In today’s global marketplace, the ability to manage financial transactions across borders is not just an advantage—it’s a necessity. Payoneer, a stalwart in the realm of global payment services, has been at the forefront of this financial revolution, facilitating seamless cross-border transactions for businesses, freelancers, and online sellers around the world. As we step into 2024, Payoneer continues to evolve, adapting to the changing dynamics of global finance with innovative solutions and robust technologies.
This essay delves deep into the offerings of Payoneer in 2024, reviewing its services, technological advancements, and user experiences. Through a detailed analysis, we aim to understand how Payoneer stands out in the competitive landscape of financial services and how it supports its users in navigating the complexities of international payments.
Consider the story of “Elena,” a small business owner from Manila. Elena’s journey began with an online modest craft store, but her ambition was to take her unique handcrafted products to a global audience. Payoneer enabled her to connect with buyers across continents, manage earnings in multiple currencies, and grow her business beyond the local market—all without the need for a local bank account in every country she sold to. Elena’s success story is just one of the many that have been facilitated by Payoneer’s comprehensive financial solutions.
In the following sections, we will explore Payoneer’s current services and evaluate the platform’s effectiveness in meeting the needs of its diverse user base. From the technological integrations that streamline payment processes to the personalized customer support that addresses user concerns, we will provide a holistic review of Payoneer as it stands today.
What is Payoneer?
Payoneer, founded in 2005, has steadily grown into one of the most reliable and expansive financial services companies dedicated to empowering global commerce. Over the years, it has helped millions of businesses and individuals overcome the hurdles of cross-border payments, making it easier for them to engage in international trade. By 2024, Payoneer has not only expanded its geographic footprint but also its suite of services, catering to a diverse range of industries from e-commerce and freelancing to manufacturing and digital marketing.
Historical Development
The story of Payoneer began in the early 2000s when it was established with a vision to simplify the way businesses and individuals receive and send money globally. Over the years, Payoneer has embraced changes in the global economic environment, technology advancements, and regulatory landscapes, adapting its models to meet the evolving needs of its users. Milestones in its journey include the introduction of multi-currency accounts, the expansion into new markets in Asia and Latin America, and partnerships with major e-commerce platforms like Amazon and eBay.
Achievements by 2024
By 2024, Payoneer has recorded several notable achievements:
- Global Reach: Operating in over 200 countries and territories, Payoneer has significantly widened its accessibility, making it a global leader in the fintech space.
- Technological Innovations: Introduction of advanced security protocols and AI-driven tools for fraud detection to ensure safe and secure transactions.
- Regulatory Compliance: Achieving compliance with the latest international financial regulations, enhancing trust and reliability among users.
- Sustainability Initiatives: Commitment to environmental sustainability through the implementation of green policies in its operations and digital transformation efforts that minimize the need for physical banking resources.
Key Financial Data
- User Growth: As of 2024, Payoneer serves over 5 million customers, with a 25% growth rate observed over the past year.
- Financial Volume: The total volume of transactions processed annually has surpassed $200 billion, reflecting the trust and reliance users place in Payoneer’s services.
- Revenue and Profitability: Steady year-on-year revenue growth with an increased focus on sustainable profitability, driven by innovative financial products and customer-centric solutions.
Key Features
Payoneer’s service portfolio in 2024 encompasses a range of features designed to meet the diverse needs of its global user base, from individual freelancers to large enterprises. This section highlights Payoneer’s core offerings and the technological enhancements that have been introduced in the current year, setting new standards in the fintech industry.
Core Services
Payoneer’s commitment to facilitating effortless international transactions is reflected in its comprehensive suite of services:
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Receiving Accounts: Your Gateway to Global Markets
A standout feature of Payoneer is its provision of receiving accounts in major currencies such as USD, EUR, GBP, JPY, and CNY. These virtual bank accounts enable users to receive payments as if they had local bank accounts in these key markets, which is especially beneficial for freelancers and businesses that need to accept payments from overseas clients.
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Marketplace and Network Integrations
Integrations with major marketplaces and networks like Amazon, eBay, Upwork, and Airbnb make Payoneer an indispensable tool for e-commerce sellers and freelancers. Users can easily link their Payoneer accounts to these platforms to receive payments, streamlining the financial management of their online activities.
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Flexible Payment Withdrawal Options
Payoneer also offers versatile withdrawal options, allowing users to transfer funds to their local bank accounts, withdraw cash at ATMs worldwide via the Payoneer card, or make cost-free payments to other Payoneer users. This flexibility is particularly valuable in regions with underdeveloped banking systems, providing reliable access to funds.
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Currency Conversion
Payoneer offers competitive currency conversion rates for transactions involving currency exchange. The fees are transparent, typically around 0.5%, facilitating cost-effective conversions, such as from USD to EUR.
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Comprehensive Security Measures
Recognizing the importance of security in financial transactions, Payoneer employs stringent security protocols to safeguard user data and funds. This includes the use of two-factor authentication, SSL encryption, and ongoing monitoring of transactions to detect and prevent fraud, ensuring adherence to global regulatory standards.
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Pre-paid Card
Payoneer offers both physical and virtual Mastercard cards, linked to Payoneer account balances in USD, EUR, GBP, or CAD, usable anywhere Mastercard is accepted, including ATMs, stores, or online. Users can top up their card to spend in their chosen currency, choose the base currency during card order, and obtain multiple virtual cards depending on account conditions, enhancing transaction flexibility and security. Additionally, cardholders benefit from cashback rewards on all eligible business purchases, with rewards credited by the 5th of each month.
Technological Innovations
In 2024, Payoneer introduced several technological advancements that enhance the functionality and user experience of its platform:
- Enhanced Security Protocols: Leveraging cutting-edge encryption and cybersecurity technologies to protect user data and prevent fraud. Introduction of biometric authentication methods such as fingerprint and facial recognition for account access ensures that security is both rigorous and user-friendly.
- AI-Driven Analytics: Implementation of artificial intelligence to provide users with insights into their financial activities, helping them make informed decisions. AI tools also enhance Payoneer’s operational efficiency, automating routine tasks and improving response times for customer inquiries.
- Blockchain Integration: Adoption of blockchain technology for certain transactions to increase transparency and reduce transaction times. This integration showcases Payoneer’s commitment to leveraging emerging technologies to benefit its users.
Case Study: Tech Startup Integration
To illustrate the impact of these innovations, consider the case of “INX,” a tech startup specializing in educational software. In 2020, INX partnered with Payoneer to handle international transactions and payouts. INX was able to automate payments to its global network of content creators and service providers, significantly reducing administrative overhead and improving payment accuracy. The security and analytical tools provided by Payoneer also allowed INX to monitor transactions in real-time and gain valuable financial insights, facilitating better strategic decision-making.
This integration not only streamlined INX’s operational processes but also enabled the startup to scale its services rapidly, reaching new markets without the typical hurdles associated with international finance.
Pricing Structure and Fees
Understanding the cost associated with using financial services is crucial for businesses and individuals alike. Payoneer strives to provide transparent and competitive pricing for its users, enabling them to access and manage their funds conveniently and affordably. Here’s an in-depth look at the various fees involved with using Payoneer and how they may impact your use of the platform.
Registration and Account Fees
- Account Setup: Registering a Payoneer account is free of charge, offering an accessible entry point for anyone looking to engage in cross-border transactions. This includes setting up virtual accounts and ordering a physical Payoneer card without any upfront fees.
- Inactivity Fee: To encourage active use, Payoneer imposes a $29.95 fee for accounts that remain dormant for over 12 months with transactions totaling less than $2,000. This policy helps maintain operational efficiency while encouraging regular account utilization.
Transaction Fees
- Internal Transfers: Transfers between Payoneer accounts are generally free, facilitating seamless exchanges between users on the platform.
- Credit and Debit Card Fees: Transactions using credit cards are subject to a 3% fee, while those using debit cards incur a lower fee of 1%. This tiered fee structure reflects the varying costs associated with different payment methods.
- Batch Payments: For users needing to send payments to multiple recipients, such as businesses handling payroll, a fee of 2% per transaction applies, enabling efficient processing of up to 200 bank accounts simultaneously.
Currency Conversion Fees
- Dynamic Currency Conversion: Transactions requiring currency conversion involve additional fees. Using a Payoneer MasterCard for conversions incurs a fee of 3.5%, whereas transfers between Payoneer accounts have a more favorable rate of 0.5%, reflecting Payoneer’s commitment to providing cost-effective currency management solutions.
Receiving and Withdrawing Payments
Consider the case of David, an e-commerce entrepreneur from China who sells handcrafted jewelry on Amazon. David regularly receives payments in various currencies, such as USD, EUR, and AUD, and prefers withdrawing his earnings in Chinese Yuan (CNY).
- Withdrawal Fees: When converting and withdrawing funds to a local currency like CNY, Payoneer charges a fee of up to 1.2%. Despite this, David benefits from competitive market rates, which ensures that his earnings are maximized when converted to his local currency.
- Simplified Withdrawals for Same-Currency Accounts: For withdrawals to a bank account in the same currency as the Payoneer balance, fixed fees apply—€1.50 for EUR and £1.50 for GBP. It is crucial that the currency of the bank account matches the currency in the Payoneer account to qualify for these rates.
Additional Considerations
- Local Bank Fees: Users must also consider possible additional fees charged by their local banks for processing, landing, or intermediary services. These are separate from Payoneer’s charges and depend on the policies of the individual financial institutions involved.
Conclusion
While Payoneer does impose fees for certain transactions and services, its commitment to competitive pricing and convenience has made it a favored choice for global financial interactions. With no monthly maintenance fees and minimal charges for most services, Payoneer stands out as a cost-effective solution for individuals and businesses engaged in international commerce.
Pros and Cons
Payoneer offers a range of services tailored to the needs of freelancers, small businesses, and digital service providers engaging in international transactions. While it provides significant advantages, there are also some limitations worth considering. This balanced view will help potential users make informed decisions about using Payoneer for their financial transactions.
Pros
- Cost-Effective Transactions:
- Advantage: Payoneer enables low-cost payments, including fee-free transfers to other Payoneer accounts and a minimal $1.5 fee for withdrawals to a bank account in the same currency as your Payoneer balance.
- Impact: This is particularly beneficial for users like freelancers and small businesses that operate with tight budgets and require cost-efficient payment solutions.
- Ease of Use and Convenience:
- Advantage: The platform is user-friendly, allowing payments to be sent and received easily. Automatic withdrawals to bank accounts and smooth processing with platforms like Stripe enhance user convenience.
- Impact: Users enjoy hassle-free payment processing, which is essential for those who need to manage multiple transactions efficiently.
- Global Accessibility:
- Advantage: Payoneer is supported in over 200 countries and on major freelancing platforms. It offers multi-currency accounts and is available in multiple languages, including recently in Bengali for Bangladeshi users.
- Impact: This makes Payoneer a vital tool for international freelancers and businesses in regions where other payment services like PayPal are unavailable.
- Competitive Exchange Rates:
- Advantage: Payoneer offers favorable exchange rates compared to many competitors, with lower fees for currency conversions between account balances.
- Impact: Users save on conversion costs, which is crucial when dealing with multiple currencies and international clients.
Cons
- Limited Payment Gateway Options:
- Limitation: Payoneer does not provide a payment gateway or POS system, which can limit how businesses receive payments.
- Impact: This is a significant drawback for businesses that require integrated payment solutions for e-commerce.
- Scope of Services:
- Limitation: The platform’s features are more suited to small businesses and individual freelancers rather than large enterprises that might need more advanced payment features.
- Impact: Larger businesses may find Payoneer’s offerings insufficient for their complex needs.
- Customer Support Issues:
- Limitation: Some users have reported delays in customer support response times, especially with urgent queries.
- Impact: This can be frustrating and problematic, particularly when immediate resolution of financial issues is necessary.
- Payment Delays:
- Limitation: Transactions, especially withdrawals to bank accounts, can sometimes take longer than expected, particularly over weekends and public holidays.
- Impact: Delays in accessing funds can be inconvenient and disruptive for users depending on timely payments for their operations.
Conclusion
Payoneer’s strengths lie in its accessibility, cost-effectiveness, and ease of use, making it an excellent choice for small to medium-sized businesses and freelancers worldwide. However, the limitations in payment gateway options and occasional delays in customer support and payment processing should be considered. By weighing these pros and cons, potential users can better decide if Payoneer meets their specific financial needs and operational requirements.
Competitive Analysis: Payoneer vs. Wise
In the financial technology sector, Payoneer and Wise (formerly TransferWise) represent two distinct approaches to managing international payments and financial services. This comparative analysis highlights their core features, advantages, and specific offerings to help users discern which platform best suits their needs, focusing on their performance in international transactions, fee structures, and additional services.
Core Features and Services
- Payoneer:
- Local Currency Accounts: Offers local currency accounts in countries like Canada, Europe, UK, Mexico, Australia, and Japan, facilitating local transactions for international businesses.
- Client Billing: Allows businesses to invoice clients directly through the platform, enhancing ease of payment collection.
- Marketplaces and Networks: Supports seamless payments from major online marketplaces such as Upwork, Amazon, and Airbnb.
- VAT Payments: Provides services to pay UK and EU VAT directly, simplifying tax payments for businesses operating within these regions.
- Mass Payout Services: Enables businesses to execute bulk payments to suppliers, contractors, and employees, which is essential for larger operations.
- Wise:
- Borderless Account: Supports transactions in over 50 currencies with local bank details in GBP, EUR, USD, and AUD, making it easy to receive money like a local.
- Mastercard Branded Debit Card: Offers a versatile debit card for shopping online and offline, with ATM withdrawal capabilities.
- Fee Structure: Notably lower fees for personal and small transactions, with costs ranging from 0.3% to 2% depending on the transaction type and currency.
Competitive Advantages
- Global Reach: Payoneer serves over 200 countries and territories, providing extensive network coverage that benefits large businesses and freelancers working with international clients. Wise, while also international, lists support for 59 countries on its official page.
- Business-Oriented Services: Payoneer offers a broader range of business services, including client billing and mass payout capabilities, making it better suited for companies that handle complex payment arrangements.
- Ease of Use for Smaller Transactions: Wise is more favorable for individuals and small businesses due to its lower fee threshold and more competitive pricing on smaller international payments.
Transaction Capabilities
- Domestic Payments: Both platforms support domestic payments, with Payoneer having a minimum transfer limit of $50. Wise facilitates domestic transactions in EUR and USD without a minimum threshold.
- International Payments: Wise offers more competitive rates for international payments, making it ideal for personal or small business transactions. Payoneer, while also supporting international payments, is geared more towards business transactions and larger transfers.
Fee Comparison
- Wise Fees:
- Money Transfers: Fees range from 0.4% to 2%, varying by currency and payment type.
- Borderless Account Transactions: Converting between currencies in a Borderless account incurs fees of 0.3% to 0.6%.
- Debit Card Usage: No issuance fee for the debit card, with free cash withdrawals up to US$250, and a 2% fee thereafter. Spending from an existing balance is free, but spending without a balance incurs a fee of 0.24% to 3.69%.
Conclusion
Wise is generally preferred for smaller, personal transactions due to its lower fees and ease of use for individual needs. In contrast, Payoneer’s comprehensive services cater more effectively to businesses and freelancers needing to manage diverse and extensive financial operations across multiple countries. Each platform has tailored its services to meet distinct market needs, making them leaders in their respective niches.
User Experience and Customer Support
A crucial component of Payoneer’s success lies in its ability to provide a user-friendly interface and robust customer support. In 2024, Payoneer continues to enhance the user experience by focusing on ease of use, accessibility, and comprehensive customer assistance, ensuring that clients can navigate the platform effortlessly and resolve any issues quickly.
User Interface and Accessibility
- Ease of Navigation: Payoneer’s platform in 2024 boasts a streamlined and intuitive interface, designed to facilitate easy navigation even for users who are not tech-savvy. Important features such as fund transfer, account management, and support are easily accessible, reducing the learning curve for new users.
- Mobile Application: The Payoneer mobile app has been updated with new features that mirror the capabilities of the desktop platform, including instant notifications on transactions, biometric login options, and the ability to manage multiple currencies on the go.
- Language Support: Understanding the global nature of its clientele, Payoneer offers multilingual support on its platform, making it accessible to users in over 20 languages, thereby enhancing the user experience for non-English speakers.
Customer Support Responsiveness
- 24/7 Support Channels: Payoneer provides around-the-clock customer service through multiple channels including live chat, email, and phone support, ensuring that users can receive assistance at any time, from any location.
- Dedicated Account Managers: For business accounts, Payoneer offers dedicated account managers who provide personalized support, helping businesses optimize their financial transactions and troubleshoot any issues that arise.
- Community and Educational Resources: Payoneer maintains a robust online community forum and a comprehensive library of educational materials such as tutorials, webinars, and guides. These resources empower users to self-serve common issues and understand best practices for managing their international payments.
Real-Life Story: Resolving a Transaction Issue
To illustrate the effectiveness of Payoneer’s customer support, consider the experience of “Maria,” a freelance graphic designer from Brazil. Maria encountered a delay in a significant payment from a European client, which was critical for her upcoming project expenses. After reaching out to Payoneer’s customer service via live chat, she was quickly connected to a support agent who helped trace the payment. The issue was identified as a currency conversion delay, and it was promptly resolved. The agent also advised Maria on how to optimize her account settings to expedite future payments.
Maria’s experience highlights not only the responsiveness of Payoneer’s support team but also their proactive approach to ensuring customer satisfaction and trust in the platform.
Future Outlook
As the global financial landscape continues to evolve, Payoneer’s role within it appears promising but requires strategic adaptation to meet emerging demands and capitalize on new opportunities. This section explores the potential future developments for Payoneer, considering technological advancements, market trends, and the expanding needs of its diverse user base.
Strategic Growth Opportunities
- Blockchain Technology Integration:
- Opportunity: Leveraging blockchain technology could enhance Payoneer’s transaction security and speed, particularly in cross-border payments where traditional banking might lag.
- Impact: This could position Payoneer as a leader in fintech innovation, appealing to tech-savvy businesses and individuals looking for secure, cutting-edge payment solutions.
- Expansion into Emerging Markets:
- Opportunity: Many emerging markets are experiencing rapid growth in their digital economies but still face significant financial service limitations.
- Impact: By expanding its services to these regions, Payoneer can tap into a new customer base eager for robust financial solutions, driving growth and market share.
- Development of AI-Driven Financial Services:
- Opportunity: Artificial intelligence can be utilized to offer personalized financial advice, automate customer service responses, and optimize transaction processes.
- Impact: Implementing AI could improve operational efficiency and customer satisfaction, keeping Payoneer competitive in a fast-evolving fintech environment.
Market Trends and Adaptations
- Increased Demand for Digital Payment Solutions:
- Trend: The global shift towards digital and contactless payments is likely to continue growing, spurred by changing consumer behaviors and technological advancements.
- Response: Payoneer can continue to enhance its digital payment platforms, ensuring they are user-friendly, secure, and capable of handling a high volume of transactions.
- Regulatory Compliance and Adaptation:
- Trend: Financial services face stringent regulatory environments that are complex and rapidly changing, particularly in international settings.
- Response: Staying ahead of regulatory changes and ensuring compliance can help Payoneer maintain its reputation and operational integrity across borders.
Potential Challenges
- Intensifying Competition:
- Challenge: As the market for digital payment solutions grows, so does the competition from other fintech companies and traditional banks that are digitizing their services.
- Strategic Response: Payoneer needs to continuously innovate and differentiate its offerings to retain current customers and attract new ones.
- Cybersecurity Threats:
- Challenge: With increased digital transactions comes the increased risk of cyber-attacks and data breaches.
- Strategic Response: Investing in state-of-the-art cybersecurity measures and educating customers on security practices will be crucial for maintaining trust and safeguarding user data.
Conclusion
Looking forward, Payoneer is well-positioned to not only continue its growth trajectory but also to redefine its role in the fintech industry. By focusing on technological innovation, market expansion, and customer-centric solutions, Payoneer can address both current and future challenges, securing its place as a leading global payment platform.
Frequently Asked Questions (FAQ)
This section addresses some of the most common queries users have regarding Payoneer’s services. By providing clear, concise answers, we aim to enhance understanding and help both prospective and current users make the most of what Payoneer has to offer.
1. How does Payoneer handle currency conversions?
Payoneer offers competitive rates for currency conversions. When transferring money between different currencies in your Payoneer account, a fee of 0.5% is typically applied. For transactions using the Payoneer MasterCard, a higher fee of 3% may apply depending on the transaction details. Users are advised to review the specific fees applicable to their transactions in their account settings.
2. What are the fees associated with using Payoneer?
Payoneer charges fees based on the type of transaction:
- Transfers between Payoneer accounts are usually free.
- Bank transfers have a fee of approximately 1%, but this can vary depending on the specific conditions and details of the transaction.
- Credit card payments attract a fee of 3%, and debit card payments have a lower fee of 1%.
3. Can I use Payoneer for my business to send mass payouts?
Yes, Payoneer is well-suited for businesses that need to send mass payouts. The platform allows companies to distribute payments to suppliers, contractors, and employees worldwide efficiently. This service is particularly beneficial for businesses operating internationally and those that need to process payments in multiple currencies.
4. Is there a minimum transaction amount required to use Payoneer?
For Payoneer-to-bank transfers, there is typically a minimum transfer amount of $50. However, this amount can vary depending on the user’s country and the specific transaction requirements. It is advisable to check the most current information directly in your Payoneer account or reach out to customer support for clarification.
5. How secure is Payoneer?
Payoneer prioritizes security and uses advanced technology to protect users’ funds and personal information. This includes encryption, fraud monitoring systems, and secure login practices, such as two-factor authentication. Payoneer continually updates its security measures to address new and emerging threats.
6. How long does it take for a transaction to be processed by Payoneer?
Transaction times can vary based on several factors, including the type of transaction and the countries involved. Typically, transfers between Payoneer accounts are instantaneous, while bank transfers may take 1-3 business days. Transactions over weekends and holidays may experience delays.
7. Can I receive payments from e-commerce platforms through Payoneer?
Yes, Payoneer supports receiving payments from many popular e-commerce platforms such as Amazon, eBay, and Shopify. This makes it a convenient option for online sellers who operate on multiple platforms and need to manage their funds in a unified account.
8. Is Payoneer the same as Wise?
While Payoneer and Wise both offer services for managing and transferring money internationally, they cater to different needs. Payoneer focuses more on providing comprehensive business services like mass payouts, invoicing, and receiving payments from global marketplaces. It is particularly well-suited for freelancers, online sellers, and businesses needing to conduct complex international financial operations. Wise, on the other hand, is optimized for individual and small business users looking for cost-effective, straightforward solutions for cross-border money transfers. Wise is known for its transparency and lower fees for personal money transfers and currency exchanges.
Conclusion
Throughout this detailed review of Payoneer for 2024, we’ve explored the extensive range of services and features that Payoneer offers, assessing its user experience, pricing, and competitive positioning within the global financial services market. As a platform that caters effectively to freelancers, online sellers, and enterprises engaging in international commerce, Payoneer has demonstrated its ability to adapt and thrive in a dynamic financial landscape.
Payoneer’s robust offerings—from local currency accounts to mass payout capabilities and advanced security measures—underscore its commitment to facilitating seamless global transactions. The platform’s intuitive interface and dedicated customer support enhance user engagement and satisfaction, making financial management accessible and straightforward.
However, to maintain its competitive edge and appeal to a broader user base, Payoneer must address certain areas. Enhancing customer support response times, simplifying the fee structure, and expanding services for larger businesses are crucial steps that could improve user experience and operational efficiency. Additionally, Payoneer’s strategic focus on leveraging emerging technologies such as blockchain and AI, along with expanding into underserved markets, will be vital for its continued growth and relevance.
Looking ahead, Payoneer is well-positioned to continue its trajectory of growth. By focusing on technological innovation and customer-centric solutions, Payoneer can further enhance its global footprint and strengthen its role as a leading provider of international payment services.
In conclusion, Payoneer remains a resilient and innovative entity in the fintech space, adept at navigating the complexities of international finance. Its commitment to providing secure, comprehensive, and user-friendly services is expected to solidify its standing as a top choice for managing international financial transactions.
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