Payoneer Fees in India: A Full Guide
As an Indian business or freelancer earning globally, managing international payments can be a significant challenge. That’s where platforms like Payoneer step in. Payoneer is a global payment platform that facilitates sending and receiving international payments in over 70 currencies. In this article, we’ll explore Payoneer's fees and charges to help you understand the costs involved in receiving international payments in India through Payoneer.
Payoneer Fees India: What you need to know
In India, professionals and businesses can effortlessly make a payment request and receive international payments via Payoneer. With Payoneer, clients can pay you online through various methods, including credit cards, ACH bank debits (US only), and global virtual accounts. You can then withdraw these funds directly into your local bank account.
Additionally, Payoneer offers an enterprise solution that enables businesses to make mass international payouts efficiently.
While opening a Payoneer account is free, many of these services come with associated fees. Let’s take a closer look at Payoneer fee information for sending, receiving, and withdrawing international payments.
Receiving Payment
Payoneer is a popular platform for businesses in the US and around the world to send cross-border payments. The platform offers multiple payment options for your clients, including credit cards and bank transfers. Let's break down the pricing associated with each payment method:
Payoneer to Payoneer Payments: Payments made between Payoneer accounts are free. If both you and your client use Payoneer, opting for this method can help you avoid transaction costs.
Credit Card: If a client pays you via credit card, an additional 3.2%+ $0.49 Payoneer fee on the transaction amount will be applied.
ACH Bank Debit: This option is available only in the US. If your US client pays you via ACH bank debit, you'll incur an additional 1% as Payoneer fees.
Wire Transfer: Your clients can also make SWIFT/Wire transfers via Payoneer. However, please note that direct bank payments may incur a SWIFT fee of USD 20-40. This fee is typically charged by third-party banks before the payment reaches Payoneer, so it isn’t categorized as Payoneer fees.
Local Virtual Accounts: If your clients pay through local virtual accounts, there are no additional Payoneer fees for EUR, GBP etc, but for USD, 1% fee will apply
Withdrawing Payments
Once you receive payment in your Payoneer receiving account, you can withdraw it to your local bank account. However, be aware that Payoneer fees apply depending on the currency in which you withdraw the payment. Let’s break down these fees:
Different Currency Withdrawals:
This typically applies to international payments. If you withdraw funds in a different currency, a 3% forex markup will be applied. For example, if you receive an international payment in USD and withdraw it in your local currency, say, INR, you’ll receive INR 82.32 instead of INR 84 at the prevailing exchange rate.
Additional fees, such as bank processing, landing, or intermediary fees, may also be deducted if applicable.
Annual Account Fee:
Payoneer charges an annual fee of $29.95 if your account has received less than USD 2000 or equivalent payment in 12 months.
Is Payoneer Free in India?
Opening a Payoneer account doesn't come with any registration fee and the platform also offers certain free services like Payoneer to Payoneer transfers. But please note that all the Payoneer fees mentioned above also apply in India.
Payoneer Charges India: How much do I need to pay to receive global payments?
To get a better understanding of Payoneer fees, let’s try to understand how the fee works through certain hypothetical examples.
Payoneer Fees for receiving and Withdrawing USD 8000 via virtual account:
Imagine you receive a payment of USD 8,000 from your client through your virtual account and want to withdraw it in INR. Let’s see the Payoneer fees associated with receiving and withdrawing the same:
Payment Received: USD 8000
Exchange Rate: INR 84 (Approximately as of 19th August 2024)
USD 8000 at live FX rate= 8000*84= INR 672000
Payoneer Fees for withdrawing payment in different currencies: 3% forex markup
Therefore, the effective exchange rate = INR 81.48
USD 8000 at the effective forex rate = 8000*82.32 = INR 651,840
Payoneer Fees = INR (672,000- 651,840) = INR 20,160
So, for your USD 8,000 payment, you'll actually receive INR 651,840. The remaining INR 20,160 will be deducted as Payoneer fees.
Payoneer Fees for Receiving and Withdrawing USD 8000 via Credit Card
Payment Received: USD 8,000
Exchange Rate (Live FX): 84
Amount in INR at Live FX Rate: 8000 × 84 = INR 672,000
Payoneer Fees:
3.2% of USD 8,000 = USD 256
Fixed fee = USD 0.49
Total Payoneer Fees (USD): 256 + 0.49 = USD 256.49
Payment Post Deduction (USD): 8000 - 256.49 = USD 7743.51
Forex Markup for Withdrawing in a Different Currency:
Forex markup = 3%
Effective Exchange Rate: 84 × (1 - 0.03) = 81.48
Amount in INR at Effective FX Rate: 7743.51 × 81.48 = INR 630,941.19
Payoneer Fees in INR:
672,000 - 630,941.19 = INR 41,058.81
Final Amount Received in INR: INR 630,941.19
Total Payoneer Fees Deducted: INR 41,058.81
Payoneer Fees Reviews: What people are saying
People have mixed feelings about Payoneer’s fees. While many users appreciate the platform’s features and simplicity, some are less satisfied with the associated costs. For instance, one user finds Payoneer overall useful but is disappointed with the high forex markup. Another user enjoys the convenience of sending and receiving international payments but is frustrated by the high fees and clunky user interface.
On the other hand, some customers are quite upset with Payoneer’s fees, feeling that the platform charges for nearly every activity. Overall, while many value Payoneer for its convenience, there’s noticeable dissatisfaction with its relatively high costs.
Receiving International payments with Payoneer vs Skydo
We took a close look at Payoneer’s fees for receiving international payments in various scenarios. Now, let’s see how much it would cost to receive the same payment through one of its substitutes, Skydo.
Like Payoneer, Skydo offers international virtual accounts, allowing your clients to pay via these accounts like local bank transfers. However, Skydo operates on a flat fee model: we charge USD 19 for payments up to USD 2,000, and USD 29 for payments between USD 2,001 and USD 10,000. What’s more, Skydo converts your payment at the live Forex rate with no added markup or currency conversion fees. So, if the current rate is USD 1 = INR 84, that’s exactly what you’ll get. Plus, opening and maintaining your Skydo account is completely free.
So, let’s consider receiving a payment of USD 8,000. With Skydo, you’ll only pay a flat fee of USD 29, which equals INR 2,436 at the INR 84 exchange rate. This means you’ll receive INR 669,564 for your USD 8,000 payment.
In contrast, with Payoneer, you would receive INR 651,840 after deducting INR 20,160 in fees. By choosing Skydo, you save INR 17,724 on the same transaction.
So switch to Skydo today and save more while getting paid!
Does Payoneer charge a fee?
Opening a Payoneer account is free. However, there are charges associated with receiving and withdrawing payments through Payoneer.
Is Payoneer free in India?
Is Payoneer or PayPal cheaper?
