chat instead.

Positive reviews & testimonials

Payoneer dedicates an entire area of ​​its website to customer testimonials from satisfied customers. You can also find Payoneer Stories that feature 25 comprehensive profiles of customers around the world who use Payoneer as part of their business to receive payments. These profiles are very detailed and convincing and paint a positive image of the company.

We have also found some other positive comments on the Internet from people who have used the service without encountering the same problems from other users.

If you have already had experience with Payoneer, we would like to hear about it. Please write to us in the comments about your experiences or leave your own review there. Many Thanks!

Our conclusion

It's no surprise that so many Payoneer testimonials are left by freelancers and international companies.Merchants who just need an easy way to make and receive payments for / from other companies - and who don't need the extra functionality of a full service merchant account - will find much that you can benefit from at Payoneer. The ability to convert currencies and transfer money to local bank accounts around the world using Payoneer is a compelling benefit for many.

However, if your company needs a reliable merchant account that can handle large transactions and provide you with a payment gateway that customers can use to place orders, then Payoneer is not the right choice for you. The company is also not a good choice for seasonal businesses or businesses that only make or receive payments on an occasional basis. The additional fees - in particular the account inactivity fee - will in this case eat up savings that you could benefit from with a true "pay-as-you-go" service like PayPal. You should therefore only open a Payoneer account if you plan to use it every month and can actually save money in the process. Payoneer says the service could save companies up to 71% in fees compared to the competition. However, this number must be an ideal case and most users will not. So do you want to find out if you If you can actually save money with a Payoneer account, then you should weigh up all the costs.

Also, to determine if Payoneer is the right choice for you, consider the numerous complaints about the company. There is a clause in the company's fine print that prohibits the use of Payoneer for a long list of company activities. The list includes most of the activities that payment providers typically consider high risk. Unfortunately, the offer of automated online registration also means that these accounts are still approved, but later frozen or closed as soon as the merchant tries to use them.

We'll rate Payoneer for now 4 out of 5 stars. While the company offers solid payment services and prices can be reasonable under certain conditions, there are obvious quality control issues with how accounts are approved. We are also concerned about the user reports complaining about poor account security and inadequate customer service. If you are an international company and only need a payment provider for transfers and currency conversion, then could Payoneer will be a great choice for you. Nevertheless, you should carefully weigh the advantages and disadvantages mentioned and compare the possible costs with other payment services.

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