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Payoneer Review
If you’re teaching English online, managing payments efficiently is important.
Whether it’s receiving money from the company you work for, or sending invoices to your students, you want to make sure you receive your money on time and with minimal associated fees.
Payoneer is a financial services provider specializing in online money transfers and digital payment solutions. Established in 2005, it offers a platform for businesses and professionals to accept payments from clients and marketplaces worldwide. This service is especially favored by freelancers, e-commerce sellers, and service providers who seek a dependable and affordable way to manage international transactions.
Payoneer is a popular choice among teachers, as well as many online teaching platforms, including Preply and PalFish.
In our Payoneer review article we will take a closer look at how Payoneer works, its features, and whether it’s a good fit for managing your payments.
If you’re curious about how it stacks up and whether it could simplify your financial management, keep reading.
Is Payoneer legit?
Yes, Payoneer is a legitimate payment platform. It was founded in 2005 and is listed on the Nasdaq stock exchange under the ticker symbol PAYO. Payoneer is used by a wide range of businesses and individuals, including prominent brands in the tech and finance sectors.
The platform serves millions of customers worldwide and operates with over 2,000 employees across more than 25 global offices. As a regulated financial institution, Payoneer is subject to regulatory oversight, which helps ensure it meets industry standards and operates transparently.
Its long history and broad usage in the industry affirm its legitimacy as a payment solution.
Is Payoneer Safe?
Payoneer has multiple security measures in place to safeguard user funds. As a regulated financial institution, it is required to keep customer funds in segregated accounts at low-risk financial institutions.
This means that your money is kept separate from the company's operational funds, ensuring it remains liquid and protected from being used for loans or other business activities.
Payoneer works with major global banks, such as Barclays and Citibank, to maintain a secure banking infrastructure.
The platform uses various security features, including 2-Step verification, CAPTCHA, and advanced fraud detection methods, to protect user accounts.
Regular audits by firms like PwC and adherence to industry standards for security and compliance further enhance its safety measures. These practices collectively contribute to a secure environment for managing financial transactions.
Use our link and get $35 after you receive your first $1000.
Payoneer Fees
Getting Paid
If you’re an online teacher, the two main ways you’ll likely be getting paid are 1.) from the company you are employed by or in a freelance relationship with and/or 2.) directly from your students (or their parents).
The most cost-effective way to receive money is if your company or client also has a Payoneer account.
You can also send invoices, or payment requests, to your clients, but there are some fees associated.
Another way to receive payments from your employer or clients to use your Payoneer Receiving Account. A receiving account is a set of bank account details based in a specific country and currency. You give these details to your clients or marketplaces in those countries to receive payments via bank transfer directly into your Payoneer account.
Here is a summary of the fees associated with getting paid using Payoneer:
From Another Payoneer Customer
- Receive payments for free from another Payoneer customer's balance.
- FREE for EUR, USD, GBP, and more.
Directly from Your Clients
- Send payment requests to clients, who can pay via:
- Credit card (all currencies): Up to 3.99%* (+$0.49 in some countries)
- ACH bank debits (US only): 1%
- PayPal (US only): 3.99% + $0.49
Via Your Receiving Accounts
- Use Payoneer receiving accounts as local bank accounts in various currencies (USD, EUR, GBP, etc.).
- FREE for EUR, GBP, and more (fees may apply for payments below a minimum amount).
- UP TO 1% fee for USD, with fees varying based on eligibility.
Paying for things and using your funds
Once you have all that hard-earned teaching cash in your account, you most likely won’t just want to let it sit there. You have plans for that money, right?
The most common way teachers will be using their money is to withdraw it to their local bank account where they do most of their finances.
Withdrawing money in the same currency as the bank account you are withdrawing it to is the cheapest option. This is particularly true if you're withdrawing USD, GBP, or EUR to a local account in that currency. For most people this will only be a flat rate of 1.50 USD/EUR/GBP.
If the currency you are withdrawing doesn’t match the currency of your local bank account, you may have to incur higher fees. One option is to move the money around within Payoneer to an account in a different currency (thus converting it) before you make your withdrawal to ensure the currency you are withdrawing and the currency of your local account is the same.
There’s also the option to get yourself a Payoneer card and avoid the withdrawal fee altogether. It does come with an annual fee, among others. You might want to do some quick calculations on how often you’ll be withdrawing in what amounts to see if just using your card might be a better option.
Here is a summary of the fees associated with using your money and paying for things:
Withdrawing Funds
For Customers in the USA, UK, or EU
- Local currency withdrawals (up to 50,000 USD/GBP/EUR per month): 1.50 USD/EUR/GBP.
- Over 50,000 USD/GBP/EUR per month: 0.5% of total withdrawal amount.
Manage Currencies
- Move funds between Payoneer balances.
- Fee: 0.5% of the amount transferred.
Withdrawing to Your Bank Account
- Local currency withdrawals from a different currency balance:
- Fee: Up to 3% of the transaction amount.
Withdrawing in Non-Local Currency
- Competitive rates for most currencies.
- Fee: Up to 3% of the transaction amount (minimum fee may apply).
Using the Payoneer Card
- Make global purchases and ATM withdrawals.
- Fees:
- Standard card delivery: FREE
- Express shipping: $40.00
- Annual fee for the first card: $29.95
- Transactions in the same currency: FREE
- Currency conversion: Up to 3.5%
- Cross-border fee: Up to 1.8%
- ATM withdrawals: $3.15 USD / €2.50 EUR / £1.95 GBP
- Balance inquiry: $1.00 USD / €0.87 EUR / £0.65 GBP
- Card replacement: $12.95 USD / €9.95 EUR / £9.95 GBP
Other Payoneer Fees
Another very important Payoneer fee to consider is is the annual account fee. This is free if you receive more than $2,000 per year into your Payoneer account. However, if your income is less than that, the annual fee is $29.95
Payoneer card
We mentioned the Payoneer card previously when going over the fees associated with getting money out of your Payoneer account.
Here we will go into a little more detail in case the card is something that you’re interested in:
Card Delivery and Annual Fees:
Standard Delivery: FREE
Express Shipping (via DHL): 40.00 USD
Annual Card Fee (First Card): 29.95 USD
Additional Cards (in any currency): FREE
Transaction Fees:
Transactions in the Same Currency as Your Card (in supported countries): FREE
Transactions Involving Currency Conversion: Up to 3.5%
Cross-Border Transactions (where the merchant country differs from the card-issuing country): Up to 1.8%
ATM and Card Maintenance Fees:
ATM Withdrawals (Cash Advance): 3.15 USD / 2.50 EUR / 1.95 GBP
Balance Inquiry: 1.00 USD / 0.87 EUR / 0.65 GBP
Card Replacement: 12.95 USD / 9.95 EUR / 9.95 GBP
Use our link and get $35 after you receive your first $1000.
Payoneer vs Wise
(Payoneer vs Transferwise)
Another popular financial platform option for online English teachers is Wise (formerly known as Transferwise).
Here’s a quick comparison on a few key fees associated with both accounts:
Currency Conversion
Payoneer:
0.5% converting currencies between Payoneer accounts
Withdrawing in non-local currency: Up to 3% of the transaction amount
Wise:
Starts at 0.33%, varies by currency
Receiving Money
Payoneer:
From another Payoneer customer: Free
Receiving accounts: Free for EUR, GBP, and more (fees may apply for payments below a minimum amount), up to 1% fee for USD (varies based on eligibility)
Wise:
Local payments (non-SWIFT): Free
SWIFT payments: Free in 15 currencies
USD wire payments: $6.11
CAD SWIFT payments: $10
Withdrawing Money (same currency)
Payoneer:
Up to 50,000 USD/GBP/EUR per month: 1.50 USD/EUR/GBP
Over 50,000 USD/GBP/EUR per month: 0.5% of total withdrawal amount
Wise:
Up to $100/month (in two or fewer transactions): Free
More than $100/month: 0.33% and varies by the currency you are sending.
Debit Card Fees
Payoneer:
Standard card delivery: Free
Annual fee for the first card: $29.95
ATM withdrawals: $3.15 USD / €2.50 EUR / £1.95 GBP
Balance inquiry: $1.00 USD / €0.87 EUR / £0.65 GBP
Wise:
Physical card issuance: $9
ATM withdrawals over $100/month: 2% + $1.50 per withdrawal
Account Maintenance Fees
Payoneer:
Annual account fee: $29.95 (Free if you receive more than $2,000 per year into your Payoneer account)
Wise:
No subscription or monthly fees
Payoneer vs PayPal
Payoneer often gets compared to another popular payment platform, PayPal. Here is a summary of each platform’s fees.
Subscription or Set Up Fees
Payoneer: Free, but a $29.95 annual fee applies if you receive less than $2,000 per year.
PayPal: Free.
Receiving Money
Domestic
Payoneer: Free from other Payoneer customers and local receiving accounts in EUR, GBP, etc.; up to 1% for USD.
PayPal: Free if no currency conversion is involved.
International
Payoneer: Free from other Payoneer customers; up to 1% from clients via receiving accounts.
PayPal: Fixed fees based on the currency (e.g., $0.30 USD, €0.35 EUR) plus a 3% to 4% currency conversion spread.
Withdrawing Money to Local Account
Payoneer: Local currency withdrawals: $1.50 USD/GBP/EUR; 0.5% for amounts over $50,000. Non-local currency withdrawals: Up to 3% of the transaction amount.
PayPal: Standard withdrawal to a local bank is free (no currency conversion involved). Instant withdrawal incurs a 1.75% fee of the amount transferred.
Sending Money
Domestic
Payoneer: Free between Payoneer customers; 0.5% to move funds between balances.
PayPal: Free using PayPal balance or bank account; 2.90% + a fixed fee if using a card.
International
Payoneer: Free between Payoneer customers; external transfers may incur fees based on currency and method.
PayPal: 5% fee (minimum $0.99, maximum $4.99) using PayPal balance or bank account; 5% if using a card.
Converting Currency
Payoneer: Up to 3% of the transaction amount.
PayPal: 3% to 4% currency conversion spread.
Our Payoneer Review
Payoneer is a solid option for online English teachers looking to manage their money online. It’s obviously a necessity if you work for PalFish, and one of a few options if you work for Preply.
One of the things to be mindful about if considering Payoneer is the annual fee. If you expect to receive less than $2000 per year in this account, you might want to consider other options such as Wise or Paypal, which don’t have any yearly fees.
However, if you have to use Payoneer, it’s a good idea to try to ensure you meet that minimum threshold of $2k per year. One of the ways you could do this is diverting all your income streams through your Payoneer account.
You could also speak with your employer or clients to see if they can pay you less frequently, but in larger amounts. Payoneer states that accepting money in your receiving accounts is free, however “fees may apply for payments below a minimum amount”.
Whatever you decide, Payoneer is a safe and reliable option that caters to online businesses and freelancers such as online English teachers.
Use our link and get $35 after you receive your first $1000.