Why You Should Have A Payoneer

Why You Should Have A Payoneer

Payoneer is a company I had heard of but never knew much about. If you’re a Songtrust user you might be familiar with Payoneer because they use it to send payments to their clients. In order to receive payments from Songtrust you don’t need a Payoneer account, they use it as a middle man and send it directly to your bank account through them. As a result, I didn’t feel the need to know too much about Payoneer. What changed things for me was seeing Tunecore switch to Payoneer. That really made me look into them and what they offer. After researching them, I created an account, joined their affiliate program, and now I’m on a crusade to get more people to join me. 

Why Payonerr? Transactions between Payoneer users is always free 

If you’re getting paid through Paypal, there’s a 2.9% + $0.30 transaction fee no matter where the payer is paying from. They could pay from their Paypal balance, they could pay directly from their bank account, it doesn’t matter, they’ll still be subjected to the fee. 

The only way to avoid Paypal’s transaction fee is to have Payers send payments as a friend. This means you can’t request payments through invoices or sending someone to your Paypal.me page. Requesting payments simplifies the process of getting paid because all the payer has to do is pay. 

There’s more of a process to having someone pay by sending as a friend. The payer has to go to Paypal on their own, input your email address - which means they have to remember your email and input it correctly - then change the reason for the payment to “Sending to a friend.” I haven’t met too many people that are enthusiastic about losing money so I don’t see how making it more difficult for them to do that will result in anything positive. I’ve tried it a few times and it’s always resulted in the client not paying until I followed up with an invoice.

With Payoneer, that’s not the case. As long as you and the payer have Payoneer accounts, there are NO fees. I can invoice a client through Payoneer and they can pay without me having to lose any of it. 

Why Payoneer - Local and International Bank Accounts 

Payoneer provides you with what it calls “Receiving accounts” which are local bank accounts for multiple countries in multiple currencies. I can have a US bank account for business in the US, a European bank account for business in the EU, a Japanese bank account for business in Japan, etc. When sending and receiving to and from people in these countries, the currencies won’t have to be converted. Euros would be stored in my European bank account as Euros to be used for purchases in Euro. The same would go for Japan Yen, and the British Pound. Sending and receiving from a Receiving account is free so if a payer doesn’t have a Payoneer account, they can pay directly to my Receiving bank account instead. 

This also makes it easier for companies like Songtrust to send money to clients around the world. They can create local bank accounts for multiple countries and currencies and send payments direct to bank accounts internationally. You’ll notice most distributors don’t do international direct deposit, it’s exclusive to the US and clients in foreign territories are forced to use Paypal. 

The drawbacks to using Payoneer over Paypal is that Payoneer takes 3% of payments charged to a credit or debit card vs. Paypal’s 2.9% + $0.30. Payoneer also charges a $1.50 withdrawal fee for you to move money from Payoneer to your bank account. It’s free to send money to your bank account with Paypal. All that being said, Payoneer still wins because of the ability to avoid paying 2.9% + $0.30 when getting paid. 

You get paid $1,000 - The payer uses the balance in their Paypal or Payoneer account. 

Paypal takes 2.9% + $0.30 = $970 

Payoneer: Free = $1,000 

Withdrawal to your bank account 

Paypal: Free = $970 

Payoneer: $1.50 = $998 

In closing, you wouldn’t abandon Paypal for Payoneer because Paypal is still extremely important when it comes to ecommerce. Some people prefer it! You’d use Payoneer in addition to Paypal for maximum payment flexibility. 

Checkout Payoneer & get $25 when you use this referral link:: http://payoneer.com

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