Why I Am Switching From PayPal to Payoneer
Jaycee De Guzman

Jaycee De Guzman

Hi! I'm Jaycee De Guzman. I have helped thousands of Filipinos trade independently and execute investment plans profitably through the Stock Signals Philippines. I have also helped thousands of international clients and businesses from 100+ countries build their online presence and boost their sales through iPresence Business Solutions. Read my About Me page.
Jaycee De Guzman

I receive payment in USD for my digital marketing business – iPresence Business Solutions. I’ve been a PayPal user for several years already. I started to find another merchant when they raised their conversion rates from 2% to 4%. Can I tell you that even a 1-percent increase on fees is a lot in business?

PayPal charges 4.4% + $0.30 per payment received.

When I withdraw the money from PayPal to my local bank account, PayPal charges a conversion fee (forex) of 4%.

PayPal takes nearly 9% of my gross income.

On the other hand, Payoneer charges 3% per payment received via card.

When I withdraw money from Payoneer to my local bank account, Payoneer charges a conversion fee (forex) of 2% only.

Payoneer takes 5% of my gross income.

The difference: 4%

I am slowly transitioning all my clients from PayPal to Payoneer because I want to save 4% every year from merchant fees.

At a glance, that 4% may not seem significant, but if we’re talking about a gross sale of, let’s say, P10M a year, that’s P400,000.

That’s a sizable amount that can fund incentive and training programs or corporal works of mercy in your organization.

The thing I like about Payoneer is that there’s no fee when you receive payment from another Payoneer user. The only fee you will get is when you withdraw your USD from Payoneer to your local bank account (2% of the amount).

Whereas with PayPal, there’s still that fee of 4.4% of the gross sale + $0.30 even when your customer pays you with his PayPal balance.

Also, Payoneer can waive fees made through Automated Clearing House (ACH) or e-checks and can reduce the conversion fee (forex) from 2% to 1.8% when you sustain total gross monthly sales of at least $10,000.00 for two months.

ACH payments are payments made from your client’s company’s bank account to your Payoneer account.

Moreover, Payoneer credits your money into your local bank account faster than PayPal. I experienced getting my money credited to my local bank account in less than 24 hours.

Maybe that was because I withdrew my money early in the morning that’s why it was credited in the evening. I am yet to retry to see if my money will be credited in the evening of the same day again.

I will update this post if I will experience the less-than-24-hour turnaround time again.

I will keep this blog in a work-in-progress mode. I will update you with my journey in using Payoneer.

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