Simplifying Payoneer Fees in India: Your Complete Guide (2024)

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% 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.

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:

Fixed Fees for Same Currency Withdrawals:

If you withdraw funds in the same currency in which the payment was made, the following flat fees apply:

USD to USD: $1.50

EUR to EUR: €1.50

GBP to GBP: £1.50

This fee applies only if your bank account is in a country where the official currency matches the account’s currency. For example, if you have a USD bank account in the U.S. and your client pays in USD, you can withdraw the payment for a flat fee of $1.50. However, if your USD account is in a different country, like India, the flat fee doesn’t apply.

Different Currency Withdrawals:

This typically applies to international payments. If you withdraw funds in a different currency, a 2% 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 is inactive for 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: 2% forex markup

Therefore, the effective exchange rate = INR 82.32

USD 8000 at the effective forex rate = 8000*82.32 = INR 658,560

Payoneer Fees = INR (672,000- 658,560) = INR 13,440

So, for your USD 8,000 payment, you'll actually receive INR 658,560. The remaining INR 13,440 will be deducted as Payoneer fees.

Payoneer Fees for Receiving and Withdrawing USD 8000 via Credit Card

Now, let’s consider the same situation where you receive a payment of USD 8,000, but this time it’s through a credit card.

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 credit card payments: 3%

Payment post 3% deduction = USD 7760

Payoneer Fees for withdrawing payment in different currencies: 2% forex markup

Therefore, the effective exchange rate = INR 82.32

USD 7760 at the effective FX rate = 7760*82.32 = INR 638803

Payoneer Fees = INR (672,000-638,803) = INR 33197

So, for your USD 8,000 payment, you'll receive INR 638, 803. The remaining INR 33197 will be deducted as Payoneer fees.

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 658,560 after deducting INR 13,440 in fees. By choosing Skydo, you save INR 11,004 on the same transaction.

So switch to Skydo today and save more while getting paid!