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Non-US sellers currently using PayPal for withdrawal can save a lot of money from reading this!

kno010

By kno010
in Tips from Sellers

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kno010 Explorer

kno010

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TL;DR: Payoneer is cheaper than PayPal for sellers that need to convert USD to their local currency, switching to a different method of withdraw can save up to 2% on all withdraws.

The only purpose of this post is to help sellers save money. This is not a sponsored post or any form of advertisement, and I will not be including a referral link or anything else that would give me any economic intensive to promote this service.

A problem a lot of us faces is that PayPal’s exchange rate from USD to our local currencies is often up to 4% worse than the actual market rate (even though PayPal like to say they have no fees). Don’t trust the fees PayPal says they charge you, instead compare the rate you get from PayPal with the true rate easily found by googling “USD to X” (replace your X with your local currency).

Payoneer is also a option for withdrawing from Fiverr and charges only a 2% fee for converting USD to any other currency and is therefore always cheaper than PayPal for this purpose. I am from Norway and therefore have to convert all of my earned USD to NOK. Currently PayPal gives me 9.61 NOK for per 1 USD while Payoneer gives me 9.80 for per 1 USD. This is a pretty big difference when exchanging a lot of money.

I always knew that Payoneer had a lot more favorable currency conversion rate than PayPal, but I always used PayPal instead because of this article https://sellers.fiverr.com/en/article/withdrawing-funds and multiple other official Fiverr statements saying that there is a $3 withdraw fee per withdraw using the Payoneer method. A few months ago I figured out that this was just another case of Fiverr misleading its customers with inaccurate information. Turns out there was never a $3 fee, and over the years I have lost literally hundreds of dollars because of this misinformation causing me to choose the less favorable method of withdrawal. Effectively saving 2% on every withdraw will really add up quickly for active sellers. I have used Payoneer for a few months now and can confirm that it is just as convenient as PayPal, and there is no hidden fees. The only fee you pay for using Payoneer to withdraw to your bank is the 2% when changing between currencies.

So if you currently use PayPal to withdraw and convert your earnings to your local currency you should definitely look into using Payoneer instead. It is the option named “Bank Transfer” with the orange logo with a “y” shape in the middle.

And one last tip that I unfortunately did not know about when signing up for Payoneer is that if you use a referral link to sign up you will get $25 for free after you use Payoneer to receive $1000. You should definitely use someones link to make sure you get that free money, but to make sure this post wont be falsely seen as self promotion or spam I will not include my own link here. Please google for a referral link to make sure you get that free money if you are going to sign up anyways, you might even be able to find a promotion giving more than $25 if you dig around a little.

I will try to answer any questions you guys might have since I have some experience with using both PayPal and Payoneer for Fiverr withdrawals. Let me know if something was not clear.

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kno010 Explorer

kno010

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That’s very helpful. But it’s a long post and people dislike reading. I wish it were about only two paragraphs.

I will edit in a TL;DR 🙂

But I would recommend reading everything to get all the information.

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kno010 Explorer

kno010

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I’m not sure if I’m giving accurate information so take it with a grain of salt and feel free to correct it, but as far as I know if you signup using Fiverr’s link you won’t be charged the annual fee which is $29 I believe, so I don’t think signing up through an affiliate link is the best option unless you can somehow combine both.

Everything else is the same I found and I now use Payoneer exclusively as they have a way more transparent policy regarding their 2% spread, and with PayPal you never know for sure.

The account fee is only charged if you have not had at least one transaction in your Payoneer account or on your Payoneer Card over the previous twelve months and have a balance in your account. Inactivity fees are pretty normal for companies like these to avoid money getting left behind forever in abandoned accounts and go to waste. To the best of my knowlege using Fiverr’s link wont give you any advantages and you lose out on the referral bonus.

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kno010 Explorer

kno010

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No, I’m not talking about the inactivity fee. I just went to Payoneer’s website and I was referring to their card annual fee which is 29.95.

Again if you can combine them both it’d be great so I’d recommend people that haven’t signed up yet to have a look, but keep in mind that if not possible I’d rather not pay $29.95 each year then getting a one time $25 credit.

I was not aware of that fee since I don’t use the card. For people just wanting the money directly to their bank account the referral bonus will be preferable, but if what you are saying about the card is true then that is definitely something that should be looked into.

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simoavolte Newbie

simoavolte

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I also recently started using Payoneer, but to convert my dollars into euros, I transferred them to my TransferWise account and there, I converted them into euros, knowing that the lowest exchange rate and lowest fees had been applied to me.

I tried to convert them on Payoneer in euros but the exchange rate would have been higher and I would have received less euros (also taking into account the 1% or 2%, now I don’t remember exactly, that Payoneer takes to transfer the money to TransferWise).

I made all my previous withdrawals with PayPal and, with PayPal, the exchange rate from dollars to euros is really overpriced.

I don’t have very precise data but usually the exchange rate of PayPal is around 0.04 percentage points higher than the real one. With all the transfers I made, I changed my dollars into euros with an exchange rate of around 0.02 percentage points higher than the real one. So, I believe this is the cheapest method to convert dollars into another currency (for me euros).

The only thing I don’t know and didn’t take into account is, as @urdeke said, *if I have to pay the 29.95 annual year* to own the card. But I believe that, even taking into account those almost 30, the method I explained earlier is always more convenient.

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bodmas Contributor

bodmas

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Look what you did, now people can’t withdraw their money using Payoneer. Error: "withdrawal was not completed. please try again or contact customer support for more details."

@marinapomorac I think the issue is from Fiverr site because I have been using payoneer over the time, I withdrew recently like 3 days ago and everything went smoothly, I received my funds to my payoneer Account within one minute.

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bodmas Contributor

bodmas

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😃 I was being sarcastic since he is spreading the love for Payoneer lately little too much.

@marinapomorac actually payoneer is really good and I have been enjoying there service, I am using payoneer because PayPal is not available for my country… And I can say, payoneer is really ok for freelancer.

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simoavolte Newbie

simoavolte

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Interesting to see how you guys are getting something different than me.

Here’s what I have if I try to withdraw U$100 and convert it to Euros, since I’ll only consider Payoneer I’ll omit its fees to withdraw from Fiverr.

As you said there’s a 2% fee to transfer it from Payoneer to Transferwise

So the remaining U$98 would then become around €88.19

If however I do straight from Payoneer I’d receive €89.88 instead

Is there anything I’m not considering it?

I have no accurate data. But I remember doing the simulation and, converting the money into Payoneer, the result was less (taking into account the 1% or 2% commission, now I don’t remember exactly, to move the money to TransferWise).

By doing the simulation with TransferWise instead the result was higher. And, for this reason, I decided to transfer everything there.

Next time, try to do the simulation on both websites. No need to have a TransferWise account, the website itself allows you to do a simulation.

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donnovan86 Grand Master

donnovan86

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A few days ago the same thing happened to PayPal. They will fix the problem.

I don’t use Payoneer myself, just noticed and shared it with everyone else that does use it.

Of course they will solve it, as far as I can see it’s clear some important updates are coming to Fiverr and those messed up the impressions and payment systems. Otherwise I can’t explain these problems. nevertheless, they will get solved.

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torrod Newbie

torrod

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My personal opinion is that fiverr themselves could also do the afford to make things payable in euros/JPY/GBP. Since these are some major currencies, a lot of sellers will adjust their prices towards these.

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torrod Newbie

torrod

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My personal opinion is that fiverr themselves could also do the afford to make things payable in euros/JPY/GBP. Since these are some major currencies, a lot of sellers will adjust their prices towards these.

Mostly for custom offers by the way. With the regular offers this is already possible

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