Why Payoneer is the Best Online Payment System?


online payment systemGetting paid according to the satisfaction level is the best feeling for a Freelancer. As I’m freelance Blogger, I have withdrawn the payments from different sources and I will share my personal experience on why Payoneer is the best online payment system.

First of all, let’s understand the payment procedure through wire transfer and disadvantages of utilizing it.

Why is Wire Transfer Not Favorable Option for Getting Paid?

Wire transfer is the payment mode in which there is a transfer of money from one person or entity to another done through an electronic medium. Its working is as shown in the below image.

Disadvantages Of Wire Transfer

1. There is less security in the wire transfer.
2. Freelancer often have to face payment delays
3. High and Unaccountable Fees levied on transfers.

You can’t afford to pay high transfer fees and even a loss of single penny will affect you. So there are two popular cross-border B2B transfer companies in India- Paypal & Payoneer.

I will now share how Payoneer wins the race for the online payment system.

Scenario 1

I withdrew my first freelancing payment through wire transfer when I was working for a U.S project.
Sender bank: Bank of America
Receiver bank: Kotak Mahindra Bank
Amount transferred: $150
Wire transfer fee: $35 (transfer fee + transaction fee)
Currency conversion fee: 2.6% above the mid-market rate
Total time is taken for transfer of Payment: One working day
Total amount transferred:
Mid-market rate: 1 USD = 66.38; Currency conversion rate charged by bank = 64.65 (2.6% above mid-market rate)
Currency transferred in USD = $35
Hence, $115*64.65 = INR 7434.75

Inference- Loss of money is unaccountable due to a high transfer fee.

Scenario 2

When I withdrew payment from Pay Pal for my project related to Freelancing writing.
Sender: PayPal US
Receiver bank: PayPal India
Amount transferred: $30
Fee charged to receiver: 4.4% of the amount transferred + 0.30 cents
Currency conversion fee: 2.5% above the mid-market rate
Total time is taken for transfer of payment: 3–5 working days
Total amount transferred:
Mid-market rate: 1 USD = 66.38; currency conversion rate charged by PayPal = 64.72 (2.5% above the mid-market rate)
Currency to be transferred in USD = $28.38
Hence, 28.38*64.72= INR 1836.75

Inference- Fees charged at the receiver’s end is high.

Scenario 3

I withdrew same payment from Payoneer for the next Freelancing writing project.
Sender: Payoneer US
Receiver bank: Local Indian Bank
Amount transferred: $30
Receiving fee: Nil
Currency conversion fee: 2% above the mid-market rate
Total time is taken for transfer of payment: 2–4 working days
Total amount transferred:
Mid-market rate: 1 USD = 66.38; currency conversion rate charged by Payoneer = 65.05 (2% above mid-market rate)
Currency transferred in USD: $30
Hence, 30*65.05 = INR 1951.5

So there is a difference of almost 115 INR in the online payment system and it matters to me.

Also, check Payoneer VS PayPal

Sign Up for Payoneer, load 100$ and get bonus of 50$

I hope this post will help you to take the decision in choosing the best payment model and you get paid up to your satisfaction level for all your hard work.

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Freelance Blogger, Certified Content Marketer, Certified Digital Marketer and Solopreneur of Rank Digitally, a site based on Digital Marketing Tips & Techniques.

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