How to Pay Freelancers With Payoneer
Before going into how to pay freelancers with Payoneer, you should understand that Payoneer are not offering an online wallet where you may load money into your account and use your ATM MasterCard. The only way to get money into your Payoneer account is to receive it from a business. That is the only way to load money into a Payoneer account because it is a business-to-business payment service only. When you pay freelancers with Payoneer, your freelancer has to send you a Payoneer request, and then you pay the request from your bank account through Payoneer—you cannot load money into your Payoneer account in order to pay people, you may only pay them directly when they make requests.
Some people prefer to pay freelancers with Payoneer because Payoneer gives customers a MasterCard with which they may make purchases in shops, online, and with which they may withdraw money from ATMs. Oddly enough, many people do not know that PayPal offers a similar deal with regards to a MasterCard except that Payoneer offers them to all new customers whereas you have to request one from PayPal. However, you may load money into your PayPal account whereas you are not able to load money into your Payoneer account. Here is how you pay freelancers with Payoneer.
Visit The Website And Sign Up
Go to https://www.payoneer.com/ and sign up. Start by registering to open your account, and then fill in verification section. If you are able to pass the verification process, your account will be activated. Payoneer then sends you a MasterCard, and when it arrives you have to activate the card. You now have a Payoneer account that will allow you to load and withdraw money from your account, and will allow you to pay freelancers with Payoneer too.
How To Pay Freelancers With Payoneer
Payoneer offers a “company account” option to people in certain countries. If you have a company account with Payoneer, and if you have five or more employees, then you are allowed to upload money into your account and then send payment to your employees at the same time using your Payoneer balance. However, I am not covering that option in detail because the company account option is limited to very few countries.
You may pay freelancers with Payoneer by using Payoneer to send money to your freelancer’s bank account. Simply ask your freelancer for his or her bank account details, log into your Payoneer and account and choose the options that allow you to send money to your freelancer’s bank account. Payoneer will draw the money from your bank account and pass it straight on to your freelancer without a stop-off in your account.
The other option is to have the freelancer send you a payment request. Many Payoneer users prefer this method because it takes a lot of the work out of the paying process. Instead of you having to enter payment details, verify new payees, and so forth, you simply have your freelancer send you a payment request. The request appears in your email inbox, you click the link, choose your payment method, and that is all there is to it. You may even have the freelancer attach an invoice to the request so that you may check it against your records before you send the money.
The payment request system, which Payoneer calls its billing system, is one of the biggest reasons why payers like Payoneer. It takes a lot of the stress, worry, paperwork and hassle out of paying freelancer, especially if the payer has to pay numerous different freelancers each month.
Payoneer And PayPal Are Good For Freelancers Who Don’t Have A Bank Account
Without stating the obvious, if Payoneer offers a prepaid MasterCard, and PayPal offers its Access prepaid MasterCard, then these companies may suit freelancers who do not have a bank account. Not only will Payoneer help to streamline your payment process, it may also have the added benefit of acting a little like a bank account for your freelancer.
PayPal will allow the freelancer to upload money into his or her account, whereas Payoneer will not, but that doesn’t really matter to you? After all, if your freelancer wants to use his or her new Payoneer MasterCard, then he or she will have to come to you for work so that you load up the card with money.
If your freelancer doesn’t have a bank account, then he or she may be looking for a prepaid MasterCard, and Payoneer is not going to run a credit check too, which may also suit your freelancer.
In short, if you have already offered to pay your freelancer via a bank transfer and your freelancer has said no, it may be because he or she doesn’t have a bank account. In which case, the freelancer may be more than amenable to signing up for a Payoneer account with which he or she may get and use a prepaid MasterCard.
Your Freelancers Do Not Need A Payoneer Account To Get Paid Via Payoneer
There are people online who say you should get your freelancers to sign up for Payoneer and get an account because it allows you to transfer from your Payoneer account to their Payoneer accounts. They say that you can load your Payoneer account manually if you sign up for a company account, if you have five or more employees, and if they all have a Payoneer account. It is a fine option if you want to take it, but you need to fulfill all of those requirements, and the ability to load your account seems to be limited to a small number of countries. There is a good chance that you will be unable to sign up for a company account and that you will be unable to load your account. In almost every circumstance, you are unable to load money into your account, you have to send it directly to your recipient without any sort of stopover as an account balance.
Your freelancers will not need a Payoneer account in order to receive payments from you. You are able to use your Payoneer account to transfer money directly from your bank account to your recipient’s bank account. Or, you may use your Payoneer account to send money directly from your bank to your freelancer’s Payoneer account; ergo, it doesn’t matter if your freelancer has a Payoneer account.
How to Withdraw Funds
This article is all about how to pay freelancers with Payoneer, but what if you are paid, how do you get your money out? In my opinion, you should leave the money in your account until the next time you need to pay a freelancer, but if you would rather withdraw the money, then there are two ways to do it.
Payoneer sends you a prepaid MasterCard when you sign up for your account. Activate your card, if you have not done it already, and then use the card to make purchases online or in shops. You may also withdraw the money with your Payoneer MasterCard. You may end up paying ATM fees, you will not pay cash advance fees like you would with a MasterCard credit card. I cover the Payoneer fees in the section below. In most cases, you may start withdrawing the money with your card around two hours after it is sent.
The other withdrawal option includes a bank transfer where the money is withdrawn to your bank account. To do this, simply link your bank account to your Payoneer account. When you use the Payoneer website, you will see a section for adding your bank card details. Add your bank account details to your Payoneer account, you will be able to withdraw your balance into your bank account. Withdrawals usually take between a few minutes and two hours.
What Are Payoneer’s Fees?
Signing up for Payoneer is free of charge, and there is no additional charge for the MasterCard they send out to you when you first sign up. However, there is a maintenance fee for your MasterCard, which comes to $29.95 per year.
Receiving money into your Payoneer account from a Payoneer user in your own country is free, but only if it is sent in USD, EUR, GBP and JPY. The same is true if you receive those currencies from another country, plus you may receive Chinese CNY from overseas. Receiving global payments via their global payment service is like having a local bank account in China, Japan, the US, the UK or in Europe.
[+] Receiving payments from other Payoneer users is free
[+] You may receive USD, EUR, GBP and JPY
[+] Receiving money via their global payment service is also free
[+] You may receive global payments in USD, EUR, GBP, JPY and CNY
[+] Purchase transactions with your Payoneer MasterCard are free
[-] Your recipient is charged a fee if he or she is paid via a payment request
[-] Payment requests cost the recipient 3%
[-] Payment request costs may be lowered to 1% in the US if an echeck is used
[-] Withdrawing to a bank in a different currency costs 2% of the withdrawal amount
[-] Withdrawing to a bank in the same currency costs a flat rate of $1.50
[-] Your MasterCard has a maintenance fee of $29.95 per year
[-] MasterCard replacements cost $12.95 each
[-] ATM withdrawals cost $3.15 per transactions
[-] Cash back and using bank tellers will also cost you $3.15 per transaction
[-] ATM decline fees are $1 per transaction
[-] ATM inquiry fees are $1 per inquiry
[-] Currency conversions cost you 3.5% of the total converted amount
[-] The cross-border fee is also 3.5%
Mass Payouts With Payoneer
I was a little reluctant to mention the mass payout side of Payoneer because this article is geared towards self-employed people and small businesses that are looking to pay freelancers with Payoneer. The mass payout options are used by emerging businesses and enterprises that have to pay over $30,000 per month. If you are planning to use Payoneer pay $30,000 or more per month, then the mass pay plans may suit you.
You start out with a free Payoneer account, if you do not count the annual charge for your Payoneer MasterCard. Your free account allows you to send $30,000 per month without paying.
If you are sending between $30,000 and $150,000 per month, then you will need to use their Emerging Business account, which also includes a more powerful mass payout platform, and allows you to scale globally with their cross-border platform.
If you are planning to send more than $150,000 per month to other people and businesses, then you need the Enterprise account, which is the most expensive account. It is the same as the Emerging Business account, but it is easier to use if you have tens to hundreds of people to pay.
Things To Watch Out For
Their customer service is pretty poor, which means your pleas for help will go unanswered if you have any problems. Even simple problems such as losing your card can turn into a hassle because they block your card and then make it difficult for you to get a new card. They may also make it difficult for you to unblock your account.
The customer service department is happy to leave you without any answers. It is almost as if the customer service staff have learned that you will go away if you are either ignored or if you are offered scripted advice. Actually getting a straight and useful answer out of the customer service staff is usually impossible unless you have a very simple problem.
Despite the fact that the company allows users to accept 150 currencies, you may only use four, or maybe five if you are using their global payment system. If you receive money in other currencies, then you are expected to convert the money into USD, EUR, GBP, JPY or CNY before you are able to use it. You are given access to more currencies if you sign up for their paid subscription services.
The MasterCard you are issued is a limited MasterCard that is unable to do things that other MasterCards are. The most notable one is gambling. There are other MasterCard cards that allow you to pay gambling websites, but the Payoneer card is a limited card, which means you are unable to use it to pay for gambling.
Conclusion – What Have You Learned?
Now you know how to pay freelancers with Payoneer, you know about their fees, and you know how their system works. Do be careful before you sign up with Payoneer because they have a lot of negative user reviews, and some of them are well deserved. The negative reviews revolving around their customer service department are certainly true. Other negative reviews seem to target problems that Payoneer has fixed, especially with regards to loading money into your account because they only allow people with Enterprise or Emerging Business accounts to load money into Payoneer.
Payoneer may turn out to be the payment system that streamlines your payment process. It may make your payment process quicker and cheaper too. Just be sure to take it slow to start with. Learn the system and make smaller payments at first to test it out. The company is not as bad as it seems from all the negative online user reviews. Most of their negative reviews wouldn’t exist at all if Payoneer would get off its ass and start training and paying some decent quality customer support staff.