Payoneer Charges: Full Breakdown & Hidden Fees Explained

Payoneer is a global payment system for freelancers, remote workers, e-commerce merchants, and service providers worldwide. It's known for handling hassle-free global transactions and payouts.

If you've ever questioned whether those "free" transfers really are free, or why your balance looks lower than it should after withdrawing money, don't worry, you're not alone. 

Here, we'll break down all Payoneer fees, seen and unseen, so you know exactly what you're paying and how to avoid unnecessary costs.

• Payoneer has hidden fees. Although opening an account is free, Payoneer charges fees such as FX markups of up to 2%, transaction fees, and an inactivity charge every year. These charges are not always disclosed initially and can substantially cut down your earnings in the long term.

• Transfers between Payoneer users or through partner marketplaces are free. But paying sellers using a credit card costs 3%, while ACH payments cost 1%. These add up if you're sending regular payouts or running a business.

• Unless you get at least $2,000 in payouts within 12 months, Payoneer charges a $29.95 inactivity fee. This can be an unexpected fee for freelancers or companies that experience seasonal or irregular income streams. By keeping the account live with transactions, you can avoid this unnecessary fee. 

• The Payoneer Prepaid Mastercard is not supported by users in India. Even where supported, users have other fees such as an annual fee of $29.95, ATM withdrawal fees, and foreign exchange conversion rates to pay, making it expensive for heavy use.

Payoneer allows users to receive payments, withdraw money, exchange currencies, and send cross-border payments. The platform promises no setup fees, but most users fail to consider transaction fees, currency exchange, card usage, and inactivity.

Transaction fees are charged when you withdraw, receive, or send money. 

Currency conversion fees occur when you exchange money from one currency to another (i.e., USD to INR). 

There may also be card usage fees and an annual fee if you don't get 2,000 USD or its equivalent in payments for 12 months.

These charges may be percentage fees, flat fees, or embedded in exchange rates, making it difficult to calculate your actual costs, especially when working with multiple currencies or receiving numerous payments.

It is free and simple to sign up for a Payoneer account, but inactivity of the account for 12 months or the use of the prepaid card's features can incur a $29.95 fee.

Here is what you can expect:

Account setup: Free

Setting up a Payoneer account is completely free. You can sign up, confirm, and begin receiving money without any initial payment.

Annual account maintenance fee: None by default

Standard Payoneer accounts do not have annual account maintenance charges. But for Payoneer Prepaid Mastercard, there is an annual charge of $29.95.

Inactivity fee: $29.95

If you don't use your account or receive a payment equivalent to 2,000 USD for 12 consecutive months, Payoneer will charge an inactivity fee on your balance. 

Accepting funds via Payoneer can be free or charged, based on the source and channel. Payments from marketplaces are free of charge, but client payments and cross-border transfers might be fee-based.

Cross-border payment fees include currency conversion, international transfers, and intermediary banks.

Here's how various channels compare in terms of charges:

Marketplaces 

Payoneer maintains direct connections with most marketplaces, ensuring that fund transfers are hassle-free.

Fee: Free (platform fees are applicable)

Example: If you are a freelancer at Upwork, your $500 payment from a client will be deposited into your Payoneer account without any transfer fee. However, if Upwork charges 20% platform fees, then $400 will be transferred. 

Global payment service (Receiving accounts in USD, EUR, GBP)

Payoneer offers users virtual USD, EUR, GBP, AUD, CAD, and more receiving accounts, enabling businesses to receive funds like a local. 

ACH payments (U.S.): 1% fee

Other currencies: Free

Example: A US client pays $ 1,000 via ACH to your Payoneer USD account; you'll receive $990. However, if it were EUR, you would receive the entire €1,000 as it is. 

Client payments

Payoneer users can send "Request a Payment" service.

Credit Card: 3.2% transaction fees + 0.49 USD for every transfer. 

Example: If a client pays your $500 invoice via credit card, you'll receive $483.51 after fees.

eCheck (U.S. only): 1%

Example: An American client makes a payment of $1,000 to you through eCheck. After a 1% deduction, you receive $990.

Payoneer-to-Payoneer transfer: Free

Example: If another Payoneer user pays you $250, you get the entire $250 instantly.

Though convenient, card processing charges are high, particularly for large invoices.

Although local withdrawal charges appear to be free, can cut deep. Payoneer charges a currency conversion fees of 2% for and a flat fee of $1.50 for same currency withdrawal. 

Here's what to look out for:

To local bank (in local currency)

Fee: No flat fee

FX markup: Up to 2% above mid-market rate

Example: You want to exchange $1,000 into an INR bank account. If the true exchange rate is ₹86/USD, you'd receive ₹86,000. But with a 2% FX spread, you may end up getting just about ₹84,280. That's ₹1,720 quietly lost in conversion.

Tip: This cost adds up over multiple withdrawals! To minimize fees, batch your payouts where possible.

This is where the hidden fees creep in. The 2% FX spread tends to fly under the radar but can weigh heavily over the long run.

To same-currency bank account (e.g., USD to USD)

Flat withdrawal charges: $1.50 per withdrawal

Example: When you withdraw $500 to your U.S. dollar account. You receive $498.50, with no loss due to exchange rates.

Note: This option avoids currency conversion fees, but may not be available in all countries.

Although there's no apparent local currency withdrawal charges, the actual charge lies in the exchange rate margin.

The Payoneer Prepaid Mastercard enables users to make direct payments from their Payoneer balance. However, it is not available in India. 

A breakdown of the fees is given below:

Payoneer also allows you to transfer funds to suppliers, staff, or other freelancers. Here's how much it costs:

1. To another Payoneer user: Free. Example: You compensate your designer (who also has a Payoneer account) for $250 worth of work. No charges are incurred. They get the complete $250 immediately.

1. To vendors (funded by card): 3%. Example: You pay your virtual assistant $500 using your credit card. A 3% charge amounts to $515, and your assistant receives $500.

1. To vendors (ACH): 1%. Example: Your copywriter based in the U.S. earns $600 when you pay him through eCheck. A 1% charge equals your total charge of $606.

For repeated payouts, especially for global contractors, these charges can affect your profitability.

Payonner charges hidden fees through currency withdrawal and card services. Here is where most Payoneer users pay fees without knowing:

Even when you're not paying overt fees, FX spreads are factored into conversion rates and not always disclosed clearly.

Most Payoneer users do not know these fees until they have already been taken:

Inactivity fee: $29.95/year

Refund processing: May not credit the full amount

ATM-related charges: Extra fees from ATM providers. Payoneer charges $3.15, €2.50, or £1.95 per transaction.

Fees for transferring balances between currencies: 0.5% above existing mid-market rates. 

When comparing cross-border payment fees, it's important to consider the currency exchange spreads, and user-friendliness, along with the costs. 

Below is a table that compares how Payoneer does with Wise, PayPal, and Xflow:

Looking to get the most out of your Payoneer account without excess expenses? Try these tips:

1. Withdraw in the currency of your receiving account

1. Send large amounts less often to minimize repeated flat fees

1. Watch FX rates before making currency exchanges.

1. Be active to prevent the $29.95 inactivity charge

Payoneer is convenient, yet at a cost most users are unaware of. The currency conversion fees, inactivity account fees, and transaction fees quickly add up, particularly for growing businesses.

Xflow shines light on the equation. With our FX AI Analyst, track and forecast your FX costs with 0% FX markup, allowing you to have complete transparency over what you're truly receiving. Designed with transparency, speed, and control in mind, it's a more intelligent way to receive cross-border payments.

Sign up today and simplify your global inflows with faster, cheaper, and fully compliant solutions!